Logistics sector must embrace innovative trends to stay competitive

Speaking at the Vietnam Logistics Summit 2024 organised by Dau tu (Investment) Newspaper, its editor-in-chief Le Trong Minh said that logistics is one of Vietnam’s fastest-growing sectors, with a 16% annual growth rate.

The sector currently contributes 4-5% to national GDP and employs over one million people, and ranking among the top five in ASEAN, he added.

Vietnam’s logistics market is valued at around 40 billion USD in 2023, with expected growth of 14-15% by 2025.

Factors such as free trade agreements, Vietnam’s strategic location, and a favourable investment climate are driving this growth, aided by a recovery in trade post-pandemic, he said.

Moreover, the Government’s focus on major infrastructure projects and dual transitions in digital and green initiatives presents significant opportunities for Vietnam’s logistics sector, he added.

According to a report by Precedence Research, the global logistics market is expected to reach $21.91 trillion by 2033, growing at 9.35% annually.

Challenges

Experts have, however, warned that the global logistics sector is facing numerous challenges, including economic uncertainty, geopolitical tensions, supply chain disruptions, declining consumer demand, and the impact of natural disasters such as Typhoon Yagi.

For Vietnam’s logistics industry to thrive, it cannot rely solely on its current advantages, they noted.

Ranked 43rd globally in the Logistics Performance Index, Vietnam must improve amidst a rapidly changing environment, they noted.

Deputy Minister of Planning and Investment Do Thanh Trung pointed out that the logistics sector is facing insufficient and incoherent policies, as well as a fragmented legal framework.

The country’s logistics infrastructure, including warehouses and transport networks, is limited and poorly coordinated, hindering seamless multimodal transport, he added.

There is also a shortage of strategically located logistics centres and a lack of skilled personnel in the industry, many of whom operate as subcontractors for foreign firms.

The challenges have been serious, particularly as the global landscape evolves with shifts in security, geopolitics, and rapid technological advancements in areas such as Big Data and AI.

Despite the challenges, the context presents an opportunity for firms to expedite their transformation, becoming more agile and robust, according to Trung.

“Companies that effectively leverage emerging technologies will gain a competitive edge in the market,” he said.

Vietnamese logistics companies, mostly small to medium-sized enterprises, must optimise practices, accelerate digital transformation, and invest in new technologies to enhance competitiveness, he recommended.

The conference also addressed other topics such as data security, cyberattacks, and cargo safety, focusing on preventive measures and response strategies in the logistics sector.

As part of the event, an exhibition showcased innovative technologies and solutions in logistics.

Themed “Transform to Breakthrough,” the conference discussed key industry challenges, including logistics infrastructure modernisation, supply chain efficiency, digital transformation, and new business models.

Over 300 attendees participated in the event, including State officials, industry experts, logistics providers, manufacturers, and consultants.

It was also streamed on platforms such as Facebook and YouTube./.