Foreign companies are stepping up investment in the Vietnamese logistics market to capitalize on the potential of cross-border commercial transportation.
Launching a new service.
In mid-August 2024, FESCO Transport Group – one of Russia's largest logistics companies – launched a new sea route between Vietnam and Malaysia, aiming to expand international trade. The service will operate regularly every 8-9 days, with a transit time of 3 days between ports.
Mr. Priskoka Aleksandr, representative of FESCO, shared: “This is our first intra-Asia service route that does not call at a Russian port. We see increasing demand for this service. The first vessel from Malaysia arrived in Vietnam fully loaded and departed with 70% of its cargo.”
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. Common goods transported from Russia include aluminum, building materials, polymer materials, minerals, baby food, cosmetics, and chemicals. Goods from Vietnam mainly consist of food, coffee, fruits, vegetables, and clothing. In two years of operation, container traffic on the route has increased 2.4 times.
“FESCO also transported 50,000 TEU between Vietnamese ports and Vladivostok from May 2022 to May 2024, including goods from Vietnam and other Southeast Asian countries. Strengthening cooperation between Russia and Vietnam is a top priority for us. The corporation plans to increase capacity and develop freight transport services in the region,” Mr. Aleksandr emphasized.
Similarly, in mid-August, Alibaba.com launched an online logistics service for small and medium-sized enterprises in Vietnam. Through this initiative, Alibaba.com collaborates with leading international express delivery companies such as UPS and DHL, aiming to support the export of Vietnamese goods to over 200 countries and territories worldwide .
Through its international express delivery partners, Alibaba.com ensures safe and on-time delivery of goods, while also providing detailed order tracking tools, customs advisory services, and comprehensive cargo insurance solutions. These features help businesses minimize risks and enhance their competitiveness in the international market.
Vianne Wang, Global Supply Chain Services Director at Alibaba.com, shared: “By leveraging advanced technologies and comprehensive solutions, Alibaba.com supports Vietnamese small and medium-sized enterprises (SMEs) in enhancing their competitiveness, ensuring on-time delivery, and responding quickly to market demands, thereby fostering their growth and success in the global arena.”
Tapping into market potential
Meanwhile, Flexport, a US-based freight forwarding company, plans to expand in Vietnam, including developing sea and air freight products, integrating domestic logistics services for global brands, and introducing products that help customers manage their supply chains flexibly in real time.
Sanne Manders, President of Flexport, stated that many of Flexport's long-standing clients have increased their investment in Vietnam by strengthening sourcing from Vietnamese suppliers and establishing a presence in Vietnam for logistics and supply chain operations. The company is embracing global trends to diversify its supply chain, leveraging positive macroeconomic trends in Vietnam, in order to better position itself and serve its customers.
“Vietnam will continue to play a key role in manufacturing and logistics hubs in the long term, as foreign logistics companies invest here. Forecasts indicate that Vietnam’s freight transport/logistics market is expected to grow at a rate of 6.64% from now until 2032. These positive indicators further strengthen Vietnam’s position as a regional logistics hub,” Manders commented.
Logistics plays a vital role as the "lifeblood" of the economy , serving as a crucial link in the trade of goods both nationally and globally. The potential of the industry is further affirmed by the growth rate of Vietnam's import and export trade in recent years. Total import and export turnover reached US$511 billion in the first eight months of 2024, an increase of 16.7% compared to the same period in 2023.
Commenting on the potential of Vietnam's logistics industry, Mr. Aleksandr from FESCO stated that the industry is increasingly developing as many multinational companies' production facilities are relocating to Vietnam. In the coming years, intra-Asia transport volumes will increase, and the recovery of cross-border trade will be a boost for Vietnam's logistics sector.
Source: https://baodautu.vn/doanh-nghiep-ngoai-mo-rong-dich-vu-logistics-d224797.html
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