Vietnamese logistics enterprises are having synchronous solutions to adapt to the new situation when the COVID-19 epidemic breaks some global supply chains.
However, in the process of adaptation and recovery, in addition to its own efforts, each logistics enterprise needs more timely support policies.
The COVID-19 epidemic broke some global supply chains, so when countries closed, restricted circulation, manufacturing industries were stagnated, consumer demand decreased, … Vietnam’s logistics service industry Negatively affected men are inevitable.
Ms. Chu Thi Kieu Lien, Head of Hanoi Branch of T&M Forwarding Company (headquarter in Ho Chi Minh City), a company specializing in two-way international freight transport to the United States, Canada, Europe and China. Quoc, Japan, … said that compared to the same period in 2019, revenue decreased; compared with the plan in 2020, it will reduce 20%. This proves that the COVID-19 epidemic has affected the company’s business activities.
According to the latest survey by the Vietnam Logistics Business Association (VLA), there are 15 – 50% of logistics businesses experience reduced operations and average revenue from 10-30% over the same period. 2019; in which, air and road transport services were most affected.
Many small and medium logistics enterprises are on the brink of bankruptcy; Many workers will be laid back and lose their jobs if the pandemic lasts for a longer time.
Ms. Pham Hanh, VLA’s communications secretary, said that the biggest difficulty facing logistics businesses is solving the problem of financial liquidity and job creation for workers, while the production, import and export activities both decreased deeply.
By the end of May, most countries have issued strict quarantine regulations, customs clearance procedures, and operation from markets are slower than normal.
Shipping lines reduce trips and routes, increase freight rates, and issue a series of surcharges. The airlines also cancel and minimize flights from the translation regions, increase the freight.
Meanwhile, the border routes are difficult to find shipping suppliers, thus affecting the shipment schedule, quantity of goods transported and logistics service costs.
That is not to mention, some Chinese customers have financial difficulties, leading to the inability to repay debts for the goods owners, leading to delayed payment for the logistics business by the owner.
According to some logistics enterprises, the state management agencies issue documents to recalculate the value and retrospectively collect taxes, increase the loading and unloading prices at seaports, reduce or not open the toll collection locations. infrastructure in the local seaport area … has caused many difficulties for businesses.
The COVID-19 pandemic is still happening complicatedly around the globe, especially the major export markets of Vietnam such as China, Europe, the United States, Japan, Singapore, …, so it is easy to understand why the canceled orders and why is it difficult for logistics businesses.
According to the Vietnam Logistics Report 2019 of the Ministry of Industry and Trade and the City Electronic Information Portal. Ho Chi Minh City, although the country has about 4,000 enterprises operating in logistics, but mostly small-scale with modest potential; of which, over 70% have small and medium capital scale, only 7% have capital of over 1,000 billion VND, but in this group are mainly multinational enterprises.
The number of businesses with over 1,000 employees is only about 10.8%, while the number of businesses with less than 50 employees accounts for 32.4%, and there are about 2,000 businesses that are one-member limited liability companies.
Besides the difficulty of scale, Vietnam’s logistics enterprises are still inexperienced and lack of synchronous linkage; Most of the human resources have not been properly trained (up to 93-95% of the human resources have not been specially trained).
On the other hand, because the amount of moving goods is currently very large, the need for time, as well as ensuring the safety and quality of the goods is very high.
3PL-oriented logistics services require technology application, chain integration, but it can be seen that many Vietnamese enterprises still have not met the needs of customers due to the weak level of information technology application. ; Services provided are mainly pure logistics, so it is difficult to optimize costs, time, increase added value for goods and services.
Another reason is that the custom of most Vietnamese shippers is to buy CIF (buy goods at the port of destination), sell FOB (sell goods where the seller delivers through the ship’s rail), so the right to rent a vehicle belongs to about foreign partners.
Some projects import coal for thermal power plants, and shippers also carry out international bidding, so the domestic container fleet has a hard time winning contracts and it is difficult to compete with large and modern fleets. gender.
The Vietnam Logistics Report 2019 also pointed out that, although domestic infrastructure has improved compared to before, there are still many shortcomings, heavily dependent on roads, although the potential for water traffic is huge. .
Meanwhile, the connection of waterways with roads and railways has not yet been properly planned to form an interconnected network.
Inland waterway connectivity is still limited by clearance of overpasses and management of channel overlap. The seaport system develops disproportionately when more than 92% of the southern container traffic is concentrated in Cat Lai port, leading to overload, congestion, …
Railway infrastructure is mostly outdated because most stations are small (35/279 stations have only 2 train-receiving lines), short station length (less than 325m), making it difficult to operate. .
Meanwhile, most of the gas stations are grade IV, out of date or unsafe for use, there are no warehouses meeting the standards of storing and preserving fresh and high-value goods.
At present, there are only 4 stations with yards, loading and unloading equipment, for storage of containers, the remaining yards are not qualified for storage and storage of containers.
Along with that, the aviation infrastructure is also in shortage; Many airports are in a state of overload, hindering economic and tourism development.
Therefore, the investment in the expansion and upgrading of airport infrastructure is necessary, but the issue of investment approval, capital arrangement and investor decision still has many problems.
Logistics is the main activity of the supply chain of goods and services; manage general flow of transport, storage and information related to raw materials, fuels, inputs and final output products, from the point of origin to the point of consumption at the request of the customer.
In the context of complicated developments in the COVID-19 epidemic, Vietnam’s logistics enterprises have made great efforts to gradually adapt to the new situation and still believe in the recovery and development of the country’s economy.
According to the BNews/TTXVN
