Vietnam needs to develop an efficient logistics sector and adapt modern technology

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There is a growing need in Vietnam to develop an efficient logistics industry by seizing 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 there is a need to use technology to improve efficiency in the industry.

With a digital economy market projected at over $50 billion, the country offers huge opportunities for e-commerce and related logistics, Hai said, pointing to problems in the logistics sector, including weak transport infrastructure system linkages and high reliance on roads.

There is a growing need in Vietnam to develop an efficient logistics industry by seizing 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 there is a need to use technology to improve efficiency in the industry.

The logistics cost in the country accounted for more than 20% of gross domestic product (GDP) compared to the global average of 11%, according to a report released last year by global supply chain services provider Aligity.

Some technologies such as apps, artificial intelligence and platforms to share transport vehicles and optimize warehouse utilization have been applied to the country’s logistics business. But automation would help increase efficiency, reduce time and increase accuracy, Hai said.

The cost factor may not be related to the first delivery success rate, but to the distance traveled, Hai said, and therefore companies could cooperate to build warehouses in neighboring districts in rural areas.

Fibre2Fashion (DS) News Desk


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