[NEWS] – How does Vietnam logistics adapt to the new context?

The import and export market is expected to warm up in 2024, leading to an increase in the demand for transportation, so how to help Vietnam’s logistics industry adapt?

Logistics Vietnam still has high growth potential

The logistics industry is facing many market changes, the demand is forecasted to increase in 2024, the arrival of international carriers with new forms of transportation, and the application of modern digital technology in transportation. …This raises the question of where Vietnam’s transport enterprises are located, and how to take advantage of the opportunities that are gradually appearing in front of them, which is a problem that needs a solution.

Compared with 2016, the number of Vietnamese transport ships has decreased from 1,267 to 1,032 boats, but the tonnage has increased from 7.5 million tons to 10.6 million tons. In terms of fleet structure, Vietnamese shipping ships mainly focus on general and bulk cargo. A small part is container ships, chemical tankers, liquefied petroleum gas, and passenger ships.

Currently, Vietnam has more than 500 ship owners, and ship management companies. 38 foreign container shipping lines operate in Vietnam, including all the largest shipping lines in the world currently exploiting international market share. Vietnam has 10 container shipping lines operating mainly in the domestic market. Accordingly, Vietnam has the largest air transport growth rate in Southeast Asia, an average of 9.5%, twice the regional growth rate of 4.7%. Importantly, there are many opportunities for development, but Vietnamese enterprises need to prove their capacity in the context of increasingly fierce competition.

Links to enhance competitiveness

According to experts, the current shipping and air transport market still have many weaknesses such as lack of capital, lack of links, lack of high-quality human resources and not yet catching up with digital technology application.

Regarding solutions, with the maritime industry, the representative of the Vietnam Maritime Administration proposed many solutions to build a fleet of ships in the coming time. In particular, continue to promote administrative reform in the field of shipping and promote the application of science and technology to administrative settlement. Continue to review, amend and supplement the system of legal documents on maritime transport, creating a stable and favorable legal corridor to support enterprises to operate effectively. In the immediate future, focus on managing the price of maritime services and managing the operations of container shipping lines in Vietnam. Promote international cooperation in the sea, participate in international conventions, and bilateral and multilateral transport agreements and support legal procedures for Vietnamese enterprises to expand their agents abroad.

Exemption from VAT when importing ships for registration of ships flying the Vietnamese flag until the end of 2026; import tax exemption and 50% tonnage fee exemption for ship owners when buying and operating container ships of 1,500 TEU or more or for ships powered by clean energy. Exemption from personal income tax for Vietnamese crew members when working on ships operating on domestic routes.

Support for loans secured by assets easier, extending the allowed age of aircraft; attracting investment in building and upgrading airport and seaport infrastructure; investing in the application of a shared platform to create linkages and facilitate operations...

In addition, the demand for logistics human resources in Vietnam is currently very large, but the quality has not yet met the requirements of businesses. To solve that problem, it is necessary to promote cooperation among member training institutions in strengthening facilities, and training, improving the capacity of lecturers, and meeting training and research requirements. scientific research and technology transfer on digital transformation and logistics and green supply chain management.

In the context of the recent post-Covid pandemic, the logistics industry is considered one of many areas heavily affected. Understanding the difficulties that businesses are facing, Indochina Holdings would like to introduce trade promotion services. With a team of professional staff, we are always ready to solve all the problems that businesses encounter in the process of importing and exporting goods.

(Source: Collector)