Supply chain shifts create opportunities for logistics businesses

VCN - The challenges and risks amid the strong shifts in the global supply chain were shared with logistics businesses at the Ho Chi Minh City Logistics Forum in 2023, held on November 29.
Vietnam's packaging industry aims for sustainable development Vietnam's packaging industry aims for sustainable development
Developing green logistics businesses, aiming for a sustainable supply chain Developing green logistics businesses, aiming for a sustainable supply chain
Weathering logistics hurdles to welcome supply chain shifts: experts Weathering logistics hurdles to welcome supply chain shifts: experts
The transportation of goods in our country is still primarily done by road. Photo: T.H
The transportation of goods in our country is still primarily done by road. Photo: T.H

Intense competition in the supply chain

According to the assessments of many experts, the global shift in the supply chain has created prospects and posed numerous challenges, compelling logistics businesses to adapt to the increasing demands of the service.

Addressing crucial issues related to the global shift in the supply chain and Vietnam's role, Vu Thi Huong Giang, representing AmCham Vietnam, emphasized that in the context of a strong global supply chain shift, Vietnam was becoming an investment destination for foreign investors. "However, Vietnam is not the sole destination for these investors. They place Vietnam alongside many other countries in the region as options. Therefore, Vietnamese logistics companies need to innovate their services to participate in this supply chain," stressed the AmCham representative.

To innovate the supply chain, Dinh Thi Quynh Van, Chairwoman of PwC (Vietnam), believed that in a dynamic business environment, innovating the supply chain was increasingly important. Businesses need to transform to adapt to development trends, including applying digital transformation to optimize processes and innovating the supply chain with the goal of sustainable business development.

Assessing logistics services in HCM City, Nguyen Cong Luan, representing the Department of Industry and Trade of HCM City, stated that logistics activities in Vietnam in general, and HCM City in particular, still faced many existing challenges. Specifically, road transport remains the primary mode of transportation, given that the road infrastructure is overloaded, deteriorated, and other transport methods are not well-developed. More than 50% of roads are in poor condition and do not ensure safety for cargo transportation.

HCM City lacks large-scale logistics centers with advanced modern technology. Currently, out of the seven logistics centers invited for investment by HCM City, only one project, the High-Tech logistics center, has been invested in, with a total expected investment of VND848 billion.

The scale of logistics service providers is limited in terms of operational capacity. Currently, there are about 30,000 registered logistics service businesses nationwide. However, more than 90% are mostly small and micro-sized units, operating in a scattered and fragmented manner, mostly providing basic services, with a low level of investment in modern information technology.

Anticipating the supply chain

According to Bui Ta Hoang Vu, Director of the Department of Industry and Trade of HCM City, to achieve the goal of anticipating the supply chain, it is essential to ensure that HCM City is not only a good stopover for goods entering and leaving the region but also a center for information and data management.

In this regard, HCM City is enhancing investment in developing logistics infrastructure, increasing loading and unloading capacity, and port storage, anticipating various supply chains. It aims to establish a regional-scale logistics service center in this city. At the level of the Southeast Region, there is a focus on robust development and synchronized systems of national and international logistics associated with seaports, airports, international border gates, key economic corridors, and regional trade routes in HCM City, Binh Duong, Long Thanh, Nhon Trach (Dong Nai province), Phu My town (Ba Ria - Vung Tau), and Tay Ninh.

Additionally, HCM City will collaborate with the business community operating in the logistics sector to implement solutions that enhance competitive capabilities in logistics activities in the city. The concentration will be on solutions such as establishing a digital logistics map, centralized data warehouses, creating digital platforms for multimodal transport services to serve government agencies and businesses.

Experts suggested that compared to foreign enterprises, Vietnamese logistics companies currently hold many infrastructure facilities and assets for logistics operations, with the advantage of understanding domestic business practices and customers. However, their operations are still individual, with limited financial and managerial capacities, serving specific segments, lacking continuous connectivity to provide integrated logistics services.

Therefore, to develop logistics in HCM City, there is a need to strengthen inter-sectoral cooperation, closely combining businesses, government agencies, and training institutions to create a robust logistics ecosystem that anticipates the logistics shift in the region.

By Le Thu/ Ha Thanh

Related News

EU partners no longer

EU partners no longer 'lenient', Vietnam must adapt through ESG policies

VCN - Legal and economic experts are calling for Vietnam to revamp its policies to align with stringent sustainable development requirements set by European Union (EU) partners.
Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
"One law amending four laws" on investment to decentralize and ease business challenges

"One law amending four laws" on investment to decentralize and ease business challenges

VCN - According to the Government, the draft Law amending and supplementing certain provisions of the Planning Law, Investment Law, Law on Investment under Public-Private Partnerships (PPP), and Bidding Law (referred to as "One law amending four laws") focuses on amending conflicting regulations that are causing obstacles, to facilitate investment, production, and business activities.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there are still difficulties, the economy is gradually returning to a high growth trajectory. In that context, it is necessary to let fiscal policy return to normal state.

Latest News

Processing-manufacturing accounts for over 64% of new FDI

Processing-manufacturing accounts for over 64% of new FDI

The processing and manufacturing sector took the lead in attracting foreign direct investment (FDI), accounting for 64.2% of the 27.26 billion USD recorded as of October 31, according to the General Statistics Office.
Foreign investment disbursement hits 19.58 bln USD in 10 months

Foreign investment disbursement hits 19.58 bln USD in 10 months

Disbursement of foreign investment reached about 19.58 billion USD in the first 10 months of this year, up nine% year-on-year, a report from the Ministry of Planning and Investment's Foreign Investment Agency (FIA) has shown.
“Greening” the textile, garment and footwear industry: Motivation from challenges

“Greening” the textile, garment and footwear industry: Motivation from challenges

VCN - Vietnam's textile and footwear industry is facing great pressure to satisfy more demanding requirements from international brands and national commitments on emission reduction while the input material and production costs are escalating.
Truly comprehensive finance: supporting micro and small enterprises

Truly comprehensive finance: supporting micro and small enterprises

VCN - To effectively support micro and small enterprises, Dr. Nguyen Duc Kien (pictured), former Deputy Chairman of the National Assembly's Economic Committee, former Head of the Prime Minister's Advisory Group, and Chairman of the Scientific Council of the Institute for Digital Economic Development Strategy (IDS), suggests that specific and specialized solutions and policies are needed to enhance these businesses' access to capital and technology.

More News

Challenges in reviving stalled projects

Challenges in reviving stalled projects

VCN - Recently, some "frozen" real estate projects have shown signs of restarting. However, successfully reviving these projects is no simple task for businesses (DN) due to the numerous difficulties and challenges they face.
Ensuring fairness between domestically produced goods and imported goods

Ensuring fairness between domestically produced goods and imported goods

VCN - Mr. Chu Thang Trung, Deputy Director of the Trade Remedies Authority, Ministry of Industry and Trade, shared about the application of trade remedies measures to protect domestic production and some solutions in the coming time.
Domestic exporters urged to shield against trade remedy threats

Domestic exporters urged to shield against trade remedy threats

Vietnamese exporters are navigating a landscape filled with both promise and peril, and experts urge them to bolster their defence against trade remedy investigations while capitalising on surging global demand.
Enterprises urged to further innovation, improve competitiveness to boost exports to Asia

Enterprises urged to further innovation, improve competitiveness to boost exports to Asia

Vietnamese enterprises need to make efforts to innovate, proactively improve competitiveness, and participate in new supply chains to boost exports to Asia, said trade official.
Increasing opportunities for exporting agricultural products to China by rail

Increasing opportunities for exporting agricultural products to China by rail

VCN - China is the largest export market for Vietnamese agricultural products and fruits. With increasing demand, exporting agricultural products by rail to this billion-people market is a potential and promising direction.
Monthly aquatic exports top 1 billion USD again after 2 years

Monthly aquatic exports top 1 billion USD again after 2 years

Monthly aquatic exports have exceeded 1 billion USD again in October after more than two years, signaling a rosy future for the industry, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Changes in Canada

Changes in Canada's trade defense laws

VCN - Canada - a major trading partner of Vietnam - is making many changes in its trade defense investigation regulations, which has a significant impact on Vietnam's export activities.
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - Although the import and export turnover of goods slowed down in September 2024, in general, import and export activities, especially exports, still grew positively in the first 9 months of 2024. It is expected that import and export of goods in 2024 will reach a record of 800 billion USD.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Read More

Your care

Latest Most read
Processing-manufacturing accounts for over 64% of new FDI

Processing-manufacturing accounts for over 64% of new FDI

The processing and manufacturing sector took the lead in attracting foreign direct investment (FDI), accounting for 64.2% of the 27.26 billion USD recorded as of October 31, according to the General Statistics Office.
Foreign investment disbursement hits 19.58 bln USD in 10 months

Foreign investment disbursement hits 19.58 bln USD in 10 months

Disbursement of foreign investment reached about 19.58 billion USD in the first 10 months of this year, up nine% year-on-year, a report from the Ministry of Planning and Investment's Foreign Investment Agency (FIA) has shown.
“Greening” the textile, garment and footwear industry: Motivation from challenges

“Greening” the textile, garment and footwear industry: Motivation from challenges

Vietnam's textile and footwear industry is facing great pressure to satisfy more demanding requirements from international brands and national commitments on emission reduction while the input material and production costs are escalating.
Truly comprehensive finance: supporting micro and small enterprises

Truly comprehensive finance: supporting micro and small enterprises

VCN - To effectively support micro and small enterprises, Dr. Nguyen Duc Kien (pictured), former Deputy Chairman of the National Assembly's Economic Committee, former Head of the Prime Minister's Advisory Group, and Chairman of the Scientific Council of t
Challenges in reviving stalled projects

Challenges in reviving stalled projects

VCN - Recently, some "frozen" real estate projects have shown signs of restarting. However, successfully reviving these projects is no simple task for businesses (DN) due to the numerous difficulties and challenges they face.
Mobile Version