TỔNG QUAN VỀ LOGISTICS VIỆ NAM NĂM 2020 TABLE OF CONTENTS PREFACE 7 CHAPTER I: BUSINESS ENVIRONMENT 11 1.1. Economic review in Vietnam and the world in 2020 12 1.1.1. Vietnam’s economy 12 1.1.2. World economy 15 1.2. World logistics industry in 2020 and trends 18 1.2.1. World logistics industry in 2020 18 1.2.2. Prospects and main trends 21 1.3. Policy on logistics 24 1.3.1. General policy on logistics 24 1.3.2. Some typical policies in the transport sector 27 1.3.3. Some typical policies on logistics infrastructure 28 CHAPTER II: LOGISTICS INFRASTRUCTURE 29 2.1. Road traffic infrastructure 30 2.2. Railway transport infrastructure 32 2.3. Sea transport infrastructure 35 2.3.1. Seaport infrastructure system 35 2.3.2. Vietnam’s ship fleet 37 2.4. Inland waterways transport infrastructure 38 2.5. Aviation infrastructure 40 2.6. Logistics centers 42 2.6.1. Logistics centers established in 2020 42 2.6.2. Model of logistics centers applying modern technology
MINISTRY OF INDUSTRY AND TRADE VIET NAM LOGISTICS 2020 REPORT REDUCE LOGISTICS COSTS INDUSTRY AND TRADE PUBLISHING HOUSE Hanoi, 2020 VIET NAM LOGISTICS REPORT 2020 TABLE OF CONTENTS PREFACE CHAPTER I: BUSINESS ENVIRONMENT 11 1.1 Economic review in Vietnam and the world in 2020 12 1.1.1 Vietnam’s economy 12 1.1.2 World economy 15 1.2 World logistics industry in 2020 and trends 18 1.2.1 World logistics industry in 2020 18 1.2.2 Prospects and main trends 21 1.3 Policy on logistics 24 1.3.1 General policy on logistics 24 1.3.2 Some typical policies in the transport sector 27 1.3.3 Some typical policies on logistics infrastructure 28 CHAPTER II: LOGISTICS INFRASTRUCTURE 29 2.1 Road traffic infrastructure 30 2.2 Railway transport infrastructure 32 2.3 Sea transport infrastructure 35 2.3.1 Seaport infrastructure system 35 2.3.2 Vietnam’s ship fleet 37 2.4 Inland waterways transport infrastructure 38 2.5 Aviation infrastructure 40 2.6 Logistics centers 42 2.6.1 Logistics centers established in 2020 42 2.6.2 Model of logistics centers applying modern technology 45 REDUCE LOGISTICS COSTS VIET NAM LOGISTICS REPORT 2020 CHAPTER III: LOGISTICS SERVICES 47 3.1 Transport services 49 3.1.1 Overview 49 3.1.2 Road transport 50 3.1.3 Sea transport 51 3.1.4 Air transport 52 3.1.5 Railway transport 53 3.1.6 Inland waterways transportation 55 3.2 Warehousing services 56 3.2.1 Overview 56 3.2.2 Cold storage and cold chain logistics 56 3.2.3 Bonded warehouses 58 3.3 Freight forwarding services 58 3.4 Other services 59 3.4.1 Customs brokerage service 59 3.4.2 ICD 59 3.5 Logistics service providers 60 3.6 Logistics market development 60 3.6.1 Development of logistics service supply 60 3.6.2 Development of logistics service demand 63 3.6.3 Logistics intermediary development (connecting supply and demand) 65 CHAPTER IV: LOGISTICS ACTIVITIES AMONG MANUFACTURERS AND TRADERS 67 4.1 Overview 68 4.2 Status of logistics activities among manufacturers and traders 71 REDUCE LOGISTICS COSTS VIET NAM LOGISTICS REPORT 2020 4.2.1 Order fulfillment process 72 4.2.2 Storage and warehousing 74 4.2.3 Cargo delivery 75 4.2.4 Procurement 76 4.2.5 Logistics information system 76 4.2.6 Logistics organization and outsourcing activities 78 4.3 Evaluation of logistics management among manufacturers and traders 4.3.1 Logistics costs 80 4.3.2 The necessity of improving logistics activities within enterprises 81 CHAPTER V: LOGISTICS SUPPORT ACTIVITIES 5.1 Application of information technology in logistics 83 84 5.1.1 Some applications of information technology in state management of logistics 84 5.1.2 Application of IT in logistics enterprises 85 5.1.3 Application of block chain in logistics and supply chain in Vietnam 91 5.2 Human resource training in logistics industry 92 5.2.1 University and postgraduate training programs 92 5.2.2 College-level logistics training 94 5.2.3 Short-term human resource training activities 96 5.2.4 Self-training activities in businesses 96 5.2.5 Logistics training network 97 5.3 Propaganda on logistics 97 5.3.1 Propaganda programs 97 5.3.2 Some conferences, seminars, and propaganda activities on logistics in 2020 80 REDUCE LOGISTICS COSTS 100 VIET NAM LOGISTICS REPORT 2020 5.4 International cooperation in logistics 102 5.4.1 Group communication activities 102 5.4.2 Joint venture and cooperation activities 104 5.4.3 Foreign Direct Investment 104 CHAPTER VI: LOGISTICS COST REDUCTION 107 6.1 Overview 108 6.1.1 Calculation methods of logistics costs in the world 108 6.1.2 Logistics costs in Vietnam 110 6.2 Factors affecting logistics costs in Vietnam 114 6.2.1 Transportation costs: 114 6.2.2 Inventory carrying costs 116 6.2.3 Administrative costs 116 6.2.4 Competence of manufacturers, traders and logistics service providers 117 6.3 Proposals on reducing logistics costs in Vietnam 118 6.3.1 Government level solutions 118 6.3.2 Corporate level solutions 123 6.3.3 Other solutions 125 CONCLUSION 126 APPENDIX 127 LIST OF TABLES 130 LIST OF FIGURES 130 LIST OF BOXES 131 REDUCE LOGISTICS COSTS VIET NAM LOGISTICS REPORT 2020 VIET NAM LOGISTICS REPORT 2020 REDUCE LOGISTICS COSTS VIET NAM LOGISTICS REPORT 2020 PREFACE I n order to implement Decision No 200 / QD-TTg dated February 14, 2017 approving the Action Plan to improve competitiveness and develop Vietnam’s logistics services until 2025, since 2017, the Ministry of Industry and Trade has coordinated with experts in the field of logistics to develop an annual Vietnam Logistics Report to review, evaluate, and provide information on Vietnam’s and international logistics situation along with prospects and related policy regulations This contributes to State management of production, business and investment activities of enterprises, as well as serving scientific researches and communication in logistics Based on the opinions of experts from Logistics Report 2017, 2018, 2019 and in the spirit of continuous innovation, Vietnam Logistics Report 2020, which follows trends and practical fluctuations in domestic and international markets, has a six-chapter structure, including a thematic chapter as follows: i Business environment; ii Logistics infrastructure; iii Logistics services; iv Logistics activities among manufacturers and traders; v Logistics support activities; vi Logistics cost reduction REDUCE LOGISTICS COSTS VIET NAM LOGISTICS REPORT 2020 The report was made with the participation of the Editorial Board including experts from Ministries, Associations, Training and Research Organizations on the basis of reliable information and data systems updated from official sources and actual survey results conducted by the Editorial Board The Editorial Board hopes that the Report will meet with the demand of readers for logistics information, data and orientations and looks forward to receiving their comments for improvement If there is any question to be discussed or commented, please liaise with the Editorial Contact at: The Agency of Foreign Trade, Ministry of Industry and Trade 54 Hai Ba Trung, Hanoi Email: xnk-tlh@moit.gov.vn Website: www.logistics.gov.vn Thank you REDUCE LOGISTICS COSTS VIET NAM LOGISTICS REPORT 2020 EDITORIAL BOARD VIETNAM LOGISTICS REPORT 2020 (Decision No 608 / QD-BCT dated February 24, 2020 of the Minister of Industry and Trade) No Full name MSc Tran Thanh Hai PhD Trinh Thi Thanh Thuy Position Title Deputy Director General of Import-Export Agency, Ministry of Industry and Trade Editor in chief Deputy Director of Industry and Trade Policy and Strategy Institute, Ministry of Industry and Trade PhD Dinh Thi Bao Linh Deputy Director of Industry and Trade Information Center, Ministry of Industry and Trade Mr Dao Trong Khoa Vice Chairman of Vietnam Logistics Business Association Mr Nguyen Tuong Deputy Secretary General of Vietnam Logistics Business Association Associate Prof Ho Thi Thu Hoa Head of Department of Logistics Management and Multimodal Transport, Ho Chi Minh City University of Transport Associate Prof Dr Trinh Thi Thu Huong Deputy Head of Vietnam Logistics Research and Development Institute, Foreign Trade University PhD Nguyen Thi Van Ha Deputy Director of Institute of International Economics and Business, Foreign Trade University Deputy Dean, Faculty of International PhD Tran Thi Thu Huong Education, University of Transport 10 Mrs Dang Hong Nhung Lecturer, Department of Business Logistics, College of Commerce Member Member Member Member Member Member Member Member Secretary Translation team: Mr Nguyen Tuy Anh - Ms Le Thi Thu Trang - Mr Bui Tuan Phong Mr Nguyen Hai Dang - Mr Dao Anh Trung REDUCE LOGISTICS COSTS VIET NAM LOGISTICS REPORT 2020 Inland Waterways Administration needs to consider changing some short-term navigational channel dredging contracts, most of which are one-year contracts with small scales into PPP contracts effective for a longer duration Additionally, there should be more policies encouraging socialization of investment Before that, governmental and local budgets’ spending should be prioritized on important work items located in strategic regions for logistics development It is also necessary to carefully inspect the planning and construction of logistics centers located in close proximity to seaports and regional traffic roads to support cargo transportation - Encourage application of information technologies in exchanging data online to reduce administrative costs, save time and assist stakeholders in controlling cargo status every time and everywhere Policies in technological applications in logistics activities should be clearly issued Relevant authorities should motivate e-commerce development to expand logistics services globally Policies on electronic procedures within seaports should also be implemented to improve transparency, speed and efficiency in providing public services 6.3.1.2 Solutions based on main components of logistics costs - Transportation costs: Actively improve and upgrade infrastructure systems to develop intermodal transportation The Ministry of Transport and the Ministry of Industry and Trade should closely coordinate with local departments to accelerate the completion of infrastructure projects; establish effective connections among road, rail, inland waterways, ocean shipping and aviation; provide guidelines for logistics enterprises to develop multi-modal transport services and apply modern technologies to save time and money Besides adopting policies mentioned above, some solutions to restructure the transportation sector in the next few years, focusing on developing inland waterways, and international rail links are proposed as follows: Before taking any measures to re-allocate cargo volume from road to other modes, it is essential to learn how to reduce logistics costs of road transportation, which is undeniably the most important mode in Vietnam Relevant authorities must coordinate with local departments to take actions to mitigate traffic congestion during rush hours, especially at seaports located in large urban areas, to reduce time of delivering cargo Moreover, they can build large parking lots and cargo centers near seaports to alleviate traffic congestion (short-term) In a middle term, roads for heavy trucks/tractors,… need to be better-maintained and expanded with divided lanes Additionally, there should be preferential policies for domestic logistics companies with high-quality services To increase the efficiency of truck fleets, the Government and banks are recommended to organize events of modernizing fleets with attractive incentive 120 LOGISTICS COST REDUCTION VIET NAM LOGISTICS REPORT 2020 packages (registration fee waived, discount when purchasing new vehicles directly from manufacturers), and apply a new tariff to old trucks/tractors in order to remove old fleets Banks should provide low interests on loans for purchase of fuel-saving and high-capacity cargo delivering vehicles Another proposal is to establish cooperatives/associations of logistics companies to support SMEs and enhance efficiency of the whole sector Relevant authorities should prioritize logistics centers to be built within ICDs easily connected with industrial zones and large-scale cargo hubs Encourage the use of container barges to boost inland waterways transportation Containers should be manufactured based on appropriate designs and waterways routings, and container handling facilities at river ports need to be modernized Besides, the Northern coastal transportation by shipping lines or domestic transportation companies should be promoted to reduce loading/unloading costs at ICDs and increase the number of vessels calling at river ports Moreover, there should be drastic measures to develop railway transportation to raise the market share of this mode Simultaneously, some basic solutions should be carried out to cut down on ocean shipping costs, including: + Reduce fuel costs: the Government should issue feasible policies to support ocean freight companies in Vietnam to purchase fuel produced by the Dung Quat refinery at a discount + Lower income taxes of crew members: This should be applied to attract highly committed and qualified crew members, as well as improve their income and reduce overhead costs of companies The Government needs to careful research on whether or not to waive income taxes on salaries (including basic salaries and allowances) of crew members + Cut down on other taxes and fees: Reduce taxes on equipment and facilities used for vessel maintenance and repair; apply a VAT tax of 5% to inland transport activities of Vietnam-flagged vessels in 03 years For revenues granted from sea freight transportation, corporate income taxes are proposed to be reduced by 15% in 10 years Moreover, enterprises investing in vessels for cargo transportation should be financially supported through loan programs for working capitals by Vietnam Development Bank (VDB) with low interests Ocean transport enterprises in Vietnam should also be prioritized to buy fuel at a discounted price from Dung Quat Refinery Regarding cargo imported by the Vietnam-flagged ship fleet, their import taxes will be cut down by 10% as regulated by relevant legal documents + Reduce port charges: Port charges in Vietnam have been stipulated pursuant to Decision No 98/2008/QD-BTC dated Nov 4th, 2008 by the Ministry of Finance promulgating the regulations on maritime charges and fees and tables of maritime charge and fee rates; Circular No 41/2012/TT-BTC dated Mar 9th, 2012 by the Ministry of Finance, guiding rates of some LOGISTICS COST REDUCTION 121 VIET NAM LOGISTICS REPORT 2020 maritime charges for large-tonnage ships arriving at Cai Mep – Thi Vai ports Simultaneously, to encourage more vessels calling at Cat Mep – Thi Vai and reduce port charges at this seaport, Vietnam Maritime Administration has proposed the Ministry of Transport to work with the Ministry of Finance to apply a reduction of maritime charges and fees by 40% - 50% for < 50,000 DWT vessels + Reduce handling costs: Seaport construction, rehabilitation and upgrade should be properly planned to assure intermodal connection with railway, inland waterways and road transport, especially in key gateways: Lach Huyen (Hai Phong), Tien Sa (Da Nang), Cai Mep – Thi Vai (Ho Chi Minh) Local authorities should accelerate the movement of urban ports to deep-water areas, which will then help to alleviate piloting and navigational channel-related costs Save warehousing costs and port charges through policies encouraging and supporting companies to rehabilitate and upgrade their handling equipment/technologies, hence this could help to improve handling capacity and reduce vessel turnover time Promote capacity of some marine fairways at key areas Invest in expanding navigational channels, installed with VTS, AIS systems Allocate budgets for annual dredging projects to guarantee safety for large-tonnage vessels Cost components like fuel, salaries, depreciation, and unofficial costs incurred in road and rail transportation need to be carefully researched and addressed by viable measures to reduce the whole operating costs Effectively set up and launch an official web portal dedicated to cargo transportation, which helps to make the market more transparent and highly interactive with customers, companies and other stakeholders This portal may also facilitate the arrangement of transportation vehicles between outbound and inbound trips, minimizing the costs of operating emptycargo vehicles Additionally, unofficial fees on long-haul routes represent a considerable proportion of the total costs As per a research done by the World Bank, if these undesired costs are reduced, total transportation costs for an over 100km trip will be cut by 13% Accordingly, the Government should drastically fight against briberies, as well as organize propaganda programs among vehicle drivers The upgrade of infrastructure like bridges and roads is also necessary for transportation companies to reduce their costs Ministries, line ministries and local authorities need to handle problems related to BOT fees, removing irrelevant BOT stations and unreasonable charges levied at seaports to reduce logistics costs The Government is also suggested to issue viable policies to enhance competitiveness of domestic logistics service providers to obtain transport rights and diversify their services 122 LOGISTICS COST REDUCTION VIET NAM LOGISTICS REPORT 2020 - Inventory carrying costs Reduce warehousing costs by investing in free port zones to alleviate costs incurred from customs procedures and import – export taxes Build logistics centers within key economic areas, and issue incentive policies for these logistics centers to attract domestic and foreign investors Develop logistics centers to assist regional economic and commercial development, especially in the Mekong River Delta, Ho Chi Minh and Hai Phong Regional large – scale ICDs should be adequately invested in close proximity to seaports The effective development of logistics centers located in Mekong River Delta and Can Tho city can guarantee sufficient cargo throughputs to make good use of transportation modes Focus on cold storage and cold chain, directly catering manufacture, domestic consumption and export of seafood and agricultural produce Cold storage in Vietnam has met merely 30 – 35% of the total demand Hence, it is highly recommended that electricity prices for cold storage, which is 25% - 30% higher than those for manufacturing activities, should be reduced - Administrative costs: Accelerate the reform of administrative procedures and simplify the special inspection process Enterprises need to be supported in completing import – export procedures to reduce processing time and costs, which will accordingly help to increase competitiveness of “made in Vietnam” products, raising export turnover and making good use of FTAs Relevant ministries and line ministries need to speed up application of IT in different steps to modernize the process and increase efficiency Moreover, in order to minimize customs clearance costs, ICDs have been planned and constructed in some locations as places for customs declaration of imported and exported containers, cargo gathering yards and container yards to support congested seaports The volume of containers having customs cleared at ICDs represents 35% - 40% of the total volume 6.3.2 Corporate level solutions Logistics infrastructure investment and policy reform are long-term solutions and out of control of enterprises Therefore, at a corporate level, firstly, logistics service providers need to proactively change their approach and understanding towards logistics and logistics costs Secondly, enterprises should apply feasible measures to minimize their internal logistics costs - Utilize solutions of direct transportation to final customers to save time and money and ensure higher control over the delivery process, instead of using an intermediary or lowquality logistics service provider - Transportation outsourcing is indispensable if a company desires to specialize their supply chain It is necessary for enterprises to establish a professional outsourcing LOGISTICS COST REDUCTION 123 VIET NAM LOGISTICS REPORT 2020 department with a transparent and published S.O.P of bidding process to select the best vendors Nowadays, global companies like P&G, The Gap, GE, etc have implemented online bidding programs, requesting logistics service providers to send quotations via their own websites This has helped them reduce significant costs 124 - When outsourcing transportation services, it is recommended that enterprises should use flexible pricing methods with detailed requirements for contract prices The quotations provided should separate fuel fees from transportation freight rates The latter will be consistent during the effective duration of contracts, while the former (fuel fees) will be changed based on market rates - For companies having their own transportation fleet (either road vehicles or vessels), they should apply fuel hedging strategy to limit impacts of fuel price fluctuations Via futures contracts, these companies can purchase fuel at previously negotiated rates Moreover, because they are large-scale companies with huge orders, they can negotiate with fuel suppliers for good prices - Enterprises need to modernize their fleet and improve their driver training programs With proper upgrade to the fleets, companies can reduce transportation costs per truck by 16% as well as mitigate congestion, increase efficiency and minimize unofficial costs - It is advisable for shippers to participate in relevant associations, which may give them advantages in negotiating with carriers In fact, carriers usually dominate in negotiations with shippers and hence make one-sided decisions to apply high tariffs on their services To solve such a problem, associations have been founded to represent all their members to work directly with carriers on transportation contracts’ articles Therefore, becoming a member of those associations will help shippers get good contract prices, reducing their logistics costs - In international transactions, enterprises should establish strategic relationships with certain carriers to have control over transportation contracts (changing the habit of exporting in FOB to “C” terms in Incoterms) This will ensure shippers to seek proper carriers with lower contract prices than market rates and reduce price pressure from trading partners - Companies should maximize the use of technologies to improve connectivity with their partners It is estimated that the application of technologies have reduced costs of seeking partners, costs of human resources and transportation costs by at least 5% • Regarding logistics service providers, there are a number of ways to reduce logistics costs Using a logistics optimization software/platform is an effective solution for companies to well manage their activities, from warehousing, transportation to distribution with clear process and carefully stored databases This will help companies enhance their transparency and prevent errors as well as fraudulence LOGISTICS COST REDUCTION VIET NAM LOGISTICS REPORT 2020 The software is also integrated with many other functions, including container transport management, or track and trace Shippers and forwarders can easily follow their shipments to deal with risks of losses, damages or fraudulence in fuel/oil consumption and wages The platforms also provide real-time results so that companies can control the connection among different modes of transport to optimize their supply chain - Participate in transportation platforms, which have recently been developed in Vietnam This is a new technological solution to help companies manage and operate cargo transport activities effectively Companies can join a transportation network to reduce investment capital in facilities, cut down on laborers and simplify procedures… However, enterprises should take a close look at each transportation platform to make a good decision on whether to participate in or not - Manufacturers, traders and logistics service providers should proactively cooperate to improve services quality and reduce logistics costs 6.3.3 Other solutions - Increase quality of state management personnel and human resources in the logistics industry Together with a mechanism of flexibly categorizing state management between central and local governments to better the roles of directing and managing logistics activities, it is also important to build up high-quality human resources with good expertise, strong experience, a good command of languages, and good moral attitude to suit strict requirements The Ministry of Education and Training, the Ministry of Labor – Invalids and Social Affairs should invest in certain universities, colleges and vocational schools to open faculties and training courses on logistics in order to increase the number of professional graduates in this field Moreover, Vietnam should work with ASEAN countries to build up an educational training program and providing certificates in logistics - Provinces and cities all over the country should pay more attention to taking advantage of geo-economy and regional connection, as well as attracting more investment in logistics infrastructure to reduce costs - Associations related to logistics and enterprises in Vietnam should take actions to boost added value in the manufacturing and trading sectors The habit of purchasing/ importing in CIF and selling/exporting in FOB should be changed to create a dynamic environment for logistics service providers to expand their services and activities, either domestically or internationally LOGISTICS COST REDUCTION 125 VIET NAM LOGISTICS REPORT 2020 CONCLUSION The year 2020 witnessed fluctuations in the world economy and a serious decline in global trade due to adverse factors such as the Covid-19 pandemic, natural disasters, trade tensions and geopolitical problems along with corporating effects of young generation FTAs and trade barriers This has affected the whole operation of enterprises, causing disrupted supply chains The pandemic has changed the way of consumption, mode of operation and trade exchange The recovery of international trade flows requires a great deal of efforts from both Governments, international organizations and businesses to help stabilize the supply chain amid the ongoing Covid-19 pandemic Entering the year 2021, state management agencies, associations and enterprises should continue to pay attention to focus on some of the following activities: - Continue to synchronously and drastically implement the tasks stated in Decision No 200 / QD-TTg dated February 14, 2017 and Decision 708 / QD-BCT dated March 26, 2019 at ministries, localities and association - Continue to promote substantial and effective administrative reform, cutting or simplifying specialized inspection procedures - Accelerate the progress of current projects, give priority to building infrastructure connecting transportation networks in the direction of multimodal transport to efficiently exploit the existing transport and commercial infrastructure system - Accelerate digital transformation, apply information technology in the logistics service industry to change stagnation, create a breakthrough to improve competitiveness, reduce logistics costs, enhance e-commerce, online transaction, online payment - Promote trade promotion activities, attract investment and international cooperation in logistics, take advantage of opportunities brought by new generation FTAs, including EVFTA, CP TPP and RCEP; take advantage of the wave of investment shift to attract investment in logistics development, especially high-tech logistics - Focus on improving the quality of human resources in the field of logistics, promote the propaganda about logistics for all levels, branches and production and business enterprises; - Closely monitor and closely follow the developments of the world market and the pandemic situation to have appropriate and timely response solutions 126 LOGISTICS COST REDUCTION VIET NAM LOGISTICS REPORT 2020 APPENDIX Appendix 1: Typical policies on logistics in 2020 No Issued by Main content Date of issue Effective date Decree No 10/2020/ND-CP Government Auto transport business and conditions for Jan 17th, 2020 auto transport business Apr 1st, 2020 Decree No 48/2020/ND-CP Government Amending and supplementing a number Apr 15th, 2020 of articles of the Government’s Decree No 38/2016/ND-CP dated May 15, 2016, detailing a number of articles of the Law on Hydro-meteorology This decree has stipulated 11 types of construction work subject to hydrometeorological monitoring, including some construction work related to logistics like airports, seaports and bridges Jun 1st, 2020 Decree No 67/2020/ND-CP Government Amending and supplementing a number Jun 15th, 2020 of articles of the Government’s Decree No 68/2016/ND-CP dated July 1, 2016, prescribing conditions on trading of dutyfree goods, operation of warehouses, storing yards, and places for customs clearance, goods gathering and customs inspection and supervision Aug 10th, 2020 Decree No 86/2020/ND-CP Government Amending and supplementing a number of articles of the Government’s Decree No 171/2016/ND-CP dated December 27, 2016 on registration, deregistration, sale and purchase, and building of ships in Viet Nam Jul 23rd, 2020 Sep 15th, 2020 Resolution No 136/2020/NQ-CP Government On sustainable development Sep 25th, 2020 Sep 25th, 2020 Decision No 45/2020/QD-TTg Prime Minister Approving the tasks of planning a road Jan 10th, 2020 network for the period of 2021 - 2030, with a vision to 2050 Jan 10th, 2020 Decision No 77/2020/QD-TTg Prime Minister Approving the tasks of establishing a master Jan 13th, 2020 development plan of Vietnam seaport system for the period of 2021 - 2030 with a vision to 2050 Jan 13th, 2020 Decision No 657/2020/QD-TTg Prime Minister Approving investment policy of T3 May 19th, 2020 May 19th, passenger terminal construction project of 2020 Tan Son Nhat international airport Decision No 19/2020/QD-TTg Prime Minister Non-stop electronic toll collection Jun 17th, 2020 Aug 1st, 2020 REDUCE LOGISTICS COSTS 127 VIET NAM LOGISTICS REPORT 2020 Appendix 2: Universities providing logistics and supply chain management training No University Ba Ria -Vung Tau university University of science and technology – National university (HCM city) Huu Nghi university of Technology and Management Major Logistics and supply chain management (4 Formal university majors) Industrial system engineering; Formal university Logistics & Supply Chain Management Logistics and supply chain management Formal university Transportation Exploitation Industry / University of Logistics and Multimodal Transportation Formal university Transportation Technology Logistics and supply chain management HCM City University of Logistics and supply chain management Formal university Technology Duy Tan University Logistics and supply chain management Formal university Electric Power University Logistics and supply chain management University of Transport and Logistics and supply chain management Communications (Ha Noi) - Formal university University of Transport and Communications (HCM city) 10 Vietnam Maritime University Enrollment scale of 2020 150 130 (90 + 40) 130 Transportation Exploitation (logistics - Advance program management and multimodal transport) - Internationalintegrated program Logistics and supply chain management - Formal university Advance program International business and Logistics Logistics and supply chain management Formal university 11 Hoa Sen University National Economic 12 Logistics and supply chain management University University of Economics and 13 Business Administration - Logistics and supply chain management Thai Nguyen University University of Economics 14 Logistics and supply chain management and Finance (HCM city) 128 Training system REDUCE LOGISTICS COSTS (100 + 30) 250 (150 + 100) 100 N/A[1] 60 90 260 (120 + 90 + 50) 215 (135 + 80) 140 Formal university 60 Formal university 60 Formal university 66 60 VIET NAM LOGISTICS REPORT 2020 No University Major Training system Can Tho University of Logistics and supply chain management Formal university Engineering and Technology International business/ Logistics and supply Formal university 16 Foreign Trade University chain management (english program) Nguyen Tat Thanh 17 Logistics and supply chain management Formal university University Formal university 18 RMIT university Logistics and supply chain management (english program) HCM University of 19 Logistics and supply chain management Formal university Technology and Education 15 20 21 22 23 24 25 26 27 28 29 30 International University – National University (HCM City) Hong Bang International University Thang Long University Thu Dau Mot University Ha Noi Capital University University of Commerce Van Hien University Academy of Policy and Development Academy of Finance Tra Vinh University University of Industry Enrollment scale of 2020 50 40 100 N/A[2] 50 120 Logistics and supply chain management Formal university 155 Logistics and supply chain management Formal university 100 Logistics and supply chain management Logistics and supply chain management Logistics and supply chain management Logistics and supply chain management Logistics and supply chain management International economy/ International commerce and Logistics Customs and Logistics Economy/ Logistics service management Logistics and supply chain management Formal university Formal university Formal university Formal university Formal university 145 90 70 100 130 Formal university 70 Formal university Formal university Formal university 50 N/A[3] 60 [1] Year 2020: newly established faculty, no previous data [2] Unavailable enrollment quantity [3] Data collected after entry REDUCE LOGISTICS COSTS 129 VIET NAM LOGISTICS REPORT 2020 LIST OF TABLES Table Top 10 freight forwarding, warehousing, express and transportation companies in Vietnam (2019) 61 Table The IT application by member enterprises of Vietnam Logistics Business Association (VLA) 87 Table Colleges having logistics training programs 94 Table Some important M&A deals in Vietnam logistics in 2019 and 2020 104 Table Foreign direct investment in Vietnam (per sector) 105 Table Logistics costs as percent of some key products’ prices in Vietnam 111 Table Logistics costs over sales indexes in Vietnam 113 LIST OF FIGURES 130 Figure Main economic indicators of Vietnam between 2016 and 2020 12 Figure Increase / decrease in revenue of service groups in the first months of 2020 compared to the same period in 2019 (%) 15 Figure Proportion of lengths of different types of roads in Vietnam's total road system 30 Figure Vietnam’s shipping fleet in 2020 37 Figure Volume of cargo transported by road (millions tons) 51 Figure Volume of cargo transported by sea (million tons) 52 Figure Volume of cargo transported by air (thousand tons) 53 Figure Volume of cargo transported by rail (thousand tons) 54 Figure Volume of cargo transported by inland waterways transportation (million tons) 55 Figure 10 Data of active enterprises on Dec 31st, 2019 68 Figure 11 The data of enterprises in different provinces on Dec 31st, 2019 69 Figure 12 Vietnam’s enterprise structure by business types and sizes 69 Figure 13 Labor structure and labor growth rate 70 Figure 14 Capital structure for manufacturing and trading and capital growth rate 71 Figure 15 Fields of survey enterprises 71 Figure 16 Area distribution of surveyed enterprises 71 Figure 17 Labor scale of survey enterprises 72 Figure 18 Years of operation of the surveyed enterprises 72 REDUCE LOGISTICS COSTS VIET NAM LOGISTICS REPORT 2020 Figure 19 Rev/year of surveyed companies 72 Figure 20 Categorization of surveyed companies 72 Figure 21 Fulfillment lead time for domestic orders 73 Figure 22 Fulfillment lead time for international orders 73 Figure 23 Percentage of perfect order fulfillment 74 Figure 24 Average storage time of raw materials and finished products 75 Figure 25 Frequency of using different methods of transportation 75 Figure 26 Main sources of inbound materials among enterprises 76 Figure 27 Frequency of using different communication methods between enterprises, suppliers and customers 77 Figure 28 Proportion of enterprises using different operational software in logistics management 77 Figure 29 Department performing logistics functions 78 Figure 30 The level of outsourcing logistics activities 79 Figure 31 Different criteria when selecting LSP 79 Figure 32 The proportion of logistics costs over sales 80 Figure 33 Ranking logistics cost components 81 Figure 34 Levels of urgency in improving logistics activities 82 Figure 35 Main components of logistics costs in the US 109 Figure 36 Logistics costs as percent of the USA's equivalent GDP (%) 109 Figure 37 Main components of logistics costs in Vietnam (2014) 111 Figure 38 Logistics costs over GDP of certain countries/continents 112 Figure 39 National logistics cost over sales 113 LIST OF BOXES Box Third party logistics services facing the impact of Covid-19: New context, new services 22 Box The development trend of logistics in global cold chain services 23 Box Investment in construction of expressway Dong Dang - Tra Linh 31 Box Chu Lai Logistics is specialized in serving fruits export 46 Box The efficiency EPort-eDO implementation at Saigon Newport Corporation 89 Box Logistics and supply chain management simulation room at Hanoi Capital University 93 REDUCE LOGISTICS COSTS 131 VIET NAM LOGISTICS 2020 REPORT REDUCE LOGISTICS COSTS INDUSTRY AND TRADE PUBLISHING HOUSE Head office: No 655 Pham Van Dong, Tu Liem, Hanoi Tel: 024 934 1562 * Fax: 024 938 7164 Website: http://nhaxuatbancongthuong.com Email: nxbct@moit.gov.vn In charge of publication Director- Prof Ph.D Nguyen Minh Hue Editing: Ton Nu Thanh Binh Design: Vuong Nguyen Printed in 750 copies, size of 19x27 cm at Tran Gia Printing and Trading Company Limited Address: No 43, Lane 406, Au Co Street, Nhat Tan Ward, Tay Ho District, Hanoi Publishing Registration Number: 4428-2020/CXBIPH/02-186/CT and ISBN: 978-604-311-101-9 Publishing Decision Number: 334A / QD-NXBCT November 17, 2020 Printed and Deposited for Archives in Quarter IV, 2020 ... FIGURES 130 LIST OF BOXES 131 REDUCE LOGISTICS COSTS VIET NAM LOGISTICS REPORT 2020 VIET NAM LOGISTICS REPORT 2020 REDUCE LOGISTICS COSTS VIET NAM LOGISTICS REPORT 2020 PREFACE I n order to implement... REDUCE LOGISTICS COSTS VIET NAM LOGISTICS REPORT 2020 10 REDUCE LOGISTICS COSTS VIET NAM LOGISTICS REPORT 2020 CHAPTER I BUSINESS ENVIRONMENT BUSINESS ENVIRONMENT 11 VIET NAM LOGISTICS REPORT 2020. .. trien-van-tai-nong-nghiep.aspx, searched on Oct 20th, 2020 46 LOGISTICS INFRASTRUCTURE VIET NAM LOGISTICS REPORT 2020 CHAPTER III: LOGISTICS SERVICES LOGISTICS SERVICES 47 VIET NAM LOGISTICS REPORT 2020 Covid-19 has affected