Vietnam's aviation logistics still at starting point but gathering momentum

When the CEOs of Vietjet Air and Bamboo Airways signed multi-billion dollar contracts on purchasing Boeing aircraft during US President Trump’s visit to Vietnam several months ago, logistics experts hoped the aircraft would include freighters.

No further detailed information has been released, but opinions from well informed insiders say freighters were not ordered.

Vietnam's aviation logistics still at starting point but gathering momentum

Freighters are considered a symbol of a well-developed aviation logistics industry. At present, cargo in Vietnam is carried by passenger aircraft and the volume of commercial goods transported per flight is very limited.

In Vietnam, the products transported by air include mobile phones, tablets, cosmetics, textiles & garments and some farm produce. Air transportation only undertakes a small proportion of total transported goods, but accounts for 25 percent of total export value.

Experts believe that in the coming year, aviation logistics will see robust growth thanks to the e-commerce boom.

The products bought online are mostly ones with small size and weight. Carrying many products in one single flight will reduce the transportation costs to the acceptable level, VND30,000-50,000 per item.

A report showed that the total volume of goods going the airports in Vietnam was 1.13 million tons in 2017 and the figure is expected to rise to 2.5 million tons.

A report showed that the total volume of goods going the airports in Vietnam was 1.13 million tons in 2017 and the figure is expected to rise to 2.5 million tons.

 

Of 1.13 million tons of air cargo, 230,000 tons were domestically transported, while the remaining was internationally. Three Vietnamese airlines, namely Vietnam Airlines, Vietjet Air and Jetstar Pacific, hold 12 percent of international cargo transportation market, while the other 88 percent is being held by 64 foreign carriers which have air routes to Vietnam.

China and South Korea are the two leading countries in importing goods by air to Vietnam, with 74,000 and 57,000 tons imported to Vietnam in 2016, respectively.

The imports were mainly mobile phone accessories, electronic parts for domestic assembling. The US is Vietnam’s leading market in exports by air, with 99,000 tons.

Regarding infrastructure items, only Noi Bai and Tan Son Nhat Airports have separate cargo terminals. At other airports, there is still no area dedicated for cargo handling, let alone an aviation logistics center.

Vietnam Airlines, the nation’s air flag carrier, in anticipation of the increase in the demand for transporting goods by air in Mekong River Delta, is considering setting up an aviation logistics center next to Can Tho Airport.

Kim Chi 

Insiders appeal for tackling logistics bottlenecks in Vietnam

Insiders appeal for tackling logistics bottlenecks in Vietnam

Vietnam needs to untangle bottlenecks facing the logistics sector in order to boost the sectoral development on a par with that of developed countries, insiders have suggested.  

Logistics industry short of 2 million employees

Logistics industry short of 2 million employees

According to the Vietnam Logistics Association, logistics industry lacks of around 2 million employees.

 
 

Other News

.
Vietnam remains world’s largest producer, exporter of cashew nuts
Vietnam remains world’s largest producer, exporter of cashew nuts
BUSINESSicon  26/11/2020 

Vietnam has maintained its position as the world’s largest producer and exporter of cashew nuts in 2020, exporting an estimated 450,000 tonnes of cashew kernels worth 3.2 billion USD, according to the Vietnam Cashew Association (Vinacas).

Investors interested in LNG projects in Van Phong EZ
Investors interested in LNG projects in Van Phong EZ
BUSINESSicon  26/11/2020 

Many foreign and domestic companies are keen on building multibillion-dollar liquefied natural gas power and storage plants in the central province of Khanh Hoa.

Tens of thousands of hotel, bank workers at risk of losing jobs
Tens of thousands of hotel, bank workers at risk of losing jobs
FEATUREicon  26/11/2020 

The rapid development of technology is a threat to workers, as robots can now replace many hotel and bank officers.

E-commerce M&A activities ready to take centre stage
E-commerce M&A activities ready to take centre stage
BUSINESSicon  25/11/2020 

As brick and mortar shopping falls in popularity during the pandemic, online shopping platforms took have increased presence among Vietnamese consumers. 

Reasons that make Vietnam's real estate market appealing
Reasons that make Vietnam's real estate market appealing
BUSINESSicon  26/11/2020 

Economic and political reasons are major factors that make Vietnam a bright market.

Realty stocks are attractive: experts
Realty stocks are attractive: experts
BUSINESSicon  25/11/2020 

Though difficulties caused by COVID-19 were reflected in the business results of listed realty firms, experts are still optimistic about the market. ​

To take full advantage of free trade agreements
To take full advantage of free trade agreements
BUSINESSicon  26/11/2020 

To maximize the advantage of export opportunities from free trade agreements (FTAs), enterprises cannot but take into account the criteria for sustainable development.

Banks to deduct tax payments from clients’ accounts
Banks to deduct tax payments from clients’ accounts
BUSINESSicon  25/11/2020 

Banks will be able to deduct the tax payments of suppliers based in foreign countries—that conduct e-commerce or digital transactions with organizations and individuals in Vietnam—from their bank accounts,

Vietnamese farmers sell farm produce via smartphones
Vietnamese farmers sell farm produce via smartphones
FEATUREicon  25/11/2020 

An eel farm of an older man brings turnover of nearly VND10 billion a year, and 99 percent orders are online. Another farmer sold 26 tons of rambutan by contract after putting goods on online sale.

Aviation industry awaits new bigger bailout
Aviation industry awaits new bigger bailout
FEATUREicon  25/11/2020 

Private airlines including Vietjet Air and Bamboo Airways struggling to survive are looking forward for a new support package to maintain their operations.

Black Friday: World under Covid-19 bans, but Vietnamese excited
Black Friday: World under Covid-19 bans, but Vietnamese excited
BUSINESSicon  24/11/2020 

Around the world, Black Friday this year may be very dim because of Covid-19 pandemic. But in Vietnam, people are enjoying the safety of a "new normal", squeezing together to buy discounted goods at shopping malls.

Tax duties closing in for digital services
Tax duties closing in for digital services
BUSINESSicon  26/11/2020 

Vietnam’s ability to charge taxes from cross-border platforms may soon improve thanks to the Organisation for Economic Co-operation and Development’s new tax rules, focusing on expanding the country’s taxing rights  under international laws.

New M&As in healthcare can evade pandemic uncertainties
New M&As in healthcare can evade pandemic uncertainties
BUSINESSicon  26/11/2020 

Mergers and acquisitions in Vietnam’s healthcare and pharmaceutical sector in 2020 have been held up due to the global health crisis – but prospects remaining enticing thanks to new drivers of interest.

Vietnamese industrial market update – Rise of coastal industrial zones
Vietnamese industrial market update – Rise of coastal industrial zones
BUSINESSicon  24/11/2020 

The demand for industrial property at coastal regions is high, but the supply of industrial land ready to hand over in industrial zones in both regions was scarce.

Improved business environment is the key to FDI not tax and land incentives
Improved business environment is the key to FDI not tax and land incentives
BUSINESSicon  25/11/2020 

ASEAN countries need to choose between recovery based on wasteful competition for investment or coordination, cooperation, and joint hands to generate sustainable tax revenue to spend on health, education,

FDI possible in digital cross-border services
FDI possible in digital cross-border services
BUSINESSicon  24/11/2020 

With regional nations racing to lower their taxes in order to woo more investment, which may dent their coffers, creating feasible policies for collecting taxes is expected to help reach their goals of attracting more high-quality funding.

RCEP will not worsen trade deficit: ministry
RCEP will not worsen trade deficit: ministry
BUSINESSicon  24/11/2020 

The Regional Comprehensive Economic Partnership (RCEP) would not worsen the trade deficit Vietnam was running with signatory markets, according to the Ministry of Industry and Trade.

HCM City hopes to attract investment by allotting more lands in IPs, EPZs for infrastructure
HCM City hopes to attract investment by allotting more lands in IPs, EPZs for infrastructure
BUSINESSicon  24/11/2020 

HCM City authorities plan to offer competitive land rents and other incentives at industrial parks (IPs) and export processing zones (EPZs), and earmark more lands for building infrastructure to attract investment.

HCM City seeks ideas for underground space planning through international competitions
HCM City seeks ideas for underground space planning through international competitions
BUSINESSicon  24/11/2020 

The HCM City Department of Planning and Architecture has reported to the city People’s Committee on underground space planning and underground space management regulations.

RCEP will not make the trade deficit with China worse: MOIT
RCEP will not make the trade deficit with China worse: MOIT
FEATUREicon  24/11/2020 

Worries have been raised that RCEP will lead to a higher trade deficit with partners, especially China. But the Ministry of Industry and Trade (MOIT) doesn’t think so.

 
 
 
Leave your comment on an article

OR QUICK LOGIN