Developing Vietnam's logistics service industry: Increasing linkages, enhancing value chains

Logistics services in Vietnam have a high growth rate

On June 28, the Hanoi Logistics Association (HLNA) in collaboration with the Hanoi Department of Industry and Trade held a workshop on "Logistics to promote industry linkages and enhance value chains". This is an opportunity for businesses and associations to promote cooperation, contributing to raising the position of Vietnamese enterprises in the global supply chain.

The seminar was attended by representatives of the Import-Export Department (Ministry of Industry and Trade), businesses and associations such as the Vietnam Association of Seafood Exporters and Producers (VASEP), the Vietnam Association of Supporting Industries, etc. Nam (VASI), Vietnam Association of Electronic Enterprises (VEIA), Association of Key Industrial Products Manufacturers in Ho Chi Minh City. Hanoi (HAMI)…

Speakers shared at the Workshop "Logistics promotes industry linkages and enhances value chains"

According to the Vietnam Association of Logistics Service Enterprises, along with the growth rate of GDP, industrial production value, import-export turnover, retail value of goods and services, in the past time service Vietnam's logistics has a relatively high growth rate of 14-16%, the rate of 6 enterprises outsourcing logistics services is about 60-70%, contributing about 4-5% of GDP.

According to the Agility Ranking 2022, Vietnam's logistics market is ranked 11th in the group of 50 emerging logistics markets globally. In particular, Vietnam is currently the leading country among ASEAN countries in the number of logistics service businesses licensed by the US Maritime Administration (FMC). Vietnam currently has more than 40,000 enterprises operating in the field of logistics.

Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade), said that Vietnam's international trade activities have developed strongly, helping to increase import and export turnover, expand the market with a variety of goods. participating in import and export. The total import and export turnover of goods from 2010 to now has increased by 4.6 times, from 157.1 billion USD in 2010 to 730.21 billion USD in 2022, which is an important driving force for economic growth.

In 2022, Vietnam has 36 items with export turnover of over 1 billion USD, of which 8 items have export turnover of over 10 billion USD. The export market continues to grow in both breadth and depth, especially businesses have taken advantage of FTAs to boost exports to markets that have signed FTAs.

Besides import and export activities, the growth of domestic retail sales also requires the development of demand for logistics services. In the period 2010-2020 alone, the total retail sales of goods increased more than three times from 1,254 trillion (2010) to 3,815 trillion (2020), creating a source of demand for logistics services and domestic goods circulation.

“ To achieve the above successes, it is impossible not to mention the important role of the logistics service industry. Logistics is identified as an important service industry in the overall structure of the national economy, playing the role of supporting, connecting and promoting socio-economic development of the whole country as well as each locality, contributing to part of improving the competitiveness of the economy " - Mr. Tran Thanh Hai affirmed.

According to Mr. Tran Thanh Hai, if the economy is an engine, logistics can be compared to lubricating oil for that machine to operate smoothly, achieve the maximum capacity with the least fuel costs and the highest durability. . The economy can only develop synchronously and rhythmically once the logistics chain operates continuously.

“ That is why the role of logistics is increasingly being promoted in the national economy, becoming a supporting factor for the flow of economic transactions, and also an important activity for economic activities. trading almost all kinds of goods and services ” - Mr. Tran Thanh Hai said.

Promote links , improve competitiveness

Besides the results achieved, Vietnam's logistics industry still has some limitations such as not fully exploiting the geo-economic advantages and commensurate with the potential of each locality; infrastructure for logistics activities as well as the connection between commercial infrastructure, transport infrastructure, information technology infrastructure... both in the country and in the region is still not high, so the efficiency of operation Logistics activities still have many shortcomings. Service costs are still high, the quality of some services is not high, in the context of Vietnam's service supply market today there is fierce competition.

Signing MOU between Hanoi Logistics Association (HNLA) and Ho Chi Minh City Key Industrial Product Manufacturer Association. Hanoi (HAMI)

Mr. Tran Thanh Hai said that one of the reasons limiting the development of logistics is the lack of linkage between the parties of the supply chain and the stakeholders of the industry, reflected in the rate of outsourcing logistics services. in Vietnam is still low compared to other developed countries.

Therefore, in the coming time, in order to promote the development of the logistics service industry, in addition to the basic solutions that have been and are being implemented by all levels, the parties actively implement such as perfecting mechanisms, policies, improving way business environment; complete logistics infrastructure; strengthen digital transformation and application of information technology; human resource development; improve the quality of logistics service enterprises; development of production, import and export to create a source of goods for the logistics service industry, etc., one solution that needs to be focused on implementation is the consolidation and strengthening of linkages in the industry.

Specifically, it is necessary to strengthen the implementation of linking economic regions, including inter-regional and intra-regional linkages in the construction of the logistics system; strengthen coordination between management agencies, ministries, branches and localities in formulating and implementing mechanisms and policies on logistics activities and other supporting policies; strengthen coordination and links between state management agencies and businesses through the bridge of associations

In addition, strengthening links between logistics business associations, between logistics service businesses, between logistics business associations and industry associations, between logistics businesses and manufacturing enterprises. , business; promote cooperation between schools - enterprises in training and developing human resources for the logistics industry.

Mr. Nguyen Cong Cuong, Vice Chairman of HAMI said that, in the context of the current complicated and volatile economic fluctuations, global inflation, although cooled down, was still at a high level; The slow recovery and decline in consumer demand of major trading partners have posed significant challenges to the manufacturing industry and logistics industry.

“ We all understand the manufacturing industry creates products and goods that meet market needs. Meanwhile, the logistics industry is the industry responsible for transporting and managing goods, ensuring the link between the source of supply and the point of consumption " - Mr. has created an important partnership between the two industries and this is also the premise for a long-term cooperation between HAMI and HLNA.

At the seminar, Ms. Do Thi Thuy Huong, Vice President of VASI informed about the opportunities of the industry supporting Vietnam's electronics industry, which is the opportunity to participate more deeply in the global supply chain, increase domestic value to contribute more to the supply chain; increase exports to difficult markets due to supply chain adjustments after Covid-19; increase FDI attraction, in the face of the trend of shifting investment and production to Vietnam, creating opportunities for Vietnam to increase FDI attraction, especially in the electronics sector.

On the other hand, countries promote bilateral and regional economic links, the ratification of new-generation free agreements CPTPP, EVFTA... takes place more urgently, facilitating trade and investment in industries. high technology, especially electronics... Before those opportunities, logistics activities for the supply chain of the electronics industry need to ensure professionalism; Timely service, reliability, variety and quick response.