Foreign investors have geared up to prepare for the Vietnamese logisticsmarket opening in 2014. Report by the Vietnam Net online newspaper.
The Vietnamese logistics market has warmed up recently with theinvestment deal worth 13 million USD by DHL Supply Chain. The companyhas put the second distribution center, covering an area of 10,000square meters in Bac Ninh province, into operation. This is a part ofits investment expansion plan in the north of Vietnam.
With the new investment deal, DHL will be able its warehouse area from91,000 square metres to 141,000 square metres and develop the fleet to100 vehicles by 2015.
A senior executive of DHLSupply Chain said the company targets the retailing, consumer goods,technology and automobile sectors in Vietnam, which are forecast todevelop strongly in some more years.
According tothe Ministry of Industry and Trade, logistics services make up 15-20percent of GDP, while the industry has been growing steadily by 25percent per annum.
Vietnam is a vast logisticsmarket with the turnover of 12 billion USD, of which the transportation,the most important link of the logistics chain, makes up 40-60 percent.
Vietnam is a newly emerging market, therefore, thedemand for logistics outsourcing is believed to increase rapidly. Thisexplains why a lot of the world’s big logistics firms such as MaerskLogistics, APL Logistics, NYK Logistics, MOL Logistics, have come toVietnam to seek profits.
Vietnam can attract theworld’s leading logistics firms because it, after the WTO admission, hasbeen chosen by a lot of the world’s big manufacturers as the places forthem to set up the production bases.
Analysts havenoted that Vietnam has far lagged behind the other countries inapproaching logistics technologies. While foreign logistics firms nowapply the 4PL (fourth-party logistics) service already, domestic firmsstill can provide simple services.
They transportand forward goods by land, inform to clients about the transportationprocess on behalf of the shipping agents, or collect fees on behalf ofshipping agents.
Since Vietnamese logistics firmscan only undertake several works in the supply chain, they cannotcompete with foreign firms in the home market. As a result, domesticfirms have been competing with each other to scramble for clients bylowering the service fees, which has benefited foreign firms.
It is obvious that international logistics firms are superior toVietnamese in the domestic market. However, the analysts said domesticfirms still have their great advantages.
Accordingto Do Xuan Quang, Chair of the Vietnam Logistics Association, most ofthe warehouses have been possessed by Vietnamese firms, which means thatforeign firms have to lease the warehouses or join forces withVietnamese firms to provide logistics services.
Quang went on to say that Vietnamese enterprises better understand theVietnamese market, clients, geography, weather and culture than foreignfirms.
Some Vietnamese logistics firms can competewell with foreign ones. Vinafco, for example, has defeated its rivals toobtain the right to provide services to Akzo Nobel, American Standard,or Vifon. ICD Tan Cang Song Than, with the 3PL distribution center, wonthe bids to provide package service to the US Kimberly Clark.-VNA
The Vietnamese logistics market has warmed up recently with theinvestment deal worth 13 million USD by DHL Supply Chain. The companyhas put the second distribution center, covering an area of 10,000square meters in Bac Ninh province, into operation. This is a part ofits investment expansion plan in the north of Vietnam.
With the new investment deal, DHL will be able its warehouse area from91,000 square metres to 141,000 square metres and develop the fleet to100 vehicles by 2015.
A senior executive of DHLSupply Chain said the company targets the retailing, consumer goods,technology and automobile sectors in Vietnam, which are forecast todevelop strongly in some more years.
According tothe Ministry of Industry and Trade, logistics services make up 15-20percent of GDP, while the industry has been growing steadily by 25percent per annum.
Vietnam is a vast logisticsmarket with the turnover of 12 billion USD, of which the transportation,the most important link of the logistics chain, makes up 40-60 percent.
Vietnam is a newly emerging market, therefore, thedemand for logistics outsourcing is believed to increase rapidly. Thisexplains why a lot of the world’s big logistics firms such as MaerskLogistics, APL Logistics, NYK Logistics, MOL Logistics, have come toVietnam to seek profits.
Vietnam can attract theworld’s leading logistics firms because it, after the WTO admission, hasbeen chosen by a lot of the world’s big manufacturers as the places forthem to set up the production bases.
Analysts havenoted that Vietnam has far lagged behind the other countries inapproaching logistics technologies. While foreign logistics firms nowapply the 4PL (fourth-party logistics) service already, domestic firmsstill can provide simple services.
They transportand forward goods by land, inform to clients about the transportationprocess on behalf of the shipping agents, or collect fees on behalf ofshipping agents.
Since Vietnamese logistics firmscan only undertake several works in the supply chain, they cannotcompete with foreign firms in the home market. As a result, domesticfirms have been competing with each other to scramble for clients bylowering the service fees, which has benefited foreign firms.
It is obvious that international logistics firms are superior toVietnamese in the domestic market. However, the analysts said domesticfirms still have their great advantages.
Accordingto Do Xuan Quang, Chair of the Vietnam Logistics Association, most ofthe warehouses have been possessed by Vietnamese firms, which means thatforeign firms have to lease the warehouses or join forces withVietnamese firms to provide logistics services.
Quang went on to say that Vietnamese enterprises better understand theVietnamese market, clients, geography, weather and culture than foreignfirms.
Some Vietnamese logistics firms can competewell with foreign ones. Vinafco, for example, has defeated its rivals toobtain the right to provide services to Akzo Nobel, American Standard,or Vifon. ICD Tan Cang Song Than, with the 3PL distribution center, wonthe bids to provide package service to the US Kimberly Clark.-VNA
