Many experts said that the potential of the Vietnamese logistics market is enormous when it is ranked eleventh out of 50 global emerging logistics markets. However, the weakness of infrastructure and high transport costs have been barriers for Vietnamese firms to fully tap into the sector's potential.
The Transport Ministry has just issued a plan for logistics development in the Southeast region to become more modern, consistent while ensuring national defense and public security.
The very first Vietnam International Logistics Exhibition (VILOG) will be held in HCMC from August 10 to 12 by Vietnam Logistics Business Association (VLA) and VINEXAD Company.
The Vietnamese logistics sector is eyeing the urgent need for renovation, overall solutions and vision as well as new development orientations to catch up with the global trend, creating a breakthrough for the country’s socio-economic recovery and development, according to experts.
Vietnam’s logistics market is worth around US$40-42 billion a year, and digital transformation among businesses is considered key to their success in this competitive market.
Indochina Kajima Development Company, a joint venture from Indochina Capital and Kajima Corporation, has recently launched Core5 Vietnam (www.c5ip.vn).
The European Union-Vietnam Free Trade Agreement (EVFTA) will boost the demand for logistics services and significantly impact on Vietnam's logistics industry, said a trade official.
The logistics market has become more vibrant in recent times with large merger and acquisition (M&A) deals between Vietnamese businesses and foreign investors who have strong financial and technological potential, especially those from Japan and the Republic of Korea.
A trade representative has called for the construction of more deep-water ports in the Mekong River Delta to save money and time for seafood exporters.
The weakness of Vietnamese logistics firms is high and uncompetitive costs, some services’ quality is not high while there is a severe competitiveness in the logistics market, according to Vietnam Logistics Association (VLA).
As trade and commerce is expected to increase between Southeast Asian countries and between them and the world, there will be more opportunities for logistics services providers in the region to connect with each other to take goods to the consumers and to increase their efficiency, according to Thailand’s Department of International Trade Promotion.
The five-day Trade Fair of High-Quality Vietnamese Goods and Exports, which took place in Phnom Penh, Cambodia, wrapped up April 7 with total sales amounting to US$3.3 million, up 6 percent from last year’s fair.
Curently 25 globally leading logistics companies are in operation in Viet Nam. A fierce competition between foreign and Vietnamese companies can be foreseen in the logistics industry. Viet Nam’s geographical position is very advantageous for developing logistics centers, and it has recently put the term “logistics” in its amendment to the Commercial Law. Has Viet Nam been well-prepared for a pending fierce competition?
