'Digitalizing' the logistics industry to meet the new requirements of the market

Due to the impact of the epidemic, logistics activities, which are considered the "backbone" of the supply chain, have also been strongly affected. That fact has set a requirement for Vietnamese logistics service businesses to accelerate the digital transformation process for sustainable development.

Only 40% of logistics enterprises use technology

According to the rankings of Agility 2022, the Vietnamese logistics market is ranked 11th in the group of 50 global emerging logistics markets. The compound annual growth rate (CAGR) in the period 2022-2027 of Vietnam's logistics market is forecasted to reach 5.5%.

Vietnam is currently the leading country in ASEAN countries in terms of the number of logistics service businesses licensed by the US Maritime Administration (FMC).

However, according to Mr. Phan Van Chinh, Director of the Import-Export Department (Ministry of Industry and Trade), besides remarkable results, the logistics industry also has many limitations. Specifically, the cost of logistics services is still high; The promotion of linkages between logistics enterprises, between logistics enterprises and production and export enterprises is still weak. In particular, at present, there has not been a network of large-scale logistics enterprises capable of leading the market and promoting the development of the logistics industry...

According to Mr. Chinh, one of the main reasons for these limitations is that the application of digital technology in logistics has not really met the development needs in the new situation in a timely manner.

Sharing the same view, Mr. Le Quang Trung, Vice President of the Vietnam Association of Logistics Service Enterprises, said that currently only about 40% of logistics service enterprises are applying different types of technology depending on their size. and service nature.

In which, mainly services such as customs declaration (100% electronic), tax payment (100% e-invoice), seaport operation management service, vehicle journey management. goods, warehouse management,...

According to Mr. Trung, the digital transformation of the logistics industry still has many barriers. That barrier comes from cognitive thinking and customs in dealing with entities, along with technical and technological issues, the conversion and selection of technology suitable for each industry in current conditions. now is not easy.

In particular, many businesses face difficulties in terms of human resources and finance and currently the policy corridor for digital transformation is still not synchronized, the data system is not consistent, and the infrastructure is not yet complete.

Cat Lai Port (Ho Chi Minh City) is one of the international transshipment gateways.

“Digitalization” to adapt to the new market context

According to experts, logistics is one of the key industries, which is likened to the "lifeblood" of the national economy, requiring strong investment, especially in the aspect of "digitization" to be able to meet the needs of customers. , adapting to the market context, maximum support to promote the development of other industries. If the digital conversion is successful, the waiting time at the port can be shortened by up to 70%.

Mr. Truong Tan Loc, Marketing Director, Saigon Newport Corporation, said that in the past time, the company has simultaneously deployed ePort electronic ports, delivery orders and electronic warehouse systems along with smart applications. artificial intelligence in customer care.

Only the application of the e-port allows customers to declare online container information, cargo information, declaration declarations, payments, to electronic delivery orders, etc. Or as a further development. The online check-in feature, applied at Cat Lai port, helps reduce the waiting time of vehicles in front of the port gate, leading to automatic port development. As a result, the vehicle waiting time at the port gate decreased from 13 minutes to 6 minutes; E-customs clearance time is reduced by 2 minutes/container.

“We also save about 30,000-50,000 sheets of paper/day for printing documents, reducing 3,000-5,000 car trips/day moving from the city center and the shipping line office area to the port. The volume of deliveries and deliveries has increased from 11,000 vehicles/day to 19,000-20,000 vehicles/day," said Mr. Truong Tan Loc.

From the actual operation, Mr. Truong Tan Loc said that businesses in the industry need to build a common data system, connecting with ports in the region and the world, contributing to increasing exploitation efficiency and competitiveness. Vietnam's competition with neighboring port clusters such as Singapore or Thailand.

Mr. Loc also recommended the State to build a synchronous infrastructure system, speeding up the progress of projects connecting traffic infrastructure, connecting multi-modal transport; increase investment in logistics and warehousing infrastructure, logistics ecosystem, and remove traffic "bottlenecks" to facilitate the connection and transportation of goods.

And Mr. Nguyen Trieu Quang, Director of Northern Operations Division, Lazada Vietnam, said that logistics businesses also need to build a sustainable and comprehensive ecosystem to seize the opportunities of e-commerce, and at the same time improve freight forwarding experience from every touchpoint; Apply technology and standardize processes to optimize operational efficiency, develop sustainable green logistics

However, Ms. Cao Cam Linh, a digital transformation expert, Viettel Consulting and Service Joint Stock Company, said that it is important for businesses to know when and how to do digital transformation. According to Ms. Linh, infrastructure enterprises and enterprises operating and delivering large volumes of goods are required to apply high technology and undergo deep digital transformation. Because having a large volume of goods means businesses have big data to collect and analyze, thereby processing the fastest and most accurate flow of goods, meeting customer needs, and reducing costs for businesses. .

"Small businesses do not have many customers and relationships, please handle the delivery of goods by human resources, do not need to waste investment in machinery and technology", Ms. Linh emphasized.

Meanwhile, Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department, said that digital transformation is the work of each individual, each agency and each unit. However, in the process of digital transformation, it is necessary to have the companionship, coordination, support and association of all relevant units. This will create a spillover, a push to help businesses digitally transform successfully.