Not inferior to foreign enterprises, but Vietnamese logistics has to work for hire at home?

VietNamNetVietNamNet13/05/2023


This seemingly paradoxical story was shared by Mr. Cap Trong Cuong - General Director of Vietnam Container Corporation (VICONSHIP) at a discussion last week organized by the Vietnam Logistics Services Association (VLA).

"We have infrastructure, human resources, processes, and trust from foreign partners, but in reality we are still working for them," said Mr. Cuong.

The leader of this enterprise also pointed out the weakness of Vietnamese logistics enterprises. That is, the support and connection between enterprises is very weak. In the market, there are many enterprises with large capitalization and relatively good networks, but the mutual support between enterprises is not high. This is one of the reasons why Vietnamese logistics has not developed in accordance with its importance.

Linkage is still an inherent weakness of Vietnamese logistics enterprises (Photo: NT)

"This is also the reason why Vietnam's logistics costs are so high. The paradox is that we compete with each other to serve foreign customers, offering low prices to win customers. But we offer Vietnamese businesses higher domestic logistics prices," Mr. Cuong emphasized.

Talking about the seaport sector, the leader of this company expressed "feeling ashamed" because Vietnam is the lowest region in the world in terms of port loading and unloading prices, lower than both Cambodia and Myanmar.

Therefore, VICONSHIP representative believes that enterprises must join together to come up with the most reasonable solutions, support each other in the most practical way so that all can reduce costs. In particular, technology must be changed to meet market demand, towards a green environment in line with the trend of the times.

Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade), said: The number of enterprises and the quality of logistics services are increasing, contributing significantly to the highest import-export results ever of 732.5 billion USD, an increase of 9.5% compared to 2021.

According to Agility's 2022 assessment, Vietnam is ranked 11th in the group of 50 global emerging logistics markets.

However, Mr. Hai assessed that Vietnam's logistics industry still has many weaknesses such as high logistics costs; lack of connection between logistics service enterprises with each other and with production, business and import-export enterprises.

In addition, the scale and financial potential of Vietnamese logistics enterprises are still weak, and their expansion into foreign markets is insignificant.

Implementing the direction of the Ministry of Industry and Trade, for the first time in Vietnam, the Vietnam International Logistics Exhibition (abbreviated name VILOG) was held.

The exhibition will take place for 3 days, from August 10-12 at the Ho Chi Minh City Exhibition and Convention Center (SECC), 799 Nguyen Van Linh, District 7, Ho Chi Minh City. This will be a great opportunity for domestic and international logistics service enterprises as well as the community of investors, cargo owners and other stakeholders to exchange, cooperate, consult and choose solutions to optimize the logistics process of enterprises.

Digital transformation of logistics to change the face of Vietnam's supply chain According to Samsung experts, in Vietnam there are still many manual operations in logistics. If not digitally transforming logistics will reduce the efficiency of business processes.


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