return icon Vietnamnet.vn

Logistics groups roll out schemes to avert doldrums

As the COVID-19 pandemic wreaks havoc on supply chains globally, logistics firms in Vietnam have experienced decline in revenue but are mustering the strength to overcome the challenges ahead.

logistics groups roll out schemes to avert doldrums

Logistics groups roll out schemes to avert doldrums, illustration photo

 

 

Bee Logistics, one of Vietnam’s leading international service providers in the field, has seen a 10 per cent fall in the number of services providing for customers in the first quarter. In the second quarter the dip may reach 50 per cent or even more.

With representative offices in eight countries, including Vietnam’s major trading markets of China and South Korea, the pandemic has significantly delayed Bee’s plan to expand networks, and harmed the business results of its representative offices abroad.

According to the latest survey by the Vietnam Logistics Association (VLA), around 15 per cent of logistics firms have experienced a 50 per cent decline in revenue against 2019. Also, half of them reported a 10-30 per cent decline in logistics services in local and foreign markets so far compared to last year.

Chun How Loh, general director of APL Logistics Vietnam Co., Ltd., said that all sectors of the economy are being impacted including retail and consumer goods, which are some of the key exports of Vietnam. “As necessary measures are taken to combat the virus we expect to see a major downturn, and are preparing to weather the impacts of such downturn for the foreseeable future,” Loh said.

The supply chain impact is uneven across the various industry segments. To mitigate the impact of the COVID-19 crisis, logistics firms have led several initiatives to overcome the tough times. APL Logistics is actively rolling out and accelerating process digitisation to support work from home for all functions except those critical for maintaining operations at its facilities.

APL Logistics was an early adopter of e-invoicing when Vietnam was pushing for it. Currently the company is accelerating other digital solutions, including a remodelling of its operating systems to support these unprecedented times.

For its clients, APL Logistics is also rolling out “flow management” programmes to help them slow down or speed up their supply chains as needed.

Dinh Huu Thanh, CEO of Bee Logistics, told VIR that to mitigate possible losses from COVID-19, the company has focused on diversifying services and increase its professionalism since the beginning of this year, while strengthening customer networks and improving quality of staff, services, and IT applications to increase labour productivity.

According to Thanh, Bee Logistics has made efforts to improve connectivity among kinds of logistics services, for instance, co-ordination among railway, sea freight, and road logistics services. “The company not only offers solutions at cross-border gates to ease risks for customers from changes in the policies, but also solutions for air freight service amid cut of flights,” Thanh said.

Meanwhile, the company keeps updating information and giving consultancy for customers about the markets and import-export procedures. It is also developing bulk cargo services, gauge cargo transportation, and other domestic services.

Bee Logistics expects the government to use financial tools to support businesses such as relaxing times for tax and social insurance payments, reducing cost of bank loans, and creating a healthy business environment in general.

Other measures may include formulating supporting policies for private companies to develop services abroad; developing and performing policies more efficiently; facilitating trade procedures; and studying the advantages of geographical location to develop Vietnam into one of leading logistics transshipment hubs in the region.

Last week, the Ministry of Transport asked the government to assign the Ministry of Finance to consider reducing several taxes for transport businesses. For the civil aviation industry, the ministry has asked the government to exempt import and environmental protection taxes on flight fuel from January 23 to December 31.

In case of difficulties balancing the budget, the ministry expects the government to cut half of these taxes and allow businesses to delay tax payments and budget contributions.

Furthermore, the ministry also asked for reduced or suspended payments for corporate income, personal income and foreign contractor taxes over the same time frame. Businesses are expected to enjoy cuts to VAT on domestic transport over three years. VIR

Thanh Van

EVFTA expected to create great pressure on domestic logistics firms

EVFTA expected to create great pressure on domestic logistics firms

The expected execution of the EU-Vietnam Free Trade Agreement in 2020 will create great pressure on Vietnamese logistics businesses, insiders said.

Logistics firms to lose revenue during pandemic

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.  

MORE NEWS

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.

Mural depicting VN, US’s friendship inaugurated

A ceramic mural, US-VN Friendship, has been inaugurated at the new US-Vietnam Co-operation Centre in Hanoi.

New pact promotes Vietnam-Europe fashion links

Culture, lifestyle and fashion links between Vietnam and Europe will be promoted under a Memorandum of Understanding signed this week by the European Chamber of Commerce in Vietnam (EuroCham Vietnam) and the Aquafina Vietnam International Week.

Vietnam likely to consider nuclear power development

The Economic Committee of the National Assembly (NA) has recently proposed developing nuclear power over the next decades to ensure national energy security and meet the ‘net zero’ goal Vietnam set at the 26th UN Conference on Climate Change (COP26).

Short animated Vietnamese film competes at Cannes Film Festival

“Giac Mo Goi Cuon”, known as “Spring Roll Dream” in English, a short animated film by a young Vietnamese director has been nominated in the La Cinef, a category at the Cannes Film Festival which honours works by students from global film schools.

PM welcomes Intel’s investment expansion in Vietnam

Prime Minister Pham Minh Chinh applauded Intel’s decision to expand its investment in Vietnam while receiving its CEO Patrick Gelsinger in Hanoi on May 27.

Hanoi to build 17 bridges spanning Red River

In addition to the seven existing bridges, Hanoi will have 10 more bridge crossing the Red River, under a development plan to 2030 with a vision towards 2050.

Localities asked to report progress of large FDI projects

The Ministry of Planning and Investment has requested localities to report the execution of large foreign direct investment (FDI) projects that need significant investment and use large land lots.

Opportunities for e-commerce in Vietnam to boom

Recently, e-commerce in Vietnam is assessed to grow robustly. It is forecasted that Vietnam's internet economy will reach US$57 billion by 2025, ranking second in Southeast Asia, after Indonesia.
back_to_top