By Vince Nguyen  

What are the challenges for Logistics industry in Vietnam?

The Vietnam government authority stated, all of company in Ho Chi Minh City and Binh Duong province have to perform strictly rules that production, isolation and accommodation in the same place. This rule gave the good effective before. However, this solution is not easy to implement, requiring a series of strict conditions. Many companies and factories follow the rules. However, some of them are passive and confused. Not only incur higher costs, businesses implementing "3 on a spot" must also be very vigilant to prevent the epidemic from entering from the outside which may be spread widely. Thus, many businesses choose to close it temporarily, minimize the risk of infection, and save the cost of management to the lowest level. This creates a certain slowdown of the supply chain compared to its true strength.

Due to the temporary closing,  cutting down product of large amount of business and the factories, a lot of containers import cannot be completed the procedures and have to be based on the container yard. Human resources that maintain continuous operation for the port also decreased by about 50% due to the impact of the COVID-19 pandemic, so there are only 250 people/day, especially workers handling ships, which is already lacking. There are two main causes to the port congestion. This is a challenge of HCM Logistics industry.

What are the opportunities for Logistics industry in Vietnam?

In the future, it is forecasted that Vietnam's logistics industry will still face many difficulties, testing the impact of the Covid-19 disease, shipping shortages of export containers (due to the impact of global social distancing), freight tends to increase seriously. The solution and adopting in the framework of the Covid-19 pandemic will open some opportunities for the Logistics in Vietnam. The comprehensive digitization of service processes in logistics procedure will replace for the traditional step in the past. It will motivate the development of Vietnamese Logistics industry to a higher level. It is necessary to focus on improving competitiveness and management level in the direction of promoting digital transformation to catch up with the trend of information technology application in most stages of logistics. Currently, large companies in the world are shifting their supply chains from China to Southeast Asian countries, including Vietnam, so logistics enterprises need to improve their processes, technology, and skilled human resources. subjects and professions in the field of logistics.