The logistics market in Vietnam is considered by the business community (DN) and international organizations as a potential market for strong development, especially after the Covid-19 pandemic is under control and operations are completed. Production and business activities recovered and growth resumed.
Minister of Industry and Trade Nguyen Hong Dien emphasized so at the plenary session of the Vietnam Logistics Forum 2021 organized by the Ministry of Industry and Trade in collaboration with relevant agencies.
Restore supply chain, develop logistics after the pandemic
2021 is the socio-economic year of Vietnam that is heavily affected by the 4th Covid-19 epidemic, with periods of social distancing and prolonged disruption of production and circulation. That context puts the logistics service industry in a position that is both directly affected and has to show a strong resilience to maintain the operation of domestic supply chains as well as import and export goods.
Vietnam’s logistics market is full of potential to develop strongly after the pandemic
At the same time, new trends, models, and protocols in the production, circulation and consumption of goods globally also create impetus and pressure for innovation in terms of technology, thinking, human resources and mechanisms. management, if they do not want to be left behind in today’s deeply integrated environment.
At Symposium 1: “Restoring supply chains, developing logistics after the pandemic” within the framework of Vietnam Logistics Forum 2021, Mr. Phan Duc Hieu – Standing Member, Economic Committee of the National Assembly – received The Covid-19 pandemic has slowed down socio-economic development, especially, the pandemic in the past 2 years has strongly impacted the transportation service industry. However, “on a positive note, the logistics industry in recent years has been very resilient in contributing to the country’s economic development. The logistics industry plays a dual role, both creating its own values of the economic sector and supporting production and business activities in the context of the epidemic, which is still having very unpredictable developments.” – Mr. Phan Duc Hieu confirm.
From a practical perspective, Mr. Le Quang Trung, Deputy General Director of Vietnam National Shipping Lines – said that the biggest difficulty logistics enterprises are facing is dealing with disruptions in the service supply chain. to maintain business continuity and the skyrocketing of ocean freight rates as well as the shortage and imbalance of containers around the world. The issue of organizing production, arranging suitable human resources while still ensuring safety, regulations on epidemic prevention such as 5K or 3 on-site implementation…
“Besides, Vietnamese import-export enterprises currently have more than 10 types of fees to be charged for an export container such as: Document fee, loading and unloading fee, container cleaning fee, container balancing fee, weight declaration fee; the issue of arbitrarily imposed exchange rate … is very heavy and troublesome “- Mr. Le Quang Trung said.
According to statistics of the Vietnam Logistics Business Association (VLA), about 15% of businesses will have a 50% reduction in revenue compared to 2020 and more than 50% of businesses will reduce the number of domestic and international logistics services from 10%. – 30% over the same period in 2020.
According to the Vietnam Association of Seafood Exporters and Producers (VASEP), from November 2020, most shipping lines announced an increase in container freight rates, with an increase of 2-10 times (depending on the destination). ). Along with the inadequacies in freight rates, the surcharges charged by foreign shipping lines also become a burden for Vietnamese shippers.
Speakers shared at Symposium 1: “Restoring supply chains, developing logistics after the pandemic”
Sharing the story of the textile industry, Mr. Than Duc Viet, General Director of Garment 10 Corporation – said that, like other industries such as leather, footwear, plastic, wooden furniture… for many years, the textile and garment industry Vietnam still has to depend on input materials from foreign imports. This proportion is quite large, showing the passivity and dependence on supply from other countries around the world. This is also one of the major potential “risks” of the industry when the supply chain is disrupted.
According to the Vietnam Textile and Apparel Association, the import turnover of raw materials and accessories in the first 9 months of 2021 is estimated at 18 billion USD, up 27.9% over the same period in 2020. The main imported materials include: cotton, fiber yarns, fabrics, accessories… However, new generation FTAs such as: CPTPP, EVFTA… require that the rules of origin for yarns and fabrics must be produced in Vietnam or other FTA bloc countries to enjoy preferential treatment. tax incentives. But in fact, the textile and garment industry still has to import a large amount of raw materials from sources outside the FTA.
Faced with this fact, the General Director of Garment 10 Corporation suggested that the Government should plan a development strategy for the field of manufacturing raw materials and accessories for the textile and garment industry to create a closed and synchronous value chain, ensuring the demand for goods and services. domestic and for export. At the same time, it is necessary to reposition so that the world knows that Vietnam’s textile and garment industry is not only an industry with cheap labor and mass production, but also includes businesses with added value and social responsibility.
On the other hand, shaping new and more breakthrough directions for Vietnam’s logistics industry, contributing to relieving pressure during the period of social distancing because of the epidemic, promoting post-Covid-19 economic recovery and recovering from the pandemic. for the sustainable development of the country.
Building a strong business in logistics
According to the Vietnam Logistics Report 2021, in the first nine months of 2021, the number of newly registered transport and warehousing enterprises increased by 4.61%, the capital increased by 43% over the same period in 2020. However, the ratio Newly registered enterprises in the transport and warehousing sector compared to the total number of enterprises in the country are still quite modest, accounting for only about 4.08%, with capital accounting for 1.88% and number of employees accounting for 3.04 %. This shows that the capital scale of enterprises in the industry is still limited.
Also in the first nine months of 2021, there were 2,509 transport and warehousing enterprises that had to temporarily suspend operations, up 14.1% over the same period in 2020, accounting for 5.56% of the total number of temporarily suspended enterprises in the country. At the same time, 571 enterprises completed dissolution procedures, an increase of 17.7% over the same period in 2020, accounting for 4.46% of the total number of dissolved enterprises in the country.
Notably, there are currently more than 4,000 logistics enterprises operating professionally providing international logistics services. Service quality of enterprises has been increasingly improved thanks to the application of digital transformation and improvement of business processes, especially logistics enterprises providing services to the European, American and Chinese markets. A number of logistics enterprises have also joined the World Logistics Passport (WLP) program and improved the quality and improved relationships with international customers.
However, Vietnamese logistics enterprises continue to face stiff competition with foreign logistics enterprises. Not to mention, Vietnamese logistics service enterprises account for a large proportion (about 95%), but most of them are small and micro enterprises providing services without high added value, so the revenue of logistics enterprises Foreign countries always account for a higher share of the logistics market.
Discussing at Symposium 2: “Building a strong logistics enterprise” within the framework of the forum, Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department, Ministry of Industry and Trade affirmed, building a strong logistics enterprise is a task has been set out in the Prime Minister’s Decision No. 200/QD-TTg approving the Action Plan to improve competitiveness and develop logistics services in Vietnam to 2025; Decision No. 221/QD-TTg of the Prime Minister amending and supplementing Decision No. 200/QD-TTg. “From a practical perspective, we see that any industry needs large enterprises, strong enterprises, leading enterprises, whether it is the telecommunications industry, the electronics industry, the textile industry, the leather and footwear industry and the logistics industry as well as the logistics industry as well as the logistics industry. so,” emphasized Mr. Tran Thanh Hai.
From a business perspective, Mr. Dam Dinh Vinh, Chairman of OPL Logistics shared, although we are a young and new enterprise, we have set our goal to become a large and strong enterprise in the logistics industry, not only in Vietnam. , but also reach out to the international market.
According to Mr. Dam Dinh Vinh, despite many difficulties due to the impact of Covid-19, Vietnam’s import and export turnover in the 11 months of 2021 still grew and reached about 600 billion USD. We think that the milestone of 1 trillion import-export turnover of Vietnam is not far away and this will be a great opportunity for many industries, especially for businesses operating in the logistics industry.
“In order to seize opportunities as well as realize its goals, OPL is building specific strategies on business, human resources, market development, investment, finance, information technology…” – Mr. Dam Dinh Vinh stated, at the same time, said that OPL is opening branches in countries that are OPL’s target markets such as China, Southeast Asian countries, the Middle East, the US… Besides, we focus on improving the capacity and quality of the staff, especially the leadership team, all levels of management must meet international standards – this is the number one priority of OPL.
Recognizing that the trend of digitization and e-commerce is a must today, Ms. Bui Thi Le Hang, Deputy General Director of ALS, said that according to statistics, 80% of logistics enterprises are currently small and only 20 are small businesses. % is a large logistics enterprise. There are two main factors affecting the digitization of enterprises, first of all, from the needs of customers. Customers today have stepped up digitalization to get closer to consumers, whereby the supply chain needs to be faster and more flexible. Second, comes from the request of the authorities. The Vietnamese government is moving towards a digital economy. “That’s why, if we don’t digitize, it is likely that we will be left behind. Therefore, enterprises must take strategic steps for their digitization,” said Ms. Bui Thi Le Hang.
According to experts, in order to make an important contribution to improving the competitiveness of the economy in general and trade activities in particular, Vietnamese logistics enterprises need to focus on providing services that can high added value such as 3PL and 4PL, international multimodal transport services, cross-border logistics services…
Developing logistics human resources – the key issue
Speaking at the plenary session of the Vietnam Logistics Forum 2021 with the theme “Developing logistics human resources”, Minister of Industry and Trade Nguyen Hong Dien emphasized that logistics is a service industry that is considered as the “blood vessels” of the economy. national economy, plays an important role in connecting, supporting and promoting socio-economic development. The logistics market in Vietnam is assessed by the business community and international organizations as a potential market for strong development, especially after the Covid-19 pandemic is under control and production activities are under control. Business recovers, growth returns.
Vietnam’s logistics market is full of potential to develop strongly after the pandemic
Minister Nguyen Hong Dien discussed with foreign experts on the sidelines of the conference
Recognizing that importance, over the past time, the Government and ministries, branches and localities have always paid attention to leading, directing, supporting and creating conditions for the development of the logistics service industry; issued many decrees, decisions, directives, plans and directing documents to promote the implementation of solutions to reduce costs, improve competitiveness, create a favorable environment for the development of the logistics industry, limit minimize disruption of the supply chain, ensure the circulation of goods in the country and export and import, especially in the context of the unprecedented and heavy impact of the Covid-19 pandemic.
With the attention of leadership and direction of the Government; the support of ministries, branches and localities; especially the efforts of the business community, Vietnam’s logistics service industry has made rapid development steps, growing at an average annual rate of 10-15%, initially meeting the requirements of domestic customers. and internationally, making an important contribution to bringing Vietnam’s total import and export turnover in the first 11 months of 2021 to maintain double-digit growth, putting Vietnam in the group of 20 leading economies in terms of international trade. economic.
This is an encouraging result in the context of global and domestic trade facing many difficulties due to the impact of the Covid-19 pandemic, many economies in the region and around the world shrank due to the impact of the epidemic. disease” – noted the Minister of Industry and Trade.
However, besides the achieved results, our country’s logistics service industry still has many limitations, has not developed commensurate with the potential and geo-economic advantages of Vietnam; The industry’s competitiveness is still low, logistics costs are still high; The link between import and export enterprises and logistics service enterprises is not tight and inefficient. One of the main subjective causes of the above limitations is the shortage of human resources, which have not really met the development needs in the new situation.
“The difficulty in human resources of the logistics industry will increase as Vietnam integrates more and more deeply into the world, especially in the ASEAN Economic Community and joins new generation of free trade agreements. “- Minister Nguyen Hong Dien commented.
Vietnam’s logistics market is full of potential to develop strongly after the pandemic
Vietnam Logistics Forum 2021 is the 9th forum held with topicality and profound practical significance. Through 8 times of organization, the forum has become a prestigious and familiar brand for the Vietnamese logistics service business community, is the address for gathering state management agencies, logistics service enterprises, enterprises. production and import-export to exchange and dialogue on current issues of the logistics field in Vietnam and propose and recommend to competent authorities solutions to improve the business environment for the industry. this service.
Following the Logistics Forum 2020, this forum is held in the context that all levels and sectors throughout the country are actively implementing the Resolution of the 13th Party Congress; the fourth industrial revolution and the digital economy is a strong development trend, bringing opportunities and advantages but also many difficulties and challenges intertwined; In particular, the Covid-19 pandemic is forecasted to have complicated developments, adversely affecting all aspects of social life.
The Ministry of Industry and Trade has been working with other ministries, branches and localities to focus on removing difficulties, restoring supply chains, boosting production and exporting goods, thereby effectively taking advantage of new generation FTAs. , reduce the damage caused by the epidemic and quickly restore growth momentum.
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