Import, export, and logistics are considered as one of the industries with great development prospects in our country today. However, the status of logistics services in our country has not been highly appreciated. Specifically, what is the situation of the logistics service industry in our country, what difficulties are there to be overcome and the prospect of industry development?
1. Number and size of enterprises involved in providing logistics services
Vietnam has nearly 1,000 businesses operating in the field of logistics. This is a fairly large number but in fact, most are small businesses and very small. Due to the limited capital, the organizational structure of the enterprise is also simple, not really specialized, and cannot organize representative offices in foreign countries, so the information source is limited, the work abroad must be approved. agents of multinational companies. This leads to the fact that most businesses only stop at acting as agents of level 2, level 3, even level 4 for foreign partners who have a global network but have not yet organized connecting transport activities. multimodal.
Despite the large number, Vietnamese logistics companies only meet 25% of domestic demand and have focused on just a few services in this multi-billion-dollar service value chain.
2. The state of competition in the provision of logistics services
Since most Vietnamese exporters export goods under the terms of FOB and FCA in incoterms, the right to decide on transportation is assigned by the buyer and of course, the buyer will designate a company of their country to carry out. does this. Therefore, Vietnam's logistics companies will not have many opportunities to provide logistics. This is not easy to solve because of most Vietnamese exporters process or export goods to big customers who have long-term contracts with global logistics companies.
Vietnam has a trade deficit so this is an attractive market for Vietnamese logistics companies. Previously, Vietnamese importers mainly bought goods under CIF conditions, now Vietnamese importers are gradually shifting to FOB, creating opportunities for logistics businesses. Vietnam exploits. However, a large part of this market is still in the hands of foreign logistics firms because there are many foreign enterprises investing directly in Vietnam, and they are also the biggest importers.
3. Expenses for logistics services
Vietnam's logistics costs are estimated to be around 25% of Vietnam's GDP, much higher than developed countries like the US and higher than developing countries like China or Thailand. It is this high logistics cost that effectively reduces Vietnam's efforts to introduce cheap labor markets and boost exports. The main cause of this situation is that Vietnam's transport infrastructure is a too old and overloaded, complex administrative management system and Vietnamese manufacturers are not actively using rental services. in addition to foreign 3PL (third party logistics).
4. Information infrastructure of the logistics industry
This is the weakness of logistics businesses in Vietnam. Although logistics enterprises have a lot of awareness in applying information technology to their business activities, they are still far inferior to foreign logistics companies. If only in terms of website construction, most websites of Vietnamese businesses merely introduce themselves, about their services, lack of utilities that customers need such as track and trace tools. orders), train schedule, e-booking, tracking documents ... Meanwhile, the ability to see and control orders (visibility) is a factor that is highly appreciated by shippers when they choose suppliers. logistics services for yourself.
5. Human resources in logistics
Logistics has not yet received intensive training at universities. Currently, only Ho Chi Minh City University of Transport has Logistics and Multimodal Transportation. The remaining students at the Universities of Maritime, Foreign Trade and Transport only study a few related subjects. With such learning time for a relatively complex business chain such as logistics, it is too difficult for teachers to impart a sufficient amount of knowledge to students. Besides, the number of highly trained experts is still too short compared to the needs.
Currently, Vietnam has about 6,000 employees working in the field of logistics, but those who have experience and understanding of international law are still lacking. Currently, the main human resources for this industry are from shipping agents, shipping forwarding companies and use according to existing capabilities. Meanwhile, this is an area that requires experts not only to understand the laws and practices of the host country but also to understand the international laws and have relationships throughout the world. Therefore, the training of import-export and logistics in a methodical and high quality is very necessary for our country today.
6. International evaluation of Vietnam's current status of logistics services
According to a World Bank survey, Vietnam ranked 53rd out of 150 countries included in the ranking. Singapore ranks first (1) in the world, followed by Western European countries (Germany, the Netherlands) and other developed countries such as Australia, Japan, Switzerland, Canada, and Denmark. Compared to other Asian countries in the region, Vietnam lags behind Korea (25), Malaysia (27), China (30), Thailand (31), India (39) but still more than the Philippines ( 65), Cambodia (81) and Laos (117).
Compared to some European countries, Vietnam's logistics service is still better than some Eastern European countries such as Bulgaria (51), Russia (99), Ukraine (73) and more than most other African countries...
In addition, according to the World Bank spokesman, Michael Peskin, Vietnam's logistics costs account for 30% to 40% of the total shipping cost while in other countries this cost only accounts for about 15%. %. Therefore, taking advantage of the country's economic potential to develop logistics services and overcome difficulties and weaknesses in specialization in service provision, in terms of infrastructure and especially human resources. is a practical and needle team right now for logistics?
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