However, one of the major difficulties for logistics enterprises is the poor connection between infrastructure and commodity centers. Le Phuoc Vu, chairman of Hoa Sen Group board of directors, said the Government needs to create policies to manage the sea port system better, and supervise the Logistics in vietnam of shipping fees and additional fees.
Its logistics sector, as demand increases, is in need of better quality services to seize the potential on offer.
Thus, to enter 3PL model, domestic firms have the tendency to invest in the the logistics infrastructure, especially warehouses or logistics Logistics in vietnam centres. In and80 percent of enterprises in the sector reached or exceeded their annual plans.
Chairman Do Xuan Quang of the Vietnam Logistics Business Association said that only 5 to 7 percent of workers are well trained and educated while 85 percent of enterprises must train their workers after they are employed.
Le Hoang Oanh said that transport infrastructure, connectivity between seaports, airports, traffic routes, production areas, and warehousing is inconsistent so vehicles need to travel further and carry less cargo, leading to high logistic costs.
There must also be solutions to direct and encourage cooperation between logistics enterprises so together they may compete with foreign players. Inconsistencies across the transport network in terms of extent and quality are one of the most problematic factors for firms doing business in Vietnam.
Enterprises from these countries have a deeper understanding of the laws, customs and culture of Vietnam than those from other countries, making development and integration easier. Le Hoang Oanh said that transport infrastructure, connectivity between seaports, airports, traffic routes, production areas, and warehousing is inconsistent so vehicles need to travel further and carry less cargo, leading to high logistic costs.
Vietnam is losing its distribution power in the global supply chain as a result. The government also decided recently to set up a committee to formulate policy for enhancing the competitiveness of Vietnam logistics sector and expects to issue a working plan in June next year, which will present huge opportunities for local enterprises to develop.
Among selected 3PLs for contract logistics services, warehousing and distribution are core competencies. Seventy percent of logistics enterprises recorded profits while only 1 percent went bankrupt; much less than in other industries.
Road transport remained the backbone of Vietnamese freight transport.
Most logistics activities in Vietnam are taken care of by foreign companies. However, the cost in Vietnam was as high as 20 percent of the total for each export item.
The purpose of research work is to have an in-depth understanding of logistics market in Vietnam and assessing its potential. Businesses complain about high logistics costs The problem is that the transport system cannot be exploited in the best way.
Operation of the storage system is quite simple, with the goal to preserve goods effectively and optimize inventory costs. Logistics included warehouse services, transport and loading. According to the Ministry of Transport MOTdirect costs amount to percent of total transportation costs, while indirect costs are percent.
Vietnam's logistics service has remained less competitive due to its high cost. The big suppliers of commercial cold storage are mainly concentrated in the southern areas of Vietnam, due to the growing demand for storage of seafood for export.
About 40 percent of logistics companies said their workers satisfy their requirements while 23 percent complained about low skills. This rises to between 12 and 25 percent in developing countries.
The deputy minister said in order to develop logistics services in Vietnam, local logistics companies need to connect with each other, and work closely with export and import companies.
In and80 percent of enterprises in the sector reached or exceeded their annual plans. Logistics sector needs support Logistics trading has not had adequate conditions for development in Vietnam though it is considered a cash-cow sector, Deputy Minister of Industry and Trade Nguyen Cam Tu has said.
Most are small and medium size and short on capital and infrastructure such as warehousing, IT, and even vehicles.
Most cities and provinces lack forwarding centers and dedicated supply services. Thus, to enter 3PL model, domestic firms have the tendency to invest in the the logistics infrastructure, especially warehouses or logistics distribution centres.
The country has huge plans to increase the freight movement through railways, the Logistics in vietnam estimates that bycargo volumes are to reach 2.The Vietnam Logistics Forum is organized by Ministry of Industry and Trade, Ministry of Transport, the Vietnam Logistics Business Association, the Vietnam Economic Times, and the World Bank in Vietnam, with financing from the Australia-Bank Partnership Trust Fund.
Transport and logistics in Vietnam Vietnam is set to see very strong growth in trade over the coming years, which will support ongoing development and expansion of its logistics.
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