Technology increases competitiveness in the logistics race

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Vietnam Post's sorting line system can sort goods in detail to the district and commune levels. Illustration photo: Internet

Many development opportunities

Logistics plays an important role in the entire process from social production, import and export, circulation and distribution to consumption, creating added value, making an increasingly greater contribution to promoting the growth of the country's import-export turnover. In the context of Vietnam's deep integration into the regional and world economy, active participation in free trade agreements and with geo-economic advantages, Vietnam's logistics service industry will have many opportunities of development and participate more deeply in the global logistics supply chain.

The Logistics Performance Index (LPI) in 2023 reaches 3.3 points, ranking 43/154 countries and territories, ranking 5th among ASEAN countries, the service revenue growth rate is quite high, reaching 14 - 16%/year with a scale of about USD 40 - 42 billion/year, the quantity and quality of logistics services are improved, making an important contribution to promoting the growth of Vietnam's import-export turnover.

According to the Vietnam Logistics Business Association (VLBA), the logistics industry in Vietnam accounts for 20-25% of GDP of total value of goods and services, expected to grow 12% each year in the near future. The strong growth of the e-commerce industry brings more opportunities for logistics companies.

Although there are many conditions for development, Vietnamese logistics businesses face challenges. According to Mr. Dinh Thanh Son, Deputy General Director of Viettel Post Corporation, first of all is a legal issue because policies and legal documents in the logistics industry have not been implemented in a detailed and consistent manner, causing ambiguity and sometimes conflicts in implementation. Besides, there is transportation and logistics infrastructure. Transport infrastructure is not synchronized and does not create the necessary multimodal transport system, leading to limitations in transshipment of goods between modes of transport. In addition, logistics businesses still face difficulties in operating scale, investment capital, human resources, lack of experience and professionalism, causing difficulties in competing and providing effective services. Along with that is the problem of lack of quality human resources. The majority of workers in domestic enterprises account for 93 - 95% but lack expertise and are not properly trained, so enterprises mainly participate at the level of small supply chains such as delivery, warehouse management and bill of lading processing.

Enhance modern technology and equipment

Also from practical requirements, large businesses are increasingly focusing on expanding service networks, warehouse systems, utilities and technology to increase delivery productivity. In particular, bonded warehouse investment is an area that businesses focus on. Because this is also an important "link" in promoting Vietnam's import-export activities, helping businesses save costs, increase flexibility and competitiveness in import-export activities.

Identifying the role of bonded warehouse activities in overall logistics activities in general, in recent times, Vietnam Post has focused on applying science and technology, focusing resources on improving capacity and quality of bonded warehouse services. To date, Vietnam Post has a bonded warehouse system in the North with a total area of ​​about 73,000 square meters. Mr. Nguyen Dinh Cuong, Director of Logistics Company, a member unit of Vietnam Post, said that "The VMI (Vendor Managed Inventory) bonded warehouse system that Vietnam Post is implementing is appropriate." with many business fields, especially serving the storage of raw materials and semi-finished products for FDI enterprises engaged in production and import-export activities. In fact, Vietnam Post has been a logistics partner providing comprehensive bonded warehouse solutions for dozens of businesses in the fields of electronic equipment, garments, leather shoes... Only in the first quarter/ In 2024, the enterprise has processed 1,571 import declarations into bonded warehouses, the most among the group of enterprises providing bonded warehouse rental and operation services.

In addition, Vietnam Post is also equipped with a security management system with the highest level of control, fully meeting security standards equivalent to international airports such as: infrared screening system. , 24/24 surveillance cameras, covering all locations in the warehouse, direct data connection with the Customs agency, ensuring the best service in performing specialized operations as well as meeting the management agencies’ requirements of regular inspection and supervision. The bonded warehouse of Vietnam Post in Vinh Phuc is the first bonded warehouse in Vietnam to achieve TAPA-A security certification (the world's best warehouse security standard).

In particular, Vietnam Post currently possesses many advantages to develop logistics services, a transportation network covering 63 provinces and cities to borders and islands with tens of thousands of delivery routes and not only transport connections domestically but also expand to more than 220 countries and territories around the world.

According to the Import-Export Department (Ministry of Industry and Trade), as one of the key industries, logistics needs to be carefully invested, especially in the aspect of "digital transformation" to be able to respond and adapt to the market context, maximum support to promote the development of other professions. In addition, technology application helps improve service quality, increase customer experience, reduce carbon emissions, and packaging waste that pollutes the environment by optimizing transportation routes and management. Good delivery based on technology applications and artificial intelligence. These benefits not only bring value to each business from an economic and service quality perspective, but also have a general impact on the entire logistics and e-commerce industry as well as the economy.