Foreign companies are stepping up investment in Vietnam's logistics market to exploit the potential of cross-border commercial transport.
Launch new service
In mid-August 2024, FESCO Transport Group – one of the largest logistics companies in Russia, launched a new sea route between Vietnam and Malaysia, aiming to expand international trade routes. The service will be operated regularly every 8-9 days, with a transit time between ports of 3 days.
“This is our first intra-Asia service without a Russian port call. We see an increasing demand for this service. The first ship from Malaysia arrived in Vietnam fully loaded and left with 70% of the cargo,” said Priskoka Aleksandr, FESCO representative.
In addition to this route, FESCO also transports containers by sea via the Suez Canal with the FESCO Baltorient Line service from Vietnamese ports to St. Petersburg. Popular goods transported from Russia are aluminum, construction materials, polymer materials, minerals, baby food, cosmetics and chemicals. Goods from Vietnam are mainly food, coffee, fruits, vegetables and clothing. In two years of operation, the container traffic on the route has increased 2.4 times.
“FESCO will also transport 50,000 TEU between the ports of Vietnam and Vladivostok from May 2022 to May 2024, including cargo from Vietnam and other countries in Southeast Asia. Strengthening cooperation between Russia and Vietnam is our top priority. The Group plans to increase its capacity and develop cargo transportation services in the region,” Aleksandr emphasized.
Similarly, in mid-August, Alibaba.com launched an online logistics service for small and medium-sized enterprises in Vietnam. Accordingly, Alibaba.com cooperates with leading international express delivery companies such as UPS and DHL, with the goal of supporting the export of Vietnamese goods to more than 200 countries and territories worldwide.
Through its international express partners, Alibaba.com ensures that goods are delivered safely and on schedule, while also providing detailed order tracking tools, customs consulting services, and comprehensive cargo insurance solutions. These features help businesses reduce risks and enhance their competitiveness in the international market.
“By leveraging cutting-edge technologies and comprehensive solutions, Alibaba.com helps Vietnamese SMEs enhance their competitiveness, ensure on-time delivery, and respond quickly to market demands, thereby accelerating their growth and success in the global arena,” said Vianne Wang, Head of Global Supply Chain Services at Alibaba.com.
Exploiting market potential
Meanwhile, US-based freight forwarder Flexport plans to expand in Vietnam, including developing ocean and air products, integrating domestic logistics services for global brands, and introducing products that help customers manage flexible supply chains in real time.
Mr. Sanne Manders, Chairman of Flexport, said that many of Flexport's long-standing customers have increased their investment in Vietnam by increasing their sourcing from Vietnamese suppliers and establishing a presence in Vietnam for logistics and supply chain activities. The company is embracing global trends to diversify its supply chain, taking advantage of positive macro trends in Vietnam, to better position the company and serve its customers.
“Vietnam will continue to play a key role as a manufacturing and logistics hub in the long term, as foreign logistics companies invest here. Forecasts show that Vietnam’s freight/logistics market is expected to grow at a CAGR of 6.64% between now and 2032. These positive indicators further strengthen Vietnam’s position as a hub for logistics activities in the region,” said Mr. Manders.
Logistics plays the role of "blood vessels" for the economy, an important bridge in national and global trade of goods. The potential of the industry is further affirmed by the growth rate of Vietnam's import and export goods in recent times. The total import and export turnover of goods reached 511 billion USD in the first 8 months of 2024, an increase of 16.7% over the same period in 2023.
Commenting on the potential of Vietnam’s logistics industry, Mr. Aleksandr from FESCO said that the logistics industry is growing in the context of many multinational companies’ production facilities moving to Vietnam. In the coming years, the volume of intra-Asia transport will increase and the recovery of cross-border trade will be a boost for Vietnam’s logistics industry.
Source: https://baodautu.vn/doanh-nghiep-ngoai-mo-rong-dich-vu-logistics-d224797.html
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