Vietnam needs to nurture efficient logistics sector, adapt modern tech

09 Aug '22

2 min read

Pic: Shutterstock

A growing need is being felt in Vietnam to develop an efficient logistics industry by grabbing opportunities arising from e-commerce and adapting modern technology. As logistics costs in the country are high, Tran Thanh Hai, deputy director of the import-export department, said it is necessary to use technology to improve the sector’s efficiency.

With a digital economy market projected at more than $50 billion, the country offers tremendous opportunities for e-commerce and related logistics, said Hai, pointing out problems in the logistics sector, including weak linkage of the transport infrastructure system and heavy dependence on roads.

The logistics cost in the country was more than 20 per cent of the gross domestic product (GDP) compared to the world average of 11 per cent, according to a report released last year by global supply chain service provider Aligity.

Some technology like apps, artificial intelligence and platforms to share transport vehicles and optimise warehouse usage have been applied in logistics activities in the country. But automation would help increase efficiency, reduce time and increase accuracy, Hai stressed.

The cost factor may not be linked to the success rate of the first delivery, but to the distance travelled, Hai said, and hence, enterprises could cooperate to build warehouses in nearby districts in rural areas.

Fibre2Fashion News Desk (DS)

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