Business

Vietnamese logistics cost high, uncompetitive

SGGP
The weakness of Vietnamese logistics firms is high and uncompetitive costs, some services’ quality is not high while there is a severe competitiveness in the logistics market, according to Vietnam Logistics Association (VLA).

Cat Lai seaport in HCMC

Cat Lai seaport in HCMC

Another important reason for the slow development of Vietnamese logistics firms is that most of goods have been exported under FOB (free on board) term and imported under CIF (Cost, Insurance and Freight) term.
Logistics field posts the growth rate of 15-16 percent a year. The revenue of 100 leading logistics firms in Vietnam reaches US$8.74 billion with the growth rate of 15.6 percent a year.
At present, the country has 3,000 logistics firms operating in fields such as road transport, railway, seaway, inland waterway, goods verification and cargo loading and unloading.
They undertake part of international logistics service by acting as agencies for foreign firms who are cargo or vessel owners and international logistics providers.

By GIA BAO – Translated by Hai Mien

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