Fostering connectivity between logistics providers and between them and companies in other sectors will create more opportunities for mutual support, thus creating large enterprises to lead the market, according to Deputy Minister of Industry and Trade Tran Quoc Khanh.
Last year, when global trade was severely impacted by COVID-19, logistics activities in many countries came to a standstill, while logistics in service of e-commerce became quickly overloaded due to a surge in online orders, Khanh told a conference in Hanoi on April 20 discussing measures to develop the logistics market.
Without careful preparations, logistics providers as well as production and business enterprises will face major difficulties in adapting to the new circumstances, he believes.
He noted that the global logistics market was given a boost by the recovery in international trade flows in the second half of 2020. Moreover, post-pandemic trade facilitation and policies from governments to improve the economic climate were helpful in expanding the market.
According to a report from ResearchAndMarket.com, the size of the global logistics market was estimated at 3.31 trillion USD in 2021, up 17.6 percent compared to 2000 and showing that the sector still boasts substantial development potential.
According to the Vietnam Logistics Business Association (VLA), 95 percent of active logistics companies in Vietnam are Vietnamese, but mostly of small or medium scale and with poor links.
Many participants to the conference pointed out that their modest scale is one of the barriers facing domestic logistics firms in competing in the domestic market, not to mention the region and the world.
Meanwhile, Nguyen Quoc Phuong, Deputy General Director of the Airports Corporation of Vietnam (ACV), said that international transport accounts for 80 percent of total transport in Vietnam. The market share in international transport held by domestic airlines is currently just 12 percent, with the remainder belonging to 75 foreign airlines.
Insiders said the Ministry of Industry and Trade should complete policies and legal regulations on logistics services.
At the same time, it is necessary to complete logistics infrastructure by continuing to review planning and investing in supporting businesses to build large warehouses in different localities.
Authorised agencies should also upgrade and connect transport infrastructure, cut fees, and allow the optimisation of resources through the re-distribution, sharing, and re-using of redundant capacity for the promotion of the logistics sector, they added.