Smart logistics key for competitiveness improvement: experts

A Vietnam Post bonded warehouse. Local logistics firms have been increasingly aware of the need to speed up digital transformation and apply technology to their business operations - Photo courtesy of the company

Hanoi - To meet the demand of domestic trading and import-export activities, the logistics sector is working towards professional and competitive services meeting international standards, in which smart logistics development is considered the key solution.

According to Director of the Import-Export Department under the Ministry of Industry and Trade Phan Văn Chinh, local logistics firms have been increasingly aware of the need to speed up digital transformation and apply technology to their business operations, aiming to cut cost and increase competitiveness.

Supply chain director at Nestle Vietnam Nguyễn Trần Hoàng Yến said that digitalisation has helped the firm better connect with the global market and optimise goods transport and distribution activities in the domestic market.

Nestle has launched its Cargoo app to connect manufacturers, importers and shipping lines, enabling them to follow the transportation process of each order and track the goods information, book ships and manage all related documents, she said.

Meanwhile, Marketing Director of the Saigon Newport Corporation Trương Tấn Lộc said that the firm has launched a system of e-port and e-warehouse, while applying artificial intelligence (AI) in customer services, thus improving its service quality.

However, as 90 per cent of the logistic firms are small- and medium-sized enterprises, the application of smart logistics has remained limited.

Pointing to major barriers hindering smart logistics development in Việt Nam, Vice Chairman of the Việt Nam Logistics Business Association Lê Quang Trung mentioned limitations in mindset and confusion in selecting suitable technologies as well as a shortage in financial and human resources and a lack of harmonious policies for digital transformation.

Experts held that strengthening the application of IT and modernising management and operation methods as well as using logistics optimising platforms are among the effective measures to reduce logistics cost and improve service quality.

Loc said that domestic logistics firms should work closely together to enhance the competitiveness of Việt Nam’s logistics sector by building a shared database on Việt Nam seaport system with connections with other ports in the region and the world.

At the same time, the State and localities should further simplify administrative procedures, while building a joint database and processing administrative procedures online, he said, stressing the need for updating the legal system to encourage businesses to develop new services and technologies.

Director of Northern Operations Division at Lazada Việt Nam Nguyễn Triệu Quang Quang said that logistics businesses should standardise their processes and build a sustainable ecosystem to grasp opportunities from the booming e-commerce, while improving the delivery experience from every touchpoint.

Vice Director of the Import-Export Department under the Ministry of Industry and Trade Trần Thanh Hải underlined the need for coordination and strong linkage among not only logistics firms but also all relevant agencies in order to successfully promote the application of digital technology.

E-commerce can be the key for success in logistics Different from the importance in regular trade, efficient logistics is essential for the development of the e-commerce industry. We know that the e-commerce business is largely facing direct consumers. These buyers usually have very high expectations of logistic speed, and efficient logistics plays a significant role in improving customer satisfaction.

Mindset change to boost status of Vietnam’s logistics Vietnam continues to be chosen as a destination to create growth space for logistics, but more sustainable development remains a target that may be further off.