29/11/2020 03:16:11 (GMT +7)

Digitalisation key to improving logistics sector: experts

Vietnam must reduce logistic costs to strengthen competitive capacity as the country pushes for greater international economic integration, heard participants at the Vietnam Logistics Forum 2020 in Hanoi on Thursday. 

Digitalisation key to improving logistics sector: experts
Participants the Vietnam Logistics Forum 2020 in Hanoi on Thursday. — VGP Photo

Speaking at the event, Deputy Prime Minister Trinh Dinh Dung said logistics play a key role in the national economy, connecting and promoting socio-economic development in cities and provinces as well as boosting the economy's competitive capacity. 

Đổi trò chơi"Therefore, better logistics services quality and lower logistics costs will help businesses bring down product costs and improve their ability to compete," he said. 

Đổi trò chơiAccording to Dung, Vietnam has set a goal for its logistics sector to grow by 15-20 per cent annually and account for 8-10 per cent of the country's GDP. Vietnam also has eyes on putting the sector among the top 50 in the World Bank's Logistics Performance Index.

Đổi trò chơiThe sector has maintained an annual growth rate of 12-14 per cent, amounting to 4-5 per cent of the country's GDP in recent years, said a report by the Vietnam Logistics Business Association. 

"To realise such a goal, central and local governmental agencies, as well as the local governments, must step up efforts to follow through with a national strategic plan to develop and improve competitive capacity for the logistics sector by 2025, which has been approved by the Prime Minister Office," he said. 

Dung urged central and local governmental bodies to work with business associations and logistics firms and listen to their concerns and feedback while pushing administrative reform efforts. 

Đổi trò chơiHe also asked the sector to invest in and adopt new management models and technologies, especially in information technology, while seeking partnerships with international logistics powerhouses.

Đổi trò chơiStefanie Stallmeister, Operations Manager for the World Bank in Vietnam, said the country has steadily improved in the Logistics Performance Index, moving from 53rd in 2010 to 39th in 2018, and performed better in the rankings than regional neighbours Malaysia, Indonesia and the Philippines. 

Vietnam’s integration into global and regional markets with the Regional Comprehensive Economic Partnership (RCEP) and the EVFTA has increased the impetus to have a strong and competitive logistics sector. 

These agreements can generate more trade between Vietnam and trading partners, boosting economic growth and poverty reduction. Higher trade flows will also increase demand for better and more competitive logistics services, she said. 

Đổi trò chơiDespite Vietnam’s improvement in the logistics performance index, Stallmeister said there are still limitations and shortcomings that must be overcome. 

For example, 80 per cent of survey respondents said Vietnam had high or very high road transport rates compared with the average of 40 per cent of respondents in the East Asia and Pacific region. Similarly, 40 per cent of survey respondents said Vietnam had high or very high port and airport charges compared with the average of 30-35 per cent of respondents in the region. The costs of road transport are particularly important in Vietnam where most freight travels by road between the north and south. 


Đổi trò chơiVietnam also ranked poorly in the efficiency of its seaports, 83rd out of 141 countries in its efficiency of seaport services, and ranked 103 in its efficiency of air transport services and the Quality of Road Infrastructure in the 2019 Global Competitiveness Index.  


There are more than 30,000 logistics firms operating in Vietnam with 59.02 per cent in the transport industry and 33.26 per cent in storage and supporting services, said Minister of Industry and Trade Tran Tuan Anh.

Đổi trò chơi"The COVID-19 pandemic has severely interrupted the global supply chain and logistics. Even as we speak, global logistics activities have yet to return to pre-pandemic level. In the first 10 months of the year, Vietnam has also suffered devastating damage caused by natural disasters," he said. 

Against all odds, however, the country has bounced back with the successful containment of COVID-19 and a number of key international trade deals such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Viet Nam Free Trade Agreement (EVFTA). 

In the first 10 months of the year, Vietnam exported US$439.8 billion in goods and services, a 2.62 per cent increase from the same period last year, Anh said.  

Meanwhile, domestic commercial activities have taken to online platforms, speeding up digitalisation in commerce and logistics. As a result, firms and business households have benefited from lower operating expenses and greater market penetration with online marketing. 

Đổi trò chơiThe minister said as Vietnam intends to open its logistics market, firms in the sector should look to adjust and adapt to changes in supply, investment and services quality in a near future. 

Đổi trò chơiHanoi's Party Secretary Vuong Dinh Hue said investing in research and development was key in cost-cutting and the development of the sector. He urged firms to quickly establish research centres and to adopt the latest information technologies such as blockchain, cloud computing and virtual reality to improve efficiency and services quality. 

Hue also stressed the importance of reducing carbon emissions by increasing the use of renewable energy and logistical efficiency.   VNS

Smarter logistics will benefit Vietnam: experts

Smarter logistics will benefit Vietnam: experts

Đổi trò chơiSmarter logistics are key for Vietnam to advance in the global value chain amid the fourth industrial revolution and the COVID-19 pandemic, experts told the Vietnam Business Summit 2020 held in Hanoi recently.

The path for digital business in Vietnam

The path for digital business in Vietnam

Đổi trò chơiDigital transformation is taking place across industries in Vietnam, with more enterprises succeeding in this journey. 


Other News

BUSINESSicon  18 giờ trước 

Businesses prepare for Tet, to ensure sufficient supply

Law on electronic transactions to be amended
BUSINESSicon  10 giờ trước 

Đổi trò chơiThe Ministry of Information and Communications (MIC) is proposing the amendment of some articles in the Law on Electronic Transactions No. 51/2005/QH11 in order to fix its shortcomings.

How Vietnam weathers global health crisis and rises?
BUSINESSicon  12 giờ trước 

Đổi trò chơiThe primary reason for positive economic growth this year is decisive steps to contain the health and economic fallout.

State-owned giants cling to support dream
BUSINESSicon  13 giờ trước 

With many state-run enterprises enduring heavy losses since the pandemic began, the National Assembly’s support package for Vietnam Airlines is bringing hope to other state-owned giants 

New regulation on temporary tax payments worries businesses
BUSINESSicon  11 giờ trước 

Đổi trò chơiThe taxation body needs to ‘nurture sources of revenue’ rather than bleed businesses dry, businesspeople say.

Vietnam needs focus on quality cocoa: experts
BUSINESSicon  21 giờ trước 

Đổi trò chơiVietnam needs policies encouraging the development of cocoa trees with a focus on productivity and quality instead of output for the sustainable development of the cocoa industry.

When will taxes be lowered to reduce automobile prices?
BUSINESSicon  13 giờ trước 

The government has affirmed its policy to encourage the development of the automobile industry. However, the ‘encouragement’ is not attractive in the eyes of manufacturers.

Continuing to provide advantages for US investors
BUSINESSicon  19 giờ trước 

As the United States and Vietnam celebrate 25 years of diplomatic relations, the partnership between the two is arguably at its strongest level, with growing trade and investment ties.

The turning points in the lives of Vietnamese billionaires
FEATUREicon  20 giờ trước 

Once dreaming of becoming a university lecturer, Nguyen Thi Phuong Thao finally became a businesswoman and billionaire. Others became billionaires though they did not complete or even attend university.

Budget rise to cushion country’s growth hopes
BUSINESSicon  27/11/2020 

With an expected economic growth rate of 2-3 per cent this year, the National Assembly has decided on a rise in budget deficit in order to ensure state budget spending, amid enterprise revenues being hit by the health crisis.

Vietnam bond market posts strongest growth among emerging East Asia in 9 months
BUSINESSicon  27/11/2020 

Đổi trò chơiThis growth was supported by expansion in both the government and corporate bond segments, stated the ADB.

Vietnam among most resilient economies in Covid-19
BUSINESSicon  27/11/2020 

Vietnam is listed among only five countries on the rankings that are expected to enjoy economic growth in 2020.

BUSINESSicon  27/11/2020 

COVID-19 pandemic improves Vietnam’s chance to enter global supply chain: ILO expert

Tight control of debt safeguarding finances
BUSINESSicon  27/11/2020 

Đổi trò chơiVietnam has continued to bring public debt under its control, thus ensuring financial security for the country.

International financing key to develop Vietnam's power sector
BUSINESSicon  27/11/2020 

Vietnam needs US$150 billion to invest in power projects in the next 10 years, equal to half the country’s current gross domestic product (GDP), which raises demand for international financing.

Experts upbeat about VN’s post-pandemic economic recovery, urging firms to focus on new trends
BUSINESSicon  27/11/2020 

Đổi trò chơiExperts are upbeat about Vietnam’s post-pandemic economy, urging enterprises to grasp opportunities arising from new trends, such as digital transformation, energy infrastructure development

VN automobile industry: new circumstances offer opportunity
FEATUREicon  27/11/2020 

Vietnam now has a new opportunity to develop its automobile industry. If the chance is missed, the country will become an automobile import market.

Bottlenecks in Vietnam’s renewable energy development
BUSINESSicon  27/11/2020 

Đổi trò chơiVietnam will likely have to increase coal power to ensure stable and affordable power supply.

Vietnam banks remain attractive options for foreign investors
BUSINESSicon  27/11/2020 

M&A activities in the banking sector are set to heat up in 2021, when the Covid-19 pandemic is fully contained and the majority of Vietnamese banks have completed their restructuring processes.

E-commerce serves as a gateway for Vietnamese exports
BUSINESSicon  27/11/2020 

E-commerce offers businesses, especially small and medium-sized enterprises (SMEs), a direct reach to international customers, boosts their sales, speeds up the marketing process and saves costs, experts have said.

Leave your comment on an article