FOREIGN TRADE UNIVERSITY

SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS

*****

MID-TERM REPORT

Subject: Principles of Logistics and Supply Chain Management

Code: PLS301F

TOPIC: THE ROLE OF 3PL OF VIET BI JOINT STOCK COMPANY

IN IN FIBERTEX PROJECT
Mentor: MA Pham Thanh Ha
Class: PLS301F(2425-1)GD1.1

GROUP 12
No. Student name Student ID Student’s signature

1 Trinh Thuy Hien 2314920010

2 Nguyen Nhu Van 2313530051

3 Do Phuong Trang 2313530049

4 Nguyen Phuong Uyen 2311530050

5 La Thi Khanh Van 2313530052

Hanoi – 2024

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 TABLE OF CONTENTS

INTRODUCTION ...………………………………………………………………………. 5

CONTENT ...………………………………………………………………………………. 7

CHAPTER I. THE CONTEXT OF LOGISTICS INDUSTRY IN THE VIETNAMESE

MARKET................................................................................................................................7

1.1. Definition of Logistics..................................................................................................7

1.2. Characteristics of Logistics..........................................................................................7

1.3. Importance of Logistics................................................................................................8

1.4. Concepts of Logistics Enterprises.............................................................................10

1.5. Characteristics of Logistics Enterprises...................................................................10

1.5.1. Introduction............................................................................................................10

1.5.2. Operational Focus..................................................................................................11

1.5.3. Supply Chain Principles.........................................................................................11

1.5.4. Market Competition...............................................................................................11

1.5.5. Capital Structure....................................................................................................11

1.5.6. Cost Structure.........................................................................................................12

1.5.7. Income Sources......................................................................................................12

1.5.8. Customer-Centric Approach..................................................................................12

1.5.9. Collaboration and Coordination.............................................................................13

1.5.10. Labor Productivity...............................................................................................13

1.6. Services provided by logistics companies.................................................................13

CHAPTER II. REALITY OF THE LACK OF LINK BETWEEN LOGISTICS

SERVICE PROVIDERS IN THE VIETNAMESE MARKET........................................14

2.1. Symptoms of the lack of business links....................................................................14

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 2.2. The lack of link between logistics service providers in the Vietnamese market...17

CHAPTER III. SOLUTIONS TO REMEDY THE LACK OF LINK BETWEEN

LOGISTICS SERVICE PROVIDERS IN THE VIETNAMESE MARKET.................20

3.1 Operating trends of logistics service providers........................................................20

3.1.1. Trends in the international market.........................................................................20

3.1.2. Trends in the Vietnam Trade.................................................................................21

3.2. Solutions for the lack of link between logistics service providers in the
Vietnamese market............................................................................................................22

CONCLUSION ...………………………………………………………………………… 26

REFERENCES ...………………………………………………………………………… 27

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 LIST OF FIGURES AND TABLES

Table 1. Statistics on the number of logistics service enterprises by labor size in

2018 ...15

Figure 1. Structure of transportation and circulation of goods by transport industry in

2023 ...……………………………………………………………………………………….16

Figure 2. Logistics cost statistics on GDP in 2018 ...………………………………………

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 INTRODUCTION

The logistics industry is rapidly growing and becoming an increasingly important

service in Vietnam, especially with the continuous development in all sectors of the
economy and integration measures. The role of logistics in the Vietnamese economy, in
particular, and the global economy, in general, is becoming increasingly essential, while also
contributing positively to promoting international trade activities.
Developing logistics services effectively will contribute to increasing the
competitiveness of the economy and the country. In the current strong global trend,
competition between countries around the world is becoming increasingly fierce. Countries
that are well connected to the global logistics service network can access many markets and
consumers from countries around the world. Developing logistics services will bring
enormous benefits to the economy. Logistics is a comprehensive and chain-like activity, and
the effectiveness of this process is crucial to the competitiveness of each country’s industry
and commerce.
Over the past 20 years, Vietnam has become one of the most popular production
centers in Asia thanks to its stable growth rate. The economy is oriented towards import and
export, increasing free trade agreements (FTA), young and dynamic labor force, investment
incentives, and strategic location. The recent US-China trade war, many free trade
agreements, and the relocation of multinational corporations from China have brought
Vietnam up in the value chain.
According to the World Bank’s Logistics Performance Index (LPI) report published
in 2023, Vietnam ranked 43rd, among the top 5 ASEAN countries with the highest rankings.
The average annual growth rate of Vietnam’s logistics market is 14-16%, with a scale of 40-
42 billion USD per year.
According to the World Bank’s Logistics Performance Index (LPI) report, Vietnam is
ranked 64th out of 160 countries in terms of logistics development and 4th in the ASEAN

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region after Singapore, Malaysia, and Thailand. According to Agility’s assessment, in 2023,
Vietnam ranked 10th among the top 50 emerging logistics markets worldwide. The average
annual growth rate of Vietnam’s logistics market is 14-16%, with a scale of 40-42 billion
USD per year.
It is evident that the logistics market in Vietnam is growing rapidly and is highly
regarded internationally for its potential for development. However, the Vietnamese logistics
industry still has many weaknesses that hinder its growth potential, especially the lack of
connection between logistics service providers in the Vietnamese market.
Recognizing the urgency of finding a solution for the Vietnamese logistics industry to
address the issue of the lack of connection between logistics service providers, our team has
embarked on research and decided to choose the topic “LACK OF LINK BETWEEN
LOGISTICS SERVICE PROVIDERS IN THE VIETNAMESE MARKET. REALITY
AND SOLUTIONS” to provide solutions for logistics service providers to develop their
services.

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 CONTENT

CHAPTER I. THE CONTEXT OF LOGISTICS INDUSTRY IN THE VIETNAMESE

MARKET
1.1. Definition of Logistics
Logistics refers to the overall process of planning, implementing, and controlling the
efficient, effective flow and storage of goods, services, and related information from point of
origin to point of consumption for the purpose of conforming to customer requirements.
managing how resources are acquired, stored, and transported to their final destination.
Logistics management involves identifying prospective distributors and suppliers and
determining their effectiveness and accessibility. Logistics managers are referred to as
logisticians.

The term is now used widely in the business sector, particularly by companies in the
manufacturing sectors, to refer to how resources are handled and moved along the supply
chain.

1.2. Characteristics of Logistics

Quickness: In supply chain management, fast logistics is the basic requirement of the
supply chain and the basis for ensuring an efficient supply chain.

Information sharing: Compared with the traditional vertical integrated logistics

model, the flow of logistics information integrated into the supply chain is greatly increased.
The demand information and feedback information transmission is not a step-by-step
transmission, but a network type. Enterprises can quickly grasp the supply and demand
information and market information of different links in the supply chain through the
Internet, and achieve information sharing and coordination. The increase of shared
information and the application of advanced technology enable enterprises at any node in the
supply chain to timely grasp the market demand information and the operation of the entire
supply chain. The logistics information of each link can be transparently linked with other
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links. Communicate and share, thus avoiding the distortion of demand information. At the
same time, by eliminating the process and time without adding value, the logistics system of
the supply chain is further reduced in cost, which provides a basic guarantee for the agility
and refined operation of the supply chain.

Diversity: In supply chain management, the diversity of logistics is reflected in the

diversity of logistics forms and the diversity of logistics items. The diversity of logistics
forms mainly refers to the diversity of logistics and transportation methods, pallets, and the
like.

Humanization: Logistics is based on the requirements of users, with a variety of

products, reliable quality to achieve customer-friendly services. In supply chain
management, logistics requires both scientific methods and management, while at the same
time adapting to changes in customer needs in real time, reflecting the characteristics of
human needs.

1.3. Importance of Logistics

The importance of logistics is shown through its role in the economy in general and in
each organization in particular:

For the national economy, Logistics plays an important and indispensable role in the
production, distribution and circulation of the economy. It helps promote the circulation of
goods within the country and contributes to making the country a link in the global value
chain. To be specific, logistics makes an important contribution to improving socio-
economic efficiency. Logistics is a series of continuous activities, closely related to each
other, interacting with each other, it is an economic link throughout almost the entire process
of production, circulation of goods and distribution. goods. Each activity in the chain has a
place and accounts for a certain cost. A study by Michigan National University (USA)
shows that logistics activities alone account for 10% to 15% of GDP of most major countries
in Europe, North America, Asia – Pacific and some European economies.

In addition, logistics services contribute to increasing the competitiveness of the

economy and the country. The world is in the process of globalization, global production is
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increasingly shared, and competition is increasingly fierce, making logistics one of the
competitive advantages of countries. Logistics supports the flow of economic transactions.
The economy can only develop smoothly and synchronously when the logistics chain
operates continuously and smoothly. A series of related economic activities take place in the
logistics service chain, whereby resources are transformed into products and, importantly,
value is increased for both customers and producers, helping satisfy human needs.

For businesses, Logistics plays a great role not only in the ability to generate profits
but also in improving the company's competitiveness, specifically, affecting the problem of
solving effectively between input, output and production business as well as environmental
issues.

Firstly, Logistics contributes to improving management efficiency, minimizing costs

in the production process, and enhancing the competitiveness of businesses. Logistics allows
managers to control and make accurate decisions on issues, such as source of raw materials,
quantity and effective time to replenish raw materials, means and transportation routes,
location, when to sell finished products, etc. to minimize costs incurred to ensure efficiency
in production and business activities, making the production and business process more
streamlined, production and business efficiency is improved, and contributes to increasing
the competitiveness of businesses in the market.

Second, Logistics has the effect of saving and reducing costs in circulation and
distribution activities. The price of goods on the main market is equal to the price at the
place of production plus circulation costs. The cost of circulating goods, mainly
transportation costs, accounts for a large proportion and is a component of the price of goods
on the market, especially goods in international trade. Meanwhile, transportation is the most
important factor in the chain of logistics services, so if logistics services are increasingly
perfect and modern, it will save transportation costs and other costs incurred during storage.

Third, Logistics helps to increase the business value of transport and forwarding
businesses. It is a type of service that is much more extensive and complex than pure
transportation and forwarding activities. In the past, transport and forwarding service

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businesses only provided customers with simple, pure and single services. Today, due to the
development of production and circulation, details of a product can be supplied by many
countries and vice versa, a business's product can be consumed in many countries and
markets. Different markets, so the services that customers require from freight forwarders
must be diverse and rich. Today's freight forwarders have deployed services to meet the
actual requirements of customers. They become logistics service providers. According to
experience in developed countries, through the use of comprehensive logistics services,
manufacturing enterprises can shorten the time from receiving orders to delivering products
to customers from 5-5 days. 6 months down to 2 months. This service business has a profit
margin 3-4 times higher than manufacturing and 1-2 times higher than other foreign trade
services.

1.4. Concepts of Logistics Enterprises

According to Article 10, Clause 4 of the 2020 Enterprise Law: "Enterprises are
organizations with their own names, assets, registered offices, established or registered for
establishment according to legal regulations for business purposes." Companies in the
market are engaged in production and business processes and provide powerful services to
generate profits. These companies are considered economic entities. There are also
companies that operate without profit. From the foregoing, a logistics company is an
organization established or registered in accordance with the law, with its own name, assets
and registered office, whose purpose is to carry out business activities related to the receipt
of goods, transport, storage, customs clearance, other documentation, customer advice,
packaging, labeling, shipping or other related services agreed with the customer for a fee.
Therefore, logistics companies are service-oriented companies that primarily operate in the
sales and distribution sector.

1.5. Characteristics of Logistics Enterprises

1.5.1. Introduction
Laws regarding the distribution and movement of goods apply to logistics
companies. These fundamental characteristics determine a logistics company's functions,
mission, organizational structure, and business processes, and distinguish it from companies
in manufacturing, construction, industrial, and other economies. Unlike manufacturing,
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construction and industrial enterprises, which focus on the production of goods according to
consumer demand, logistics companies operate in the field of distribution and distribution of
goods, moving goods from production to production using the most convenient
transportation method, logistics enterprises provide services that move products up to
consumption.

1.5.2. Operational Focus

Logistics companies carry out operations such as shipping, transportation, storage,
and customs clearance, with the aim of delivering products smoothly to consumers.
Basically, these service activities contribute to people's continuous production and
consumption processes. The result of these activities is aimed at ensuring the continuity of
the production process in the fastest time and at the lowest cost.

1.5.3. Supply Chain Principles

In order to effectively fulfill the distribution function and deliver goods, logistics
companies must follow the "seven rights" principle to organize the delivery process in a
timely manner and synchronize it with the specific needs of customers. Deliver the right
amount to the end user at the right time, under the right conditions, in the right place, at the
right cost, and at the right time.

1.5.4. Market Competition

Business activities in competitive markets involve large-scale and increasingly
intense competition between companies within an industry, between industries, and with
international markets. In order for logistics enterprises to survive and prosper, it is necessary
to provide good "logistics support" for production and consumption, and provide customers
with sufficient, high-quality, synchronized, timely and affordable goods. Logistics
companies have the function of circulating goods and services, and differ from
manufacturing companies in terms of capital structure, costs, and characteristics.

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1.5.5. Capital Structure
The operating capital of a logistics company primarily consists of assets such as
goods, which are the means of carrying out logistics service activities. Current assets
typically account for the majority (80% or more) of a company's total assets. The rapid
circulation nature of these liquid assets, especially those set aside for the storage of goods, is
of great importance. For example, in the case of a shipping company, the asset is a ship of
significant value. Therefore, the efficient utilization of these assets determines the company's
performance and efficiency. This feature must be taken into account when determining tax
rates for different types of capital and sectors of the economy.

1.5.6. Cost Structure

A logistics company's cost structure includes logistics costs, with depreciation, fuel
costs, and wages accounting for a large proportion. According to the Vietnam Shipping
Corporation (VOSCO)'s 2015 financial report, asset depreciation accounted for 17.3%, fuel
costs accounted for 16.5%, and wage costs accounted for 8.2% of total costs. Depending on
the nature, nature, size and scope of the business, each company's cost structure may differ.
Therefore, it is necessary to analyze the cost structure and pay attention to large and
important expenses to control and reduce business costs, thereby improving business
efficiency.

1.5.7. Income Sources

A logistics company's revenue is primarily derived from providing services to
customers. The main product of logistics companies is customer service, which is an
intangible product (software), as opposed to the tangible products of manufacturing.
Logistics companies are involved in global supply chains and serve customers in both
domestic and international markets. Once a global supply chain is established, the activities
of logistics companies can cooperate in the most complete way possible in manufacturing,
processing, ordering, distribution and delivery of finished products to customers.

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1.5.8. Customer-Centric Approach
It is the responsibility of the logistics company to identify customer needs and
provide services based on these needs using cost-effective means. From the first transaction
with a customer to the proper resolution of any issues that arise, the quality of customer
service is critical to retaining existing customers and attracting new ones. The quality of
customer service contributes to increasing customer satisfaction and improving the
reputation of the logistics company. The income of a logistics company primarily comes
from the area of additional labor associated with an increase in internal distribution volumes.

1.5.9. Collaboration and Coordination

Logistics companies carry out complementary circular processes when providing
goods and services necessary for production and daily life (value-added services). Logistics
companies create added value by transporting products produced by manufacturing
companies and meeting customer needs such as complete, synchronized and timely delivery
of goods at agreed locations, times and prices. Services not only improve the quality of
consumer services, but also compete effectively with competitors to attract customers,
expand markets, and improve business efficiency. Therefore, logistics enterprises should
focus their business activities on customer innovation, put customers at the center of
business, and continuously improve the satisfaction of the ever-increasing consumer
demands through service methods, fair prices, and customer service activities. To fulfill this
function, logistics companies must cooperate and coordinate with other companies in various
fields such as finance, banking, and insurance to provide the best possible service to their
customers.

1.5.10. Labor Productivity

Logistics companies specialize in service activities, so they can leverage their
strengths to establish distribution channels that help customers select appropriate products of
different quality and price, and deliver products according to consumer needs. The
calculation and determination of labor productivity in logistics enterprises has specific
characteristics. To avoid duplication of calculations and accurately reflect labor productivity
in the logistics sector, it is necessary to analyze closely related business activities and
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compare input sources and production efficiency, such as: transportation costs relative to
sales, sales relative to average storage costs, quantity of goods arriving at the warehouse
relative to labor hours, etc… Furthermore, assessing labor productivity is particularly
meaningful when comparing the activities of a logistics company with other companies or
with the industry as a whole.
Additionally, comparisons between different phases and periods (comparison with the
previous period, comparison with the same period last year) are required.

1.6. Services provided by logistics companies

According to Clause 3 of Article 7 of Decree 38/2017/ND-CP, logistics services are
commercial activities in which traders organize and carry out one or more tasks, including:
receiving, transporting, storing and storing the goods, customs clearance and other
documentation, advising the customer, packaging, labeling, shipping or any other services
for a fee agreed with the customer in relation to the goods. Logistics services provided by a
company may include container loading and unloading services, excluding services provided
at airports. Container yard services are part of support services for maritime transport, and
yard services are part of support services for all types of transport. Other services may
include express delivery services, freight transportation services, customs services (including
customs clearance services), and various other services agreed between the logistics service
provider and the customer in accordance with the basic principles of commercial law .

CHAPTER II. REALITY OF THE LACK OF LINK BETWEEN LOGISTICS

SERVICE PROVIDERS IN THE VIETNAMESE MARKET
2.1. Symptoms of the lack of business links
Talking about the lack of links between businesses providing logistics services in
Vietnam, the most obvious point is shown in the scale structure of both capital and human
resources of the businesses. Accordingly, medium, small and micro enterprises account for a
high proportion of the Vietnamese market, with 90% of registered enterprises having capital
of less than 10 billion VND, many of which are family businesses with no professional
working process. This situation has been going on in our country for many years but there

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has not been a clear improvement, businesses have not actively cooperated to connect the
value chain and provide integrated logistics services.

Table 1. Statistics on the number of logistics service enterprises by labor size in 2018

Next, the impacts of increased connectivity for businesses in Vietnam have not
received a strong response. Participating in Logistics Industry Associations is a bridge to
help businesses expand their scale, but the participation rate is still bleak. The number of
businesses registered to participate in the logistics field is quite large, nearly 300,000
businesses, but only 745 businesses participate in the VLA Association (Vietnam Logistics
Services Business Association).

Currently, many businesses focus too much on their core business but do not pay
attention to services that add value to customers. For example, warehouse operators often
only care about how many containers enter the warehouse a day. But when customers need
other services such as changing stamps or attaching stamps, these companies can not fulfill
their requirements, leading to businesses losing competitiveness in the market. For another
example, with the seaport segment, some businesses only invest in lifting and lowering

15
equipment, but when there are oversized or overweight shipments, they have to hire outside
partners, without prior preparation or cooperation, which wastes a lot of time and expense.

On the other hand, businesses in Vietnam have not exploited the potential of Logistics
infrastructure. Due to their small scale, often focusing on one stage in the supply chain, our
country's businesses have not yet progressed to planning and realizing the economic
potential of our country's infrastructure. Currently, our country has 5 modes of transport
(road, sea, railway, inland waterway and air) that the Government prioritizes for
development, but the development is not synchronous and is still weak, not meeting the
needs of the government. multimodal transport requirements, increased development of
supply chains and logistics services. For example, the Hon Gai seaport area, although it is a
potential seaport to become a key port of Vietnam, it has not been able to fully develop
because of high inland transportation costs after the port. The maritime industry here has not
yet developed added services for customers, they cannot provide full logistics services to
meet high-level jobs such as machinery maintenance or ship repair and must mobilize
human resources from Hai Phong port. In addition, Vietnam Logistics transport still
depends heavily on roads and has not exploited the potential of other modes of transport.

Figure 1. Structure of transportation and circulation of goods by transport industry in 2023

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 The above situations have led to the most direct impact of the lack of business links:
high logistics costs in Vietnam compared to the region. Domestic shipping costs are
generally high, causing inconvenience for customers when using the service, and affecting
the development of the Logistics industry. According to a report by the Vietnam Logistics
Services Business Association (VLA), logistics costs in Vietnam are estimated at 16.8% of
GDP, while according to Armstrong's report, this cost in Thailand is 15% and in Singapore
8.5%. More noteworthy, with the textile industry being one of the industries contributing to
large export turnover in our country, logistics costs are currently significantly high compared
to other countries in the region. Specifically, costs in Vietnam are 6% higher than in
Thailand, 7% higher than China, 12% higher than Malaysia and 3 times higher than
Singapore. Due to the lack of cooperation between businesses to optimize the value chain,
the supply process in our country still has many ineffective steps, causing waste in terms of
costs and reducing the competitive advantage of local businesses.

Figure 2. Logistics cost statistics on GDP in 2018

2.2. The lack of link between logistics service providers in the Vietnamese market
According to Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department
(Ministry of Industry and Trade), in addition to the achievements of the logistics industry in
Vietnam, there are still some limitations such as not fully exploiting the economic
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advantages and corresponding potential of each locality; infrastructure serving logistics
activities as well as the connection between commercial infrastructure, transportation
infrastructure, information technology infrastructure. Both domestically and within the
region are still low, so the efficiency of logistics operations is still limited. Service costs are
still high, and the quality of some services is not high. In the current market conditions of
Vietnam’s service provision, there is fierce competition.
According to him, the cause of this situation is the lack of connection between the
parties of the supply chain and related parties of the industry, as evidenced by the low rate of
outsourcing logistics services in Vietnam compared to other developed countries.
The professionalism of the logistics industry is not high, and it has not created trust
for partners. The thinking of many manufacturing and trading enterprises still follows the
direction of self-contained, local production, for their own interests without recognizing the
benefits of linking logistics service providers together to form a complete service network
for businesses using logistics services.
Tan Cang Cai Cui Port in Can Tho is a logistics center with strengths in
transportation. Just over 2km away, in Hau Giang province, there is a logistics center with a
cold storage warehouse that is gradually forming, belonging to one of the four logistics
centers of the Mekong Logistics Center project in Song Hau Industrial Park, Hau Giang
province. That means Hau Giang province will have to invest in the remaining 3 centers
instead of linking and cooperating with Tan Cang Cai Cui Port. Therefore, these two
logistics centers can only provide a certain type of logistics service, reducing the ability to
compete with logistics enterprises.
According to Mr. Tran Duc Nghia, Vice Chairman of the Hanoi Logistics
Association, although businesses and shippers have cooperated with logistics units, they
have not gone deep enough and still follow the seasonal model, so they have not formed a
network of goods and service supply to consumers, reducing economic efficiency and
competitiveness of goods between parties.
As mentioned above, due to the weak connection between logistics service providers,
domestic logistics companies tend to use logistics services of foreign companies. This leads

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to weaker connections between domestic logistics companies because of the lack of
conditions for development.
Ms. Tran Hoang Yen, Deputy Head of the Representative Office of the Vietnam
Association of Seafood Exporters and Producers (VASEP), said that this industry has
exported to nearly 170 markets, including the largest and most demanding ones. In 2022,
seafood exports reached $11 billion for the first time.
Therefore, the role of logistics (cold storage, domestic road transport, sea import-
export transport, document services…) is extremely important in the cold seafood
production-supply-export-import chain. Logistics usually accounts for 6-7% of the cost of
cold seafood products for export and import1.
Ms. Yen said: “Cold storage plays an indispensable role in the seafood production-
supply chain, ensuring the quality of the product. The storage conditions of cold storage
determine the quality of seafood products. However, the shortage of cold storage, especially
during peak periods or when encountering market difficulties, still occurs. Most seafood
companies have to invest in cold storage to complete the process. But this capacity is usually
only enough for the company itself for a few days of production,” Ms. Yen pointed out the
shortcomings.
According to your message, most commercial cold storage facilities and services are
owned by foreign companies with large capacities such as SWIRE Pacific, AJ, LOTTE,
Preferred, etc. Commercial cold storage facilities for cold seafood import and export are
mainly located in the South; there are very few such facilities in the North and Central
regions, which have somewhat limited seafood production and trade activities. In addition,
to export to the EU, cold storage facilities must have an EU Code, but currently, no facility
has been granted one.
Also, at the “Logistics promotes industry linkages and value chain enhancement”
conference, Mr. Nguyen Cong Cuong, Vice Chairman of the Hanoi Association of Major
Industrial Product Manufacturing Enterprises (HAMI), said that in the context of the
economy facing many complex and unstable fluctuations like today, global inflation,
although it has cooled down, is still at a high level; slow recovery and declining demand

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from major trading partners have posed significant challenges for the manufacturing and
logistics industries.
Therefore, it is important to address the issues that still exist in the Vietnamese
logistics industry, especially to promote the connection between logistics service providers.

CHAPTER III. SOLUTIONS TO REMEDY THE LACK OF LINK BETWEEN

LOGISTICS SERVICE PROVIDERS IN THE VIETNAMESE MARKET
3.1 Operating trends of logistics service providers
3.1.1. Trends in the international market
In the international market, the operating trends of businesses providing Logistics
services have many fluctuations and major changes to promote fast and convenient
transportation processes, ensuring a transparent and fast chain. quickly.

First, digitalization and technology integration have shaped many important trends in
the logistics service industry. Advanced technologies such as IoT (Internet of Things), RFID
(Radio Frequency Identification) and GPS are integrated to real-time track and display the
status of shipments. Blockchain has been widely deployed to ensure transparency and
security in transactions across the supply chain.

Data analytics is playing an important role in predictive maintenance, demand

forecasting and logistics optimization. In the e-commerce and last-mile delivery space, the
rapid growth of e-commerce has created a growing demand for effective last-mile delivery
solutions. Companies are investing in robotics and automation to streamline warehouse
management and improve order fulfillment.

With the goal of increasing sustainability and environmental friendliness, logistics

businesses are focusing on reducing their environmental impact through the use of electric
vehicles, alternative fuels and route optimization. to reduce carbon emissions.

Events like the COVID-19 pandemic have highlighted the importance of building
resilient and flexible supply chains. Companies are reassessing and diversifying their supply
chain strategies to minimize risk and disruption.

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 In the area of customs and trade compliance, adaptation to changes in international
trade regulations and customs requirements is a priority. Digital platform integration
simplifies the customs clearance process and minimizes delays.

Collaboration in logistics and building strategic partnerships between logistics service

providers is key to improving efficiency and reducing costs. At the same time, a focus on
customer experience is more important than ever, with providing real-time visibility,
personalized service and effective communication throughout the operations process.
transfer.

Finally, Reshoring and Nearshoring trends are emerging as many companies reassess
their global supply chain strategies, shifting to onshore or nearshoring to reduce dependence
on distant suppliers and improve efficiency. improve flexibility.

3.1.2. Trends in the Vietnam Trade

In Vietnam, due to the influence of rapid changes in the Logistics sector and the
development of e-commerce and digital, the industry's market trends are also clearly
affected.

The e-commerce boom is creating significant growth in the logistics industry in

Vietnam. This trend places an increasing demand on efficient last-mile logistics and delivery
solutions. Logistics providers are adapting flexibly to handle growing volumes of small
parcels and respond quickly and reliably to delivery services.

Infrastructure development is a key factor, requiring continued investment in roads,

ports, and airports. These efforts to improve the efficiency of transportation and logistics
networks, especially in key economic zones and industrial zones, are contributing to the
development of logistics activities.

To facilitate Customs and trade, efforts are continuing to simplify customs procedures
and improve trade facilitation. Applying digital platforms and systems in customs
procedures reduces paperwork and speeds up processing.

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 In the context of cross-border trade growth, a focus on key trading partners within and
beyond the region is important. Logistics providers are adapting their services to support the
efficient movement of goods across borders.

To implement sustainability, the logistics industry in Vietnam is increasing awareness

and implementing sustainable logistics activities to reduce environmental impact.
Technology adoption, as well as the use of green technologies and practices, is being
accelerated to meet global sustainability trends.

Integrating technology such as IoT and RFID for real-time shipment tracking and
monitoring is helping to improve management capabilities. Use of digital platforms is also
increasing to provide supply chain visibility and create collaboration between stakeholders.

Strategic partnerships and alliances are being promoted, combining logistics

companies, suppliers and other stakeholders to provide integrated and end-to-end logistics
solutions. Government initiatives are also providing support through policy and regulatory
measures, aimed at attracting foreign investment and promoting trade.

The rise of third-party logistics (3PL) is creating increased dependence, allowing

businesses to focus on their core competencies in an increasingly complex logistics
environment.

3.2. Solutions for the lack of link between logistics service providers in the Vietnamese
market

To promote the development of the logistics industry, in addition to the fundamental

solutions that are being actively implemented such as improving mechanisms, policies,
business environment reform, improving logistics infrastructure, strengthening digital
transformation and information technology application, developing human resources,
improving the quality of logistics service enterprises, developing production, import and
export to create sources of goods for the logistics industry, it is necessary to focus on
consolidating and strengthening the connections within the industry.

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 Specifically, it is necessary to strengthen the implementation of links between
economic regions, including inter-regional and intra-regional links in building the logistics
system. Improve transportation infrastructure and appropriate logistics centers to maximize
the advantages of each region and locality. At the same time, strengthen coordination among
management agencies, ministries, sectors, and localities in building and implementing
logistics operation mechanisms and policies and other support policies. Thereby, creating
unity, consistency in management views, building and implementing development policies
for the industry as well as quickly handling difficulties and obstacles of enterprises.

In addition, it is necessary to eliminate the mindset of individual and local interests at

the expense of common interests. At the Investment and Logistics Business Attraction
Conference in the Mekong Delta region on January 9, 2017, former Deputy Prime Minister
Vuong Dinh Hue said that the problem of linking logistics service providers is a connectivity
problem, and it is necessary to solve this problem. If businesses continue to be scattered and
small, the logistics industry in Vietnam will be very difficult to develop.

There must be businesses with enough stature to connect small logistics service
providers operating in the Vietnamese market.

Limited Liability Company SCHENKER Vietnam has been operating since 2007 and
has become a “bridge” between transport service providers with the capacity to operate
freight transport vehicles in Vietnam and customers with transportation needs in Europe.
When Vietnamese transport companies lack customers, SCHENKER will help them
optimize their transportation capacity with the number of customers that SCHENKER can
connect with in Europe.

The coordination and connection between state management agencies and businesses
through associations as bridges play an important role. Therefore, it is necessary to
strengthen the connection between logistics business associations and industry associations,
between logistics companies and manufacturing and trading enterprises.

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 It is necessary to have a connection between logistics enterprises and manufacturing
and export enterprises to promote the sharing of knowledge and experience, build trust
among enterprises such as searching, sharing orders, reducing logistics costs, and improving
competitiveness for Vietnamese products and goods.

“Strengthening cooperation and connection between the parties of the supply chain,
between associations and businesses is entirely within control and can be implemented. The
important thing is that there must be businesses, individuals with enough heart, stature,
enthusiasm, reputation, and actively connect, from which long-term cooperation can be
established, helping the Vietnamese logistics industry to develop sustainably,” emphasized
Mr. Tran Thanh Hai at the “Logistics promotes industry linkages and value chain
enhancement” conference.

To promote the development of the logistics industry, it is necessary to strengthen

cooperation between universities and businesses in training and developing human resources
to serve the logistics industry. Developing training programs that link universities and
businesses, combining theory and practice, helps to develop a high-quality logistics
workforce with good skills that meet the practical needs of the job immediately after
graduation.

These activities require not only the initiative of logistics service providers and users
but also support policies, sharing, and responsibility from state management agencies.
Government agencies need to create a supportive environment and encourage cooperation in
the logistics sector, implement policies to encourage multi-disciplinary and multi-functional
human resource training, support policies, investment in logistics infrastructure, especially
strengthening the implementation of links between economic regions, including inter-
regional and intra-regional links in building the logistics system. In addition, it is necessary
to strengthen coordination among management agencies, ministries, sectors, and localities in
building and implementing logistics operation mechanisms and policies and other support
policies. Thereby, creating unity, consistency in management views, building and
implementing development policies for the industry as well as quickly handling difficulties

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and obstacles of enterprises. The coordination and connection between state management
agencies and businesses through associations as bridges play an important role.

In addition, the application of digital technologies has also become an important

factor to promote connectivity in the logistics industry. Some important technologies include
blockchain, API integration, cloud-based solutions, and data format standardization.

Blockchain, when deployed in the supply chain, provides security, transparency and
traceability across the entire process. Not only does it help streamline documentation and
reduce errors, but it also enhances trust between stakeholders.

API integration makes connectivity between logistics systems even more powerful.
This facilitates real-time data exchange and enhances interoperability between partners.

The cloud-based solution offers the convenience of accessing and updating real-time
information from multiple stakeholders at the same time. This ensures that relevant data is
available to everyone immediately.

Standardizing data formats helps create a common language in the logistics industry,
thereby creating effective interaction between different systems.

Additionally, creating a common data sharing space is an important step.

Collaboration platforms and networks help logistics providers, suppliers and customers share
information and work together to solve common challenges. The data sharing agreement sets
out clear rules for data sharing, usage and security measures, ensuring confidentiality and
transparency.

Investing in a supply chain visibility solution creates real-time shipment tracking and
monitoring capabilities, helping to provide accurate and timely information to all
stakeholders. At the same time, cross-functional training for employees in logistics
businesses helps them understand the importance of effective collaboration and
communication, thereby creating a positive common working environment.

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 Industry associations and forums play an important role in creating opportunities to
meet, network and share knowledge. These platforms are where businesses can discuss
common challenges and share the most effective methods to solve them. Thus, the smart
application of digital technology not only enhances performance but also expands the space
for cooperation in the logistics industry.

CONCLUSION

In the context of the world’s strong logistics development, which has become one of
the leading factors in measuring a country’s competitiveness, Vietnam is also on the rise
with many opportunities. With its strategic geographical location and stable political
situation, Vietnam has attracted the attention of international investors and businesses. This
creates a great opportunity for Vietnam to develop its logistics industry and take advantage
of its strengths in increasing competitiveness in the international market.
However, to achieve competitiveness in the logistics sector, logistics service
providers and users in Vietnam need to strengthen their links to create an effective logistics
service operation chain. At the same time, the government needs to implement reasonable
policies to develop the domestic logistics market in line with its evaluated potential. In
addition, businesses should apply advanced technology development and digital
transformation in logistics to create a shared data space for businesses.
In summary, with the potential for Vietnam’s logistics development, solving the
problem of the lack of connection between logistics service providers is crucial. In the
context of the increasing transportation and trade between countries around the world,
Vietnam needs to quickly overcome the consequences of this issue to develop and build a
strong logistics industry, becoming one of the financial pillars for the country.
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 Our group would like to express our sincere gratitude to MA Pham Thanh Ha for her
dedicated guidance and support in answering our questions, which helped us complete our
essay. Due to our limited knowledge and experience, our essay may have some
shortcomings. We hope to receive constructive feedback and suggestions from our teachers
and classmates to improve our work.
Thank you very much!

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