The lack of domestic shipping firms has caused difficulties for export companies.

Container shipping costs in Viet Nam have increased fourfold, even eightfold on certain high-demand routes compared to pre-pandemic levels, the latest logistics report by SSI Research has said.

Despite strong objections among businesses, Ho Chi Minh City will start collecting infrastructure and service fees at seaports from July 2021, triggering concerns over logistics cost increases.

Seaport companies still reported positive earnings despite the impacts of the COVID-19 pandemic.

After long expectations, EU businesses now have unprecedented market access to Vietnam’s inland shipping services, which heralds a great deal more competition as well as mounting pressure on the local seaport infrastructure.

Phan Thi Thu Hien, deputy director of the Directorate for Roads of Vietnam, spoke on the transport transaction floor in Vietnam.

Vietnamese exporters can now make origin declarations for their shipments, valued at less than 6,000 euros (US$7,100) each, to the European Union as the European Union-Vietnam Free Trade Agreement (EVFTA) takes effect.

Container loading and unloading service charges should be increased to approach the regional level so investors would not feel hesitant when pouring money into developing seaports.

Vietnam’s logistics market has great opportunities to improve as the EVFTA has been inked and the country is receiving investment inflow from Europe.

Poor infrastructure conditions and weak connections between ports and manufacturing facilities are the biggest hurdles to seaport development.

As the pandemic brings opportunities to the e-commerce sector, the local logistics industry also has a chance to grow.

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.

HCM City is working on a logistics development strategy that would make the city a major logistics hub and reduce logistic costs to 16 per cent of Viet Nam's GDP in 2025.

A trade representative has called for the construction of more deep-water ports in the Mekong River Delta to save money and time for seafood exporters.

Logistics is a crucial component for the Vietnamese e-commerce market to succeed and reach its full potential.

In light of growing trade and foreign direct investment, logistics services have developed significantly in the ASEAN to meet demand.

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 costs in Vietnam account for 20-25 percent Gross Domestic Product (GDP), which is 10 percent higher than other developing nations in the region, the association said.

Vietnam will transport between 500 million and 600 million tonnes of goods this year by sea, the Vietnam Maritime Administration (Vinamarine) has said.