Vietnam's rising goods exim turnover to create logistics demand

13 Jan '22

2 min read

Pic: Dreamstime.com

Vietnam’s goods import and export turnover will continue to grow in 2022, creating demand for logistics services, according to the ministry of industry and trade (MoIT). Its total import and export turnover is expected to reach a record level of more than $660 billion in 2021. In 2021, many logistics enterprises grew in revenue and profit, most with double-digit growth, MoIT data showed.

More than 4,000 logistics enterprises are operating international logistics services in Vietnam where their operation has increasingly improved due to increasing digital transformation applications and better business processes, especially ones providing services to European, American and Chinese markets.

According to the MoIT’s Vietnam Logistics Report 2021, in the first nine months of 2021, the number of newly registered transport and warehousing enterprises increased by 4.61 per cent, and capital increased by 43 per cent over the same period in 2020.

The volume of goods transported by road and waterways in the first 10 months of 2021 significantly improved compared to the same term of 2020.

The total tonnage of ships increased sharply by 22 per cent over the same period. The economic situation in the main export markets of Vietnam also recovered.

Vietnam's logistics efficiency index is currently ranked 39 out of 160, up 25 places compared to 2016, which is third among ASEAN countries. However, logistics costs in Vietnam were still much higher than throughout the world.

High logistics costs push up the cost of import and export goods of 2020 data, which loses its competitive advantage compared to other countries in Asia such as China, Thailand, the Philippines and Indonesia, according to a report in a Vietnamese daily.

Fibre2Fashion News Desk (DS)

More Textiles News - Vietnam...