Logistics services businesses need to have well-trained human resourcesand modern information technology systems to increase thecompetitiveness of the local industry, experts have said.
According to the World Bank, Vietnam has a positive outlook for performance in the logistics industry. Domestic logistic businesses want to gain market share, which currently accounts for only 5 percent of the country's market.
Around 1,000 businesses are involved in logistics services in Vietnam .
Dang Tan Phong, head of the planning and business department of TanCang-Song Than ICD Ltd Co said his company's modern logistics centrewould help local companies compete with their foreign counterparts.
The centre, covering an area of 24,000 square metres, was built inSeptember last year, with total investment capital of 70 billion VND(3.5 million USD). It uses a modern cargo load and unloading system, aswell as bar-code readers.
Phong said professionally qualified staff were needed to operate the centre.
For example, the multinational company, Kimberly Clark, used theworld's latest software on sales management, and if the centre'ssoftware was not compatible with business software, the centre would endup being a warehouse only, according to Phong.
He saidthe IT system used by the domestic logistics industry was outdated andineffective, and a major capital investment would be needed to overhaulit.
Some foreign logistics businesses such as DHL and Logitem have strong global information management systems, he noted.
Phong's company, Tan Cang-Song Than ICD, is considering using computer chips to manage the transport of cargo.
This has never been done in Vietnam , he said, adding that it wouldraise the competitiveness of domestic logistic industry.
Although the industry is in its nascent stages, some Vietnamesebusinesses have invested in logistic services, including the Thai BinhShoe Production and Investment Joint Stock Co, Vinamilk Co, Kinh Do Coand Trung Nguyen Co.
Phong said that logistic services indeveloped countries, however, were usually outsourced to other companiesto reduce costs for human resources and warehouse, as well as todecrease risks.
"Companies that invest in the servicethemselves are doing it as a temporary solution. This is being donebecause domestic logistic businesses have not yet met the servicedemands," he said.
Logistic services, mainly third-partylogistics (3PL) services, will maintain an annual growth rate of 20-25percent within the next five years, he said. It is expected to reachabout 3.2 USD billion this year.
The revenue derived from3PL services originates from industries such as consumer goods, retailsales, hi-tech products, auto spare parts and medicine.
Businesses' total expenses for 3PL were estimated at 2.5 billion USDlast year. Logistic expenses in Vietnam accounted for 18-21 percentof GDP./.
According to the World Bank, Vietnam has a positive outlook for performance in the logistics industry. Domestic logistic businesses want to gain market share, which currently accounts for only 5 percent of the country's market.
Around 1,000 businesses are involved in logistics services in Vietnam .
Dang Tan Phong, head of the planning and business department of TanCang-Song Than ICD Ltd Co said his company's modern logistics centrewould help local companies compete with their foreign counterparts.
The centre, covering an area of 24,000 square metres, was built inSeptember last year, with total investment capital of 70 billion VND(3.5 million USD). It uses a modern cargo load and unloading system, aswell as bar-code readers.
Phong said professionally qualified staff were needed to operate the centre.
For example, the multinational company, Kimberly Clark, used theworld's latest software on sales management, and if the centre'ssoftware was not compatible with business software, the centre would endup being a warehouse only, according to Phong.
He saidthe IT system used by the domestic logistics industry was outdated andineffective, and a major capital investment would be needed to overhaulit.
Some foreign logistics businesses such as DHL and Logitem have strong global information management systems, he noted.
Phong's company, Tan Cang-Song Than ICD, is considering using computer chips to manage the transport of cargo.
This has never been done in Vietnam , he said, adding that it wouldraise the competitiveness of domestic logistic industry.
Although the industry is in its nascent stages, some Vietnamesebusinesses have invested in logistic services, including the Thai BinhShoe Production and Investment Joint Stock Co, Vinamilk Co, Kinh Do Coand Trung Nguyen Co.
Phong said that logistic services indeveloped countries, however, were usually outsourced to other companiesto reduce costs for human resources and warehouse, as well as todecrease risks.
"Companies that invest in the servicethemselves are doing it as a temporary solution. This is being donebecause domestic logistic businesses have not yet met the servicedemands," he said.
Logistic services, mainly third-partylogistics (3PL) services, will maintain an annual growth rate of 20-25percent within the next five years, he said. It is expected to reachabout 3.2 USD billion this year.
The revenue derived from3PL services originates from industries such as consumer goods, retailsales, hi-tech products, auto spare parts and medicine.
Businesses' total expenses for 3PL were estimated at 2.5 billion USDlast year. Logistic expenses in Vietnam accounted for 18-21 percentof GDP./.
