Bring logistics to a position worthy of development potential

With a special geographical position located in a dynamic development area of ​​the world, where the flow of goods is very concentrated and exchanges are very strong, Vietnam is considered to have advantages in geo-economics that are very convenient to boost production. , export and logistics services.

In particular, the Government of Vietnam has identified logistics as an important service industry in the overall structure of the national economy, playing a role in supporting, connecting and promoting the country's socio-economic development. as well as each locality, contributing to improving the competitiveness of the economy.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan emphasized so at the seminar on Improving the competitiveness of logistics service providers organized by the Import-Export Department (Ministry of Industry and Trade) in collaboration with Industry and Trade Newspaper in the morning. April 28 in Hanoi.

Important service industry

According to Deputy Minister Nguyen Sinh Nhat Tan, Vietnam has signed many free trade agreements (FTAs); in which, there are new generation FTAs ​​such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Free Trade Agreement between Vietnam and the European Union (EVFTA), the Economic Partnership Agreement and the European Union (EVFTA). Regional Comprehensive Economic Partnership (RCEP) with a very high level of commitment from the parties involved in all fields, including traditional and non-traditional, the scope is not limited to commitments to open markets. market of goods but also in the field of services, investment, intellectual property.

Statistics show that Vietnam's international trade activities have grown strongly, helping to increase import and export turnover, expand markets, and diversify types of goods involved in import and export. Total import-export turnover from 2010 to now has increased 4.25 times, from 157.1 billion USD in 2010 to 668.5 billion USD in 2021.

Notably, despite facing many difficulties due to the 4th outbreak of the COVID-19 epidemic, the country's import and export in 2021 still reached a record number with a total turnover of 668.55 billion USD.

Among them, exports reached more than 336.3 billion USD, up 19% compared to 2020; imports reached 332.2 billion USD, up 26.5%; trade surplus of more than 4 billion USD. With this result, Vietnam has entered the top 20 economies in terms of international trade.

To get this positive result, it is impossible not to mention the contribution of the logistics service industry, despite many difficulties, Vietnamese logistics enterprises have adapted and basically maintained the supply chain...

However, Deputy Minister Nguyen Sinh Nhat Tan also pointed out the limitations that the logistics industry needs to overcome, such as the fact that logistics businesses have not yet developed to match the potential of the industry.

According to data from the Vietnam Logistics Business Association, currently 90% of operating logistics enterprises are Vietnamese enterprises, but only account for about 30% of the market share, the rest belongs to foreign enterprises.

Despite the large number, they are mainly small businesses, with limited scale in terms of both capital and human resources as well as international operation experience, there is no link between stages in the logistics supply chain and between service businesses. logistics with import and export enterprises. Therefore, in both buying and selling dimensions, domestic logistics enterprises are limited in terms of playing field.

“Therefore, although the topic of the conference is not new, it is a key factor and a prerequisite issue that needs to be solved if the logistics industry is to develop breakthroughs and achieve a position worthy of its development potential. industry, especially in the context that the economy is adapting, overcoming difficulties and recovering strongly after COVID-19", the Deputy Minister affirmed.

Sharing the difficulties and obstacles of logistics enterprises, Mr. Truong Tan Loc - Marketing Director, Saigon Newport Corporation said that fuel prices spiked sharply in 2022 with an increase of about 33% compared to the price. average 2021 affects the cost of the business.

In addition, relevant agencies have not created favorable conditions such as controlling goods in transit through border gates, causing difficulties for shipping lines and customers.

The COVID-19 epidemic is still complicated, causing logistics activities to have preparation and backup plans in terms of means and human resources; It is difficult for small and medium enterprises to bear the additional costs incurred.

According to Ms. Pham Thi Lan Huong - General Director, Vinafco Joint Stock Company, Vietnam's logistics market has a lot of potential but is very fragmented. For example, the number of small and medium enterprises accounts for the majority and up to 90% of registered enterprises have capital of less than 10 billion VND; In terms of service types, logistics enterprises operate in many different service areas.

Currently, the number of enterprises providing integrated logistics services (3PL, 4PL) in Vietnam is still limited. Along with that, the proportion of 3PL and 4PL enterprises only accounts for 16% of the total number of enterprises in the logistics industry. However, this piece of cake is mainly in the hands of foreign businesses.

With the goal of pioneering the application of technology and digital platforms in e-commerce logistics to optimize benefits for consumers and sellers, Ms. Ngo Thi Truc Anh - Director of Lazada Logistics Vietnam According to him, creating a sustainable logistics ecosystem is the most effective competitiveness.

Vietnam's e-commerce market has recorded impressive growth in the past 2 years, creating a breakthrough for the logistics industry. However, logistics enterprises are facing great challenges in the operation process to meet the increasing demands of the market.

Catching up with the market

The year 2022 is forecasted to be a year that continues to have opportunities, advantages and difficulties and challenges intertwined, but Vietnam has a very favorable geo-economic strength to boost production, export and logistics services. because it is located in a dynamic development area of ​​the world, where the flow of goods is very concentrated.

Therefore, both import-export and logistics of Vietnam are converging favorable conditions to continue to break through, grow faster and more sustainably in the coming time.

According to Mr. Truong Tan Loc, forecasted in April 2022 by the World Bank (WB), Vietnam's gross domestic product (GDP) will reach 5.3% in 2022 and then stabilize around 6.5. % in 2023.

Moreover, FTAs ​​are gradually being implemented more effectively, leading to strong growth in the Vietnamese market, especially in electronics, machinery and equipment, furniture, plastic, textiles and seafood. This is an opportunity to develop port and logistics services to serve the needs of connecting goods with major markets in the world.

In order to catch up with market trends and achieve the goal of developing the logistics industry, Ms. Pham Thi Lan Huong said that it is necessary to develop more 3PL and 4PL businesses as spearheads to pull up the logistics market. At the same time, invest, develop the planning, have a transport connection center; there is a preferential mechanism for drawing units; enterprises expect to have a program on technology solutions for the logistics industry; strengthen the linkage between enterprises in the industry in a healthy way.

Le Thi Ngoc Diep suggested, it is necessary to promote the application of technology in the logistics industry to improve efficiency, optimize operational productivity and save operating costs for businesses. At the same time, close connection between logistics development and operation units to improve operational efficiency such as production, logistics and transportation units; encourage investment in Vietnam logistics market…

Within the framework of the workshop, the Import-Export Department also announced the Vietnam Import-Export Report 2021 after 6 consecutive years of compilation and publication by the Ministry of Industry and Trade.

According to the Vietnam Import-Export Report in 2021, the country's export turnover reached 336,310 billion USD, up 19.0% compared to 2020; in which, the 10 leading provinces in the country in terms of export turnover include Ho Chi Minh City. Ho Chi Minh City, Bac Ninh, Binh Duong, Thai Nguyen, Hai Phong, Dong Nai, Bac Giang, Hanoi, Hai Duong, Phu Tho.

Prominent among these, despite being ranked 10th, up 3 places compared to 2020 in the ranking of leading localities, Phu Tho is the locality with the highest proportion, reaching 91.5% compared to 2020. with a value of $8.2 billion.

Meanwhile, although it is still the locality with the leading proportion in the country reaching 44,902 billion USD, but Ho Chi Minh City Ho Chi Minh City only achieved an increase of 1.2% compared to 2020. Particularly, Hanoi ranked 8th, 1 place lower than 2020, behind Bac Giang of the whole country, reaching 15.5 billion USD but also increased only 2.2% compared to 2020.

Besides, the 10 provinces with the lowest import-export proportion in the country (from top to bottom) are Tuyen Quang, Ha Giang, Cao Bang, Dak Nong, Ninh Thuan, Bac Kan, Son La, Lai Chau, and Dien Bien. ; In which, Dien Bien has the lowest export proportion in the country with only 15,702 million USD, a negative growth of 60.3%, down 3 places compared to 2020.

Notably, in the provinces at the bottom of the "ranking", Bac Kan only reached 41,248 million USD but had a growth rate of 276.6% compared to 2020, up 3 places according to ranking.

Although the group of provinces such as Son La and Lai Chau still have an increased growth compared to 2020, the statistical ranking of export turnover still "stays" at 61st and 62nd positions compared to the whole country.

The Vietnam Import and Export Report is the official document of the Ministry of Industry and Trade on the import and export situation of each commodity group, market, taking advantage of opportunities from the FTA and the management of import and export activities along with other factors analysis and forecast for the next period.

Phi Hung (Source: TTXVN)