Vietnam’s logistics market is experiencing impressive growth rates in emerging markets due to benefiting from the wave of supply chain shifts, along with an optimistic economic growth rate. Since then, Vietnam has the opportunity to become the logistics center of the region. Impressive growth rate Impressive growth rate
Vietnam’s logistics market is experiencing impressive growth rates in emerging markets due to benefiting from the wave of supply chain shifts, along with an optimistic economic growth rate. Since then, Vietnam has the opportunity to become the logistics center of the region. Impressive growth rate
Impressive growth rate
According to Agility’s annual ranking in 2023, Vietnam ranks among the top 10 emerging logistics markets in the world and ranks fourth in Southeast Asia.
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). The quantity and quality of logistics services have been improved, thereby helping the export of goods and services account for an increasingly higher proportion of GDP, increasing from 72.9% in 2015 to 93.3% in 2021. The average annual growth rate of the industry is from 14-16%, the quantity and quality of logistics services are improved, making an important contribution to bringing Vietnam’s total import and export turnover in 2022 to 730.2. billion USD, up 9.1% over the same period in 2021. This is an encouraging result in the context of global and domestic trade facing many difficulties due to the impact of the COVID-19 pandemic and risks, political and economic instability on a global scale.Regarding domestic logistics opportunities, Vietnam is ranked at 16th position, an improvement of 1 place compared to 2022 with 5.02 points. Based on business conditions and technology readiness index, Vietnam is ranked 19th and 15th respectively. In terms of international logistics opportunities, Vietnam is currently leading Southeast Asia, ranked 4th in the rankings with 6.03 points.
At the seminar “Digital transformation to build a modern and sustainable logistics industry” held by the Ministry of Industry and Trade recently, Mr. Nguyen Trieu Quang – Director of Northern Operations Division – Lazada logistics Vietnam said that the logistics market in Vietnam has a lot of potential and is developing very strongly.Logistics is one of the fastest growing and most stable industries in Vietnam, with an average growth rate of 14 – 16% a year, with a scale of 40 – 42 billion USD/year. According to experts, Vietnam is benefiting from a wave of supply chain shifts, along with an optimistic economic growth rate. Therefore, Vietnam will soon become the logistics center of Asia in the near future.
Mr. Dinh Hoai Nam – Business Development Director – SLP Vietnam Company also said that Vietnam is a production- and export-centric economy, with the growth rate of the manufacturing sector maintained. at about 9%/year. Even during the COVID-19 period, Vietnam’s manufacturing sector is still growing by 3% – 5% per year.Need to promote digital transformation in logistics services
As one of the key industries, likened to the “lifeblood” of the national economy, logistics needs to be invested heavily, especially in the aspect of “digitization” to be able to respond and adapt to the context. market, maximum support to promote the development of other industries.
From a business perspective, Mr. Truong Tan Loc – Marketing Director, Saigon Newport Corporation said that in order to develop a modern and sustainable logistics industry, with logistics businesses, it is necessary to have a joint effort between the various logistics companies. enterprises in the industry, cooperate to accompany development, strengthen linkages to increase the competitiveness of Vietnam’s logistics services. At the same time, integrating more technologies to establish an omni-channel model to give customers the best experience to develop the port operation industry and provide logistics services.Enterprises need to change the old thinking to a new way of thinking, change the old way of doing things and need the companionship, support and cooperation of enterprises in the industry; minimize risks and simplify the process of building and developing new solutions for the local logistics system.
For seaport enterprises in Vietnam, building a common data system for Vietnam’s seaport system, connecting with ports in the region and the world, will contribute to increasing exploitation efficiency and competitiveness. Vietnam’s competition with neighboring port clusters such as Singapore or Thailand, Hong Kong (China).
Dinh Hoai Nam said that in the digital technology era, modern warehouses are replacing traditional warehouses, which is indispensable for the development of the logistics industry due to the increasing demands of customers, requiring more time. Shorter shipping and better service quality. Modern warehouses are equipped with advanced technologies such as comprehensive monitoring and automation systems, which improve the speed and efficiency of the transportation process. This is an important factor to help the logistics industry develop and meet the increasing needs of customers.The development of the current logistics industry is requiring warehousing solutions to adapt to the emergence of new types such as e-commerce, last-mile delivery,… Automated devices are also integrated. to increase operational efficiency such as sorting machines, high-rise shelving systems to optimize mining area. With the above advantages, modern warehouses are gradually replacing traditional storage systems in the logistics industry.
New technologies such as IoT, artificial intelligence, and automation have enhanced the efficiency and accuracy of warehouse operations. Smart warehouse systems provide insights into the storage, transportation, and management of goods, helping to optimize all of these operations.
According to Mr. Nguyen Trieu Quang, in the context that the world is moving towards sustainable development, logistics enterprises also need to build a sustainable and comprehensive ecosystem to seize the opportunities of e-commerce, and at the same time improve the customer experience. Experience in freight forwarding from every touch point, applying technology and standardizing processes to optimize operational performance, develop sustainable green logistics.