As a service industry with many growth opportunities, the challenges of the industry are not small. According to a survey by Vietnam Report, the three biggest challenges of Vietnam's transport and logistics industry today include: Infrastructure such as the system of ports, warehouses, connections, etc. is still limited and inadequate; Limited capital scale, management level, professional qualifications are not high; High taxes, tolls and surcharges.

According to the evaluation of enterprises in the industry, although the infrastructure has been improved compared to before, there are still many shortcomings. The North-South transport route is still heavily dependent on the road, and needs more involvement of the railway industry. The unbalanced development of Vietnam's port system when more than 92% of the southern container traffic is concentrated in Cat Lai Port, leading to overloading, jamming the port... causing huge waste.

Capital and human resources are the main reasons that make it difficult for domestic enterprises to compete with foreign ones. Most of over 70% of transport and logistics enterprises operating today have small and medium-sized capital, 7% have capital of over 1,000 billion VND, of which the majority of large capital groups are multinational enterprises.

Regarding logistics costs, transportation costs in Vietnam are currently at a high level (three times higher than other countries in the region and the world) and uneven in regions, mainly due to different types of transportation. Taxes, tolls and surcharges are currently quite high, indirectly reducing competitiveness compared to other countries.

 

Improve the legal framework, IT infrastructure and applications

A survey of enterprises in the transport and logistics industry by Vietnam Report shows that they strongly expect that the legal corridor, infrastructure and IT applications will be prioritized to improve to support businesses to improve the efficiency of transportation services. transportation and logistics in Vietnam in the coming 2019.

Along with the development trend of e-commerce, the entry into the Vietnamese market of foreign retail giants increases the risk of acquiring local logistics channels, putting domestic enterprises at many disadvantages.

Currently, logistics costs are accounting for a very large proportion of business costs, becoming the biggest barrier to the competitiveness of enterprises. To reduce logistics costs, most experts and businesses in the industry believe that it is necessary to synchronize transport infrastructure, connect between modes of transport, and develop a transport exchange to connect well. most shippers and logistics service providers, creating a basis for Vietnamese logistics enterprises to participate more in the supply chain, avoiding one-way transportation.

Vietnam's transport and logistics industry still has a lot of room for development. For businesses, in addition to focusing on investing in improving service quality, building brand reputation is also extremely important.

For foreign manufacturing enterprises when setting foot in Vietnam, finding and cooperating with reputable logistics enterprises is the intermediary bridge connecting the safe transportation of goods to partners and customers, contributing to complete improve the production - distribution chain, have the opposite effect to help Vietnamese transport and logistics enterprises participate more deeply, better positioned on the global logistics map.