Logistics industry transforms to meet integration requirements (Part 2): Policy suggestions

In the context of facing many challenges, both internally and externally, the Vietnamese logistics industry needs to quickly transform itself to meet the new requirements of the international integration process.

[caption id="attachment_612481" align="aligncenter" width="1068"] Logistics businesses need to transform their models towards "greening". Illustrative photo: VNA[/caption]

Speaking at the 2023 Logistics Forum with Europe - Americas organized by the Ministry of Industry and Trade in Ho Chi Minh City on December 21, Mr. Ta Hoang Linh, Director of the Department of Europe - Americas Market under the Ministry of Industry and Trade, commented that the global economy in 2024 will continue to face many risks, challenges and unpredictability with a lower growth rate than 2023.

To overcome these difficulties and challenges, Mr. Ta Hoang Linh suggested that domestic logistics enterprises need to optimize costs and time of transporting goods, improving the competitiveness of enterprises and import and export goods of Vietnam.

Besides, according to Mr. Ta Hoang Linh, logistics service enterprises need to proactively invest and transform production and business models in the direction of "greening", improving competitiveness and ensuring sustainable development.

Sharing the same view, Mr. Chandler So said that the European and American markets are increasingly paying attention to sustainability factors as well as environmental, social and governance (ESG) issues. Therefore, logistics enterprises need to quickly adjust their chain operations to be greener, friendlier, and more sustainable in order to maintain long-term competitiveness.

In addition, Mr. Chandler So also recommended that Vietnamese logistics businesses going to Europe and America should consider cultural nuances, market preferences and local regulations to effectively meet customer expectations.

Some experts also said that localities need to strengthen and improve logistics infrastructure (warehousing and transportation) in the direction of specialization of stages, at the same time increase multimodal transport and develop air cargo services to increase the shelf life of exported agricultural and aquatic products; invest in warehouse systems, smart warehouses combined with modern preservation technology to meet storage needs combined with packaging of goods to meet export standards.

In addition, provinces, cities and enterprises need to take advantage of policies and guidelines on regional linkages to create real connections in terms of goods sources and logistics activities. Enterprises, management agencies and industry associations, especially logistics associations, need to strengthen cooperation and coordination to create added value for goods and reduce costs through optimizing logistics services.

Regarding the railway system, Mr. Nguyen Xuan Hung, Deputy General Director of Ratraco Railway Transport and Trading Joint Stock Company, said that Vietnam needs to soon upgrade the railway system to international standards to increase the ability to connect goods by rail domestically as well as with other export markets. Especially, in the context of conflicts occurring in many places, railway is an effective means of transporting goods to connect with the European market area.

“Transporting goods via the Asia-Europe international railway route connecting Vietnam - China - Central Asian countries - Russia - EU is one of the solutions to optimize logistics costs as well as ensure the safety and quality of goods. In addition, businesses can combine multimodal transport including sea and rail to shorten the transportation time to more distant locations,” Mr. Nguyen Xuan Hung proposed the solution.

Regarding the seaport system, Mr. Truong Nguyen Linh, Deputy General Director of Vietnam International Container Port (VICT), said that at Vietnam International Container Port, expanding the scale and area is impossible. Therefore, to increase operational efficiency, the only way is to improve internal infrastructure, including rearranging container yard space, upgrading wharfs and applying the latest technologies to system management to optimize operational performance and ensure safety standards.

According to Mr. Truong Nguyen Linh, currently, Vietnam International Container Port has integrated AI technology, robots gradually replacing manual operations that are completely dependent on humans to improve cargo loading and unloading efficiency and regularly connect with the logistics network in coordinating the reception of cargo ships. However, with external infrastructure connected to the port such as expanding and upgrading roads, dredging channels, a more synchronous investment solution is required from the State.

[caption id="attachment_612563" align="aligncenter" width="1068"] Gemalink International Port. Photo by Hong Dat - VNA[/caption]

In addition, to keep up with the general trend of the world and development requirements, according to experts, Vietnamese logistics enterprises also need to accelerate the digital transformation process according to the Party's policy stated in Resolution No. 52-NQ/TW dated September 27, 2019 of the Politburo and the National Digital Transformation Program to 2025, with a vision to 2030, issued in Decision No. 749/QD-TTg in 2020 of the Prime Minister.

Currently, only a few large logistics enterprises have implemented digital transformation from level 3 or higher, such as Tan Cang Saigon, port companies under the Vietnam National Shipping Lines system, Viettel Post, Vietnam Post, Gemadept, and foreign-invested enterprises such as DHL, Fedex.../.

Yellow River