What will logistics enterprises face in 2020?

VCN- The US-China trade war and the US-Iran conflict may lead to anincrease in oil price, or Vietnam’s signing of the EU-Vietnam Free Trade Agreement (EVFTA) will be favourable or difficult for logistics enterprises in 2020? Customs Newspaper interviewed Nguyen Tuong, Deputy Secretary General of the Vietnam Logistics Business Association on this issue.  
what will logistic enterprises face in 2020 Vietnam to develop seaport planning
what will logistic enterprises face in 2020 Connectivity is key to Vietnam’s deeper integration
what will logistic enterprises face in 2020 How will Vietnam's logistics industry develop in the future?
what will logistic enterprises face in 2020
Mr. Nguyen Tuong, Deputy Secretary General of the Vietnam Logistics Business Association

According to experts, Vietnam is a potential market for development of the logistics service industry because annual import and export turnover reached hundreds of billions of dollars. In 2019, this figure was more thanUS$500 billion. In your opinion, what are the advantages and disadvantages for Vietnamese logistics enterprises in 2020?

-Disadvantages in 2020 will be the same difficulties that Vietnamese logistics faced in 2019, which is the instability of the world's political situation, especially the US-Iran conflict will greatly affect such as the increase in oil price; the US-China trade war also affects import and export activities.

The specialised inspection still faces difficulties. In addition, the National Single Window has helpedto cut many procedures. However, some procedures of ministries and sectors have not yet been connected to this system. Notably, the goal of all procedures processed electronically has not been achieved andsome procedures are processed manually.

In addition, facing the above difficulties, logistics enterprises will have some advantages in 2020. Accordingly, in 2020, logistics enterprises will be determined to do better in 2019. The import and export value is expected to increase. Vietnam’s signing of new generation FTAs will create great opportunities for import and export activities as well as the supply market in Vietnam, especially the implementation of EVFTA will facilitate enterprises with large export value such as textiles, footwear, and seafood, which will lead to the development of logistics enterprises.

The increase in shipping surcharges and seaport service charges andthe competition between between logistics enterprises in 2020 will also be fierce. What do you think about this?

- There are many opportunitiesbut the competition is very fierce. The competition includes two contents. Firstlyis the competition between big foreign logistics enterprises operating in Vietnam with Vietnamese logistics enterprises. Foreign logistics enterprises have advantages in terms of capital, management and human resource, while, Vietnamese logistics lack human resourcesspecialisingin technology. Thus, to compete fairly in the country, the Vietnamese logistics industry must make more efforts in administration and management, especially support from the Government.

Secondly, competition on service pricesis regular competition. The most difficult thing for logistics enterprises today is how to reduce costs.

Notably, low sulphur surcharge (LSS) from 1 January 2020 at seaports will increase and beapplied at ports of loading. Accordingly, all shippers sendinggoods from Vietnam to foreign countries have paid these charges for shipping lines. However, some shipping lines collect LSS from Vietnamese importers to repay Chinese shipping lines. This has increased costs and burdens for Vietnamese importers.

In principle, this surcharge is a part of the freight, those who pay the freight must pay this surcharge. Therefore, we have recommended logistics service enterprises when signing contractsmust request their customers specify the party who will pay this surcharge on the bill of lading, creating a legal basistodetermine who has to pay the LSS.

As you said, the current difficulty of the the logistics industry is costs. Thus, in 2020, how will the logistics industry take measures to cut costs and improve the competitiveness of enterprises?

-Currently 97 percent of Vietnam's logistics enterprises are small and medium-sized enterprises, even micro enterprises. Therefore, most enterprises face difficulties in capital and human resources, especially lacking information technology human resources to apply in order exploitation. The last weak stage is warehouse management technology and cold supply chain.

The logistics industry in 2020 is expected to have higher growth than in 2019 thanks to the useof new technology in the operations of enterprises. It will focus on improving its performance in the supply chain management, by coordinating between service users, manufacturers, exporters, importers anddistributors towards reducing logistics costs.

what will logistic enterprises face in 2020 EVFTA to bring logistics firms both opportunities and challenges

In 2020, the VLA will study the application of blockchain technology in using e-delivery orders instead of paper delivery orders. The IT application will save more than VND 200 billion. At the same time, the useof e-D/O will also reduce transaction time, reduce costs and increase competitiveness of Vietnam's logistics industry.

In the near future, the VLA will also deploy and organise many business delegations to explore markets and study, connect with foreign logistics enterprises to expand their linkages and build more new orders.

By Xuan Thao/Ngoc Loan

Related News

Vietnam - France trade reached nearly US$2.5 billion in the first half of the year

Vietnam - France trade reached nearly US$2.5 billion in the first half of the year

VCN - France is Vietnam's leading trade partner in Europe with bilateral turnover reaching billions of US$/year.
Rubber exports grows sharply in June

Rubber exports grows sharply in June

VCN - According to Import – Export Tax Department (Ministry of Industry and Trade), Vietnam's rubber exports in June 2024 reached about 150 thousand tons, worth 238 million USD, up 77.6% in volume and 76.6% in value. Price compared to May 2024.
Vietnam rises 11 places in budget transparency ranking

Vietnam rises 11 places in budget transparency ranking

VCN - The results of the Open Budget Survey 2023 (OBS 2023) have just been announced by the International Budget Cooperation (IBP), Vietnam's budget transparency ranking continues to be raised to 57 out of 125 countries, climbing 11 places compared to the 2021 assessment period and rising 20 places compared to 2019.
South Korea is Vietnam’s leading trading partner

South Korea is Vietnam’s leading trading partner

VCN – South Korea has maintained its position as largest trading partners of Vietnam for many years.

Latest News

Indonesia licenses certificates of lobster cultivation for three Vietnamese companies

Indonesia licenses certificates of lobster cultivation for three Vietnamese companies

Three out of the five Vietnamese businesses, which have formed limited liability companies in Indonesia, have been verified and received certificates of lobster cultivation from the Directorate General of Aquaculture, according to Indonesia’s Ministry of Maritime Affairs and Fisheries.
Vietnamese spend nearly 150 trillion VND on online shopping

Vietnamese spend nearly 150 trillion VND on online shopping

Vietnamese consumers spent 143.9 trillion (5.68 billion USD) buying 1.53 million items on five e-commerce platforms in the first half of this year, representing a rise of 54.91% and 65.55% over the same period last year, respectively, according market analysis firm Metric.
Four tens of billion USD export markets

Four tens of billion USD export markets

VCN - According to General Department of Vietnam Customs, by the end of June 2024, Vietnam has four markets achieve export turnover of US$ 10 billion.
Successful digital transformation solutions for wood industry enterprises

Successful digital transformation solutions for wood industry enterprises

VCN - Refraining from rushing, implementing steps gradually, and maintaining a clear vision are the recommendations that experts give to wood industry enterprises for successful digital transformation.

More News

Vietnamese lychee sold well at Costco stores in Australia

Vietnamese lychee sold well at Costco stores in Australia

Lychee, one of Vietnam’s major export fruits, has been sold well at Costco stores in Western Australia and South Australia, according to the Vietnam Trade Office in Australia.
Durian exports forecast to top 3 billion USD in 2024

Durian exports forecast to top 3 billion USD in 2024

Durian exports may surpass 3 billion USD this year, according to Dang Phuc Nguyen, General Secretary of the Vietnam Vegetable and Fruit Association (Vinafruit).
FTA - support to promote pangasius export

FTA - support to promote pangasius export

VCN - The implementation of FTAs ​​always creates favorable conditions for businesses to expand and diversify markets, bringing Vietnamese seafood, including pangasius, to participate deeperly into the global production and supply chain.
Technology increases competitiveness in the logistics race

Technology increases competitiveness in the logistics race

VCN - In the context that the logistics industry in Vietnam is forecast to continue to grow strongly, many businesses are actively applying technology and expanding service chains to take advantage of opportunities and keep pace with the general trend.
MoIT proposes key solutions to cope with rising sea freight prices

MoIT proposes key solutions to cope with rising sea freight prices

The Ministry of Industry and Trade (MoIT) has requested local associations and businesses to coordinate implementing key solutions to promote imports and exports as sea freight rates rise.
Vietnamese seaports to handle 1.2-1.4 billion tonnes of cargo by 2030

Vietnamese seaports to handle 1.2-1.4 billion tonnes of cargo by 2030

Vietnam's seaport cargo throughput is set to reach 1.2-1.4 billion tonnes by 2030, with container cargo expected to range from 46.3 to 54.34 million TEUs, according to a detailed plan for the development of seaport groups, wharfs, jetties, buoy berths, and water areas in 2021-2030, with a vision to 2050.
Binh Dinh seeks investment opportunities from Germany, France

Binh Dinh seeks investment opportunities from Germany, France

A delegation from the south central province of Binh Dinh led by Permanent Vice Secretary of the provincial Party Committee Le Kim Toan paid a working trip to Germany and France to explore investment opportunities from July 17-22, reported the provincial Department of Planning and Investment.
Warnings as HRC steel imports continue to increase rapidly

Warnings as HRC steel imports continue to increase rapidly

The amount of imported hot-rolled coil steel in the first six months of this year increased sharply to an alarming level, 1.7 times higher than domestic production.
MoIT warns about international trade fraud

MoIT warns about international trade fraud

Trade experts said that the number of cases was increasing and taking place in all markets from Africa, the Middle East, India to developed countries such as the US, the Netherlands, and Italy.
Read More

Your care

Latest Most read
Indonesia licenses certificates of lobster cultivation for three Vietnamese companies

Indonesia licenses certificates of lobster cultivation for three Vietnamese companies

Three out of the five Vietnamese businesses, which have formed limited liability companies in Indonesia, have been verified and received certificates of lobster cultivation from the Directorate General of Aquaculture, according to Indonesia’s Ministry of Maritime Affairs and Fisheries.
Vietnamese spend nearly 150 trillion VND on online shopping

Vietnamese spend nearly 150 trillion VND on online shopping

Vietnamese consumers spent 143.9 trillion (5.68 billion USD) buying 1.53 million items on five e-commerce platforms in the first half of this year, representing a rise of 54.91% and 65.55% over the same period last year, respectively, according market analysis firm Metric.
Four tens of billion USD export markets

Four tens of billion USD export markets

According to General Department of Vietnam Customs, by the end of June 2024, Vietnam has four markets achieve export turnover of US$ 10 billion.
Successful digital transformation solutions for wood industry enterprises

Successful digital transformation solutions for wood industry enterprises

VCN - Ms. Nguyen Thi Linh Vy, Production Management Director at Imity Company, also states that although they had planned digital transformation two years ago, the company has not yet dared to implement it.
Vietnamese lychee sold well at Costco stores in Australia

Vietnamese lychee sold well at Costco stores in Australia

Lychee, one of Vietnam’s major export fruits, has been sold well at Costco stores in Western Australia and South Australia, according to the Vietnam Trade Office in Australia.
Mobile Version