Accelerating digital transformation in logistics is crucial for the sustainable development of e-commerce and overall economic growth, as highlighted in a recent conference held by the Ministry of Industry and Trade. Trần Thanh Hải, Deputy Director of the Import and Export Department, emphasized that Vietnam’s integration into regional and global economies, driven by participation in free trade agreements, necessitates that companies keep pace with global logistics chain advancements to capitalize on significant opportunities.
Logistics plays a vital role in economic development, encompassing the entire process from production to distribution and consumption. This sector has shown improvement, with Vietnam’s Logistics Performance Index rising to 3.3 points in 2023, ranking the country 43rd out of 154 countries and fifth among ASEAN nations. Logistics revenue is estimated at around $42 billion, increasing by 14-16% annually.
The logistics industry is integral to the booming e-commerce sector in Vietnam, which boasts the highest rate of online shoppers in Southeast Asia. With 43.9 million online shoppers, there is a pressing need for logistical systems to undergo digital transformation to meet this demand. The Vietnam Logistics Business Association forecasts the e-commerce industry to expand by 20-25% annually.
Logistics currently accounts for 20-25% of Vietnam’s GDP and is expected to grow by 12% annually over the next few years. Applying technology in logistics can reduce delivery costs by 14% and increase parcel volume per vehicle by 13%. Additionally, technology enables logistics providers to optimize efficiency through smart delivery routes and improve delivery success rates.
To further enhance the logistics industry, cooperation between state management agencies and enterprises is essential. Modernizing the logistics infrastructure system and network planning will be key to fostering development. Under the national digital transformation program to 2025, with a vision to 2030, logistics is one of the eight prioritized industries for digital improvements. This transformation is expected to improve service quality, enhance customer experience, reduce carbon emissions, and limit waste.
In conjunction with the conference, the Ministry of Industry announced the eighth Vietnam Import-Export Report, providing a comprehensive overview of Vietnam’s trade in 2023. The report indicated that 2023 was challenging due to external factors such as the global economic slowdown. Export revenue dropped by 4.6% to $354.7 billion, and imports fell by 9.2% to $326.4 billion.
Despite these challenges, Vietnam’s trade with Africa increased by 5.9% to $5.8 billion. The report also highlighted the top provinces and cities by export value, with HCM City leading at $42.46 billion. The report provides valuable insights into import-export markets, legal updates, and green trade trends.
Nguyễn Cẩm Trang, Deputy Director of the Import-Export Department, stated that the ministry will continue to focus on removing obstacles for production and business, creating favorable conditions for enterprises to leverage free trade agreements and expand exports.
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