Vietnam Logistics Industry Falling into Disfavor
Vietnam’s logistics companies are likely to lose the home market in the flurry of WTO admission, experts warned.
Vietnam Freight Forwarders Association (VIFFAS) said most Vietnamese logistics companies prove to be very young, with small scale operations.
“These companies have the average operation time of five years and average capital of VND1.5 billion (US$93,750),” an official said. “They lack experience, finance and reputation for keeping the home market with the arrival of world-leading logistics giants.”
“In fact, many companies have only 3-5 staff, including managers. With such modest capital and few staff, the companies can only fulfill simple works for separate clients.”
Further, most Vietnamese logistics companies now do not have overseas representative offices, while logistics demands global services.
Nguyen Tham, deputy chairman of VIFFAS, said only big companies with better quality services, global service networks and rich international trade experience, are able to meet the huge business opportunities following WTO entry.
Deputy Trade Minister Luong Van Tu said Vietnamese import-export turnover will reach $200 billion in the next 10 years.
VIFFAS’ Tham said a clearer legal framework is now crucial for this sector’s development.
Vietnam now has 800-900 operational logistics companies, including 97 VIFFAS members. (VNEconomy)
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