Covid-19 pandemic - A strong catalyst for the re-positioning of logistics businesses

VCN - According to a survey conducted by the Vietnam Logistics Business Association (VLA), the Covid-19 pandemic caused many businesses to lose 10% - 30% of revenue over the same period last year, as well as forced them to apply new operating methods, thereby repositioning themselves in the logistics industry.
5954-3643-13-4829421
Nguyen Tuong, Deputy General Secretary of the Vietnam Logistics Business Association (VLA)

The Covid-19 pandemic had a significant impact on logistics businesses due to the disruption of global supply. However, it is also an opportunity for businesses to "transform". Could you please give further information about this?

The logistics market is attracting more than 4,000 businesses, mainly concentrated in Hanoi and Ho Chi Minh City, including about 30 enterprises providing transnational logistics services. When the pandemic broke out, the reduction in the number of orders and revenue has become a problem for logistics businesses.

However, this is also an "opportunity" for businesses to transform, restructure and take advantage of digital technology to create big changes in their output and productivity. This makes traditional logistics businesses faster and there is only one way that is overcoming difficulties to restructure the business, thereby positioning the business in the industry.

It is time to look back at the service platforms of the logistics businesses and look at opportunities for improvement: how businesses can respond to unexpected situations during their operation, or whether there is any potential for e-commerce. This is not only a temporary solution but also a development trend of logistics. Obviously, logistics for e-commerce is a huge opportunity for current businesses.

Has the Covid-19 pandemic created an opportunity for digital transformation? How do you evaluate the fact that logistics enterprises take advantage of this context to overcome immediate difficulties and make long-term development steps?

- Although the digitization trend in logistics has been taking place for a few years, it has really accelerated during the Covid-19 pandemic. Logistics enterprises have many different service segments, so they have different approaches, because many units are now applying independent applications for each service segment. Setting up e-commerce platforms and deploying electronic order solutions will bring opportunities for businesses in the context of the Covid-19 pandemic.

The EVFTA is expected to bring many advantages to the logistics industry, being an important growth engine after the Covid-19 pandemic. In your opinion, what do businesses need to do to realize this?

- It must be said that the EVFTA is a great opportunity for the logistics industry to develop after the Covid-19 pandemic. The agreement is a boost to Vietnam's production and import and export activities. As the production and import-export activities develop, the development of the logistics industry will follow.

The EVFTA will expand the freedom of service delivery, offering logistics businesses many opportunities for growth. The tasks that global transportation and forwarding corporations do not do when entering the Vietnamese market will be opportunities for Vietnamese businesses, especially services such as domestic transport, forwarding and customs procedures.

Additionally, the commitment to eliminate tariffs for vehicles, machinery, and technological equipment for logistics activities from the EU is a good chance for domestic logistics firms to buy products at reasonable prices, save production costs, improve technology capacity, increase self-implementation capacity, and reduce outsourcing services.

The opportunities that the EVFTA brings to the logistics industry are great but not for every unit, because they always go hand in hand with huge challenges. These opportunities will force Vietnamese logistics enterprises to innovate, promote reforms and improve their own competitiveness in the context of deep international economic integration.

Undoubtedly, European logistics firms have much higher qualifications and stronger capital than Vietnamese units. Therefore, it is difficult for Vietnamese enterprises to gain orders, especially when international manufacturers and investors have links with logistics service providers in the EU, while Vietnamese exporters mainly export FOB. If every small opportunity is not exploited, Vietnamese businesses are not able to gain advantages.

To grasp these opportunities, members of the association have constantly expanded relations with EU partners such as Spain, Germany and the Netherlands. Simultaneously, they attach importance to developing technology, improving the quality of human resources to have the best "anticipation" as soon as the Covid-19 pandemic is completely controlled.

Thank you, sir!

By Xuan Thao/ Ha Thanh

Related News

The impact of wage increases on inflation will not be too significant

The impact of wage increases on inflation will not be too significant

VCN - Addressing concerns related to wage and price increases, Dr. Nguyen Duc Do, Vice Director of the Institute of Economics - Finance (Finance Academy), believes there are not many factors causing sudden price surges in the last 6 months of 2024. Therefore, it can be expected that the rate of price increases in the last 6 months will be comparable to that in the first 6 months of 2024.
Financial policy positively impacts every corner of the economy

Financial policy positively impacts every corner of the economy

VCN - Dr. Le Duy Binh, CEO of Economica Vietnam, discussed with Customs Magazine the impact of financial policies to support businesses and people implemented from the beginning of the year until now.
It is necessary to carefully assess the impact of the global minimum tax rate on Vietnam

It is necessary to carefully assess the impact of the global minimum tax rate on Vietnam

VCN - At the request of Deputy Prime Minister Le Minh Khai, it is necessary to carefully analyze and evaluate the impact of the global minimum tax rate on Vietnam, focusing on assessing the impacts on the budget, investors, and foreign investment attraction of Vietnam.
Ho Chi Minh City Customs removes obstacles for logistics businesses

Ho Chi Minh City Customs removes obstacles for logistics businesses

VCN - At the morning coffee program recently held by Ho Chi Minh City Logistics Association (HLA), with the participation of 70 logistics enterprises, leaders of Ho Chi Minh City Customs Department answered many issues related to the management policy of cargo handled before and after customs clearance at the seaport.

Latest News

New step in tracing seafood origin, meeting export requirements

New step in tracing seafood origin, meeting export requirements

VCN - Using the electronic seafood traceability application (eCDT VN) will help seafood exporting enterprises more conveniently apply for export product traceability documents (SC, CC). This will help the Vietnamese seafood industry better adapt to the trend of international integration and the demand for transparency in seafood origin of the export market.
Việt Nam

Việt Nam's pangasius exports expected to reach $2b in 2024

Pangasius export turnover in the first ten months reached $1.56 billion, an increase of 8.9 per cent over the same period in 2023.
VN’s first pharmaceutical industrial park to be built

VN’s first pharmaceutical industrial park to be built

Located in Thái Bình Province, the park is expected to provide jobs for 18,000 people when going into operations.
Accelerating investment to meet "green" standards

Accelerating investment to meet "green" standards

VCN – Many businesses are implementing large-scale investments in technology, energy transitions, and production processes to meet the increasingly stringent "green" criteria set by the EU market.

More News

US initiates investigation into pharmaceutical capsule shells imported from Việt Nam

US initiates investigation into pharmaceutical capsule shells imported from Việt Nam

Hard capsule pharmaceutical shells from Brazil, China and India are also being investigated.
UKVFTA gives advantages to Vietnamese fishery products in the UK, urging focus on quality for further expansion

UKVFTA gives advantages to Vietnamese fishery products in the UK, urging focus on quality for further expansion

To better exploit the tariff incentives from the UKVFTA, it is necessary for Vietnamese fishery producers and exporters to focus on improving quality and supply capacity to expand market share in the UK
Agricultural, forestry and fishery trade surplus value shoots up

Agricultural, forestry and fishery trade surplus value shoots up

VCN - According to the Ministry of Agriculture and Rural Development, the total export turnover of agricultural, forestry and fishery products in the first 10 months reached 51.74 billion USD, up 20.2% over the same period in 2023. Notably, the trade surplus value recorded a spectacular increase year on year.
New export and business cooperation opportunities from "dual conversion"

New export and business cooperation opportunities from "dual conversion"

VCN - According to a recent study from NielsenIQ, 16% of Vietnamese consumers consider a sustainable future as one of the important factors in their consumption decisions.
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Read More

Your care

Latest Most read
New step in tracing seafood origin, meeting export requirements

New step in tracing seafood origin, meeting export requirements

VCN - Using the electronic seafood traceability application (eCDT VN) will help seafood exporting enterprises more conveniently apply for export product traceability documents (SC, CC). This will help the Vietnamese seafood industry better adapt to the tr
Việt Nam

Việt Nam's pangasius exports expected to reach $2b in 2024

Pangasius export turnover in the first ten months reached $1.56 billion, an increase of 8.9 per cent over the same period in 2023.
VN’s first pharmaceutical industrial park to be built

VN’s first pharmaceutical industrial park to be built

Located in Thái Bình Province, the park is expected to provide jobs for 18,000 people when going into operations.
Accelerating investment to meet "green" standards

Accelerating investment to meet "green" standards

VCN - Founded in 1998, Ton Dong A Corporation specializes in manufacturing steel and coated steel products catering to various demands, from industrial and residential construction to transportation infrastructure and home appliances.
US initiates investigation into pharmaceutical capsule shells imported from Việt Nam

US initiates investigation into pharmaceutical capsule shells imported from Việt Nam

Hard capsule pharmaceutical shells from Brazil, China and India are also being investigated.
Mobile Version