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Logistics industry development integration process

Lack of specific strategies

According to the economic experts, the logistics industry is the lack of professional development. Awareness of logistics in society not so high that manufacturing companies are also not interested to participate more in the supply chain ...

Bui Quoc Nghia, Director of Institute of Logistics Vietnam said Vietnam logistics market accounts for about 25% of GDP; including, transport accounts for 50-60%. The growth rate of exports and imports is high (20% / year). This is the direct cause price increases product, reducing the competitiveness of the economy and commodity Vietnam international market.

More than 20 years of construction and development of the logistics industry in Vietnam, most business enterprises in this sector are in the small and medium enterprises, governance capacity, capital and technology adoption is still limited. Meanwhile, the state does not have a specific strategy for developing this sector which is equal to demand economic development of the country.

May 7-2015, the Prime Minister issued Decision No. 1012 / QD - TTg approving the planning system logistics centers throughout the country by 2020, driven by the year 2030. Accordingly, the objectives of the plan in order to logistics centers network expansion and satisfies the needs production and circulation of goods in domestic and export. Effectively exploiting market of Vietnam logistics services; which focuses on the outsourced logistics services, integrated and comprehensive package. At the same time, organized and operating under the model 3rd party logistics (3PL - provides logistics services package) to promote production and business development through minimizing costs and adding value increases for goods and services businesses.

At the same time, step by step deployment model 4th party logistics (4PL - integrate more value-added services other) and 5 party logistics (5PL) on the basis of development of e-commerce and supply chain management application of modern, efficient, professional. Vietnam strives to 2020, the growth rate of logistic services reached about 24-25% / year; contribution to GDP of the economy is 10%. Proportion of outsourced logistics services by 40%, reduce overall logistics costs to GDP economy to about 20%.

According to Mr. Bui Quoc Nghia, Vietnam now has nearly 2,000 registered business enterprises logistics services, with around 300,000 business customers wishing to use this service. However, all of the small and medium sized logistics enterprises, just enough to participate in part of the logistics chain. Enterprises not only not linked together, but also compete against each other in the direction of prices. Meanwhile, partners, competitors (about 80 foreign enterprises such as: the world's leading logistics company that APL Logistics, Mitsui OSK, Meerk Logistics ...) represent between 70-80% of the market making fees different.

Logistics Business Association Vietnam said, can classify Vietnam logistics services into groups: mining enterprises transportation services (road, sea, air ..). Except for state-owned enterprises to be equitized, the majority of businesses are small and medium-sized, average chartered capital currently about 4-6 billion (compared with 1 to 1.5 billion by 2005) . Human resources trained specialized logistics is also very low (5-7%).

According to the companies operating in the field of logistics, specifically the policy of the state for no logistics. Enterprises operating in this sector to its own devices in terms of capital investment, manpower training, the major logistics company spoke more about corporate governance ... while the majority of small and medium enterprises have difficulties.

Opportunities are opening

According to research by the Institute of Vietnam Logistics, the logistics market is approximately 25% of GDP. Vietnam has been participating in the free trade agreements with major economies in the world. Particularly import shipments through the ports of Vietnam in 2015 reached the expected level, reaching 427 million tonnes (equivalent to 12 million TEU). The proportion of higher Containers, cargo volume increases gradually approach the world trends, facilitate the formation and development centers of international container transshipment.

Estimated imports and exports via the ports of Vietnam in 2016 will reach 470 million tons (13.3 million TEU). Import-export volume is expected at about 560 to 2020 million tonnes (23 million TEU). Vietnam enterprises are in the process of restructuring to strengthen strong domestic competition and international market, creating high demand for logistics industry.

Discuss investment issues in the field of logistics, said Nguyen Duc Thuan, chairman of TBS Group (parent company of TBS Logistics) share, investment in the field of logistics require large capital and operating modern technology, special location is in the transit warehouse to meet international standards.

Currently, many businesses in the South, particularly the Southeast region have invested in the logistics industry and has developed a clear direction when opportunities are open to them.