Japanese firms eye Vietnamese market

By teaming up with MP Logistics Corporation (MP Logistics), South Korean enterprise Samsung not only demonstrated its interest in the Vietnamese logistics sector, but its participation also heats up the market. Manufacturing activities in Samsung Display in the northern province of Bac Ninh RELATED CONTENTS: PM values Samsung’s investment in VN Samsung Sourcing Fair 2017: more opportunities for local firms Park refuses order to testify in Samsung heirs trial From electronics to logistics On July 14, 2017, Samsung SDS Co., Ltd., a subsidiary of Samsung Group, established a joint venture with MP Logistics with the aim of expanding its logistics business in Vietnam. The cooperation with MP Logistics is expected to help Samsung’s information and technology (IT) and logistics services access to the Vietnamese cargo transportation industry. “The logistics market in Vietnam has an annual growth rate of about 15-20 per cent due to the promotion of free trade agreements with South Korea, China, Japan, and the European Union (EU),” a leader of Samsung SDS said. Samsung SDS expected that this cooperation would expand its business in the Vietnamese IT-based logistics market, as well as other transportation services for consumer goods and food. “This new joint venture will give us the motivation to expand our business in the Vietnamese logistics market,” Kim Hyung-tae, vice chairman of…... [read more]

Hanoi (VNA) - Domestic textile enterprises and logistics service providers should work together to reduce costs and improve their competitiveness, according to experts. Nguyen Tuong, Vice Chairman of the Vietnam Logistics Association, said the textile industry needs to import raw materials from abroad and export products to foreign markets. Working together, many enterprises could purchase raw materials by combining their orders to create a large shipment, which will help significantly reduce transportation costs, he said. The costs of logistics currently account for nearly one-third of the costs of each textile product exported, so the Vietnamese garment sector could save more than 1 billion USD per year by reducing this cost. Additionally, Truong Van Cam, Vice Chairman of the Vietnam Textile and Apparel Association, said most textile companies currently perform outsourcing jobs, causing them to depend on the supply of raw materials and transportation services of providers assigned by their partners. Most of these providers are foreign companies, thus the market share for local logistics companies has been narrowed, Cam said. Further, high transportation costs are undermining the competitiveness of Vietnamese goods in international markets, he added. Director of the Nam Viet Co Ltd, Nguyen Duc Chuong, said that during peak seasons, textile firms have to pay the container imbalance charge (CIC) – a kind of sea freight charge which a carrier requires to offset costs arising from the transfer of a large amount of empty containers from one place to another. This charge is only affordable to enterprises with large-scale…... [read more]

Viet Nam News HÀ NỘI - Domestic textile enterprises and logistics service providers should work together to reduce costs and improve their competitiveness, according to experts. Nguyễn Tường, Vice Chairman of the Việt Nam Logistics Association, said the textile industry needs to import raw materials from abroad and export products to foreign markets. Working together, many enterprises could purchase raw materials by combining their orders to create a large shipment, which will help significantly reduce transportation costs, he said. The costs of logistics currently account for nearly one-third of the costs of each textile product exported, so the Vietnamese garment sector could save more than US$1 billion per year by reducing this cost. Additionally, Trương Văn Cầm, Vice Chairman of the Việt Nam Textile and Apparel Association, said most textile companies currently perform outsourcing jobs, causing them to depend on the supply of raw materials and transportation services of providers assigned by their partners. Most of these providers are foreign companies, thus the market share for local logistics companies has been narrowed, Cầm said. Further, high transportation costs are undermining the competitiveness of Vietnamese goods in international markets, he added. Director of the Nam Việt Co Ltd, Nguyễn Đức Chương, said that during peak seasons, textile firms have to pay the container imbalance charge (CIC) - a kind of sea freight charge which a carrier requires to offset costs arising from the transfer of a large amount of empty containers from one place to another. This charge is only affordable…... [read more]

Nguyen Tuong, Vice Chairman of the Vietnam Logistics Association, said the textile industry needs to import raw materials from abroad and export products to foreign markets. Working together, many enterprises could purchase raw materials by combining their orders to create a large shipment, which will help significantly reduce transportation costs, he said. The costs of logistics currently account for nearly one-third of the costs of each textile product exported, so the Vietnamese garment sector could save more than US$1 billion per year by reducing this cost. Additionally, Truong Van Cam, Vice Chairman of the Vietnam Textile and Apparel Association, said most textile companies currently perform outsourcing jobs, causing them to depend on the supply of raw materials and transportation services of providers assigned by their partners. Most of these providers are foreign companies, thus the market share for local logistics companies has been narrowed, Cầm said. Further, high transportation costs are undermining the competitiveness of Vietnamese goods in international markets, he added. Director of the Nam Viet Co Ltd, Nguyen Duc Chuong, said that during peak seasons, textile firms have to pay the container imbalance charge (CIC) - a kind of sea freight charge which a carrier requires to offset costs arising from the transfer of a large amount of empty containers from one place to another. This charge is only affordable to enterprises with large-scale import-export orders, such as Nha Be Corporation or Viet Tien Garment Joint Stock Corporation, but is a heavy burden on small and medium-sized textile…... [read more]

Cat Lai Port says to process exports online next year Le Anh HCMC - Cat Lai Port will start next year to process containerized cargo exports online to speed up goods clearance and thus cope with worsening traffic congestion around the port area. Saigon Newport Corporation (SNP), the operator of Cat Lai Port, on December 15 met importers, exporters, logistics services providers and truckers to introduce its plan to process import and export documentations online. To reduce traffic congestion on the roads leading to Cat Lai, SNP deputy general director Ngo Minh Thuan said his firm would offer the online service for goods importers and exporters from January 1, 2017. In the initial time, businesses can submit import-export documents either in person or online. But documents of containerized cargo for export will be entirely processed online at the end of the first quarter of 2017. In the online procedure, businesses will get electronic invoices. On January 15, 2017, Cat Lai Port will completely shift to issuing electronic invoices, freeing businesses from the requirement to go to the port to collect paper invoices. Pham Truong Sa, head of the truck fleet at Tracimexo - Supply Chains and Agency Services JS Company (TRA-SAS), said it normally took his firm about 30 minutes to complete paper procedures for receiving cargo. The time required for online transactions will fall to a mere two minutes, accelerating the transport of export goods to the port. “The online procedures will certainly save a lot of time, energy…... [read more]

VietNamNet Bridge - Experts believe that the high cost of logistics services is slowing down the growth of online shopping. Lai Viet Anh, deputy head of the Ministry of Industry and Trade’s (MOIT) E-commerce and Information Technology, said e-commerce growth rate in Asia Pacific is very high. It is estimated that the region makes up 51.5 percent of the total online transaction value around the world. Vietnam has had annual growth rate of 30 percent. A recent survey conducted by Bizweb, an online sales platform, found that more than 40 percent of polled consumers said the selling prices of goods available on e-commerce websites are higher than prices at markets. Analysts believe that the high cost of logistics services makes online shopping less competitive compared with direct shopping. In many cases, the prices of goods at online shops during sale promotions are even higher than the ordinary prices of goods at traditional markets, if counting the shipping fee. Experts believe that the high cost of logistics services is slowing down the growth of online shopping. A customer in Can Tho City, for example, ordering goods online, will have to pay a minimum of VND30,000 for the shipping fee to carry goods from HCM City to Can Tho. In e-commerce, logistics services are understood as fulfillment services, which includes packing, shipping, money collection and post-sale customer care. A World Bank (WB) report showed that in 2015, the expenses for logistics services accounted for 20.9 percent of GDP. Vietnam was among the…... [read more]

The evaluation council of the Cai Mep Downstream Logistics Center has selected a project from Japan’s Nippon Koei Company Limited, a consultant joint venture company, for the project’s construction in southern Ba Ria-Vung Tau province. “The design option by the Japanese consultant is considered the most optimal and will be submitted to the Provincial People’s Committee for approval shortly,” Mr. Huynh Xuan Vinh, Head of the Economic Development and Investment Division at the provincial Department of Planning and Investment (DPI) told VET on November 22. It is also the most practical and feasible option, according to the evaluation council. The project is based on the principles of preserving the existing ecosystem and a scenario of 3 billion TEU of cargo passing through the Cai Mep Downstream Logistics Center by 2030. Total investment is forecast at around $1.35 billion. Master planning for the development of logistics services has been created by Ba Ria-Vung Tau province with a scale of more than 1,000 ha, including plans and seeking investment in a logistics center covering about 800 ha at Cai Mep Port. The province targets becoming a national and international cargo transshipment center and will create favorable conditions for trade, investment and the efficient operation of seaports, reducing costs and improving national competitiveness. The Cai Mep Downstream Logistics Center includes a deep-water seaport, covering about 100 ha, a wharf of 1,800 meters able to berth 100,000 DWT vessels, and the logistics center. The province has also proposed five investment models for the logistics…... [read more]

Customers purchase organic foods. Improving the regional link and developing the supply chain are necessary for the Cuu Long (Mekong) Delta to boost efficiency in agricultural production and national food security. — Photo bizlive.vn HA NOI (Biz Hub) — Improving the regional link and developing the supply chain are necessary for the Cuu Long (Mekong) Delta to boost efficiency in agricultural production and national food security. Experts of CEL Consulting specialising in supply chains in South East Asia said the region contributed more than 50 per cent of the country's food output, but farmers' income remained low and food processing and export firms continued to struggle, Hai Quan (Customs) newspaper reported. According to CEL Consulting, this was due to the shortcomings of a sloppy supply chain. Currently, the agricultural sector's supply chain still has to go through many intermediaries. More than 90 per cent of farmers rely on intermediaries as the only source of market information and the only purchasers. In addition, firms did not have direct interaction with farmers, so they failed to manage the supply, experts said. Julien Brun, director of CEL Consulting, was quoted by the newspaper as saying that the future of the region's agricultural production would be centralised production, which would require improvements in both the scale of production and the regional link. Under this model, firms would help direct farming production following the market demand, develop brand for agricultural products and apply technologies in production. Intermediaries should simply play the role of logistics service…... [read more]

HCM City (VNA) – Vietnam’s agricultural production has gradually entered the global supply chain, according to the Vietnam Logistics Institute (VLI). Speaking at a seminar on improving the supply chain for export products preserved in cold and frozen storages held in HCM City recently, Thomas Nguyen, a lecturer at the VLI, said more and more farmers produced products following orders from overseas buyers instead of selling only what they have. Many farms produce following international standards, he said, adding that they had invested in building cold warehouses right at their farms to preserve their fruits better so as to keep them fresh longer in foreign supermarkets. Delegates at the seminar said growth in export-import activities as well as an expansion in internal trade had led to increasing demand for logistics services. Enhancing supply chain quality and management is a must, they said. A synchronous supply chain will not only bring higher efficiency for production and trading but also contribute to the country’s economic growth. Nguyen Thi Thuy Duong, another VLI’s lecturer, said enterprises should have the right awareness about the role of logistics in export competitiveness. To improve competitiveness, Vietnamese import-export firms should access outsourcing logistics services as well as negotiate with potential logistics services providers to map out a proper transportation plan. Organised by the Vietnam Trade Promotion Agency, the seminar was part of the programme to improve export competitiveness for Vietnam’s small and medium-sized enterprises via a local trade promotion system funded by the Swiss Government. Fresh fruits,…... [read more]

Containers of exports at Sai Gon Port in HCM City. — VNA/VNS Photo Thanh Vu HCM CITY (Biz Hub) — Viet Nam's agricultural production has gradually entered the global supply chain, according to the Viet Nam Logistics Institute (VLI). Speaking at a seminar on improving the supply chain for export products preserved in cold and frozen storages held in HCM City last Friday, Thomas Nguyen, a lecturer at the VLI, said more and more farmers produced products following orders from overseas buyers instead of selling only what they have. Many farms produce following international standards, he said, adding that they had invested in building cold warehouses right at their farms to preserve their fruits better so as to keep them fresh longer in foreign supermarkets. Delegates at the seminar said growth in export-import activities as well as an expansion in internal trade had led to increasing demand for logistics services. Enhancing supply chain quality and management is a must, they said. A synchronous supply chain will not only bring higher efficiency for production and trading but also contribute to the country's economic growth. Nguyen Thi Thuy Duong, another VLI's lecturer, said enterprises should have the right awareness about the role of logistics in export competitiveness. To improve competitiveness, Vietnamese import-export firms should access outsourcing logistics services as well as negotiate with potential logistics services providers to map out a proper transportation plan. Organised by the Viet Nam Trade Promotion Agency, the seminar was part of the programme to improve export…... [read more]




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