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Logistics results cheer
Viet Nam's logistics industry achieved encouraging results in 2009, creating the foundation for further development in the coming years, though it has yet to tap its full potential, according to industry experts.
One of the most important achievements last year was the clearance of goods that had piled up at HCM City ports, especially in Sai Gon, VICT, Tan Cang and Ben Nghe, experts said.
At the beginning of last year, a number of businesses took advantage of the weakened US dollar to import huge amount of goods. However, some of them were unable to later cover their costs, leading to a backlog of goods at ports.
Nguyen Hung, Office Manager for the Viet Nam Freight Forwarders Association (VIFFAS), said part of the problem was that these ports were designed to handle containers and that many goods arrived in parts.
Hung added that by the end of this year, the number of goods imported and exported through HCM City ports would reach 4 million TEUs (Twenty-foot equivalent units).
Last year also saw the launch of the first direct shipping route from Viet Nam to the US. Previously, freight was shipped via Singapore or Hong Kong. Direct shipping has reduced freight-transit time and therefore costs.
The domestic maritime industry also saw the Tan Cang – Cai Mep Company in the southernmost province of Ba Ria-Vung Tau welcome the country's biggest ship, Mitsui OSK Line's MOL Premium, which has a length of 300 metres, a maximum load of 6,350 TEUs and a total capacity of 73,000 DWT.
Meanwhile, the APL Denver, with a capacity of 4,250 TEUs, departed from Sai Gon-PSA port for the US. The container ship took 15 days to reach Seattle and 16 days to reach Los Angeles, two days faster than before.
Procedures
The General Department of Customs also expanded the application of e-customs procedures in Ha Noi, Quang Ninh, Lang Son, Hai Phong, Da Nang, Quang Ngai, HCM City, Dong Nai, Binh Duong and Ba Ria-Vung Tau. Electronic procedures are now also more widely applied to stock control, logistics and Inland Clearance Depots (ICDs).
SGL logistics centre, a joint venture of Schenker Viet Nam and Gemadept in Song Than industrial park in southern Binh Duong Province, were also established. Meanwhile, YCH-Protrade logistics centre in Binh Duong, a joint venture between Protrade and Singapore's YCH Logistics Group, is expected to become operational in the first quarter of this year.
The first logistics centre in the north, a joint venture between Tien Son Logistics centre and ICD in northern Bac Ninh Province is expected to become operational at the beginning of next year.
As far as air travel goes, the domestic aviation industry last year tried to shorten a number of routes to reduce travel time and costs for passengers. According to Viet Nam Airlines, the new routes will save the carrier US$30 million to $35 million a year in costs.
Most logistics companies in Viet Nam said the industry had just 10 per cent of the staff it needed. The country now has around 1,000 businesses operating in this field that require between 2,000 to 3,000 staff to be trained each year.
VIFFAS's first international standard logistics curricula has now been recognised by the International Federation of Freight Forwarders Associations. VIFFAS also plans to establish a logistics institute in Viet Nam.
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