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Logistics Forum with Europe - America region 2022

To minimize difficulties and save costs, import-export businesses need to take advantage of the connection network of large logistics units to open up new transport channels.

This is the content given at the Logistics Forum with Europe - America region 2022, organized by the Ministry of Industry and Trade in collaboration with related units on the morning of December 20 in Ho Chi Minh City. The program is accompanied by the Vietnam Gas Corporation - JSC, Petrolimex Fertilizer and Chemical Corporation - JSC, and Petrolimex Flight Fuel Joint Stock Company.

Speaking at the Forum, Deputy Minister of Industry and Trade Do Thang Hai emphasized, "The highlight in Vietnam's economic integration picture is the development in trade cooperation with the Europe - America region." However, at present, Vietnamese enterprises when exchanging trade with the world in general, and with the Europe - America region in particular, still face many difficulties and challenges.

Issues such as limited infrastructure, lack of synchronization, especially transport infrastructure and logistics infrastructure such as warehouses, logistics centers; customs procedures are still overlapping; logistics enterprises lack information; lack of links, outdated technology applications... These are huge limitations that make Vietnam's logistics costs always very high, a burden for businesses.

Mr. Truong Tan Loc - Marketing Director, Saigon Newport Corporation discussed at the Forum

On the other hand, regarding domestic transportation costs, Mr. Truong Tan Loc - Marketing Director of Saigon Newport Corporation said that currently, the total length of container terminals in the Cai Mep area is about 5,470m, divided into 8 ports. The berths are scattered and distributed and most of them are limited in berth length (average 600m berth/port), while the size of ships arriving at Cai Mep is increasing, the vessel length is up to 400m, so at Each port can only receive 1 mother ship at a time.

Therefore, in order for the supply chain not to be broken right at the seaport, it is necessary to have a mechanism to link exploitation and transport goods between ports in the Cai Mep - Thi Vai area (the "open port" mechanism), in order to optimize the exploitation capacity and make the most of each other's berths, solve the current limitations on berths, and reduce logistics costs for goods imported and exported through this area.

According to Ms. Vo Thi Phuong Lan - Vice President of Ho Chi Minh City Logistics Association, currently, the average logistics cost in Vietnam is 16.8% - 17% of the value of goods. However, in fact, there are businesses that have to pay up to 20% - 25% for this cost. In 2022, wood exports will reach about US$15 billion, up 7%-8% compared to 2021. The market grew at the beginning of the year and at the end of the year fell deeply despite a sharp drop in sea freight.

In export markets, the US accounts for 60% - 65% of turnover, the EU accounts for 5%, and the rest is the Northeast Asian market. Most of the furniture is mainly concentrated in the city area: Ho Chi Minh, Dong Nai, and Binh Duong.

In order to minimize the current difficulties for Vietnamese export and logistics enterprises, experts say that businesses need to master customs regulations and procedures to be proactive in clearing import and export goods, solutions to optimize logistics costs to increase the competitiveness of export products, as well as take advantage of the synchronous connection network of large foreign transport companies to open up new and efficient transport channels for Vietnamese exports to the Europe - America region./

(Economic and Forecasting Journal)


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