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Reducing costs, increasing competitiveness thanks to "digitized in Logistics"

Reducing costs, increasing competitiveness thanks to "digitized in Logistics"

A survey by Vietnam Logistics Association (VLA) revealed that 87% of logistic enterprises agreed that technology creates a competitive edge and 83% it’s up to them to better use technology.

According to VLA’s chairman Dao Trong Khoa, it is high time for logistics firms to apply technology in their business as the local industry is facing many challenges, including increasing complexity in global transport, higher customer demand, and declining profit margins. Logistics cost in Vietnam is still high, accounting for 16.8% of enterprises’ costs, higher than the average of 12.5% in Asia-Pacific, in which transport cost accounts for up to 50%.

According to him, digital bills of lading can allow businesses exchange information with authorities across the border without the need for paper. Digitalising waybills also helps create big data, so firms can exploit this data to grow their business. Khoa suggested the government deliver solutions to improve transport infrastructure, reduce environmental charges and build-operate-transfer fees to help reduce logistics fees. Regarding transport and logistics, the State should plan wharves and transport grounds to avoid traffic jams and unreasonable expenses, he said, adding that the Ministry of Industry and Trade should advise on the reconstruction of the logistics center.

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