Viet Nam seeks ways to boost logistics industry to its full potential
- 200
- Business
- 08:51 01/05/2022
DNHN - Viet Nam’s geography gives it a logistical advantage in boosting production, export and logistics services. This year, the Government has set targets of tapping its full potential.
The comment was made by Deputy Minister of Trade and Industry Nguyen Sinh Nhat Tan at a seminar on “Enhancing competitiveness for logistics businesses”, held in Ha Noi on April 28.
Delivering a speech at the seminar, Tan said the Government has identified logistics as an important service industry in the economy. The industry is playing a role in supporting, connecting and boosting socio-economic development, contributing to improving the competitiveness of the economy.
At the seminar, Truong Tan Loc, Marketing Director of Saigon Newport Corporation, said that in April this year the World Bank forecasted the country’s GDP growth to be around 5.3 percent in 2022 and then stabilise to around 6.5 percent next year.
Loc said the country’s signed free trade agreements (FTAs) needed to be more proactively implemented for strong growth in domestic industries, especially in electronics, machinery and equipment, furniture, plastic, textiles and seafood. This was an opportunity to develop port and logistics services to serve the needs of connecting goods with major markets in the world.
Sharing the view of Loc, Pham Thi Lan Huong, general director of Vinafco JSC, said Viet Nam’s logistics industry has a lot of potential but it is fragmented. She noted the number of small and medium-sized businesses accounted for a majority, with 90 percent of them having capital of less than 10 billion VND (434,000 USD).
Currently, the number of businesses providing 3PL (third-party logistics) and 4PL services (fourth-party logistics) remains modest. They account for only 16 percent of the entire logistics industry. Huong said it needed to develop more 3PL and 4PL businesses to push the domestic logistics industry.
Another participant suggested that it was necessary to promote technology application in the domestic logistics industry to improve efficiency and optimise productivity, to save costs for logistics businesses. In addition, a close connection between logistics businesses was also a need to improve operational efficiency involving production, logistics and transport.
At the seminar, representatives of the authorities also pointed out the shortcomings in import and export activities in 2021, and logistics activities of Viet Nam.
The Import and Export Report 2021 points out significant problems such as the continued high level of trade deficit or surplus for some markets, which is likely to affect sustainable import and export activities.
The export growth of some commodities is mainly based on the increase in quantity and price due to the scarce supply in the market. Exported goods still face congestion at border gates and seaports, especially from the end of 2021.
In logistics services, although there has been a strong development recorded, the logistics industry still has many limitations. One of them is that logistics enterprises have not yet developed up to the potential of the industry.
According to data from the Vietnam Logistics Business Association, currently, 90 percent of logistics enterprises operating are Vietnamese enterprises. However, they only account for about 30 percent of the market share. The rest belongs to foreign enterprises.
There are many enterprises, but mostly small ones, with limited scale in the capital, human resources and experience.
In the framework of the seminar, the Vietnam Import and Export Report 2021 compiled by the Ministry of Trade and Industry was also announced, highlighting the positive points in international trade activities. Despite many difficulties due to the COVID-19 pandemic, the country's imports and exports still reached a record with a total turnover of 668.55 billion USD. While exports reached more than 336.3 billion USD, up 19 percent compared to 2020; imports reached 332.2 billion USD, up 26.5 percent; trade surplus of more than 4 billion USD.
With this result, Vietnam has entered the top 20 economies in terms of international trade. The export structure has changed positively, and the area of export products is diversified.
The group of processed products continues to be the driving force for the overall growth of exports. Vietnam has also made efforts to diversify export and import markets to meet the needs of domestic production and consumption.
Deputy Minister of Industry and Trade Tan passed comments on the results achieved in import and export activities in 202 and international trade activities of Viet Nam.
The total import and export turnover of goods from 2010 up to now has increased 4.25 times, up from 157.1 billion USD in 2010 to 668.5 billion USD in 2021. He said that the positive result was thanks to the contribution of the logistics service.
“During the COVID-19 pandemic, despite many difficulties, Vietnamese logistics enterprises adapted and maintained their supply chains. They have supported other enterprises in finding solutions to optimise logistics activities, saving costs and time.
They propose the state's strategic issues, contributing to maintaining and stabilising the supply chain and improving the competitiveness of Vietnamese goods and businesses. Businesses also make efforts to modernise technology to improve service quality and diversify services to overcome difficulties," said the Deputy Minister.
Source: VNA
Related news
- Why is it necessary to promote the process of green technology innovation in agriculture?
- Digital transformation in the retail industry – Towards sustainable development
- The banking sector sacrificed profits to support the economy
- The billionaire who donated 1 million USD to help Vietnam recover from the typhoon
- Practical applications of carbon credits in the economy. Part XXI:Carboncor Asphalt - An effective solution for Vietnam to achieve net zero emissions
- Ho Chi Minh City allocated funding to support small and medium enterprises in digital transformation
- Real estate businesses and macroeconomic challenges
- VINASME and VISA collaborated to promote financial solutions for small and medium-sized enterprises
- Vietnamese brands reaching international markets
- Hòa Phát Group leaders receive major pay hike during steel market crisis
- Apartment prices continue to rise far beyond workers' incomes
- Ho Chi Minh City: Economic recovery, yet the number of businesses exiting the market remains high
- General Secretary and President Tô Lâm: "Although it is a small and medium-sized business community, it is very large..."
- Practical applications of carbon credits in the economy. Part XI: Bridging policy and strategy for the carbon credit market
- Vietnamese users pay special attention to security when using OTT applications
- Is the gold price stabilization policy truly effective?
- Yen Bai: Implementing the plan to manage and eliminate ozone-depleting substances and greenhouse gases
- FPT's strategic expansion in Japan
- Mastering Real Estate Business Law to be ready for the next growth cycle
- The Vietnam Association of Small and Medium Enterprises honors an audience with the General Secretary and President Tô Lâm
Đọc thêm Business
The banking sector sacrificed profits to support the economy
To date, the credit market has recorded impressive growth, exceeding 6.9% compared to last year. This shows that banks are actively pushing capital into production and business.
Dongtam Group partners with CS Wind Corp to build a wind power equipment factory
Dong Tam Group (DTG) and CS Wind Corporation (CS WIND) have officially signed a Memorandum of Understanding (MOU).
Young entrepreneurs innovating but must ensure stable business foundations
"The world is undergoing significant changes, bringing both opportunities and challenges for businesses, especially in fields such as artificial intelligence, international trade, and investment"
Why is Vietnam always attractive to foreign businesses?
Vietnam attracts foreign businesses thanks to its favorable investment environment, abundant labor, and competitive costs. Open-door policies and free trade agreements also enhance the country's appeal to global investors.
Apartment prices continue to rise far beyond workers' incomes
Apartment prices continue to rise sharply, increasingly out of reach for workers' incomes. This gap not only creates significant financial pressure but also makes homeownership increasingly difficult for the majority of people.
The stock market faces increasing selling pressure, VN-Index sank into the red
The strong selling pressure across the market, especially in the blue-chip stocks, has caused the VN-Index to drop sharply, even falling below the 1,270-point mark at times.
VREC and HREC create opportunities for member businesses to connect with Nippon Paint Vietnam
Recently, at the headquarters of Nippon Paint Vietnam, the Vietnam Real Estate Club (VREC) and the Ho Chi Minh City Real Estate Club (HREC) successfully organized a networking event for member businesses.
Cash flow real estate: New investment trend in 2024
Cash flow real estate has become an investment trend in 2024 due to its stable profitability from leasing and business operations. Interest in this type of real estate demonstrates the demand for sustainable profits in an uncertain economic context.
Is the gold price stabilization policy truly effective?
Dr. Bùi Duy Tùng, an Economics lecturer at RMIT University, assesses the pros and cons of the gold price stabilization policies implemented by the State Bank of Vietnam (SBV) in recent times.
Why is there a need for a development proposal in the field of cultural industries?
In the context of globalization and the booming creative economy, cultural industries are increasingly important in national development strategies. Vietnam needs a development proposal in this field to tap into its potential.