Connecting businesses, developing the logistics industry in 2022

Orienting the development of the logistics industry in 2022, businesses will work together to develop Vietnam's logistics industry in general in the new year, restore and develop new markets.

In addition to the shortage of supply and labor in global transport in general, shipping costs continue to rise, increasing to a record and showing no signs of stopping.

Despite facing many difficulties due to the COVID-19 pandemic, Vietnamese logistics enterprises still stand firm, contributing to maintaining and stabilizing supply chains, ensuring that the country's economy still grows positively. .

In 2022, it is forecasted that there will continue to be many difficulties and challenges for the logistics industry, requiring Vietnamese logistics enterprises to make more efforts and strengthen internal links to be able to continue to overcome challenges. awake.

Efforts to overcome difficulties

According to Mr. Le Duy Hiep, Chairman of the Vietnam Logistics Business Association (VLA), in 2021, the COVID-19 pandemic will re-emerge in countries, especially in Asia, creating bottlenecks. new to the global supply chain, causing the supply chain to be broken or interrupted, leading to disruption of logistics activities.

Định hướng phát triển logistics Việt Nam 2022
Orientation for logistics development in Vietnam 2022
The inconsistency among localities, the galloping increase in sea freight rates, the shortage of empty containers, etc. have had a great impact on the operation of Vietnamese logistics enterprises.
Up to now, the pandemic is at risk of resurgence due to a new strain that threatens and inhibits the recovery of the global economy.
In addition to the shortage of supply and labor in global transport in general, shipping costs continue to rise, increasing to a record and showing no signs of stopping.
According to VLA's statistics, the average sea freight rate for a 40-foot container has increased 5 times compared to last year and increased 6 times compared to 2 years ago.
Although the association and ministries have had certain impacts, they have not been able to stabilize freight rates.
However, due to the experience of dealing with the epidemic since 2020, Vietnamese logistics enterprises have adapted and still maintain the supply chain.
Cargo transportation in 2021 increased by 14.6% compared to 2020 with many innovations such as converting passenger aircraft to cargo; opening a sea freight route from Vietnam to India; along with many innovative solutions in last-mile delivery, supporting people during the period of isolation, etc., actively contributing to socio-economic development. In particular, import and export activities in 2021 are estimated to exceed 600 billion USD.
Mr. Hiep said that the event Vietnam Maritime Corporation (VIMC) successfully opened the shipping route to India, along with the continuous progress of Vietnamese shipping enterprises in domestic container transportation. As a basis, a solid step to be able to move to intra-Asia and further routes, contributing to help Vietnam be proactive in import and export activities, international connectivity, reduce international transportation costs and It is also reducing logistics costs, improving competitive advantages for Vietnamese goods and import-export enterprises.
From the perspective of a policy consultant, Ms. Pham Ngoc Thuy, Director of the Office of Private Economic Development Research (Board IV) of the Advisory Council for Administrative Procedure Reform of the Prime Minister, said: that in 2021 and even early 2022, logistics will always be the hottest stories. Typical is the situation of congestion in Eurasian transport chains as well as other routes further afield, and most recently, congestion at the Vietnam-China land border.
Ms. Thuy shared that in all the statements of industry associations during the briefings with the Government, the most mentioned issue is still the pressure related to logistics, transportation and trade.
But the good news is that the VLA Association and logistics businesses have contributed to the burden, sharing with other industry associations to find solutions to optimize logistics activities, saving costs and time; recommendations to the State on strategic issues, contributing to maintaining and stabilizing the supply chain, improving the competitiveness of Vietnamese goods and businesses in the very difficult context caused by the epidemic.
Định hướng phát triển ngành logistics Việt Nam 2022, tạo đột phá
Orientation to develop logistics industry in Vietnam in 2022, creating a breakthrough in the new year
Link to face challenge
According to Ms. Pham Ngoc Thuy, in 2022, the disease forecast is still complicated by new variations. Governments and markets can have reactions that are beyond the expectations and reach of businesses. Therefore, logistics businesses need to actively face to overcome.
To do this, logistics businesses need to actively engage, coordinate well with each other, find solutions from a policy and practical perspective to optimize all solutions to the extent possible.
Board IV is committed to always accompany the VLA Association and logistics businesses to bring the best competitive advantage to businesses, goods and the Vietnamese market.
Forecasting the development trend of the logistics service industry in the near future, according to Mr. Nguyen Thanh Binh, General Director of GEMADEPT Joint Stock Company, the trend of e-commerce, the trend of integration will continue to develop and play a role. play an important role in transforming the logistics model from traditional to modern logistics.
Large logistics companies, especially shipping lines, will integrate activities at sea, on land and in the air into a synchronous subject. With the advantage of modern technology and platform, they will be able to capture a large market share both internationally and domestically.
Meanwhile, in the next 1-2 years, the epidemic still has the potential to adversely affect supply chains and logistics activities.
This is a challenge but also an opportunity for Vietnamese logistics enterprises due to their experience in overcoming 2020, 2021.
Enterprises need to actively choose the appropriate direction and response plan; promote digital transformation; strengthen links and cooperation with each other; calculate cooperation with large companies to be able to adapt flexibly, take advantage of advantages and development opportunities.
Commenting on investment opportunities in the current context and in the near future, from the next 3-5 years, Mr. Dang Vu Thanh, General Director of Southern Logistics Joint Stock Company (SOTRANS), said that businesses still There are still good opportunities to invest in developing logistics infrastructure in Vietnam. Because the logistics service industry is establishing a very clear new price level. The faster you invest, the more you can build a competitive advantage in the future.
Mr. Thanh noted that businesses can use the warehouse as a foundation to build a network of human resources and technology around the warehouse; To capture the movement of goods, personnel, and technology to capture the best locations, at least two conditions must be met, one is convenience from the perspective of regional connectivity and international gateways. family. In addition, it must be large enough to take advantage of cost reductions.
Vo Phuong Lan, Head of Transport Department of VLA, said that Vietnam's import-export and logistics enterprises will continue to face difficulties in January and February. Because ocean freight rates are increasing again after a downward trend in October and November.
Specifically, the price to go to the East Coast of the US has now increased from 21,000 to 22,000 USD. Vacancies for the price range from 17,000-18,000 USD are very rare right now.
The freight rate to the US West Coast has also increased to 19,000 USD and there are still more than 100 ships lined up off the West Coast.
Meanwhile, the US has just experienced a long New Year holiday. Unloading speed is very slow. It takes about 3 months for the ship to turn back from the US. Although over 65% of ships from the US are carrying empty containers, these empty shells will be prioritized for unloading before the ships docked in China and Thailand, causing a shortage of empty shells when returning to Vietnam.
SMC shipping line is the world's largest shipping line, but currently, it still lacks empty shells to Vietnam, especially Ho Chi Minh City.
Therefore, Ms. Lan recommends that logistics businesses need to inform customers and partners to proactively have appropriate production, import and export plans.
Proposing solutions to the Government to create conditions to promote the development of Vietnam's logistics industry, Mr. Le Duy Hiep said that it is necessary to develop a synchronous logistics infrastructure; develop shipping enterprises, air transport with Vietnamese brand names; developing spearhead logistics enterprises in the field of integrated logistics 3PL-4PL, logistics serving e-commerce, logistics centers in foreign markets...
In addition, to strengthen the Association and Vietnam logistics industry, VLA will focus on developing potential members; strengthen connection and promotion activities for members; strengthen international cooperation; effectively implement the State's support packages to support businesses in digital transformation and the project to build the Provincial Logistics Index (LCI).
VLA supports the establishment and will work closely with local logistics associations such as Ho Chi Minh City, Hai Phong to promote synergy, Mr. Hiep emphasized.
According to Minh Hung (VNA)
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