Innovating logistics services is a "golden" factor to promote exports

29/05/2023

In the context of export difficulties, experts impatiently said that it is necessary to soon come up with solutions to cool down logistics costs to help businesses reduce pressure.

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Reasonable logistics fee reduction to “open the way for export goods”

In the context that exports are facing many difficulties, Vietnam's logistics costs are still high. This not only affects the competitiveness of goods but also becomes a barrier for businesses when entering new markets because high costs drive up product prices.

Specifically, AEON Group - a large retailer investing in Vietnam is an active unit in bringing Vietnamese agricultural products to the supermarket system in Japan. However, General Director of AEON Vietnam Co., Ltd. Furusawa Yasuyuki said that the quality of Vietnamese mangoes is equivalent to that of Thai and Filipino mangoes, but when brought to the Japanese market, the price is nearly 20% more expensive, so the consumption is not high. One of the reasons why this fruit is overpriced is that Vietnam's logistics costs are higher than that of Thailand and the Philippines.

Meanwhile, Chairman of the Vietnam Textile and Apparel Association Vu Duc Giang emphasized that currently, the logistics cost of Vietnamese textiles and garments is 6% higher than in Thailand, 7% in China, Malaysia 12%, and 3 times higher than in Singapore. This has reduced the competitiveness of domestic textile products compared to other countries in Southeast Asia, although Vietnam is considered a country with low labor costs.

According to Mr. Giang, high logistics costs not only affect the competitiveness of goods but also become a barrier for businesses when entering new markets.

With the above fact, Chairman of the Hanoi Logistics Association (HNLA) Tran Duc Nghia informed: Currently, the average logistics cost of Vietnam is 16.8-17% of the value of goods, even some business items businesses have to pay up to 20-25%.

For example, a wooden container is worth $20,000-30,000, but logistics costs account for 20-30% (US$4,000-9,000), which has eroded the profits of exporters.

Data from the Vietnam Logistics Business Association (VLA) also shows that logistics costs compared to Vietnam's gross domestic product (GDP) are at 16.8%, compared to the world average. is 10.7%. In ASEAN, Vietnam's logistics costs are higher than those of Singapore at 8.5%, Malaysia at 13%, and Thailand at 15.5%. Currently, 90% of logistics enterprises in operation are Vietnamese enterprises, but only account for about 30% of the market share, the rest belongs to foreign enterprises.

According to VLA, the number of enterprises is many but mainly small ones, with limited scale in terms of both capital and human resources as well as international operation experience, there is no link between stages in the logistics supply chain, and between logistics service enterprises and import-export enterprises. That leads to both buying and selling dimensions, domestic logistics enterprises are limited in terms of "playing field".

However, in the context that exports are facing difficulties, experts impatiently believe that it is necessary to soon come up with solutions to cool down logistics costs to help businesses reduce cost pressure and improve the competitiveness of goods in Vietnam in the international market.

The "problem" to improve logistics quality

According to many economic experts, if you want to improve the quality of logistics services in a modern direction, the Government needs to have a clear roadmap for building a logistics system.

Regarding the goal of turning Vietnam into a logistics service center in Southeast Asia, VLA President Le Duy Hiep suggested that the State should have a priority policy for the development of infrastructure and service centers. logistics because investment in this field requires large investment capital, a long payback period, and high risk. “There must be mechanisms and policies, cutting business conditions, simplifying specialized inspection procedures. Mobilizing social resources for investment and development, especially building regional and international logistics centers, "- Mr. Hiep proposed.

Vietnam needs policies to attract FDI into the logistics industry. Regulatory agencies need to loosen the ratio of investment capital in logistics to foreign investment capital so as not to constrain FDI in Vietnam's logistics industry.

From an enterprise perspective, Chairman of Con Ong Transport and Forwarding Joint Stock Company Dinh Huu Thanh suggested that the Government soon tested the agency business form of logistics enterprises, thereby saving costs for businesses.

“For logistics to develop and compete with other countries, it is necessary to create linkages between factors in the supply chain such as customs, warehouses, road carriers, shipping lines, etc., thereby helping to reduce delivery time. receive. At the same time, improve administrative procedures in the field of e-commerce "- Mr. Thach stated.

Earlier, at the Logistics Forum in Europe - America recently held by the Ministry of Industry and Trade, the Chairman of the Korean Logistics Association in Vietnam Kim Sam Mo also suggested that Vietnam should form an EDI system (the EDI system). electronic data exchange). Specifically, logistics-related parties such as transport companies, warehouses, and customs... are connected through a single electronic system to help businesses receive information quickly, and save a lot of time and cost. "The government standardizes logistics infrastructure services by applying standardized freight rates and unifying the toll collection system, helping to improve the confidence of consumers and businesses," said Mr. Mo.

In addition, in order to reduce unnecessary costs when exporting Vietnamese goods to the world, management agencies need to perfect the logistics development mechanism. Enterprises must cut costs and improve competitiveness. In addition, localities and functional agencies in the process of implementing the Planning Law must pay attention to the connection of transport infrastructure with logistics centers to have a comprehensive plan for the development of this field.

Vietnam ranks among 50 emerging logistics markets globally

Recently, at the press conference to introduce "Vietnam International Logistics Exhibition 2023-VILOG 2023", Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade) said: "Logistics is identified as an industry important service in the overall structure of the national economy, playing the role of supporting, connecting, and promoting the socio-economic development of the whole country, as well as each locality, contributing to improving the competitiveness of the economy".

Over the past years, Vietnam's logistics industry has made significant progress with an average speed of 14-16 %/year, with a scale of 40-42 billion USD/year. The number of businesses and the quality of logistics services are increasing, making a significant contribution to bringing the result of import and export of goods to the highest level ever of US$732.5 billion, up 9.5%. compared to 2021.

"According to Agility's assessment in 2022, Vietnam ranks 11th in the group of 50 emerging logistics markets globally," said Mr. Tran Thanh Hai.

However, a representative of the Import-Export Department also acknowledged that Vietnam's logistics industry still has many weaknesses, such as Logistics costs are still high; a lack of linkage between logistics service enterprises with each other and with production, trading, and import-export enterprises; The scale and financial potential of Vietnamese logistics enterprises are still weak, and the going to foreign markets is still insignificant.

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