Developing the logistics market: “If you want to go far, go together”
Developing the logistics market: “If you want to go far, go together”
Developing the logistics market: “If you want to go far, go together”
29/04/2021
29/04/2021
(Tapchicongthuong.vn) Currently, the number of logistics enterprises operating is very large, but mainly small enterprises, limited in scale in both capital and human resources as well as international operating experience. To develop the logistics market, improve capacity, increase competitiveness, many enterprises believe that it is necessary to cooperate and work together..
Vietnam's logistics costs are nearly twice as high as the world's.
The Emerging Market Logistics Index 2021 report, recently released by the world's leading logistics service provider Agility, shows that Vietnam has increased its ranking by 3 places compared to 2020, ranking 8th in the Top 10 leading countries.
However, Vietnam's logistics costs are still high, accounting for more than 20% of GDP. Meanwhile, the average logistics cost in the world is only about 11% of GDP. Specifically, the report shows that transportation costs currently account for about 59% of logistics costs in Vietnam. This cost is currently accounting for 30 - 40% of the product cost structure, while other countries are 15%. This has reduced the competitiveness of Vietnamese enterprises. Furthermore, the rate of unsuccessful deliveries is quite high, about 10%, pushing up logistics business costs due to additional costs for storage, counting, etc.
Looking back at 2020, Deputy Minister of Industry and Trade Tran Quoc Khanh said that this was one of the difficult years for the economy in general and the logistics sector in particular, with global trade being severely affected by the Covid-19 pandemic. Although governments of countries have made efforts to maintain the supply chain of goods and especially prioritize the circulation of essential goods, due to disease control measures, regulations on isolation and social distancing, there were times when all activities were almost paralyzed, etc.
In both cases, without good preparation, logistics service businesses and manufacturing and import-export businesses will face great difficulties in adapting to the new situation.
According to data from the Vietnam Logistics Services Association, of the more than 4,000 enterprises operating logistics services in Vietnam, up to 95% are domestic enterprises, but most are small enterprises with limited scale in terms of capital and human resources as well as international operating experience.
Along with that, enterprises do not have links between stages in the logistics supply chain and between logistics service enterprises and import-export enterprises. Therefore, in both buying and selling directions, domestic logistics enterprises are limited in terms of the playing field.
However, according to Deputy Minister Tran Quoc Khanh, logistics services are an industry with great development potential, playing an important role, especially in the context of our country's deep integration. Therefore, promoting links between logistics enterprises with each other, between logistics enterprises and manufacturing and export enterprises will promote the sharing of knowledge and experience, and build trust between enterprises.
At the same time, forming a network of large enterprises with the capacity to lead the market. Searching, sharing orders, reducing logistics costs, improving the competitiveness of Vietnamese products and goods... This activity not only requires the initiative of enterprises but also requires support policies from state management agencies.
“To go far, go together”
According to a report by ResearchAndMarkets.com, the global logistics market is estimated to reach 3,215 billion USD in 2021, up 17.6% compared to 2020. This shows that the logistics industry still has great potential for growth.
Mr. Nguyen Quoc Phuong, Deputy General Director of Vietnam Airports Corporation (ACV), shared that the Vietnamese air transport market in general and the aviation logistics market in particular still have a lot of room for growth. Along with favorable conditions from government policies such as: participating in ASEAN, APEC, WTO, FTA agreements and "opening" the sky, liberalization in air transport has opened up new business opportunities.
In the future, for logistics to become a key economic sector, contributing positively to improving the competitiveness of the economy, in addition to issues of policy mechanisms and infrastructure, ACV representatives said that it is necessary to have the efforts of relevant sectors and levels, especially the business community, to improve service quality and reduce costs.
Lazada Vietnam Transport Department Director, Ms. Ngo Thi Truc Anh, expressed her opinion that for logistics services to develop, it is necessary to build an international standard logistics system in Vietnam.
"To increase competitiveness, digital transformation is very important and Vietnamese enterprises from manufacturing enterprises to transportation and logistics enterprises need to focus on investing in technology, making efforts to digitize all stages, from delivery to payment... so that delivery can be done as quickly as possible", Ms. Ngo Thi Truc Anh shared.
Meanwhile, a representative of SmartLog Vietnam supply chain said that currently, most Vietnamese logistics enterprises are small and medium-sized enterprises. In addition to the digital transformation efforts within each enterprise, enterprises should join hands to cooperate and share experiences.
"To develop together into large enterprises in the future, we should cooperate and join hands to work together. Because if you want to go far, you cannot go alone, but must go together", emphasized the representative of Smartlog Vietnam supply chain.
Sharing this view, Mr. Tran Trung Hung - General Director of Viettel Post Corporation also mentioned the responsibility of a large-scale enterprise with large market coverage towards smaller enterprises. He hopes that large enterprises will create a shared infrastructure so that small enterprises can take advantage of the resources that large enterprises have invested, thereby saving social resources to focus on market development.
On the experts' side, to expand the "playing field", Vietnamese logistics enterprises must improve their competitiveness. Enterprises need to quickly move towards digital transformation and enter the supply chain, flexibly provide payment solutions, logistics solutions, new models with specific characteristics... At the same time, promote the connection between logistics enterprises with each other, between logistics enterprises and manufacturing enterprises.
In addition, experts also recommend that the Government and the Ministry of Industry and Trade need to soon complete policies and laws on logistics services as well as have more effective solutions to create conditions for the development of logistics enterprises. In addition, Vietnam also needs to have a priority policy to expand land funds, invest in completing logistics infrastructure, upgrade and synchronously connect traffic infrastructure and transportation services...
However, Vietnam's logistics costs are still high, accounting for more than 20% of GDP. Meanwhile, the average logistics cost in the world is only about 11% of GDP. Specifically, the report shows that transportation costs currently account for about 59% of logistics costs in Vietnam. This cost is currently accounting for 30 - 40% of the product cost structure, while other countries are 15%. This has reduced the competitiveness of Vietnamese enterprises. Furthermore, the rate of unsuccessful deliveries is quite high, about 10%, pushing up logistics business costs due to additional costs for storage, counting, etc.
Looking back at 2020, Deputy Minister of Industry and Trade Tran Quoc Khanh said that this was one of the difficult years for the economy in general and the logistics sector in particular, with global trade being severely affected by the Covid-19 pandemic. Although governments of countries have made efforts to maintain the supply chain of goods and especially prioritize the circulation of essential goods, due to disease control measures, regulations on isolation and social distancing, there were times when all activities were almost paralyzed, etc.
In both cases, without good preparation, logistics service businesses and manufacturing and import-export businesses will face great difficulties in adapting to the new situation.
According to data from the Vietnam Logistics Services Association, of the more than 4,000 enterprises operating logistics services in Vietnam, up to 95% are domestic enterprises, but most are small enterprises with limited scale in terms of capital and human resources as well as international operating experience.
Along with that, enterprises do not have links between stages in the logistics supply chain and between logistics service enterprises and import-export enterprises. Therefore, in both buying and selling directions, domestic logistics enterprises are limited in terms of the playing field.
However, according to Deputy Minister Tran Quoc Khanh, logistics services are an industry with great development potential, playing an important role, especially in the context of our country's deep integration. Therefore, promoting links between logistics enterprises with each other, between logistics enterprises and manufacturing and export enterprises will promote the sharing of knowledge and experience, and build trust between enterprises.
At the same time, forming a network of large enterprises with the capacity to lead the market. Searching, sharing orders, reducing logistics costs, improving the competitiveness of Vietnamese products and goods... This activity not only requires the initiative of enterprises but also requires support policies from state management agencies.
“To go far, go together”
According to a report by ResearchAndMarkets.com, the global logistics market is estimated to reach 3,215 billion USD in 2021, up 17.6% compared to 2020. This shows that the logistics industry still has great potential for growth.
Mr. Nguyen Quoc Phuong, Deputy General Director of Vietnam Airports Corporation (ACV), shared that the Vietnamese air transport market in general and the aviation logistics market in particular still have a lot of room for growth. Along with favorable conditions from government policies such as: participating in ASEAN, APEC, WTO, FTA agreements and "opening" the sky, liberalization in air transport has opened up new business opportunities.
In the future, for logistics to become a key economic sector, contributing positively to improving the competitiveness of the economy, in addition to issues of policy mechanisms and infrastructure, ACV representatives said that it is necessary to have the efforts of relevant sectors and levels, especially the business community, to improve service quality and reduce costs.
Lazada Vietnam Transport Department Director, Ms. Ngo Thi Truc Anh, expressed her opinion that for logistics services to develop, it is necessary to build an international standard logistics system in Vietnam.
"To increase competitiveness, digital transformation is very important and Vietnamese enterprises from manufacturing enterprises to transportation and logistics enterprises need to focus on investing in technology, making efforts to digitize all stages, from delivery to payment... so that delivery can be done as quickly as possible", Ms. Ngo Thi Truc Anh shared.
Meanwhile, a representative of SmartLog Vietnam supply chain said that currently, most Vietnamese logistics enterprises are small and medium-sized enterprises. In addition to the digital transformation efforts within each enterprise, enterprises should join hands to cooperate and share experiences.
"To develop together into large enterprises in the future, we should cooperate and join hands to work together. Because if you want to go far, you cannot go alone, but must go together", emphasized the representative of Smartlog Vietnam supply chain.
Sharing this view, Mr. Tran Trung Hung - General Director of Viettel Post Corporation also mentioned the responsibility of a large-scale enterprise with large market coverage towards smaller enterprises. He hopes that large enterprises will create a shared infrastructure so that small enterprises can take advantage of the resources that large enterprises have invested, thereby saving social resources to focus on market development.
On the experts' side, to expand the "playing field", Vietnamese logistics enterprises must improve their competitiveness. Enterprises need to quickly move towards digital transformation and enter the supply chain, flexibly provide payment solutions, logistics solutions, new models with specific characteristics... At the same time, promote the connection between logistics enterprises with each other, between logistics enterprises and manufacturing enterprises.
In addition, experts also recommend that the Government and the Ministry of Industry and Trade need to soon complete policies and laws on logistics services as well as have more effective solutions to create conditions for the development of logistics enterprises. In addition, Vietnam also needs to have a priority policy to expand land funds, invest in completing logistics infrastructure, upgrade and synchronously connect traffic infrastructure and transportation services...
Hạ An