Logistics sector insider calls for joint efforts to cut high costs

By Truong Van
Wed, May 24, 2023 | 9:35 am GMT+7

Logistics enterprises in Vietnam should join hands to lower high logistics costs and improve the industry’s competitiveness, CEO Cap Trong Cuong of Vietnam Container Shipping JSC said on Tuesday.

In Vietnam, logistics costs are equivalent to around 16.8% of GDP, much higher than the global average, according to the Vietnam Logistics Business Association (VLA). The Vietnamese ratio is also higher than those in Southeast Asia - 8.5% in Singapore, 13% in Malaysia, and 15.5% for Thailand.

The reason is businesses in Vietnam's logistics sector have not effectively supported each other, Cuong told a meeting held by the VLA to introduce the very first Vietnam International Logistics Exhibition (VILOG), set for August 10-12 in Ho Chi Minh City. He noted the sector has many large-cap companies with broad networks but cooperation within the industry remains low.

If all agree to cut high logistics costs, we can do it, said the CEO of Vietnam Container Shipping, a major firm in the sector regularly referred to as Viconship.

He added that loading and unloading fees at seaports in northern Vietnam’s Hai Phong city are currently the world’s lowest, at about $33 for a 20-foot container, even lower compared to Cambodia and Myanmar.

 A seaport in Hai Phong city, northern Vietnam. Photo courtesy of Hai Phong’s  portal.

A seaport in Hai Phong city, northern Vietnam. Photo courtesy of Hai Phong’s portal.

Tran Thanh Hai, deputy director of the Import-Export Department, Ministry of Industry and Trade, said Vietnam’s low loading and unloading fees are agreed upon by shipping lines and port operators, and the low levels, which regulators cannot interfere with, show that shipping lines have the upper hand.

As for the industry’s development, Hai said it has achieved an annual growth rate of 14-16% in recent years, and the current market size is in the range of $40-42 billion per annum.

According to an assessment in 2022 by Agility, a Kuwait-headquartered supply chain service company, Vietnam ranked 11th in the group of 50 global emerging logistics markets.

Directed by the industry and trade ministry, the first Vietnam International Logistics Exhibition in HCMC this August will showcase the sector’s development and its potential to further attract foreign investment. It also aims to promote technology transfer, human resources training, and a green ecosystem in the industry.

According to the organizers, the VLA and Vietnamese firm Vinexad, the show’s main categories of goods and services will include transport & forwarding, services & warehouse systems, packaging & cold chain, and logistics IT.

The exhibition has received registrations with over 200 booths from more than 150 firms from 16 countries and territories, such as Belgium, Canada, Taiwan, Germany, South Korea, the U.S., Hong Kong, Malaysia, Russia, Japan, Singapore, Turkey, Switzerland, mainland China, Vietnam, and Italy.

The show will feature foreign brands like Karl Gross Logistics, Nippon Express, Swisslog, and Fresco. Long-standing Vietnamese brands joining the event will include Saigon Newport, Viconship, Vinafco, Ratraco, and Vinatech, according to the organizers.

Comments (0)
  • Read More
Vietnam plans to spend over $2 bln on US agri imports

Vietnam plans to spend over $2 bln on US agri imports

Vietnam’s Ministry of Agriculture and Environment is expected to sign MoUs to purchase over $2 billion worth of U.S. agricultural, forestry, and fishery products.

Economy - Tue, June 3, 2025 | 10:01 pm GMT+7

New flight route to help Danang attract more wealthy tourists from Middle East

New flight route to help Danang attract more wealthy tourists from Middle East

The new Dubai-Danang flight route has been launched, paving the way for an influx of high-spending travelers from the Middle East and Europe to the central Vietnam city, one of the country's top tourist attractions.

Companies - Tue, June 3, 2025 | 9:13 pm GMT+7

Food giant C.P. Vietnam’s 'diseased' pigs improperly quarantine-stamped: authorities

Food giant C.P. Vietnam’s 'diseased' pigs improperly quarantine-stamped: authorities

The widely circulated images of diseased pigs from C.P. Vietnam, a subsidiary of Thailand’s food giant Charoen Pokphand Foods Public Company Limited (CPF), date back to 2022, but the pigs were improperly stamped, Vietnamese authorities stated on Tuesday.

Companies - Tue, June 3, 2025 | 5:36 pm GMT+7

Son Hai Group proposes expanding 263km stretch of Vietnam's North-South Expressway

Son Hai Group proposes expanding 263km stretch of Vietnam's North-South Expressway

Vietnam’s Son Hai Group is seeking Prime Minister Pham Minh Chinh's approval to invest in the expansion of a 263-kilometer stretch of the eastern section of the North-South Expressway.

Infrastructure - Tue, June 3, 2025 | 3:53 pm GMT+7

FedEx establishes direct serve in Vietnam on surging demand

FedEx establishes direct serve in Vietnam on surging demand

FedEx Express Corporation, one of the world’s largest express transportation companies, has transitioned to a direct-serve presence in Vietnam amid the Southeast Asian country’s growing international shipping demand.

Industries - Tue, June 3, 2025 | 2:55 pm GMT+7

Vietnam’s steel giant Hoa Phat to deliver thousands of containers to domestic shipping lines  

Vietnam’s steel giant Hoa Phat to deliver thousands of containers to domestic shipping lines  

Vietnam’s largest steelmaker, Hoa Phat Group, will supply thousands of containers to VIMC Container Transport JSC (VIMC Lines) and Vinafco Shipping JSC under recently signed contracts.

Companies - Tue, June 3, 2025 | 12:16 pm GMT+7

Shinhan Bank receives 'Fastest growing SME bank Vietnam 2025' award

Shinhan Bank receives 'Fastest growing SME bank Vietnam 2025' award

South Korea’s Shinhan Bank Vietnam Limited has been named the “Fastest Growing SME Bank Vietnam 2025” by World Economic Magazine (UK).

Companies - Tue, June 3, 2025 | 10:19 am GMT+7

Vietnam’s ‘shrimp king' Minh Phu expects to return to profit in 2025

Vietnam’s ‘shrimp king' Minh Phu expects to return to profit in 2025

Minh Phu Seafood Corporation (UPCoM: MPC), Vietnam’s leading shrimp exporter, expects net profit to reach VND997 billion ($38.03 million) this year, reversing the loss in 2024.

Companies - Tue, June 3, 2025 | 8:38 am GMT+7

CMC Corporation breaks ground on $300 mln technology hub in Hanoi

CMC Corporation breaks ground on $300 mln technology hub in Hanoi

Vietnam's leading technology firm CMC Corporation on Monday broke ground on its $300 million Hanoi CMC Creative Space (CCS Hanoi) project.

Industries - Mon, June 2, 2025 | 11:19 pm GMT+7

Thailand’s industrial output up after 9-month decline

Thailand’s industrial output up after 9-month decline

Thailand’s industrial output has turned positive for the first time in nine months, with the automotive sector rebounding after a 21-month slump, said Thai Deputy Finance Minister Paopoom Rojanasakul.

Southeast Asia - Mon, June 2, 2025 | 10:48 pm GMT+7

Singapore, France to expand cooperation in civil nuclear energy, defence technology, AI research

Singapore, France to expand cooperation in civil nuclear energy, defence technology, AI research

Singapore and France have upgraded their Strategic Partnership signed in 2012 to a Comprehensive Strategic Partnership (CSP), marking Singapore's first CSP with a European country.

Southeast Asia - Mon, June 2, 2025 | 10:47 pm GMT+7

Masan MEATLife stock jumps on continued profit momentum

Masan MEATLife stock jumps on continued profit momentum

The ticker of Masan MEATLife (MML), a subsidiary of Vietnamese consumer retail giant Masan Group, jumped by 8.71% to VND31,200 ($1.2) per share on Monday, after it reported profit for the third consecutive quarter in Q1/2025.

Companies - Mon, June 2, 2025 | 10:34 pm GMT+7

Vietnam's VSIP Binh Dinh industrial park seeks to become 'golden destination' for Thai firms

Vietnam's VSIP Binh Dinh industrial park seeks to become 'golden destination' for Thai firms

The Becamex VSIP Binh Dinh service-urban-industrial complex in the central province of Binh Dinh is emerging as a promising destination for Thai enterprises, said its developer Becamex Binh Dinh JSC.

Industrial real estate - Mon, June 2, 2025 | 10:24 pm GMT+7

Termination of feed-in-tariff mechanism a major bottleneck in Vietnam’s electricity transition: expert

Termination of feed-in-tariff mechanism a major bottleneck in Vietnam’s electricity transition: expert

A major bottleneck in Vietnam’s electricity transition has been the termination of the feed-in-tariff (FIT) mechanism in 2021, with no suitable replacement mechanism in place, according to the director of Hanoi-based Institute of Energy Technology.

Economy - Mon, June 2, 2025 | 4:56 pm GMT+7

Vietnam Vaccine JSC launches high-quality healthcare shop chain

Vietnam Vaccine JSC launches high-quality healthcare shop chain

Vietnam Vaccine JSC (VNVC), well known for its vacciation services, on Saturday launched its VNVC Shop, a chain offering safe, high-quality healthcare products from globally recognized brands.

Companies - Mon, June 2, 2025 | 4:05 pm GMT+7

Vietnam heavyweight PV Gas plans $3 bln investment over next 5 years

Vietnam heavyweight PV Gas plans $3 bln investment over next 5 years

PV Gas, a subsidiary of state-owned giant Petrovietnam, plans to make "strong investment" over the next five years in areas such as infrastructure and import-distribution of LNG.

Energy - Mon, June 2, 2025 | 2:01 pm GMT+7