Speaking at a recent conference organized by Ministry of Industry and Trade to promote double-digit export growth, Mr. Tran Tien Dung, Vice President of Vietnam Logistics Business Association (VLA), stated that to diversify supply chains and enhance value and competitiveness of Vietnamese export goods, it is necessary to focus on implementing four key solutions simultaneously.
According to Mr. Tran Tien Dung, firstly, businesses need to proactively disseminate, update and strictly implement regulations and standards of major export markets; and at the same time, promote responsible business practices (RBC), meeting increasingly high requirements for environment, sustainable development and traceability.
To support businesses in adapting to new standards, VLA recommends that the Government develop green credit mechanisms to support businesses, especially logistics businesses, in transitioning to new transportation methods, investing in warehouses using renewable energy and developing standardized cold logistics systems.
The second solution proposed by the Association is to build specialized supply chains for fresh agricultural and aquatic products. According to Mr. Tran Tien Dung, to effectively utilize Free Trade Agreements (FTAs), preservation, transportation and packaging of goods play a particularly important role. The Association is encouraging member businesses to obtain priority enterprise certification to shorten customs clearance time, while developing synchronized logistics solutions and optimizing the cold chain to maintain the quality of agricultural and aquatic products and meet stringent standards of the European market.
In addition, the Association also identifies digital transformation as a crucial driving force for logistics development in the new phase. Accordingly, VLA aims to promote digital platforms that directly connect exporters with transport units, ensuring transparency throughout entire supply chain. The formation of order fulfillment centers in key markets will help Vietnamese businesses export directly, shorten delivery times, and enhance competitiveness.
In fourth group of solutions, Mr. Tran Tien Dung proposed reducing logistics costs through optimizing multimodal transport. Accordingly, it is necessary to strengthen connection of inland waterway transport with the deep-sea port system and simultaneously develop regional logistics centers linked to industrial zones to optimize two-way transport and reduce the situation of vehicles returning empty.
Developing a national fleet to enhance logistics capacity
Besides immediate solutions, representatives of Vietnam Logistics Services Business Association also spent considerable time analyzing limitations of Vietnam's logistics infrastructure and transport capacity.
According to Mr. Tran Tien Dung, member businesses have researched and recommended to Ministry of Construction to upgrade inland waterway transport infrastructure, including designing types of vessels suitable for the conditions of the Mekong Delta.
Currently, exploitation of waterway transport in the region still faces many difficulties due to clearance of many bridges, especially Cho Moi bridge, which does not meet requirements for operating large-tonnage vessels. Therefore, the largest vessels currently in operation are only about 240m long with a carrying capacity of approximately 3,000 tonnes. According to the Association's proposal, if research is conducted to increase length and total tonnage of vessels to approximately 500-600m to suit waterway conditions, capacity for inland waterway transport will be significantly improved.
Mr. Tran Tien Dung stated that this solution would not only reduce transportation costs per unit of goods but also shorten transit time from the Mekong Delta to deep-water ports in Ho Chi Minh City and Cai Mep area.
He explained that currently, inland waterway transport vessels often have to wait for tides and depend on clearance of bridges, causing transit times to extend from 30-40 hours and even up to 72 hours in some cases. This is a barrier that forces many high-value shipments to choose road transport at a higher cost. If infrastructure solutions are implemented, not only will logistics costs be reduced, but carbon emissions will also be reduced, moving towards the development of green logistics.
Another issue of particular concern to VLA representative is significant volatility of international freight rates. According to Mr. Tran Tien Dung, although Vietnamese logistics businesses have made efforts to reduce domestic costs, the revenue they receive from the total logistics costs is not substantial. Vietnamese businesses mainly provide warehousing, domestic transportation and some auxiliary services, while international transportation costs account for a large proportion and fluctuate continuously beyond their control.
He cited information presented at the conference, noting that in a short period, international freight rates on some routes had increased from approximately US$5,000-6,000 per container to US$7,900 per container. Before conflict between Israel and Iran, rates on the same routes were below US$3,000 per container. When international freight rates were low, value of services provided by Vietnamese logistics companies could account for about 50% of total logistics costs. However, when freight rates rose to US$7,000-8,000 per container, revenue share of domestic businesses dropped to only about 30%.
According to VLA representative, with Vietnam's import and export volume exceeding US$900 billion, improving national logistics capacity is an urgent requirement to reduce costs and increase the competitiveness of goods. Developing national fleet has been a long-standing challenge, but it has yet to meet expectations. Furthermore, Vietnamese shipping companies have only been able to operate a few short routes from Hai Phong to southern China and some neighboring markets. Therefore, proportion of import and export goods transported by Vietnamese-flagged vessels remains low.
Based on this reality, Vietnam Maritime Administration (VLA) recommends that the Government continue to research and issue mechanisms and policies to encourage businesses to boldly invest in developing national fleet, while also supporting businesses to directly organize and operate international shipping routes instead of primarily leasing ships to foreign shipping companies.
Citing experience of South Korea, Mr. Tran Tien Dung stated that over the past 20 years, when shipping companies opened new international shipping routes, the South Korean government has consistently provided financial support and prioritized development of these routes. According to him, this is an experience that Vietnam can study and refer to in order to gradually improve the competitiveness of its national fleet.
"Besides serving domestic market, Vietnamese maritime transport businesses also need to be given opportunity to expand into international market, open new transport routes and gradually enhance the position of the national fleet", Mr. Tran Tien Dung emphasized.

Source: Vitic/ congthuong.vn