Digital transformation vital for logistics firms’ competiveness: insiders
Most of Vietnam’s logistics firms may struggle to operate and sharpen their competitive edge in the new context if they are not quickly to engage in digital transformation (Source: tapchitaichinh.vn)
Most of Vietnam’s logistics firms may struggle to operate and sharpen their competitive edge in the new context if they are not quickly to engage in digital transformation.
Of the 4,000 existing logistics firms, 95 percent are small- and medium-sized enterprises (SMEs), and Vietnamese ones only account for 20 percent of the market share.
Statistics of the Vietnam Logistics Business Association (VLA) showed that COVID-19 has forced 15 percent of logistics companies to suffer a 50 percent reduction in revenue, and more than half of them to cut down 10-30 percent of services compared to 2019.
In such context, information technology (IT) application and digital transformation are considered urgent solutions for logistics firms. To maintain operations, they have stepped up IT application and e-commerce.
Dr Vu Tien Loc, member of the National Assembly’s Committee for Economic Affairs, said that logistics cost in Vietnam remains high compared to others in the region and the world. This delivers a blow to firms’ competitiveness and the economy as a whole.
To address this issue, administrative reforms are necessary, along with stronger infrastructure investment and especially new technology and digital transformation application in the sector.
VLA Vice President Dao Trong Khoa underlined that logistics businesses need to foster digital transformation, blockchain applications and artificial intelligence to build a digital platform integrated with current logistics technologies so as to reduce costs.
As a large number of logistics firms only handle some parts and services, they face difficulties in investment in and use of suitable software, said VLA President Le Duy Hiep, adding that the firms should implement digitalisation from fundamental tasks.
Given that most of firms in the sector are SMEs and lack financial sources, there must be incentives and loans to support them in digital transformation and solutions, experts said.
Digital transformation has become an urgent task to help logistics firms recover and develop in order to safely live with COVID-19, and authorities have been called on to complete a legal framework in this regard./.
Related News
Hanoi State Treasury proactively digitizes and transforms operating methods
10:15 | 25/03/2024 Finance
Seafood businesses adapt to the new situation
13:50 | 15/03/2024 Import-Export
Focus on digital transformation in anti-smuggling
09:37 | 13/03/2024 Customs
Lang Son promotes border gate management and development
11:11 | 17/03/2024 Customs
Latest News
ASEAN, RoK agree on transposition of AKFTA product specific rules
15:00 | 28/03/2024 Import-Export
Opportunities for digital technology businesses to go global
14:58 | 28/03/2024 Import-Export
Vietnam, China eye stronger border trade
14:57 | 28/03/2024 Import-Export
Improve competitiveness and sustainable development of the seafood industry
09:51 | 28/03/2024 Import-Export
More News
Business environment reform needs further promotion: expert
14:47 | 27/03/2024 Import-Export
Singapore is the largest foreign investor in VN in Q1
14:43 | 27/03/2024 Import-Export
Thai Binh boosts investment, trade cooperation with Germany
14:38 | 27/03/2024 Import-Export
Lifting obstacles to develop industrial parks
10:24 | 27/03/2024 Import-Export
Unlock capital flows and create favorable conditions for investors
10:22 | 27/03/2024 Import-Export
More than 300 businesses, manufacturers to attend VGMF 2024
15:55 | 26/03/2024 Import-Export
Connecting with FDI firms helps boost wood exports: insiders
15:52 | 26/03/2024 Import-Export
Doosan Vina exports nearly 2,000 tonnes of modules to US
15:51 | 26/03/2024 Import-Export
Wood processing enterprises strive to increase the proportion of individually designed goods
09:50 | 26/03/2024 Import-Export
Your care
ASEAN, RoK agree on transposition of AKFTA product specific rules
15:00 | 28/03/2024 Import-Export
Opportunities for digital technology businesses to go global
14:58 | 28/03/2024 Import-Export
Vietnam, China eye stronger border trade
14:57 | 28/03/2024 Import-Export
Improve competitiveness and sustainable development of the seafood industry
09:51 | 28/03/2024 Import-Export
Business environment reform needs further promotion: expert
14:47 | 27/03/2024 Import-Export