Vietnam's logistics must keep up with international standards
There has been great pressure on Vietnam's logistics industry to train, retrain and upgrade workers' knowledge as well as to keep up-to-date with international standards and measures, according to the Vietnam Logistics Business Association (VLA).
Super container ship Margrethe Maersk, the world's largest container ship, docks at the Cai Mep-Thi Vai Port in southern province of Ba Ria - Vung Tau. (Photo: VNA)
Hanoi (VNS/VNA) - There has been great pressure on Vietnam'slogistics industry to train, retrain and upgrade workers' knowledge as well asto keep up-to-date with international standards and measures, according to theVietnam Logistics Business Association (VLA).
In a recent survey by VLA, 59 percent of businesses asked said they need to traintheir workers on modern quality management systems such as ISO 9001, ISO 14001,ISO 17025, HACCP, and ISO 22000.
Meanwhile, industry experts have said it's high time Vietnam established itsown quality management system that is tailor-made to includesmall-and-medium-sized businesses, the country's infrastructurecharacteristics, means of transportation, and energy consumption.
VLA President Le Duy Hiep said the Government has started working on anoccupational standard for the industry's jobs. Once completed, the standardwill be the foundation of the industry's recruitment and training process.
According to a report by the World Bank, Vietnam's logistics industry has mademuch progress in the last three decades. The country's criteria including customs,infrastructure, and logistical capacity have improved significantly. TheSoutheast Asian economy's Logistics Performance Index (LPI) ranked 3/10 amongthe bloc's member countries in 2018, after Singapore and Thailand.
The industry was said to account for 5-6 percent of the country's GDP by 2025 witha growth rate of 15-20 percent. Meanwhile, the industry has set an objective tobring costs down by 16-20 percent and join the world's top 50 in LPI ranking.
In order to realise the vision, it's crucial for the industry to introduce aquality management system and standard, which help ensure the flow of goods toand from the country. Standardisation is said to play an important part inbringing down costs and improving the industry's ability to competeinternationally as well as a focus on human resources and a skilled workforce.
The business association advised firms to start building their own qualitymonitor and control systems, adopt international practices and models, andimprove their internal capacity to inspect and adjust operations.
It also placed great importance on communicating with the workforce to raisemorale and personal commitment to the success of the organisations. VLA saidfrom now, with the modernisation of logistics, industry workers should expectgreater responsibility and demand to perform highly complex tasks./.
A number of big postal enterprises in Vietnam, such as Viettel Post and Vietnam Post, are racing to tap into the local logistics market with a scale of nearly 62 billion USD.
In the context of a booming cold storage logistics industry to serve vaccine distribution needs as well as growth in seafood processing and consumer demand, Vietnam’s cold storage logistics market is forecast to reach a value of 295 million USD by 2025, with an annual growth rate of 12 percent per year, said an expert.
The race to expand the logistics market share is getting hot when foreign businesses have continually been pouring capital into and scaling up their operations in Vietnam, Dau tu (Vietnam Investment Review) reported.
Stronger partnership between Vietnam and the Republic of Korea (RoK) in logistics, along with measures to encourage the transfer of technologies between the two sides, will help improve Vietnam's capacity in the field and contribute to turning Vietnam into an industrialised country in modern direction, said Director of the Trade Promotion Agency (Vietrade) Vu Ba Phu.
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Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
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This is the second year the magazine has released the ranking, which is based on total revenue and key financial indicators of enterprises from seven countries in the region: Vietnam, Indonesia, Thailand, Malaysia, Singapore, the Philippines, and Cambodia.
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Deputy PM Tran Hong Ha urged countries to work together to remove supply chain bottlenecks, expand market access, strengthen cooperation in smart customs procedures, mutually recognise technical standards, and eliminate unnecessary protectionist barriers to boost trade and investment.
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The latest order follows Vietjet’s commitment for 20 additional A330neo aircraft last month, bringing the airline’s total widebody aircraft on order to 40.
Minister of Finance Nguyen Van Thang acknowledged the target represents an important milestone for socio-economic development as well as a demonstration of the country’s aspiration for robust economic growth.