Traco- Leading Supply Chain Logistics Provider in Vietnam

 

The Traco Transportation JSC No.1 was formerly a state-owned enterprise under the Ministry of Transport. It was established on December 17, 1969 and operated in the field of transport agency, transport cooperation, and logistics. Traco successfully completed the tasks of organising the transport of goods, building socialism of the North and providing the transport means to help unify the South and the North of the country.

 

Especially, since 2010 when the ASEAN countries have defined logistics as a key economic sector for the whole community, especially leading to a comprehensive development of the country, Traco has seized its opportunities and oriented the business to the path of development.

After 16 years of equitisation, Traco has been consistently achieving the growth of 30 per cent per year, increasing the charter capital of VND5 billion to VND30 billion. This proves a proper orientation of the leadership as well as the efforts of various staff and employees of the company.

 

The partners of Traco such as Van Thien Hoa Group (China), Posco Group, and LG Vietnam have collaborated with Traco for nearly 20 years. In the Vung Ang Industrial Zone of Ha Tinh province, Traco is involved in transporting building materials to the construction of the industrial zone. In Hai Phong, Traco is regarded as the largest customer of the Hai Phong Port and Vat Cach Port. Besides, in Laos, Traco has operated logistics services of four plants to transport salt products to consumers.

 

To grow increasingly stronger and building trust with partners, in 2015, Traco has invested four projects with VND60 billion, including the Traco headquarter building, and buildings of the branches and representative offices, of which VND20 billion are spent on the logistics facilities. Besides, Traco has also mobilised the means of partnership and other transport companies to ensure the effectiveness of the operations.

 

Together with TPP, Vietnam has joined the Eurasian Economic Union and the AEC community, which will bring advantages for the country in general and the economic sectors including logistics in particular. When the international logistic companies engaged in the domestic market will bring certain benefits for the industry while creating stiff competition for local businesses. This is also a good thing for local businesses to promote internal power and sustainable development in the market.

 

Besides, through the process of competing, domestic companies are also learning many lessons and knowledge of modern logistics. The question is how to help local businesses improve their internal capacity and continue the competition with foreign enterprises.

 

Currently, all the world leading multimodal logistics providers such as the APL, Maersk Logistics, and Kerry Logistics have set foot in Vietnam, so this will be an uncompromising competition. To compete with the international logistics provider, the service quality must be improved and the domestic companies are required to become an integrated supplier. However, to provide such services requires companies to have sufficient capacity of both financial and technical levels. This is the weakest point that leads to the fundamental barrier to Vietnamese logistics enterprises. Therefore, domestic logistics enterprises must focus on in-depth training for staff and joint training and learning experiences of the multinational companies in this area such as Japanese logistics companies and South Korean logistics companies.

 

Since 2005, the Traco has aimed to have its products sold in the market so Traco has built and provided 7 service chains across the country, even in China, Laos, and Cambodia, at a reasonable price and good quality.

 

With the slogan "Innovative logistics solutions for our happiness," we believe that our services are improved not only for us, but also for the development of the country so Traco should improve their creative and consistent staff that fit the development of the world and the country. At the same time, we will establish a well-managed corporate governance system, with labour force as a core of the enterprise. Traco currently has 8 holding master's degree, including 6 studying overseas and provides training courses for our staff.

 

In the new phase (2016-2020), Traco has set out 4 goals and 6 strategies for the term of 2016-2020, with a uniform development. The company continues to organise, orient and control the service supply chain logistics system, using the advanced management software. The enterprise will supply products and services with consistent quality and continuous improvement of the performance and ability to meet the customers' demands.