Vietnam’s logistics sector faces labor shortage of 2 million people

The issue of labor shortage is becoming more severe as Vietnam is a member of ASEAN Economic Community AEC and is joining in a number of next generation free trade agreements
vietnams logistics sector faces labor shortage of 2 million people

Illustrative photo

With annual growth rate of over 10% and contributing 5% to the country's GDP, Vietnam’s logistics sector is facing a labor shortage of around two million people, according to the Vietnam Logistics Association (VLA).

Statistics showed Vietnam currently has 30,000 logistics companies, including 4,000 operating in cargo transportation domestically and internationally.

Notably, the majority of logistics firms operating in Vietnam are of small and medium size. 89% of them are local, 10% are joint-ventures and 1% wholly foreign owned enterprises.

The issue of labor shortage is becoming more severe as Vietnam is a member of the ASEAN Economic Community (AEC) and is joining a number of high-standard free trade agreements, VnEconomy reported.

A survey from the Ho Chi Minh City Institute for Development Studies (HIDS) revealed the Vietnamese workforce in the logistics sector is not only in short supply but also lacks the quality, particularly those assuming senior positions. Specifically, 53.5% enterprises lack staff with qualification and logistics knowledge; 30% have to retrain employees and only 6.7% are satisfied with the capacities of their employees.

Another survey conducted by the Institute of Economics and Development (IED) under the National Economics University indicated up to 80.26% of employees in logistics firms are trained through day-to-day work; 23.6% took part in local training courses; 6.9% are trained by international experts and only 3.9% joined training courses abroad.

The VLA predicted in the next three years, logistics firms in Vietnam would need 18,000 new employees and companies in other sectors would need over millions of employees with logistics knowledge.

Tran Thanh Hai, deputy head of the Import – Export Department under the Ministry of Industry and Trade (MoIT), said the quality of workforce training in the logistics sector should be improved to meet international standards and remove the weaknesses of Vietnamese human resources in logistics, including the lack of discipline and teamwork capability.

Hai suggested policy makers propose new teaching plans in the fields of logistics and supply chain in Vietnamese universities.

According to Hai, in order to develop high quality human resources in logistics, it is essential to have a joint-effort from the government, provinces/cities, logistics firms and vocational schools, while the government should continue to provide supporting policies for logistics.

Le Quoc Tien, vice principal of Vietnam Maritime University, said to improve the quality of teaching staff in logistics, the contribution of foreign and local logistics experts is necessary, as well as close the collaboration with logistics firms in setting up training programs in logistics.

Vietnam’s logistics and warehousing market is expected to register a positive compound annual growth rate (CAGR) of 13.3% in the 2018-2022 period, reaching a revenue of US$86.7 billion by 2022, according to Ken Research – a market research and consulting company based in India and the US.

Source: Hanoi Times

Related News

Seafood businesses adapt to the new situation

Seafood businesses adapt to the new situation

VCN - Facing the fluctuations in export markets and the impact of logistics supply chains, seafood export businesses have made changes and adapted to the new situation.
Lang Son promotes border gate management and development

Lang Son promotes border gate management and development

According to the leaders of Lang Son Provincial People's Committee, the province is currently focusing on improving the quality of planning and planning management, especially implementing logistics service center planning; focusing on mobilizing investment resources, building infrastructure projects and developing production and business in border gate areas.
Vietnam

Vietnam's trucking industry in the context of Asian logistics development

VCN - Vietnam's Logistics Performance Index (LPI) has increased to 3.3 points from 3.27 points in 2018, indicating gradual improvement, especially in customs procedures and infrastructure quality.
It is necessary to modernize Dong Dang international railway station to meet current regulations

It is necessary to modernize Dong Dang international railway station to meet current regulations

VCN - To ensure customs management and supervision at the border gate area of Dong Dang international railway station, Lang Son Customs Department proposed Vietnam Railway Corporation to continue to install cameras and software according to the provisions of Decree 68/2016/ND-CP, amended and supplemented in Decree 67/2020/ND-CP.

Latest News

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN member states and the Republic of Korea (RoK) have reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Opportunities for digital technology businesses to go global

Opportunities for digital technology businesses to go global

Finding solutions and directions to promote and develop Vietnamese digital technology enterprises is an important task, which will promote the stability and sustainability of the country's economy, heard a recent conference.
Vietnam, China eye stronger border trade

Vietnam, China eye stronger border trade

Border provinces of Vietnam and China should continue close coordination and enhance trade promotion between the two sides, stressed the recent talks between the management boards of the economic zone of the northern province of Ha Giang and the Malypo border economic cooperation zone of China’s Yunnan province.
Improve competitiveness and sustainable development of the seafood industry

Improve competitiveness and sustainable development of the seafood industry

VCN - In early 2024, seafood exports have prospered. This is the driving force that helps seafood businesses hope for a stronger recovery this year. Ms. Nguyen Thi Thu Sac, Chairwoman of the Vietnam Association of Seafood Exporters and Producers (VASEP) shared with Customs Magazine.

More News

Business environment reform needs further promotion: expert

Business environment reform needs further promotion: expert

Resolution 02 issued by the Government creates pressure for the ministries, sectors and localities to make changes for the business community as well as the socio-economic development.
Singapore is the largest foreign investor in VN in Q1

Singapore is the largest foreign investor in VN in Q1

The disbursed FDI rose by 7.1 per cent in the first quarter to reach $4.63 billion, a signal that the disbursement will continue the positive trend, the agency said.
Thai Binh boosts investment, trade cooperation with Germany

Thai Binh boosts investment, trade cooperation with Germany

A delegation from the northern province of Thai Binh, led by Deputy Secretary of the provincial Party Committee Nguyen Khac Than, visited several localities and business organisations in Germany from March 25 to 27, in a bid to enhance trade cooperation with and attract direct investment from the European nation.
Lifting obstacles to develop industrial parks

Lifting obstacles to develop industrial parks

VCN - Attracting investment and developing industrial zones (IZs) and economic zones (EZs) is one of the important contents to implement the policy of developing a multi-component, open, attract investment and resources from all economic sectors to develop the country. In addition to the results achieved, there still limitations that need to be removed to draw investments to develop industrial parks and economic zones, including financial problems for industrial parks.
Unlock capital flows and create favorable conditions for investors

Unlock capital flows and create favorable conditions for investors

VCN - Talking with the press, Dr. Ngo Cong Thanh (Photo), Provisional Executive Committee member of the Vietnam Industrial Park Finance Association (VIPFA), said that it is necessary to open up capital flows and create conditions for investors to access key factors. Facilitate production and business factors and innovate investment promotion activities to more effectively develop industrial parks.
More than 300 businesses, manufacturers to attend VGMF 2024

More than 300 businesses, manufacturers to attend VGMF 2024

More than 300 domestic and foreign businesses and manufacturers will attend the Vietnam Global Manufacturing Forum 2024 (VGMF2024) to explore investment and business cooperation opportunities.
Connecting with FDI firms helps boost wood exports: insiders

Connecting with FDI firms helps boost wood exports: insiders

Strengthening linkages and cooperation between foreign-invested and domestic enterprises will contribute to promoting the sustainable development of the Vietnamese wood industry, according to insiders.
Doosan Vina exports nearly 2,000 tonnes of modules to US

Doosan Vina exports nearly 2,000 tonnes of modules to US

The Doosan Enerbility Vietnam (Doosan Vina) specialising in heavy industries announced on March 26 that it has just exported a batch of nine modules weighing nearly 2,000 tonnes to the Golden Triangle Polymers company in Texas, the US.
Wood processing enterprises strive to increase the proportion of individually designed goods

Wood processing enterprises strive to increase the proportion of individually designed goods

VCN - Many wood and furniture processing enterprises are promoting investment in design activities, helping to increase the proportion of individually designed products (ODM) in exports, thereby affirming the industry's capacity Vietnamese wood in segments with higher added value.
Read More

Your care

Latest Most read
ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN member states and the Republic of Korea (RoK) have reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Opportunities for digital technology businesses to go global

Opportunities for digital technology businesses to go global

Finding solutions and directions to promote and develop Vietnamese digital technology enterprises is an important task, which will promote the stability and sustainability of the country's economy, heard a recent conference.
Vietnam, China eye stronger border trade

Vietnam, China eye stronger border trade

Border provinces of Vietnam and China should continue close coordination and enhance trade promotion between the two sides, stressed the recent talks between the management boards of the economic zone of the northern province of Ha Giang and the Malypo border economic cooperation zone of China’s Yunnan province.
Improve competitiveness and sustainable development of the seafood industry

Improve competitiveness and sustainable development of the seafood industry

In early 2024, seafood exports have prospered. This is the driving force that helps seafood businesses hope for a stronger recovery this year.
Business environment reform needs further promotion: expert

Business environment reform needs further promotion: expert

Resolution 02 issued by the Government creates pressure for the ministries, sectors and localities to make changes for the business community as well as the socio-economic development.
Mobile Version