Vietnam is expected to become Asia's 'logistics star'

According to logistics and transportation service provider Agility, Vietnam ranks 10 out of 50 in emerging logistics markets. The logistics service industry has gradually met the requirements of domestic trade and import-export activities. However, in order to provide professional logistics services, increase competitiveness, and meet international standards, it is necessary to develop technology and increase value-added services in the logistics industry.

Transport activities of Vietnam logistics market in the first months of 2023

I.Transport operation status:

According to VIRAC's report, the total volume of goods transported and rotated in the first quarter of 2023 continued to grow compared to the same period in 2022. The total volume of Vietnam's freight transport increased by more than 16% over the same period last year. . Total turnover in the first quarter of 2023 also increased by nearly 22% year-on-year.

Cost is still a big issue for transportation operations in Vietnam. Transportation costs account for 60% of logistics costs. The reason for this is that transportation is highly dependent on road transport – a form of transport with high freight charges. Meanwhile, cheaper modes such as waterways and railways have not been prioritized for development. But this is still the most popular mode of transport because Vietnam's infrastructure is not enough to use other modes of transportation.

II.Future trends of transportation

In the future, road transport should be gradually shifted to other modes of transport with more advantages. An example is the development of waterways. Vietnam is a country with a dense network of rivers and a long coastline that is very convenient for waterway development. At the same time, the cost of waterways is cheaper than by road, which is also a prominent advantage. Besides, Vietnam should also continue to further develop air and sea transport - essential modes of transport for national development.

III.Expected to become a logistics center in the region and the world of Vietnam.

1.Favorable geographical location

With a favorable geographical position, political and social stability, Vietnam has great opportunities in logistics development. Besides, our country also takes advantage of the advantages of a long coastline with a seaport system with optimal capacity combined with the booming e-commerce growing in both export and import directions. export. These things help Vietnam to be expected to become the world's center of goods movement, an important link in the global supply chain.

2.The Vietnamese logistics market also shows an impressive growth rate.

According to VIRAC's report, Vietnam is in the top 10 of emerging logistics markets in the world and ranked 4th in Southeast Asia (Agility's annual ranking in 2023). According to Mr. Tran Thanh Hai - Deputy Director of the Import-Export Department (Ministry of Industry and Trade), said that in the past years, Vietnam's logistics market has made significant progress, the market not only increased in the number of Enterprises whose quality of logistics services is also increasing, making a significant contribution to bringing import and export results in 2022 to the highest level ever of $732.5 billion, up 9.5%. compared to 2021.

However, Vietnam's logistics industry still has many weaknesses such as: logistics costs have not been optimized; logistics enterprises lack linkage with each other and with production, business, import-export enterprises; The scale and financial potential of Vietnamese logistics enterprises are not stable, the going to foreign markets is not significant...