Improving connectivity between domestic, global logistics networks needed

Amid economic uncertainties and fierce competition, improving connectivity between domestic and global logistics networks has become a pressing demand, experts said at a logistics forum with Asia-America 2023 held by the Ministry of Industry and Trade (MoIT) in Ho Chi Minh City on December 21.

Speaking at the event, Director of the MoIT’s European-American Market Development Ta Hoang Linh said situated strategically in a rapidly evolving global centre known for its concentrated supply channels, Vietnam possesses ample advantages to boost manufacturing, export and expansion of logistics services.

Over the past years, Vietnam's logistics sector has made considerable strides, with nearly 35,000 businesses now operating in the field, including around 5,000 professional enterprises.

According to the World Bank’s latest report 2023, Vietnam ranked 43rd in the Logistics Performance Index and among the top 5 countries in ASEAN. However, amid global economic challenges and a decline in global demand, the industry is experiencing great pressure to optimise operations and vie for orders, he added.

As economies of Europe and America next year are projected to either decrease or increase marginally compared to 2023, he suggested optimising logistics costs and transport time, thereby improving competitiveness of Vietnamese businesses and their exports-imports.

In addition to competitive pressures on services, new international environment standards are prompting logistics enterprises to innovate and switch to eco-friendly practices to ensure sustainable development, he noted.

Nguyen Xuan Hung, Deputy General Director of the Vietnam Railway Transport and Trading JSC (Ratraco), said transporting goods through Asia-Europe rail transport route that connects Vietnam, China, Central Asian countries, Russia and the EU is one of the optimal solutions for cost-effective logistics and ensuring the safety and quality of goods. In addition, businesses could explore the option of multimodal transport, combining both sea and rail routes, to reduce transit time to more distant locations.

Sharing the same view, Managing Director of GEODIS Vietnam Chandler So described Vietnam as an important trading partner of Europe and America.

He noted that the European and American markets increasingly prioritise sustainability and Environmental, Social and Governance (ESG) factors, which extend beyond the manufacturing phase to include transport and post-logistics services. Therefore, logistics suppliers need to swiftly adjust their supply chain operations towards greener, more eco-friendly and sustainable practices to maintain long-term competitiveness, he suggested./.

Source:Vietnamplus