return icon

Logistics firms to lose revenue during pandemic

Fifteen per cent of Vietnam’s logistics firms estimate they will see revenue cut in half this year compared to 2019 because of the Covid-19 pandemic.



Loading goods in Hai Phong Port in the north of Viet Nam. The port is estimated to lose 10-15 per cent of throughput in the first two months because of Covid-19. — Photo

The latest survey conducted by the Viet Nam Logistics Business Association (VLA) in early March also found that more than 50 per cent of firms thought they would lose from 10 and 30 per cent from their last year’s results due to the pandemic.

According to VLA, freight activities have been affected by the decline in rotation and goods suspended by factories in China. Since the outbreak, manufacturing activities in China have been stagnant, leading to low output of exports. As a result, many international shipping lines have had to abandon their activities at Chinese ports due to low cargo volume.

According to data from the General Department of Customs, the import value from China decreased by 7 per cent in the first two months of 2020.

That led a sharp decline in value for items that Viet Nam imported from China, including fabric, fiber, yarn, iron and steel in the first two months this year. Meanwhile, items commonly transported by air, such as phones, computers, and machinery, have lower levels of decline, said VLA.

“As most of the imported materials are to serve manufacturing for export, the prolonged pandemic will affect local exports and indirectly the logistics demand,” the report stated.

A representative of the VLA said as Viet Nam's fleet mainly operated on short routes in Southeast Asia and Northeast Asia, in which the output and turnover of the Chinese market accounted for a major proportion, logistics firms’ result fell badly in the first quarter.

He continued: “Similar to sea transport, many Vietnamese ports also have a relatively high degree of dependence on imports and exports related to the Chinese and Hong Kong markets as they are among the largest hubs in the world.”

According to Rong Viet Securities Company (VDSC), 40 to 45 per cent of the total number of international ships arriving at the northern port of Hai Phong were from Hong Kong and Chinese ports. In the pandemic, they skipped the two destinations and as a result skipped Hai Phong Port.

VDSC estimated container throughput of the northern port could be reduced by 10-15 per cent in the first two months.

In such a situation, VLA asked the Government to reduce 50 per cent of corporate income tax for 2019 and 2020 to help firms overcome difficulties. It also asked the Government to delay and reduce the contributions of those firms to the different insurance funds.

For logistics firms working in the cold storage industry, it asked for a preferential electricity price, which was currently 25 and 30 per cent higher than the electricity prices for other production while asking for incentives such as tax reductions, no late payment penalties for related partners of restaurants, hotels and food supply chains, which were also influenced.

In the longer term, VLA asked the Government to support firms with more trade promotions and enhancing e-commerce, online trading exchanges and online payment.

More importantly, VLA thought: “Viet Nam’s logistics now largely depends on China.” So, it hoped the Government would boost local logistics as well as expand the connectivity with other countries in ASEAN such as Thailand to compensate for the shortage from China during the epidemic.

According to VLA, there were 3,000 logistics firms including ones with less than 50 workers and more than 1,000 workers each in Viet Nam. — VNS

Driving VN logistics with deeper bilateral co-operation

Driving VN logistics with deeper bilateral co-operation

The upcoming implementation of the EU-Vietnam Free Trade Agreement and the accompanying Investment Protection Agreement is driving transformation of Vietnam’s logistics industry.

Vietnam’s logistics wins in US-China trade war

Vietnam’s logistics wins in US-China trade war

Falling one place to 11th in the global index of emerging logistics markets, Viet Nam was still seen as a clear winner in the US-China trade war.  


Joining world logistics passport to facilitate VN's trade

Joining the world logistics passport (WLP) initiative could help enterprises reduce logistics costs and increase competitiveness for exports.

Vietnamese female director’s film project invited to Cannes Film Festival

Tam van phong dao (Knife Throwing Board ) of female director Nguyen Phan Linh Dan is the only developing film project from Southeast Asia invited to attend La Fabrique at the 2022 Cannes Film Festival scheduled to take place from 17 to 28 May 2022.

Real estate brokers scramble to get licences to avoid big fines

The number of real estate brokers flocking to get licences to avoid punishment has skyrocketed.

Experts argue about history requirement, teachers and students wait for decision

History teachers and headmasters of high schools said they are impatient to know the results of the arguments about the teaching of history as the new academic year nears.

Japan to welcome back foreign tourists but not from Vietnam

The Japan National Tourism Organization (JNTO) announced that the Japanese Government had decided to welcome back international visitors from June 10, but Vietnamese will still be restricted from traveling to Japan.

Glass-walking bridge in Moc Chau wins Guinness world record

The Guinness World Records has announced that the Bach Long (White Dragon) glass walking bridge in Vietnam's northern province of Son La is the world's longest glass-bottomed bridge.


Tan Son Nhat airport flights delayed due to rain


FDI disbursement up 7.8 percent in five months

High costs and legal impasses hinder LNG energy development in Vietnam

Too many variables and over-reliance on imports have been hindering Viet Nam's plan to build power plants running on liquefied natural gas (LNG), industry experts have said.

Three Vietnamese military officers awarded UNHQ medal

The United Nations on May 26 awarded its medal to three officers of the Vietnam People’s Army who are working at this organization’s headquarters in New York, USA, on Peacekeeper’s Day (May 29).

Trade revenue set to eclipse 700 billion USD this year

Free trade agreements (FTAs) spurred Vietnam’s bilateral and multilateral trade, with 2022 revenues projected to hit a record 750 billion USD, according to experts.

Government takes action to protect wild birds

Deputy Prime Minister Le Van Thanh has signed a directive to protect migratory and wild birds in Vietnam.

Quang Nam man owns 2,000 antique gardening tools

Collecting old items is how 47-year-old Tran Van Phuc from Quang Nam province describes the previous daily life of the working class to the younger generation.

Tourism booms as people are anxious to travel after Covid lockdowns

Since March, many families have booked long-distance tours for the summer now that the economy has reopened.

Mekong Delta farmers back away from rice as input costs rise

Rice farmers in many Mekong Delta provinces are reducing rice cultivation over rising prices of inputs like fertilisersnbsp;and pesticides.