What are the challenges for the Logistics industry in Vietnam?
According to the Vietnam government authority, all companies in Ho Chi Minh City and Binh Duong province must follow rigorous restrictions for production, isolation, and accommodation in the same location. Previously, this rule made the good more effective. This method, however, is difficult to implement and necessitates a number of stringent requirements. Many businesses and manufacturers adhere to the guidelines. However, some of them are apathetic and perplexed. Businesses employing “3 on a spot” must not only pay greater expenditures, but they must also be extremely cautious to avoid the pandemic from entering from the outside and spreading extensively. As a result, many organizations prefer to close it temporarily in order to reduce the danger of infection and keep administration costs to a minimum. This causes the supply chain to slow down in comparison to its real strength.
Because of the temporary closure, reduction in a product of a significant number of businesses and industries, a big number of container import processes cannot be completed and must be based on the container yard. Due to the effect of the COVID-19 pandemic, human resources that sustain continuous operation for the port fell by almost 50%, resulting in just 250 people/day, particularly employees managing ships, which are already in short supply. The port’s congestion is caused by two major factors. This is a problem for the HCM Logistics business.
What are the opportunities for the Logistics industry in Vietnam?
It is expected that Vietnam’s logistics industry will continue to confront several challenges in the future. , evaluating the impact of the Covid-19 illness, shipping container shortages (due to the influence of global social distance), freight tends to rise significantly. The solution and implementation in the context of the Covid-19 epidemic will create some chances for logistics in Vietnam. In the past, the conventional stage in the logistics method was replaced by the full digitalization of service procedures. It will spur the growth of the Vietnamese logistics industry to new heights. To catch up with the trend of information technology application in most stages of logistics, it is important to focus on increasing competitiveness and management level in the direction of fostering digital transformation. Large corporations across the world are moving their supply chains away from China and toward Southeast Asian nations such as Vietnam, so logistics firms must enhance their procedures, technology, and trained human resources in the logistics field
