Logistics competiton: the story of globalisation and multilateralisation

How do you evaluate the performance of logistics enterprises in the first six months of 2024, and did the results meet expectations?

Le Duy Hiep, former chairman of the Vietnam Logistics Business Association

The performance of logistics enterprises in the first half of 2024 has been positive. The country’s total import-export turnover reached $368.5 billion, reflecting a 15.7 per cent increase compared to the same period in 2023. Key items such as fruits and seafood saw significant growth.

During this period, the country’s import-export container output reached 14.3 million TEUs, an increase of over 10 per cent from the previous year. Notably, the volume of domestic cargo containers by sea also grew at the same rate as import-export container output.

Given these conditions, logistics businesses have experienced corresponding growth, and their performance has generally met expectations. Companies are now focused on maintaining this growth, cutting costs, and ensuring job security to retain personnel.

What should logistics businesses prioritise in the upcoming months to achieve their revenue and profit targets for this year?

The logistics sector will continue to face challenges from global uncertainties, including conflicts and issues in the Red Sea. However, there are still new advantages for growth in the upcoming months.

The second half of the year presents an opportunity for logistics businesses to achieve significant performance breakthroughs, driven by increased output during the peak season for imports, exports, and domestic consumption. Companies are preparing to enhance their services and develop their supply chains. In addition, businesses need to focus on future digital transformation strategies and technology solutions, working with suitable technology partners.

How is the competition between domestic and foreign-invested logistics businesses, and do you see any balance in this picture?

Vietnamese logistics enterprises are currently competing fairly with foreign-invested logistics companies. Both domestic and foreign players are investing in logistics infrastructure, IT, and automation, creating a positive dynamic for Vietnam’s logistics industry.

In this era of globalisation and multilateralism, the focus should not be solely on competition. Foreign-invested enterprises have financial advantages, allowing them to invest in infrastructure and leverage global networks and relationships with major shippers.

On the other hand, Vietnamese logistics companies can seize opportunities by collaborating with foreign firms, utilising their infrastructure, and promoting their own logistics solutions. Vietnamese logistics enterprises have been encouraged to invest abroad, and we are actively working towards this goal.

For example, we are collaborating with partners to host the FIATA World Congress 2025 in Hanoi, which aims to enhance international integration for Vietnamese logistics enterprises. The congress is the largest and most significant event in freight forwarding and logistics worldwide.

What are the main investment trends in the logistics industry?

The trend towards greening the logistics industry is becoming increasingly prominent due to global and societal demands. Investment plans are increasingly focusing on renewable energy, committing to net-zero, and minimising emissions in logistics operations.

Additionally, automation and the application of software in logistics management are growing trends in Vietnam and the region, driven by the acceleration of digital transformation.

Networking opportunities at Vietnam Logistics Summit 2023 The Vietnam Logistics Summit 2023, which was jointly organised by VIR and SLP Vietnam under the auspices of the Ministry of Planning and Investment, has concluded successfully.

ITL: national champion of Vietnam logistics industry With more than five ports and ICDs, 500 trucks and prime movers, 30 barges and 500,000 square metres of warehouses all over the country, ITL offers various domestic and international logistics solutions, from End2End international freight, cold chain and general sales agent for more than 23 airlines.

Logistics groups must work to mitigate Red Sea route tensions Instability in the Red Sea is affecting businesses in Vietnam, and demonstrating the prolonged weakness of the domestic logistics industry.