Transport units accelerate infrastructure investment

Increasing investment in warehouses and enhancing services to ensure shortened transportation time and reduced costs is the race of many delivery businesses to continue expanding market share.

Many units are investing in warehouses and enhancing services to shorten shipping time.

Increase investment

Through the 2024 Annual General Meeting of Shareholders, Viettel Post Corporation (Viettel Post, code VTP) said that the company plans to narrow down its sales segment (phone SIM cards) to focus on delivery and logistics segments with better profit margins. In particular, the company aims to achieve revenue from the delivery and logistics sector of VND9,147 billion, an increase of 33.3% compared to 2023.

With the mission of pioneering in planning and building national logistics infrastructure in a smart, green and efficient direction, Viettel Post is striving to implement logistics infrastructure planning including parks - logistics centers, bonded warehouses, dry ports to connect farming regions, industrial parks with traffic hubs of roads, railways, airports, seaports and border gate systems to help goods circulate fastest, at the lowest cost.

Mr. Hoang Trung Thanh, General Director of Viettel Post, said that in 2024, the revenue target of the delivery and logistics sector when presented to shareholders was to grow by more than 30%, but the executive board set a growth target of 45%.

The race to invest in infrastructure to expand market share of transport units is considered hotter than ever. Investments in logistics infrastructure create conditions for investors to have more choices, helping to improve the competitiveness of localities...

Mr. Nguyen Xuan Phuc, General Director of U&I Logistics Joint Stock Company, informed that in an effort to expand market share, the company has built an ecosystem of technology applications to collect, process, and manage data; export the most detailed intelligent management reports, serving planning and decision making.

“Currently, our business management system is fully built with warehouse management system (WMS), transportation management system (TMS), centralized operation management system (UONP), customer relationship management system (CRM)… The important thing is that these systems are built to meet the specific needs of customers and are receiving very good feedback from domestic and foreign enterprises,” Mr. Phuc shared.

At Best Express Vietnam Co., Ltd., in its 5 years of operation, the company has invested more than 50 million USD in building an automation system, warehouse infrastructure, transportation and service network. To date, the company owns 39 automatic goods sorting centers nationwide. The total warehouse area nationwide is more than 100,000 m2, with a capacity to process over 1.8 million parcels per day.

Mr. Eric Liang, Deputy General Director of Best Global, General Director of Best Express Vietnam, added that the company's transport fleet has been invested with more than 5 million USD to equip more than 200 vehicles of various types. At the same time, the company also expanded its express delivery service network to 63 provinces and cities.

Create a foothold on the "home field"

Currently, the infrastructure system in the Southern Key Economic Zone and the Mekong Delta is improving significantly. Many important and highly connected projects such as Ring Road 3, Long Thanh Airport, Bien Hoa - Vung Tau Expressway, Ben Luc - Long Thanh Expressway, Rach Mieu 2 Bridge, etc. are being urgently implemented, bringing great benefits to manufacturing and trading enterprises, as well as logistics service providers.

Mr. Nguyen Xuan Phuc commented that great opportunities always come with a high level of competition. Fields such as transportation, delivery, warehousing, port exploitation, etc. are witnessing fierce competition between giants with strong financial potential and low capital costs.

In this race, foreign corporations are dominating domestic units. Therefore, small and medium enterprises need to unite to create collective strength, have the basis to be the owner without having to work for hire right at home.

Ms. Ly Kim Chi, President of the Ho Chi Minh City Food and Foodstuff Association, pointed out that one of the bottlenecks leading to unsustainable development and not fully exploiting export potential is that logistics infrastructure, cold storage, storage facilities, etc. in the Southeast region are still very limited, greatly affecting the ability to store and transport products.

According to Ms. Chi, Ho Chi Minh City has many large processing, exporting and retailing enterprises, but they depend on the supply of raw materials from neighboring localities, especially the Southeast region. Therefore, the lack of logistics infrastructure, cold storage, etc. reduces the value of products, causing many difficulties in the transportation and storage process.

“We see that the Government and localities do not have a mechanism to support, encourage and invest in this field. Investment in cold storage systems and logistics infrastructure has a slow capital recovery, and without support policies, businesses will not be bold enough to invest. Therefore, the Ho Chi Minh City Food and Foodstuff Association recommends that there should be a general support mechanism and policy for businesses investing in logistics in the Southeast. In particular, it is necessary to support premises, long-term loans, interest rates and tax incentives, etc.; support to increase connectivity and inter-regional implementation,” said Ms. Chi.

According to businesses and industry associations, policies to support investment in logistics infrastructure and promote close links between localities are very important in helping businesses confidently invest on a larger production scale and with higher value.

In particular, it is necessary to have support from the state, perfect policies and laws on logistics services such as: outstanding mechanisms and policies to promote the logistics service industry; forming large logistics enterprises; training specialized human resources, investing in large-scale projects...

Source: https://baodautu.vn/don-vi-van-chuyen-tang-toc-dau-tu-ha-tang-d228684.html