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Report-InterLOG Final

This document is a group assignment from the National Economics University focusing on the evaluation of InterLOG, a Vietnamese logistics service provider, and its strategies for penetrating the international market. It covers the company's profile, services, business environment analysis using PESTLE and Porter's 5 Forces, and recommendations for future growth. The assignment aims to assess InterLOG's business performance and prospects in the logistics industry, particularly in relation to its partnership with Daiichi Kamotsu.

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0% found this document useful (0 votes)
124 views52 pages

Report-InterLOG Final

This document is a group assignment from the National Economics University focusing on the evaluation of InterLOG, a Vietnamese logistics service provider, and its strategies for penetrating the international market. It covers the company's profile, services, business environment analysis using PESTLE and Porter's 5 Forces, and recommendations for future growth. The assignment aims to assess InterLOG's business performance and prospects in the logistics industry, particularly in relation to its partnership with Daiichi Kamotsu.

Uploaded by

Đỗ Phong
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 52

NATIONAL ECONOMICS UNIVERSITY

SCHOOL OF ADVANCED EDUCATION PROGRAM


=====000=====

GROUP ASSIGNMENT
SUBJECT: INTERNATIONAL SERVICE BUSINESS
TOPIC: “Choosing a Vietnamese Logistics Service Provider to Penetrate
the International Market and Evaluating the Business Performance of the
Company, Prospects and Recommendations”

GROUP 2 : Đỗ Hải Phong - 11225088

Nguyễn Thị Hà Vy - 11226997

Nguyễn Thành Hiếu - 11222336

Nguyễn Đức Hiếu - 11222317

Phạm Hồng Anh Đức - 11221399

Hoàng Tâm An Khanh - 11223003


CLASS : International Business Management AEP 64D

LECTURER :

Hanoi, 03/2025
Table contents
A. ABOUT INTERLOG ..................................................................................................................... 3
1. Company Profile ........................................................................................................................ 3
4. Global network system .............................................................................................................. 4
5. Services ....................................................................................................................................... 5
5.1. International Freight Forwarding ....................................................................................... 5
5.1.1. Sea freight forwarding ................................................................................................. 5
5.1.2. Air transportation of international goods .................................................................... 6
5.2. Inland transportation .......................................................................................................... 6
5.3. Customs Brokerage ............................................................................................................. 6
5.4. Warehousing & Fulfillment ................................................................................................ 7
6. InterLOG's customers and scope of operations ........................................................................ 7
6.1. Interlog's target customers .................................................................................................. 7
6.2. The scope of operations and position of the company in the market.................................... 8
B. BUSINESS ENVIRONMENT ..................................................................................................... 10
1. Macro Environment – applying PESTLE ............................................................................... 10
1.1. Politics ............................................................................................................................... 10
1.2. Economics ......................................................................................................................... 11
1.2.1. Economics Growth..................................................................................................... 11
1.2.2. Labor Cost ................................................................................................................. 13
1.2.3. Yen exchange rate...................................................................................................... 13
1.3. Social................................................................................................................................. 14
1.3.1. Population and Labor Forces .................................................................................... 14
1.3.2. Location and Climate Factors.................................................................................... 15
1.4. Technology ........................................................................................................................ 16
1.4.1. Automatic Technology ............................................................................................... 16
1.4.2. Innovation in technology ........................................................................................... 17
1.5. Environment ...................................................................................................................... 18
1.6. Legal.................................................................................................................................. 19
2. Micro Environment – applying Porter’s 5 Forces Model ....................................................... 20
2.1. Industrial competitors........................................................................................................ 20
2.2. Threat from new entrants .................................................................................................. 22
2.3. Bargaining power of suppliers........................................................................................... 25

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2.4. Bargaining power of buyer ................................................................................................ 26
2.5. Threat of Substitution........................................................................................................ 27
C. Evaluation of InterLOG's service business performance, prospects and recommendation ...... 29
1. Evaluation of InterLOG's service business performance ....................................................... 29
1.1. Business results 2020-2023................................................................................................ 29
1.1.1. Revennue ................................................................................................................... 30
1.1.2. Cost ............................................................................................................................ 30
1.1.3. Profit.......................................................................................................................... 32
1.2. Sustainable Ecosystem ..................................................................................................... 33
1.2.1. Retail business ........................................................................................................... 33
1.2.2. Wholesale business .................................................................................................... 34
1.2.3. Invest ......................................................................................................................... 35
2. Industry Outlook ..................................................................................................................... 36
2.1. Industry Trends in Japan .................................................................................................. 36
2.1.1. Sustainable Development Trends ............................................................................... 37
2.1.2. Trend of reducing transportation costs ...................................................................... 38
2.2. Recommendation ............................................................................................................... 38
2.2.1. Challenges InterLOG Faces in the Japanese Market ................................................ 38
2.2.2. Recommendation ....................................................................................................... 39
D. COMPREHENSIVE PARTNERSHIP – DAIICHI KAMOTSU AND RELATIONSHIP WITH
INTERLOG ......................................................................................................................................... 41
1. Overview of Daiichi Kamotsu Company ................................................................................. 41
1.1. History of formation and development .............................................................................. 41
1.2. Field of operation .............................................................................................................. 42
2. Activities between the two parties ........................................................................................... 42
2.1. The first step of strategic cooperation is to create development opportunities ................... 42
2.2. Daiichi Komatsu's supply chain and the role of InterLOG ................................................ 43
2.3. InterLOG's supply chain and the role of Daiichi Komatsu ................................................ 45
3. Assess engagement, relationships and performance ............................................................... 45
PEER VALUATION ........................................................................................................................... 48
REFERENCES .................................................................................................................................... 49

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A. ABOUT INTERLOG
1. Company Profile
 Company name: InterLogistics
International Freight Forwarding
Co., Ltd
 Business type: Service
 Business Department:
o Logistics - Logistics Services
o Customs - Customs services, customs declaration
o Warehouse - Rental Warehouse
 Main markets: National and international
 Tax ID: 0303957341
 Year of establishment: 2005
 Number of employees: 201-300 people
2. Introduction

InterLOG International Freight Forwarding Company was established in 2005,


formerly known as Interlink Group System (established in 2002). Against the
backdrop of Vietnam's economic opening-up, the demand for domestic import and
export transportation and logistics of goods continues to grow. InterLOG quickly met
the requirements of a company that provides freight forwarding and customs
clearance services. InterLOG was established on the basis of 100% Vietnamese
capital.

By 2017, 30% of the company's shares will be held by Japanese company Daiichi
Kamotsu. InterLOG has established and strived to become an international standard
logistics service provider with a perfect supply chain in Vietnam and Southeast Asia. The

3
company pursues the mission of creating the best value chain for customers, communities
and enterprises.

CP International Transportation Receiving Company (Interlog) specializes in


providing logistics services, including: sea transportation, air transportation, domestic
transportation, LCL retail assembly services, customs services and warehouses.

3. The process of formation and development


 2005: InterLOG company headquartered in Tokyo was established. HCM has only about
10 employees.
 2006: Trademark confirmation: obtained strong trademark certification in Vietnam.
 2008 was an important milestone, which confirmed the strong development of InterLOG
and became one of the standard customs agents certified by the General Administration
of Customs of Vietnam.
 2013: Expand the market: set up a representative office in Hanoi.
 2016: Set up a representative office in Haiphong.
 2017: Becoming a strategic partner of Daiichi Kamotsu (with more than 75 years'
experience in the field of logistics) marks a major turning point towards improving and
improving the quality of logistics services in Vietnam and Japan.
 2021: Revenue increased by 42% compared with 2020, with more than 200 employees,
developing distribution and logistics services for e-commerce.
 2022: Win the top ten awards in the Asia-Pacific region, expand the market share in the
central region, and expand DDP services to the United States-professional handicraft
transportation.
 2023: Won the TOP Industry 4 Award. 0 Vietnam 2023
4. Global network system
InterLOG keeps confidence and conquers partners in the most challenging markets
such as Japan, South Korea, Taiwan Province, Singapore, the United States and Britain. ..
the dealer network connects more than 60 countries around the world.

4
5. Services
InterLOG focuses on the development of core services such as import and export cargo
transportation receipts; Transport n. V.O.C.C and LTL (land transport retailers): customs
agents....
5.1. International Freight Forwarding
5.1.1. Sea freight forwarding
 Full container loads services (FCL) More goods, fewer containers. FCL is an
original form of container cargo transportation, which is suitable for enterprises
that need to transport a large number of goods, and helps to save time and reduce
the risk of damage or loss of goods.
 Less than container load services (LCL) Fast. Secured. Convenient. InterLOG is
a prestigious collection expert in the industry with nearly 20 years of experience.
The warehouse network is spread all over the country, from north to south.
InterLOG improves and optimizes services to speed up transportation at
competitive cost.

5
5.1.2. Air transportation of international goods
As the shareholder of ASEAN Cargo Gateway (ACG), InterLOG has the right to operate
flights to strategic countries in Southeast Asia. This has accelerated the process of international
shipping.
5.2. Inland transportation
 North-South transportation
o Tien Son Port - Vietnam's first European standard shallow water port. The
warehouse has a total area of 40. Covering an area of 3,000 square meters, the
container yard covers an area of 37 square meters. Three hundred square feet.
Connect to most strategic ports in China and other countries.
o Tan Van Port - Pioneer applied intelligent technology. The most advanced
technology (intelligent information technology system, modern cargo safety
system). It is a combination of traditional warehouse mode and modern container
yard.
 Road transport service (CY truck): It owns WR1 company and is one of the transport
alliance enterprises, connecting the car owners' networks all over Vietnam. In
particular, WR1 also adopts advanced TMS cargo transportation management
technology, which makes the digital management of cargo transportation process
easier. Impressive figures: 50 tractors; 80 moles; 100 trucks; 9.000+ times per year.
 Heavyweight goods transportation services: InterLOG is one of the very few
corporations that can handle heavyweight goods transportation effectively. Under
our execution, giant and undetachable large equipment will be handled carefully and
seamlessly.
5.3. Customs Brokerage
17+ years of experience; 20,000+ customs declarations per year; 15,000+ shipments per
year
 Comprehensive custom consulting
 Import/Export goods clearance
 Specialized checking

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 Customs procedures for used machinery
 Add-value services (C/O, fumigation, animal/plant quarantine,...)
5.4. Warehousing & Fulfillment

Warehousing and Fulfillment services at InterLOG stand out with a large-


scale infrastructure system, warehouses with optimal storage area and investment in
modern equipment.

Warehouses in key locations: Binh Chanh Warehouse & C4B Warehouse,


connecting with main delivery routes nationwide.

o Warehousing & Fulfillment


o Storage
o Packing & labeling
o Loading and unloading of goods
o Distribution
o Order fulfillment
o Inventory management
6. InterLOG's customers and scope of operations
6.1. Interlog's target customers
 Interlog's customers include two main groups of customers:
o Manufacturing companies, factories, enterprises, FDI enterprises and
logistics companies. When the company was first established in 2005,
InterLOG maintained its old customers from the sharing of Interlink
Group, the main customers were those who needed to import raw
materials for production and export for companies producing handicrafts,
rattan and bamboo.
o These industrial zones.
 After a few years of establishment, to meet market demand, Interlog focused
on FDI enterprises, enterprises importing raw materials for production from

7
Asia and Europe; Factory and enterprise areas include: NIDEC SANKYO
VIETNAM, NIDEC TOSOK VIETNAM, NISSEI, ELECTRIC VIETNAM
CO, KYOWA VIETNAM, OKATSUNE VIETNAM,..,

The reason the company focuses on Japanese customers is because Japanese


customers have a more regular amount of goods and rarely change service providers if the
company's quality and efficiency are maintained. Working with a demanding partner like
Japan is also an opportunity for InterLOG to affirm its quality and reputation.

6.2. The scope of operations and position of the company in the market

Interlog operates with its headquarters in Ho Chi Minh City and representative
offices in Hai Phong and Hanoi. It can be said that the company's services are provided to
businesses from the South to the North. Interlog approaches the market by focusing on
customers using one or more of the company's services in freight forwarding,
transportation, warehousing, storage, customs procedures, etc. for routes to Asia, Europe,
and America.

In addition to its advantages, to develop into a reputable 3PLs (3rd Party Logistics)
service provider, Interlog needs to clearly identify competitors in the industry:

8
 Competitors in freight services such as: Focus Shipping, Golden Link Joint
Stock Company, Smartlink logistics,...
 Competitors in the full container consolidation segment. VVMV, Yusen,
Nippon, Kintetsu,...
 Competitors in the LCL segment, Interlog company determines the
development direction to become a logistics service company specializing in
LCL consolidation, good prices to Asian routes. Consol companies in this
segment include: KMG, ASAP, ATA, CPW, Maxpeed,...

9
B. BUSINESS ENVIRONMENT
1. Macro Environment – applying PESTLE
1.1. Politics

Prime Minister Nguyen Xuan Phuc holds


talks with Japanese Prime Minister Shinzo
Abe.

Infrastructure development policy: The Japanese government has


always prioritized the development and maintenance of a modern
transportation system, including seaports, airports, and road systems. Japan
has more than 9,000 km of highways and a modern railway system,
supporting the rapid transportation of goods. Seaport systems such as Tokyo,
Yokohama, and Osaka play an important role in supporting imports and
exports. Seaports such as Yokohama handle more than 2.9 million TEUs per
year, making them among the most efficient ports in the world.

International political and trade relations: Japan is a politically stable


country, and one of the world's major economies. Political stability helps
maintain close ties with important trading partners such as the United States,
China, and ASEAN countries, helping to maintain a stable supply chain.
International political factors, such as trade wars or political upheavals in
other countries, can affect the Japanese logistics industry by changing import
and export regulations or creating disruptions in the global supply chain.

10
Import and export support: The Japanese government has signed
many free trade agreements (FTAs) and international cooperation
agreements, facilitating the logistics industry in transporting goods between
Japan and other countries. These agreements not only reduce tariffs but also
simplify customs procedures, minimizing barriers to international trade. One
example is the Vietnam - Japan Economic Partnership Agreement (EPA).
This is Vietnam's first bilateral FTA, effective since 2009. Japan committed
to eliminating tariffs for 96.45% of total tariff lines on Vietnamese goods by
2026

 Japan’s modern transportation system and large seaports provide opportunities


for supply chain optimization, allowing InterLOG to move goods quickly and
efficiently. Free trade agreements, especially the Vietnam-Japan Economic
Partnership Agreement, will help InterLOG reduce shipping costs and simplify
customs procedures, but the company also needs to prepare for future changes in
tariffs and customs regulations to remain flexible and competitive in the market.

1.2. Economics

1.2.1. Economics Growth

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Japan's economy is slowing: Although Japan is the world's third
largest economy, Japan's nominal GDP is forecast to be around $4.07 trillion
in 2024, according to the IMF's World Economic Outlook, and when
adjusted for purchasing power parity (PPP), Japan's GDP is estimated to be
$6.57 trillion. In the fourth quarter of 2024, Japan's GDP grew 0.7% from
the previous quarter, beating market expectations of 0.3%. However, this
growth is still lower than previous periods, reflecting a slowdown in the
economy. Weak GDP growth can impact consumer demand and the need for
logistics services. However, the logistics industry still maintains an
important role in supporting trade and manufacturing, especially in the
context of Japan being a major production and consumption center for high-
tech goods, automobiles, and electronics. The size of Japan's logistics
market is expected to reach US$335.8 billion in 2025 and increase to
US$406.7 billion in 2030, with a compound annual growth rate (CAGR) of
3.9%.

Impact of COVID-19: The COVID-19 pandemic has affected global


supply chains, disrupting international shipping and trade routes. The
logistics industry has faced a shift in demand as companies and individuals
have shifted to online shopping, leading to a strong growth in demand for
fast delivery and last-mile delivery services. Indeed, in 2020, global e-
commerce sales grew by around 27.6% to reach $4.28 trillion. This has led
to a strong demand for fast delivery and last-mile delivery services.

Consumer Price Index (CPI): Core consumer inflation (excluding


fresh food) reached 3.2% in January 2025, a 19-month high. Headline
inflation, including fresh food, reached 4.0% in January 2025, up from 3.6%
in December 2024. This puts pressure on logistics companies to keep prices

12
stable. At the same time, demand for transportation decreases as consumers
tighten their spending, forcing companies to optimize their supply chains to
cope.

1.2.2. Labor Cost


Japan is facing one of its biggest problems: an aging population and
a labor shortage. It is estimated that Japan will have a shortage of more
than 11 million workers by 2040. Currently, Japan's workforce is only about
67 million people. This is especially evident in the logistics industry, which
requires a large number of truck drivers, warehouse workers, and operators.
The labor shortage could lead to increased labor costs and affect the
efficiency of the industry. In 2025, Japan's largest labor union has called for
an average wage increase of 6.09%, the highest in more than 30 years. This
follows a 5.1% wage increase in 2024, reflecting the trend of wage growth.

Solutions to labor shortages: Japanese logistics companies are


investing in technology to replace some of their labor. For example, the use
of automated robots in warehouses, self-driving trucks, and the application
of technology to automate shipping routes can help reduce the reliance on
manual labor. According to data from the Japan Robot Association, Japan
will have deployed more than 400,000 industrial robots by 2024, leading the
world in automation.

1.2.3. Yen exchange rate

Exchange rates affect international logistics costs: In October 2022,


the yen fell to 147 yen per dollar, its lowest level since 1998. This
significantly increased the cost of imports, especially energy and raw
materials, on which Japan is heavily dependent. However, in early 2025, due

13
to monetary policies and statements from international leaders, the yen
appreciated to 148 yen per dollar. Japan continues to face a trade deficit due
to higher import costs, especially energy and raw materials, amid a weaker
yen in previous periods.

 In regards of economics, the company faces challenges such as slowing


economic growth, labor shortages, and yen exchange rate fluctuations, which
could reduce shipping demand and increase labor costs. However, Japan’s
logistics industry remains stable, especially in the high-tech and e-commerce
sectors, opening up growth opportunities for interLOG. The COVID-19 pandemic
has also boosted demand for fast delivery and last-mile delivery, creating a huge
opportunity if the company capitalizes on this trend.

1.3. Social

1.3.1. Population and Labor Forces

Challenges from an aging population: Japan's current population is


estimated to be around 123 million in 2025. However, Japan is facing a

14
rapidly aging population, with a low birth rate and high life expectancy.
Japan entered a super-aged society in 2018, with people aged 65 and over
accounting for 28.1% of the total population. By 2040, the elderly are
expected to account for around 35% of the total population, meaning that 1
in 3 Japanese people will be over 65. This has led to a change in demand for
logistics services, especially home delivery services. Logistics companies
need to develop services that are suitable for this population, such as flexible
delivery times or providing home support services.

Adapting to the special needs of the elderly: Japan has a large elderly
consumer population, so logistics companies need to develop solutions to
better serve this group, such as "door-to-door" delivery services for medical
products, food or necessities for the elderly. Yamato has launched a special
"Takkyubin" service for the elderly, providing home delivery of medical
products and food.

High population density: Tokyo is the world's largest metropolitan


area with a population of over 37 million, a fact often cited in reports on
urbanization and logistics. Traffic congestion in major cities like Tokyo and
Osaka increases shipping costs and delivery times.

1.3.2. Location and Climate Factors

Strategic geographical location: Japan is located in East Asia, close to


major economic centers such as China, Korea and Southeast Asian
countries. This facilitates international trade and freight transport. As an
island nation, Japan is heavily dependent on maritime transport. Major ports
such as Yokohama, Kobe and Osaka are listed among the busiest ports in the
world, handling millions of containers each year.

15
Terrain and climate: About 70% of Japan's land area is mountainous,
which is mentioned in studies of Japan's geography and infrastructure. Japan
experiences more than 20 typhoons each year, especially in summer and
autumn, which greatly affect sea and land transportation.

 In terms of Social, the company faces challenges such as a rapidly aging


population, labor shortages, traffic congestion in major cities, and mountainous
terrain. The aging population requires flexible delivery services, especially for
medical products and essential goods, while labor shortages can increase costs
and impact operational efficiency. High population density and traffic congestion
will increase costs and delivery times. In addition, geographic and climatic
factors, with frequent storms, will cause disruptions to transportation. InterLOG
needs to optimize services, invest in automation technology, and develop
contingency plans to deal with these factors..

1.4. Technology
1.4.1. Automatic Technology

16
Japan is a leader in the application of automation technology in the
logistics industry. The global warehouse automation market, including
Japan, is expected to grow from $29.6 billion in 2020 to $69 billion in 2025.
Technologies such as autonomous mobile robots (AMRs) and smart
warehouse management systems (WMSs) are being widely deployed to
optimize the storage and sorting process.

Tracking and supply chain management technology: Smart tracking


technology and advanced supply chain management (SCM) systems help
logistics companies optimize shipping routes, minimize delivery times, and
reduce shipping costs. Major companies in Japan are also using big data and
AI to predict demand and manage inventory effectively.

1.4.2. Innovation in technology

Development of electric and driverless vehicles: Japan is a pioneer in


developing environmentally friendly means of transportation. Japan is
testing self-driving trucks and delivery drones in rural areas to address labor
shortages and improve delivery efficiency. Some logistics companies have
reported that using drones can reduce delivery times by 30% compared to
traditional methods.

5G and Connectivity Japan has been rolling out 5G networks since


2020, with the goal of covering 95% of the population by 2024 and 99% by
2031. 5G technology enables faster data transmission, with speeds of up to
20 Gbps, supporting applications such as autonomous vehicles and real-time
tracking of goods.

 Automation and innovation in transportation such as electric vehicles and


driverless vehicles are opening up many opportunities for interLOG to optimize

17
operational processes and improve delivery efficiency. However, to fully utilize
these technologies, the company needs to overcome challenges in terms of initial
investment costs, legal regulations and changes in infrastructure. 5G networks
provide a great opportunity to optimize supply chain tracking and management
processes, but also require interLOG to invest in the right technologies to integrate
into its systems. InterLOG has invested in automation technology and smart supply
chain management (SCM) systems to improve operational efficiency and meet the
needs of the Japanese market..

1.5. Environment

Waste Management: Japan strictly follows the 3R model (Reduce,


Reuse, Recycle). Regulations require waste separation at source and
environmentally friendly waste treatment. Major cities such as Tokyo have
built modern waste treatment plants, helping to reduce the amount of waste
going to landfill.

Paris Climate Agreement: Japan pledges to reduce greenhouse gas


emissions by 60% by 2035 compared to 2013 levels and achieve net zero
emissions by 2050. Logistics companies must comply with stricter

18
environmental standards, including the use of renewable energy and
reducing emissions in the supply chain.

Renewable Energy: Japan aims for renewable energy to account for


40-50% of total electricity production by 2040. Logistics companies can take
advantage of government subsidies to invest in electric trucks, solar power
systems in warehouses, and other green operational solutions.

 With Japan’s increasingly stringent environmental regulations, interLOG can


take advantage of opportunities to improve operational efficiency through the
adoption of green solutions such as electric trucks, renewable energy, and
environmentally friendly automation technology. However, the company faces
challenges related to initial investment costs, regulatory requirements, and
infrastructure transformation to meet its emission reduction and environmental
protection goals..

1.6. Legal

Intellectual Property Rights (IPR) Protection: According to the Japan


Patent Office (JPO), in 2022, there were more than 4,000 patents related to
logistics technology registered in Japan, accounting for about 12% of all
patents in the high-tech industry.

The Japanese government strictly enforces regulations such as the Act


on Industrial Safety and Health, which requires regular health checks for
logistics workers. According to a 2022 survey, more than 95% of logistics
companies have adopted this process to ensure occupational safety.

Labor Law According to the amendments to the Labor Standards Law


in 2024, the maximum working hours for truck drivers are limited to 960

19
hours/year, aiming to improve the health and working conditions of logistics
workers. This also causes a shortage of drivers in logistics.

 Legal regulations such as intellectual property protection, occupational safety


and health laws, along with labor regulations, create both opportunities and
challenges for interLOG in its development. Protecting intellectual property
through inventions and patents will help the company maintain a competitive
advantage, while complying with occupational safety and health standards will
contribute to building a safe and sustainable working environment. However,
requirements on working hours and labor shortages can make it difficult for the
logistics industry in general and interLOG in particular to maintain operational
efficiency. interLOG needs to have a clear strategy to face these challenges, while
taking advantage of opportunities to improve efficiency and maintain sustainable
development.

2. Micro Environment – applying Porter’s 5 Forces Model


2.1. Industrial competitors

Overview of the logistics market in Japan

20
Japan is at the heart of a growing logistics region, with APAC projected to be the
largest logistics market globally due to the positive outlook of emerging economies in the
region. The freight and logistics market in Japan alone is expected to see an annual
growth rate of more than 4% from 2022 to 2027, according to Mordor Intelligence.
Companies such as Schenker-Seino, Sagawa… dominate the market. These companies
have established solid networks and offer a wide range of services, making it difficult for
smaller or new entrants like InterLOG to gain significant market share.

 Key competitor
o Sagawa is one of Japan’s largest transportation and logistics providers,
founded in 1957 and headquartered in Kyoto. With over 57,000 employees
worldwide, the company supports domestic and international shipments and
operates a fleet of over 26,000 vehicles. Services include shipping, express
delivery, mail and last-mile delivery, air freight, and third-party logistics
such as warehousing, inventory management, and packaging. Businesses
can track shipments and manage exceptions.
o Schenker-Seino is a global transportation and logistics provider based in
Japan with over 140 years of history. With operations in over 141 countries
and over 2,000 cities, the company employs over 58,000 people and serves
over 200 countries and territories. As a leading freight forwarder, the
company offers air, sea and road freight forwarding services, as well as
contract logistics services at 850 facilities in 60 countries, covering a total
warehouse area of 8 million square meters. Services include order
fulfillment, e-commerce logistics, production logistics and customs
clearance.
o FedEx, a leading global logistics service provider founded in 1971, has
been operating in Japan since 1984. Serving more than 220 countries and
territories, the company employs more than 600,000 people and processes
12.5 million packages every day. FedEx offers domestic and international

21
express shipping, express delivery (overnight, same day, next day), and
third-party logistics. The company also offers specialized transportation for
sensitive, heavy, and hazardous goods, along with last-mile delivery,
distribution, and reverse logistics.
 Competitive intensity
o Japan’s logistics industry is undergoing an exciting transformation, driven
by cutting-edge technology and a commitment to sustainability. As global
disruptions reshape supply chains, Japan is emerging as a key logistics hub,
thanks to its cutting-edge technology and leading-edge infrastructure.
Despite the challenges of the ‘2024 problem’ – restrictions on truck driver
overtime amid a shrinking workforce – Japan’s logistics industry is
innovating to increase efficiency and improve working conditions. The
integration of multimodal transport systems, including rail and advanced
shipping options, is set to strengthen Japan’s logistics capabilities.
o Speed of delivery is a deciding factor in Japanese consumers’ purchasing
decisions, with same-day delivery almost the norm. The country’s size and
the existence of an efficient logistics industry enable faster deliveries,
making them much faster and more flexible. One interesting thing about
Japanese customers is that they prefer to receive their orders directly from
the delivery driver, so they rarely leave their orders at the door
2.2. Threat from new entrants
 Regulatory requirements
o Japan has strict regulations governing logistics operations, including the
Cargo Transportation Business Act, the Warehousing Business Act, and the
Motor Vehicle Transportation Business Act. These laws ensure safety,
quality, and fair competition.
o The new regulations, detailed in a recent Japan Times article, focus on
several key areas. These include stricter guidelines for cargo handling and
storage, aimed at improving safety standards at logistics facilities. In

22
addition, the regulations introduce enhanced vehicle maintenance and
driver training requirements to enhance the safety and reliability of
transportation. According to industry analysts cited by the Japan Times,
these regulatory updates are expected to prompt logistics companies
operating in Japan to reassess their operational protocols and invest in
compliance measures. This proactive approach is important as companies
must adapt to the revised standards and ensure smooth supply chain
operations. Logistics stakeholders are working with regulators to facilitate
the transition, although the process can be complex and time-consuming,
especially for new foreign companies unfamiliar with Japanese law.
 Capital investment
o In Japan, it is rare for modern logistics facilities to be sold outside the same
group. Development funds and developers in Japan typically sell logistics
facilities to core funds and J-REITs within their group. Opportunities for
direct investment without a development pipeline are limited, but that is
changing. The rise of diversified investors and development projects is
driving changes in the market. Until the early 2010s, with few investors and
low market liquidity, developers had to secure their own exits, often setting
up J-REITs and core funds for group transactions. Since 2015, the number
of investors has increased to include life insurance companies and pension
funds, increasing market liquidity and allowing independent developers to
participate. In addition, development projects have skyrocketed, with the
Tokyo Metropolitan Area expected to complete 3 million square meters by
2023—tripling the 2015 level. As J-REITs and core funds can no longer
absorb all the properties, deals with outside groups are on the rise.

23
Quarterly investment in Japanese logistics facilities

o Entering the logistics market in Japan requires large capital investments.


Modern logistics facilities, equipped with advanced technology and
automation, are essential to compete. The cost of acquiring or developing
logistics properties is high, especially in urban areas such as Tokyo and
Osaka, where land is scarce.
 Access to distribution channels
o Japan's current distribution and sales system still bears traces of the
'keiretsu' (related suppliers) system. These larger, integrated business
conglomerates centered around banks and trading companies were deeply
ingrained in Japan's business transaction culture. Although the keiretsu
system has weakened considerably, these conglomerates have business
services in every aspect of a particular industry, from production to
distribution. Their advantages due to economies of scale, existing
relationships and consumer loyalty make them either very convenient and
efficient for those they serve or huge competitors for smaller companies.
The distribution channels these companies control can be a limiting factor
for new exporters to Japan.

24
o Building trust and relationships with distributors and retailers is important
but can take time due to cultural preferences for face-to-face interactions
and loyalty to existing partners, this traditional system can make it difficult
for new entrants to gain access.
o Biggest impact: New regulations may require logistics partners in Japan to
invest in vehicle maintenance systems, driver training and warehouse
improvements. This could increase logistics costs in Japan, leading to
increased costs for shipping goods from Vietnam to Japan. In addition,
InterLOG may need to invest in technology solutions to track and monitor
the supply chain to meet the new requirements.
2.3. Bargaining power of suppliers
 Major suppliers in Japan's logistics sector
Japan’s logistics industry is supported by major companies such as Sagawa,
Yamato, Nippon Express, FedEx, and DHL. These companies provide a wide range
of services, including transportation, warehousing, and last-mile delivery. Their
advanced infrastructure and technological capabilities make them an integral part of
the logistics ecosystem.
 Cost impact
o While the standard annual overtime limit is typically set at 360 hours, the
logistics and trucking industry faces a higher limit of 960 hours due to the
unique nature of its operations. While these regulations are expected to
improve working conditions for drivers, labor shortages, particularly for
long-haul truck drivers, are accelerating, with an estimated shortage of 14%
by 2024 and 34% by 2030 if no action is taken. The impact raises concerns
ranging from reduced revenue for logistics companies, reduced driver
earnings due to shorter working hours, to increased logistics costs for
shippers due to higher freight rates.
o Impact: Limiting overtime hours could reduce driver hours, leading to more
severe labor shortages, especially in long-haul trucking. As the supply of

25
drivers decreases, transport companies may have to raise wages or apply
other incentives to attract workers, thereby pushing up transportation costs.
This could increase logistics costs for goods exported from Vietnam to Japan,
affecting the profits of InterLOG and its customers.
2.4. Bargaining power of buyer
The growth of e-commerce in Japan and the increasing demand for delivery
services are huge growth drivers for the logistics industry in Japan. Coupled with
the country’s high personal wealth, growing economy, and the fact that most people
live in highly urbanized areas, it’s a great market for e-commerce retailers. Large
B2C platforms like Amazon and Rakuten have consistently increased their annual
sales in Japan, but we’ve also seen the rise of C2C platforms like Mercari taking off
— providing an alternative way for consumers to shop, and the growing demand for
smart delivery solutions in a market where consumer expectations for fast and
reliable delivery are extremely high.
Japanese consumers have high expectations when it comes to online
shopping and delivery, which has put a lot of pressure on the logistics industry and
forced it to adapt. Some of the key consumer trends driving this growth in the
industry include: A preference for receiving deliveries from a trusted delivery
company and driver. Accuracy and flexibility in tracking and managing deliveries.
A strong preference for reliable, transparent, and helpful customer service.
A desire for more sustainable delivery processes, packaging, and greater
commitment to environmental issues from e-commerce retailers. The flexibility to
pay the way they want, whether it’s cash on delivery or card. Japan’s manufacturing
industry, including automotive and electronics, relies heavily on logistics for both
domestic distribution and international exports.

26
Japanese consumers tend to prioritize logistics companies that are highly
reliable, from accurate delivery times to driver professionalism. This puts pressure
on InterLOG to ensure that its transportation partners in Japan meet this standard.
The company may need to select and cooperate with reputable transportation units
in Japan, strengthen service quality control to ensure delivery accuracy, and apply
order tracking technology to optimize the delivery process.

2.5. Threat of Substitution


A recent report by Astute Analytica predicts the market will reach a value of
US$4,224.15 million by 2033, growing at a compound annual growth rate (CAGR)
of 12.26% from its 2024 value of US$1,491.81 million. This growth reflects Japan’s
continued commitment to adopting cutting-edge solutions to meet growing
consumer demands, global disruptions, and the growing need for agile, sustainable
logistics networks. Japan’s supply chain management (SCM) is evolving through
increased collaboration and technological advancements. Companies like Yamato

27
Transport partner with supermarkets to share order data, reduce waste, and speed up
delivery.
The Japan Industrial Cooperation Center reports 4,500 cross-industry
partnerships integrating robotics and warehousing, while 2,700 medical device
suppliers use cloud-based tracking. E-commerce is also shaping SCM, with 700
online retailers offering same-day delivery and micro-drones being tested for rural
logistics.
Automation is expanding, with 1,200 factories in Kansai using voice-enabled
picking tools and 400 distribution centers implementing cloud-based warehouse
management. The Port of Yokohama is testing autonomous cargo drones for last-
mile deliveries. With a focus on innovation, collaboration, and sustainability,
Japan’s SCM sector is poised for continued growth and efficiency.
Impact: The rapid transformation of Japan’s SCM forced InterLOG to
improve its operational capabilities, including training its personnel on new logistics
technologies, investing in modern management systems, and developing
cooperation strategies with Japanese partners. If InterLOG fails to keep up with this
trend, it may find it difficult to compete in the Japanese market.

28
C. Evaluation of InterLOG's service business performance, prospects and
recommendation
1. Evaluation of InterLOG's service business performance
1.1. Business results 2020-2023

Indicator 2020 2021 2022 2023

Sales revenue and 265,060,324,850 420,712,087,355 475,151,168,836 513,786,985,313


service provision

Costs 246.050.865.615 393,697,029,052 442,561,464,213 471,240,250,852

Total profit 19,009,459,235 27,015,058,303 32,589,704,623 42,546,734,451


before tax

Tax expense 4,182,081,031.7 5,943,312,826.66 7,169,735,017.06 9,733,972,153.48

Total profit after 14,827,378,203.3 21,071,745,476.34 23,612,352,508.72 32,812,762,299.65


tax

29
1.1.1. Revennue
In 2020, the outbreak of the COVID-19 pandemic caused significant
disruptions to the global supply chain, directly affecting the business operations of
many enterprises. Although InterLOG still maintained certain growth, 2021
witnessed a significant jump in revenue, up 58.7% (from 265,060,324,850 to
420,712,087,355) compared to 2020. This can be explained by the strong recovery
of the economy after the initial recession, along with the increase in demand for
freight transport due to changes in consumer habits and the development of e-
commerce.
However, this growth momentum slowed down somewhat in 2022,
increasing by only 12.9% (from 420,712,087,355 to 475,151,168,836), indicating a
more stable period. The reasons come from new challenges such as rising inflation,
escalating fuel prices and increasingly fierce competition in the logistics market. In
addition, the gradual stabilization of supply chains also reduced the sudden demand
for logistics services compared to the previous year.
In 2023, the growth continued to slow down in 2023, with revenue increasing
by only 8.1% compared to 2022 (from 475,151,168,836 to 513,786,985,313),
indicating increasingly fierce competition in the logistics market. However, with
fuel prices peaking and the market becoming increasingly saturated due to
competition from rivals, the company still has good growth, demonstrating the
correctness of its development policies.
 InterLOG has demonstrated strong and sustainable growth in the 2020-2023 period,
overcoming difficulties caused by the pandemic and challenges from the logistics market.
Although revenue growth tends to slow down, the company still maintains a stable growth
rate.
1.1.2. Cost

In 2021, Expenses increased to VND 393,697,029,052, an increase of


59.9% compared to 2020. This comes from:

30
 Strong recovery of the economy after the pandemic:
o Demand for shipping booms as businesses reopen.
o Carriers expand, hire more staff, and invest in more vehicles.
 In addition, fuel and logistics costs have increased dramatically:
o Ocean and air freight rates have increased many times due to a
shortage of containers and shipping vessels.
o World oil prices have increased, leading to high fuel costs due to
America-China trade war
 Conclusion: Sharp cost increases in 2021 are a result of economic
recovery, rising fuel prices and booming logistics demand after the
pandemic.

In 2022, costs continued to increase to VND 442,561,464,213, but only


increased by 12.4% compared to 2021. The main reasons come from:

 Rising global inflation impacts operating costs


o Fuel prices remain high, putting pressure on transportation costs.
o Rising raw material and labor costs impact vehicle maintenance and
operating costs.
 Supply chains are gradually stabilizing again
o Shipping demand is no longer as sharp as in 2021.
o Sea and air freight rates are gradually adjusting to more reasonable
levels.
 Businesses start to optimize costs
o The company may have improved operating procedures, applied
technology to reduce transportation costs.
o Cut unnecessary expenses, optimize personnel and warehouses
 are still rising but the rate of increase has slowed as the market
stabilizes, inflation rises and the company begins to control costs better..

31
In 2023, the cost increased to VND 471,240,250,852, an increase of only
6.5% compared to 2022.

 Fuel prices to peak in 2023


o Gasoline prices remain high, affecting vehicle operating costs.
o Businesses must optimize routes to minimize fuel costs.
 The logistics market is fiercely competitive
o Businesses must keep their prices competitive and avoid raising
them too high.
o This prevents companies from increasing operating costs too
much and must find ways to optimize operations.
 Applying technology helps control costs better
o Automate logistics processes, reduce personnel costs.
o Use AI to optimize shipping routes, save fuel.

 Although fuel prices and market competition put pressure on costs,


the company has better optimized operations, helping to slow cost growth
to just 6.5%.

1.1.3. Profit

In 2021, Profit after tax increased to VND 21.07 billion, up 42.1%


compared to 2020.

 Strong revenue growth (+58.7%), helping profits increase significantly


despite rising costs.
 Demand for freight transport is high, especially from e-commerce and
the supply chain is recovering.
 A reasonable strategy to expand operations helps the company control
costs better than the increase in revenue.

32
In 2022, after-tax profit reached VND 23.6 billion, an increase of only
12.1% compared to 2021.

 High costs (+12.4%), slowing down profit growth.


 Inflation and rising fuel prices, narrowing profit margins. The logistics
market is gradually stabilizing, no longer experiencing explosive growth
like in 2021.
 Fierce competition forces businesses to keep prices reasonable, unable
to increase service prices too high.

In 2023, profit after tax will reach VND 32.8 billion, an increase of
39.0% compared to 2022.

 Costs increased lower than revenue: Revenue increased 8.1%, while


costs increased only 6.5%, helping profits increase more strongly.
 Businesses optimize operating costs:
o Applying logistics management technology helps reduce fuel
consumption and optimize transportation routes.
o Increase vehicle utilization efficiency, reduce unnecessary
warehouse costs.
 Increase profit margins from value-added services:
o Provide additional premium services, optimize supply chains,
support international businesses.
o Take advantage of the recovering logistics market to negotiate
more favorable contracts.
1.2. Sustainable Ecosystem
1.2.1. Retail business

InterLOG (International Logistics Joint Stock Company): is a Vietnamese


enterprise specializing in logistics and domestic supply chain.

33
SNC Network (Supply Network Consulting Company): is a company
established by InterLOG in Japan as part of its strategy to expand its global
business network.

1.2.2. Wholesale business

WR1, short for “WE ARE ONE,” is a brand launched by InterLOG in


November 2022, operating in the field of international freight forwarding and
providing efficient, cost-effective multimodal transport solutions.

At the beginning of 2025, InterLOG separated WR1 into two independent


companies: WR1 Freight and WR1 Trans, aiming to optimize economic efficiency
within InterLOG’s circular ecosystem model.

Criteria WR1 Freight WR1 Trans

Scope of Operation International Domestic (within the country)

International transportation (sea, Domestic transportation, goods


Service Type
air, cross-border) distribution

Optimize supply chain & logistics Reduce costs and increase


Main Objective
for international businesses delivery speed within the country

Transporting from
Main Activities Transporting international goods ports/warehouses to domestic
destinations

34
The WR1 Platform enables customers to:

 Get quotes, booking, check


shipping schedules and manage
shipments quickly anytime,
anywhere.

 Optimal options to help with


shipping costs and times.

 Proactively manage, control, look up and trace.

 24/7 access.

 Transparent information, reduced risk.

1.2.3. Invest
 ACG (Asean Cargo Gateway): InterLOG is one of the five founding
shareholders of Asean Cargo Gateway Joint Stock Company (ACG). On
September 8, 2022, ACG and Vietravel Airlines signed a cooperation agreement
to invest and develop air cargo transportation services through VUAir Cargo, with

35
capital contribution ratios of 51% and 49%, respectively.

 Other investments: Joint venture investment activities, including Logistics &


Fulfillment service projects, investment in joint venture enterprises such as WR1,
AWS, ILOG,...

2. Industry Outlook
2.1. Industry Trends in Japan

36
2.1.1. Sustainable Development Trends
In recent years, climate change has become one of the most pressing issues for
businesses worldwide. Given this situation, corporate commitments to sustainable
development have become more urgent than ever. Interlog—a company dedicated
to sustainable development—now stands before many opportunities for growth.

Specifically, Interlog is committed to sustainability through the adoption of the


ESG (Environment, Society, Governance) management model. At the beginning
of 2023, Interlog established a clear Green Transition model within the company,
serving as a crucial guideline to help the company stay aligned with its action
plans to achieve Net Zero and minimize negative environmental impacts by 2030.

To achieve this, in 2022 and 2023, InterLOG identified transportation activities


from WR1 Trans that apply Green Logistics solutions, such as reusing empty
containers and the Milk-run solution, to optimize the transportation process and
minimize emissions to the greatest extent possible.

Additionally, WR1 Trans has equipped each of its tractor trucks with modern
sensors to measure fuel consumption and monitor direct emission indicators on a
monthly basis. Sustainable fuel consumption over three years (2021–2023)
remained at 35–36 liters per 100 km, compared to 40 liters per 100 km for
conventional older vehicles.

The results also show that total diesel consumption in 2022 decreased by 646
liters. In 2023, this figure continued to drop significantly by 102%, reaching a

37
reduction of 1,305 liters. Consequently, CO2 emissions were reduced by 1.74
tons in 2022 and further decreased by 3.52 tons in 2023.

2.1.2. Trend of reducing transportation costs

In recent years, the U.S.-China trade war has had a significant impact on the
global logistics industry, including Japan. Specifically, tariff measures and trade
barriers have forced many businesses to adjust their supply chains to avoid
additional costs. This has led to changes in trade routes and supply sources,
increasing transportation costs and extending delivery times, thereby putting
pressure on Japan’s logistics sector.

In response to this situation, InterLOG has focused on enhancing


management capabilities, providing specialized training, and developing a high-
quality workforce that meets international standards. This approach aims to deliver
efficient logistics services that help customers reduce costs, accelerate
transportation, and better manage risks.

With such clear strategic directions, InterLOG is demonstrating strong


growth potential for the future and is steadily strengthening its position in Japan’s
logistics service market.

2.2. Recommendation
2.2.1. Challenges InterLOG Faces in the Japanese Market

Japan has a highly competitive logistics market with numerous domestic and
international companies, including major players like Schenker, UPS, FedEx, and
DHL. These well-established companies have built strong networks and offer a
wide range of services, making it challenging for smaller or newly entering firms
like InterLOG to secure a significant market share.

38
As one of the world’s largest economies, Japan has considerably higher
labor and operating costs compared to Vietnam. These expenses include high
transportation fees, costly rental spaces, and a high average salary level, which
affect the price competitiveness of new businesses. Additionally, Japanese
customers are known for their stringent service quality requirements, particularly
regarding accuracy and on-time delivery, posing another challenge for companies
trying to establish themselves in the market.

→ Conclusion:

InterLOG needs to focus on enhancing management capabilities, providing


specialized training, and developing modern, efficient transportation and
warehouse management technologies. These efforts aim to deliver high-quality
logistics services that help customers reduce costs, enabling the company to
compete for market share in Japan while optimizing operational expenses in this
market.

2.2.2. Recommendation

Developing Strengths in Sustainable Development: Japan is a country


striving to minimize waste and emissions through strict regulations. InterLOG has
been actively promoting sustainable development to protect the environment and
has already achieved positive environmental results. Therefore, in the future, the
company should maintain and further develop this strength through measures such
as:

 Implementing green logistics solutions, such as adopting zero-emission electric


vehicles.

 Utilizing biofuels and renewable energy sources in warehouses and distribution


centers to reduce CO2 emissions.

39
 Developing environmentally friendly warehouse management and automation
solutions.

Investing in technology and automation to reduce costs and maximize


profits as mentioned earlier, Japan is a pioneer in developing environmentally
friendly transportation solutions. The country is actively testing self-driving trucks
and delivery drones in rural areas to address labor shortages and improve delivery
efficiency. Additionally, Japan leads in smart tracking technologies and advanced
supply chain management (SCM) systems, enabling logistics companies to
optimize transportation routes, reduce delivery times, and lower shipping costs.

→ Conclusion: To stay competitive in Japan’s logistics market, InterLOG


needs to invest in R&D to develop advanced transportation solutions, improve
warehouse management efficiency, and reduce operational costs. These
innovations will help the company enhance profitability and strengthen its
competitive edge against other logistics providers in Japan.

40
D. COMPREHENSIVE PARTNERSHIP – DAIICHI KAMOTSU AND
RELATIONSHIP WITH INTERLOG
1. Overview of Daiichi Kamotsu Company
 Company name: Daiichi Freight System, Inc.
 Date of establishment: March 15, 1941
 General Director: Soichiro Yoneda
 Number of offices: 71
 Number of employees: 4,424
 Business areas:
o Road transport business
o Freight forwarding business
o Air freight agency
o Customs declaration
o Warehousing
o Packaging
o Security services
o Insurance agency
o Data processing services
o Real estate
o Food, apparel, groceries
1.1. History of formation and development
 1941: Yamagata Godo Freight Truck Company was established.
 1942: 15 companies merged to establish Yamagata Prefectural First
Freight Truck Co., Ltd.
 1951: Long distance transportation between Sendai and Tokyo began
 1954-1959: Expanded business network to Miyagi and Akita prefectures
 1960: Long distance transportation between Osaka and Tokyo began
 1984: Started using vans for transportation

41
 1987: the commercial headquarters was established
 1990: the company was renamed as First Freight System Company.
 1997: Started operating as a third-party logistics provider
 2009: the business headquarters was relocated to Shinome, Koto ku,
Tokyo
 2014: a representative office was established in Hanoi, Vietnam
 2016: Navitrans Co., Ltd. was acquired and merged into a subsidiary
1.2. Field of operation

Daiichi Cargo is an autonomous company that owns and operates its own
vehicles, employees, and facilities. This is why they can react flexibly and
maintain high quality.

 3PL business: Daiichi Cargo is a company that supports the entire


logistics process.
 Refrigerated transportation
 ITBOX charter flights
 JIT pallet rental service
It also provides various services, including import and export cargo storage, ocean
container transportation, and truck transportation, using its own bonded warehouse
(Yamagata City) specializing in international logistics operations.
2. Activities between the two parties
2.1. The first step of strategic cooperation is to create development opportunities

Integration into the international economy has brought many development


opportunities to Vietnamese enterprises, but also brought many difficulties to
Vietnamese enterprises. In order to improve the competitive advantage and seize
the development opportunity, logistics service enterprises must improve their
supply chain day by day to meet customers' requirements in the most timely and
professional way. Not leaving this trend, Interlog keeps changing, approaching and
developing modern management technology to keep up with the economic growth
momentum.

42
Therefore, Interlog and Daiichi Kamotsu will focus on the direction of
establishing and implementing Vietnam-Japan "door-to-door" service supply chain.
Improve the quality of logistics service, increase the circulation of goods between
Vietnam and Japan, promote domestic transportation activities, especially CY truck
transportation in Vietnam (domestic container transportation imported from ports to
factories), strengthen warehouse management and operation, improve the quality of
logistics service, and reach the standards of Vietnam and Japan.

As of 2017, Daiichi Kamotsu owns 30% of InterLOG, marking a major


turning point in Interlog's development direction, aiming to provide logistics
services that meet international standards and establish a sound supply chain in
Vietnam and Southeast Asia.

On the afternoon of October 18th, 2017, INTERLOG and Japan's Daiichi


Kamotsu Co., Ltd. formally signed a strategic cooperation agreement to improve
and improve the quality of the door-to-door service chain between Vietnam and
Japan.

According to the cooperation agreement, the two companies will focus on


the direction of building and implementing the Vietnam-Japan door-to-door service
chain. Specifically, it includes: improving the value of logistics services between
Vietnam and Japan; Promote Vietnam's domestic transportation activities,
especially CY trucks (export container transportation, import from port to factory),
based on a single fleet alliance; Strengthen warehouse management and operation;
Improve the quality of logistics services in Vietnam to meet Japanese standards.

This strategic cooperation is one of INTERLOG's visions to become an


international standard logistics service provider in Vietnam, serving the Asian
market.

2.2. Daiichi Komatsu's supply chain and the role of InterLOG

43
Activities "Promoting domestic transportation, especially CY Truck
transportation (domestic import and export container transportation from port to
factory in Vietnam). In domestic transportation activities from port to factory, the
supply chain can be divided into 5 main steps:

Supply Chain Steps


No. Activities of Daiichi Komatsu Role of InterLOG
of Daiichi Komatsu

- Receiving orders from


- Providing information on
Japanese businesses exporting
Receiving and domestic transport capacity and
goods to Vietnam.
1 Processing Transport fleet capabilities.
- Planning transportation and
Information - Assisting in optimizing
coordinating with domestic
delivery routes.
transport units to arrange routes.

- Goods from Japan arrive at


- Supporting customs
Customs Clearance ports (Hai Phong, Cat Lai, etc.).
declaration if needed.
2 and Cargo Release at - Daiichi Komatsu handles
- Preparing transportation
Port customs procedures to ensure
vehicles to receive goods.
smooth clearance.

→ InterLOG plays a key role:


- This is the most crucial step
- Providing container
Transportation in domestic transport (CY
transportation services from
from Port to Truck).
3 the port to warehouses or
Warehouse or - Daiichi Komatsu requires a
factories.
Customer’s Factory reliable fleet to deliver goods
- Optimizing routes to reduce
to the correct location.
costs and delivery time.

- Goods may be stored in


- Providing intermediate storage
Warehouse warehouses before being
warehouses in Vietnam if
Management (if forwarded to factories.
4 needed.
Temporary Storage is - Daiichi Komatsu manages
- Managing stored goods
Required) warehouse entry and exit
according to logistics standards.
processes.

- Goods are delivered to the


customer's factory (FDI
- Coordinating drivers to ensure
Final Delivery to enterprises or Japanese
accurate delivery locations.
5 Factory or End companies in Vietnam).
- Providing tracking reports on
Customer - Daiichi Komatsu monitors the
the transportation process.
delivery process to ensure
timely fulfillment.

44
2.3. InterLOG's supply chain and the role of Daiichi Komatsu

Supply Chain Steps of


No. Activities of InterLOG Role of Daiichi Komatsu
InterLOG

- Supporting connections with


- InterLOG needs to expand its
Japanese businesses exporting
Market Expansion market share and collaborate
goods to Vietnam.
1 and Attracting with Japanese businesses that
- Introducing InterLOG as a
Japanese Customers require logistics between Japan
reliable domestic transport
and Vietnam.
partner in Vietnam.

- Handling international
- InterLOG primarily provides transportation from Japan to
Organizing
logistics services in Vietnam Vietnam (via sea or air).
Transportation of
2 but aims to expand its supply - Ensuring goods depart on
Goods from Japan to
chain by integrating schedule, minimizing risks
Vietnam
international transportation. related to time and
transportation costs.

- Handling customs procedures


in Japan to ensure compliance
- Goods from Japan must clear with export regulations.
Supporting Customs
3 customs before being - Providing information on
Declaration in Japan
transported to Vietnam. Japanese customs standards to
help InterLOG better advise its
customers.

- Advising on warehouse design


Consulting on and operations according to
- InterLOG is expanding its
Warehouse Japanese standards.
warehousing services in
4 Management and - Providing technology
Vietnam to support Japanese
Supply Chain solutions for warehouse
businesses.
Optimization management (WMS, QR Code
tracking, etc.).

3. Assess engagement, relationships and performance

Daiichi Komatsu and InterLOG have a strong support business


relationship, built on trust and mutual commitment, to quickly and efficiently
accelerate the transportation process from Vietnam to Japan, and vice versa.

45
Daiichi Komatsu has made significant contributions to maximizing the strengths
of both companies through its experience and sustainable business performance.

In the supply chain of First Komatsu, InterLOG plays an important role in


domestic transportation, especially in transporting containers from ports to
factories and assisting with warehouse management when needed. They help
optimize costs, shorten delivery times, and ensure service quality that meets
Japanese standards.

Daiichi Komatsu provides support to InterLOG in the early stages of the


supply chain, including international transportation, Japanese customs, warehouse
management consulting, and upgrades to Japanese standard services.

→ This cooperation helps InterLOG expand its network of Japanese


customers, while Daiichi Komatsu can take advantage of InterLOG's strong
domestic logistics system in Vietnam.

Without the support of Daiichi Komatsu, InterLOG would face many


challenges when expanding into the Japanese market, such as:

 Knowing that Japan is a very conservative market and values trust in


business relationships. Without Daiichi Komatsu as a bridge,
InterLOG would have difficulty building trust with Japanese
businesses. In particular, thanks to Daiichi Komatsu, which already
has a system of customers and transportation partners in Japan,
otherwise InterLOG would have to search and build from scratch,
which takes a lot of time and money.
 Due to the strict Japanese customs system, the import process into
Japan has many strict standards on certification of origin, quality
inspection, and quarantine (especially for food and agricultural
products). Without Daiichi Komatsu's support and assistance in

46
handling procedures, InterLOG could experience delivery delays,
which would affect its reputation.
 If InterLOG were to operate its own warehouse, it would have to
make a huge investment in technology, staff training, and regulatory
compliance. With Daiichi Komatsu, InterLOG could use its existing
warehouse system without having to search for or rent a warehouse
itself, which would take time and risk high rental prices and
unfavorable locations.
 As an 8-decade-old enterprise, Daiichi Komatsu has long-term
contracts with shipping lines and airlines, which helps reduce
transportation costs and helps InterLOG avoid having to negotiate
with shipping lines itself, which could lead to higher prices.
 Without a Japanese partner, InterLOG would have difficulty
handling incidents (damaged goods, lost goods, delays) because
there is no on-site team.

→ Thanks to Daiichi Komatsu, InterLOG was able to significantly reduce


these challenges, helping them penetrate the Japanese market faster and with less
risk.

47
PEER VALUATION

Đỗ Hải Nguyễn Thị Nguyễn Đức Nguyễn Phạm Hồng Hoàng


Phong Hà Vy Hiếu Thành Hiếu Anh Đức Tâm An
Khanh
Đỗ Hải
Phong
Nguyễn Thị
Hà Vy
Nguyễn
Đức Hiếu
Nguyễn
Thành Hiếu
Phạm Hồng
Anh Đức
Hoàng Tâm
An Khanh

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REFERENCES

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