Vietnam Logistics Forum 2023: Promoting digital transformation, enhancing competitiveness
Vietnam Logistics Forum 2023: Promoting digital transformation, enhancing competitiveness
Vietnam Logistics Forum 2023: Promoting digital transformation, enhancing competitiveness
01/01/2023
01/01/2023
Compared to foreign enterprises, Vietnamese enterprises currently hold many infrastructures and assets serving logistics activities and have the advantage of understanding business practices and domestic customers, but their operations are still isolated, and their financial and management capacity is still limited…
Vietnam ranks 43rd in the logistics performance index
At a press conference to share information about the Vietnam Logistics Forum 2023, Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade) said that the development of Vietnam's logistics services has improved a lot in recent times.
In particular, the legal framework on logistics services has been gradually completed, such as Decree No. 96/2022/ND-CP, Resolution No. 163/NQ-CP, Resolution No. 163/NQ-CP, Decision No. 200/QD-TTg.…
Also in the past year, Vietnam's logistics infrastructure has been increasingly improved, the Government and ministries and branches have paid attention to investment and development, and freight yards and freight forwarding for import and export activities have been upgraded and expanded. In particular, newly built and expanded highways, airports, ports and logistics centers have contributed to improving cargo handling capacity, promoting fast and convenient cargo circulation.
Currently, the country has a total road length of about 595,201 km, of which national roads (national highways, expressways) are 25,560 km (an increase of 7.3% compared to 2017). The national railway network has a total length of 3,143 km and has 277 stations; 17,026 km of inland waterways nationwide are being managed and exploited…
Regarding the Vietnamese seaport system, there are currently 286 ports, distributed in 5 groups of seaports, with a total wharf length of more than 96 km. The volume of goods passing through seaports in 2022 will reach over 733 million tons, an increase of 4% compared to 2021. Gateway ports combined with international transit have been established in the North and South; successfully receiving container ships up to 132,000 DWT at Lach Huyen wharf area (Hai Phong), up to 214,000 DWT at Cai Mep wharf area (Ba Ria - Vung Tau). Vietnam has established 32 routes, including 25 international transport routes and 7 domestic transport routes.
In the ranking of 100 container ports in 2022 with the largest cargo throughput in the world as announced by Lloyd's List Magazine (UK), Vietnam has 3 ports in this top: Lach Huyen (Hai Phong), Cat Lai (Ho Chi Minh City) and Cai Mep (Ba Ria - Vung Tau).
Regarding air routes, the country currently has 22 airports in operation with a total area of about 11,859 hectares; including 9 international airports and 13 domestic airports.
In addition, the country currently has 69 large and medium-sized logistics centers, concentrated in a number of industrial parks. Among them, there are many new-generation logistics centers, applying 4.0 technology with the function of providing transportation services, completing orders, distributing... in a professional, modern and high-quality direction.
Not only that, according to Mr. Hai, the capacity of enterprises and the quality of logistics services have also improved. According to the most recent business survey data (December 31, 2021) provided by the General Statistics Office, Vietnam has 34,476 logistics service enterprises with a total of 563,354 employees. The logistics market has the participation of more than 5,000 enterprises providing 3PL logistics services…
Moreover, according to the World Bank's report published in 2023, Vietnam ranked 43rd in the logistics efficiency index, among the top 5 countries in ASEAN, after Singapore, Malaysia, Thailand and the same position as the Philippines.
The average annual growth rate of Vietnam's logistics market is 14-16%, making an important contribution to bringing Vietnam's total import and export turnover in 2022 to over 730 billion USD, an increase of 9.1% over the same period in 2021.
According to the Agility 2023 rankings, Vietnam's logistics market is ranked 10th in the group of 50 emerging logistics markets globally. The compound annual growth rate (CAGR) in the period 2022 - 2027 of Vietnam's logistics market is forecast to reach 5.5%.
FINDING SOLUTIONS TO INCREASE COMPETITIVENESS
However, Mr. Hai also admitted that Vietnamese logistics enterprises are mainly small enterprises, with limited scale in both capital and human resources as well as international operating experience, and there is no connection between stages in the logistics supply chain and between logistics service enterprises and import-export enterprises.
Vietnamese logistics enterprises mainly provide domestic logistics services such as: domestic transportation, delivery, warehousing, customs declaration, cargo inspection, ship rental services, etc.
Compared to foreign enterprises, Vietnamese enterprises currently hold many infrastructures and assets serving logistics activities and have the advantage of understanding domestic business practices and customers, but their operations are still isolated, their financial and management capacity is limited, they only serve certain segments, and lack a seamless connection to provide integrated logistics services.
In the context of a less favorable market, the operations of logistics service enterprises have been affected. The competition for orders has become more intense. In addition to the pressure of competition in services, new international and domestic standards on the environment, traffic safety, and labor safety have also put logistics service enterprises in front of the need for innovation.
Global logistics enterprises when outsourcing services require emission standards, requiring logistics enterprises to proactively invest and transform production and business models in the direction of "greening", improving competitiveness, and ensuring sustainable development.
Therefore, to promote the development of the Vietnamese logistics industry in a modern way, the Ministry of Industry and Trade annually hosts the Vietnam Logistics Forum, aiming to create close connections and frank dialogue at all three levels between state management agencies at the central and local levels with associations and enterprises operating in the logistics sector in Vietnam.
Through associations, businesses have opinions and feedback on policies related to infrastructure development, business environment, customs procedures, local fee collection policies, the forum helps state management agencies have authentic assessments to promptly issue policies that meet the requirements of the logistics industry in Vietnam.
Mr. Hai said that this year's Vietnam Logistics Forum (the 11th) was held in a context with many new features. That is, the implementation of new free trade agreements such as CPTPP, EVFTA, UKVFTA, RCEP, VIFTA requires businesses to make efforts to improve their competitiveness.
In addition, the Covid-19 epidemic has been controlled, but the socio-economic impacts after the pandemic along with the war in Ukraine have caused disruptions in the supply chain, reduced demand for goods, and strongly impacted businesses in general and logistics service businesses in particular.
Furthermore, the Ministry of Industry and Trade is working with ministries, branches and localities to focus on removing difficulties, boosting production and export of goods, thereby effectively taking advantage of new FTAs, reducing damage caused by the pandemic and quickly restoring growth momentum.
In particular, digital transformation is an inevitable trend, helping logistics service enterprises improve productivity, quality, service efficiency, enhance competitiveness in the domestic market and reach out to the international market. Therefore, this year's forum aims to orient and encourage logistics enterprises to promote digital transformation, apply digital technology to improve competitiveness.
However, Mr. Hai also admitted that Vietnamese logistics enterprises are mainly small enterprises, with limited scale in both capital and human resources as well as international operating experience, and there is no connection between stages in the logistics supply chain and between logistics service enterprises and import-export enterprises.
Vietnamese logistics enterprises mainly provide domestic logistics services such as: domestic transportation, delivery, warehousing, customs declaration, cargo inspection, ship rental services, etc.
Compared to foreign enterprises, Vietnamese enterprises currently hold many infrastructures and assets serving logistics activities and have the advantage of understanding domestic business practices and customers, but their operations are still isolated, their financial and management capacity is limited, they only serve certain segments, and lack a seamless connection to provide integrated logistics services.
In the context of a less favorable market, the operations of logistics service enterprises have been affected. The competition for orders has become more intense. In addition to the pressure of competition in services, new international and domestic standards on the environment, traffic safety, and labor safety have also put logistics service enterprises in front of the need for innovation.
Global logistics enterprises when outsourcing services require emission standards, requiring logistics enterprises to proactively invest and transform production and business models in the direction of "greening", improving competitiveness, and ensuring sustainable development.
Therefore, to promote the development of the Vietnamese logistics industry in a modern way, the Ministry of Industry and Trade annually hosts the Vietnam Logistics Forum, aiming to create close connections and frank dialogue at all three levels between state management agencies at the central and local levels with associations and enterprises operating in the logistics sector in Vietnam.
Through associations, businesses have opinions and feedback on policies related to infrastructure development, business environment, customs procedures, local fee collection policies, the forum helps state management agencies have authentic assessments to promptly issue policies that meet the requirements of the logistics industry in Vietnam.
Mr. Hai said that this year's Vietnam Logistics Forum (the 11th) was held in a context with many new features. That is, the implementation of new free trade agreements such as CPTPP, EVFTA, UKVFTA, RCEP, VIFTA requires businesses to make efforts to improve their competitiveness.
In addition, the Covid-19 epidemic has been controlled, but the socio-economic impacts after the pandemic along with the war in Ukraine have caused disruptions in the supply chain, reduced demand for goods, and strongly impacted businesses in general and logistics service businesses in particular.
Furthermore, the Ministry of Industry and Trade is working with ministries, branches and localities to focus on removing difficulties, boosting production and export of goods, thereby effectively taking advantage of new FTAs, reducing damage caused by the pandemic and quickly restoring growth momentum.
In particular, digital transformation is an inevitable trend, helping logistics service enterprises improve productivity, quality, service efficiency, enhance competitiveness in the domestic market and reach out to the international market. Therefore, this year's forum aims to orient and encourage logistics enterprises to promote digital transformation, apply digital technology to improve competitiveness.
Vũ Khuê
https://vneconomy.vn/dien-dan-logistics-viet-nam-2023-day-manh-chuyen-doi-so-nang-cao-nang-luc-canh-tranh.htm