AUGUST VALOMA NEWSLETTER 2023

1. Highlights

The Vietnam International Logistics Exhibition – VILOG 2023 Organized for the First Time

Implementing the command of the Ministry of Industry and Trade, for the first time in Vietnam, the Vietnam International Logistics Exhibition (abbreviated as VILOG) was organized by the Vietnam Logistics Business Association (VLA) and the VINEXAD Company. The exhibition took place for 3 days, from August 10th to August 12th, 2023 in Ho Chi Minh City. With 4 main categories of goods and services being Transportation and Delivery, Services and Warehousing/Factory Equipment, Packaging and Cold Chain, and Application of Logistics Technology, the event was expected to help boost Vietnam’s logistics service industry to develop commensurate with its inherent potential, while creating a buzz attracting foreign investments, transfer of operating technology, human resources training, and the establishment of a green ecosystem in the logistics industry. At the same time, this would also be a major opportunity for domestic and international logistics services businesses as well as the community of investors, shipper businesses and other stakeholders to exchange, cooperate, advise and decide upon optimal solutions for businesses’ logistic process. Up until now, the exhibition has recognized the participation of many major long-standing Vietnamese brands in the logistics industry such as Saigon Newport Corporation, VICONSHIP, VINAFCO, RATRACO, VINATECH, … In addition, the exhibition has received great international recognition when receiving registration from more than 150 businesses with more than 200 booths from 16 countries and territories: Belgium, Canada, Taiwan, Germany, South Korea, the United States, Hong Kong, Malaysia, Russia, Japan, Singapore, Turkey, Switzerland, China, Vietnam, and Italy. At VILOG 2023, visitors would have the opportunity to access and learn about the latest logistics technological applications, which they can apply to the management and circulation of goods to enhance transportation capacity, catch up with the increasing demand of the market and enhance the customer experience. The series of events would have a scale of over 1,000 booths, expected to attract the participation of businesses from 20 countries and territories and welcome over 20,000 visitors to visit and trade during the 3-day exhibition.

VALOMA Organized an Information Day for the Vietnam Young Logistics Talents Competition

The Vietnam Young Logistics Talents Competition was organized by the Vietnam Association of Logistics Manpower Development, under the auspices of the Import-Export Department (Ministry of Industry and Trade). This was a practical platform for students currently studying at Vietnamese universities and colleges or having a passion for logistics, contributing to improving the quality of logistics human resources, as well as promoting social awareness about the importance and benefits of developing the logistics field/profession.

After 5 seasons, the competition has been spread increasingly widely among students, becoming the largest and most prestigious logistics competition in Vietnam. Following that success, the Vietnam Young Logistics Talents Competition 2023 officially retired, promising to bring captivating contesting, practical topics and improvements in content and image.

At 15:00 on August 20th, 2023, the Vietnam Association of Logistics Manpower Development successfully organized the Information Day face-to-face in Hanoi and online via Zoom Meeting, combined with a live stream on the fan page of the Vietnam Young Logistics Talents Competition.

The purpose of the Information Day was to launch VNYLT 2023;  introduce important information about the competition such as target participants, selection rounds, competition rules, prize structure, organizers, and sponsors of the competition; exchange with businesses on logistics training and career guidance; answering questions of participants, schools, businesses and the press about the competition; exchange and share experiences with the champion and runner-up team of the Vietnam Young Logistics Talents Competition 2023.

VNYLT Information Day 2023 was held with great success when attracting a large number of students to attend and there were many questions from teachers and students related to the competition and logistics career development. The sharing of sponsors, teachers, organizers and alumni has motivated students to have a clear orientation about participating in the competition as well as pursuing logistics as a career.

2. Local News

China Ready to Complete the High-speed Railway to the Vietnam-China Border

On August 8th, 2023, China completed the installation of the first section of the direct high-speed railway track to the Vietnam-China border. According to CGTN, the 500-meter section of the track has been laid at the high-speed railway between Fengchenggang and Dongxing, in the Zhuang Autonomous Region of Guangxi, China.

The Fengchenggang – Dongxing high-speed railway is a pioneering project running directly to the China-Vietnam border. The final phase of construction is currently underway and is expected to open later this year, according to the website of the Authority of Zhuang Autonomous Region of Guangxi (en.gxzf.gov.cn).

The railway has a length of 49.9 km and is designed to reach a speed of 200 km/h. Infrastructure is being built to optimize speeds up to 250 km/h in the future. Tunnel construction works have been completed and bridge construction has reached 97% completion. At the western end of the railway, a new station was built in Donxing, located on the east bank of the Beilun River – the border waterway between China and Vietnam. This railway will handle the transport of passengers and will also play an important role in transporting goods across borders. It is expected that the Fengchenggang – Dongxing railway high-speed railway will shorten the travel time between two points from 60 minutes to only 20 minutes, connecting Dongxing (the city bordering Mong Cai in Vietnam) with China’s 42,000 km high-speed railway network. When put into operation, this railway will end the period of no railway transport between Fengchenggang and Dongxing, as well as make an important contribution to promoting connectivity between China and Vietnam. The Fengchenggang – Dongxing railway project is expected to complete the installation of the entire track section by the end of September and can be put into operation from the end of December.

3. Regional and World News

Opening of the China-Europe Freight Rail Route

A new China-Europe freight rail route was inaugurated on August 3rd in Xi’an, the capital of Shaanxi province in northwest China. Chinese media reported that the route is currently transporting 50 containers containing photovoltaic components with a capacity of 20 megawatts – the first shipment of a 1-gigawatt photovoltaic project in Uzbekistan. Xinhua News Agency noted that this project is the first large-scale new energy project in Central Asia undertaken by a Chinese enterprise.

For this project, a total of 60 train journeys carrying approximately 3,000 containers are expected to depart for Uzbekistan through the China-Europe freight rail service.

Once implemented, this project will provide 2.4 billion kilowatt-hours of clean energy to the local area annually, reducing carbon emissions by up to 2.4 million tons, as reported by Xinhua News Agency, citing China Energy Engineering Corporation Limited, the project’s contractor.

Currently, the transportation of goods by rail from Vietnam to Europe primarily passes through Zhengzhou, Henan province, which serves as the hub for the China-Europe rail network. Therefore, the launch of the China-Europe rail route from Xi’an, Shaanxi province, will provide an additional rail transport option for Vietnamese businesses when exporting goods to Europe.

Thailand launches its first cargo train to China

On April 19th, a large cargo train embarked on its inaugural journey from Map Ta Phut station in Rayong province, Thailand, carrying 25 refrigerated fruit containers on a route connecting the three countries of Thailand, Laos, and China. This train is expected to take approximately 5 days to cover the 3,453 km long journey, arriving at Guangzhou station in China. The journey of this train is part of an important project called the “Thai-Laos-China International Freight Train Route,” established with the aim of facilitating the transportation of goods between these nations.

Mr. Kraiyasit Intarapanich, the CEO of Global Multimodal Logistics (GML), said: “Rail transport will be the best option for exporting agricultural products from Thailand to China.” He also emphasized that rail transport is not only faster and safer than using trucks and sea vessels but also helps reduce harmful carbon dioxide emissions into the environment.

Global Multimodal Logistics (GML) has set a goal to export at least 5,000 Thai fruit containers this year, primarily consisting of durian and mangosteen, with a total value exceeding 10 billion baht (equivalent to 290 million USD). Additionally, they plan to transport other products such as resin pellets and frozen food.

According to Mr. Kraiyasit, the estimated transportation time from Map Ta Phut to Kunming will take 3-4 days, from Map Ta Phut to Trung Khanh will take 4-5 days, and the Map Ta Phut-Guangzhou route will take 5-6 days. Previously, on February 7, 2023, another cargo train departed from Kunming, China, carrying approximately 280 tons of fresh vegetables in 19 refrigerated containers. This marked the first cargo train journey between the three countries of Thailand, Laos, and China.

The Kunming Railway Corporation stated that the train will stop at the Nam Vientiane station in Laos for cargo unloading and then continue to Bangkok through Thailand’s narrow-gauge railway system. This allows the train to save approximately 24 hours compared to a combination of rail and highway transport, reducing transportation costs by 20%. In the future, this railway project promises to be a vital connection between China and the ASEAN countries – China’s largest trading partners.

Transportation costs rise after 16 months of decline

The spot freight rates for container shipping have seen the sharpest increase in over two years, signaling a reversal of the 16-month trend of declining sea freight costs that helped ease inflationary pressures on goods.

The Drewry World Container Index, a composite index, surged by 11.8% to $1,761 for a 40-foot container, marking the fourth consecutive weekly increase and the largest weekly percentage gain since June 2021. The composite index, which reflects short-term prices on eight trade routes connecting Asia, Europe, and the United States, had been on the decline for 16 months until June.

According to Drewry, the cost of shipping from Shanghai to Los Angeles reached $2,322/TEU, an 11.3% increase from the previous week and the fifth consecutive weekly increase. From Shanghai to Rotterdam, freight rates have risen by 25% to $1,620, the highest since January 2021.

Shipping prices had surged to record highs during the peak of the pandemic when consumers stocked up on household goods, and Covid-19 disruptions choked the logistics network. Since then, container transportation costs have returned to pre-pandemic levels and have recently decreased due to increased inventory and reduced consumer spending.

The “World Logistics Passport” and Exploring the Potential for Logistics Cooperation between Vietnam and the UAE

The “World Logistics Passport” (WLP) is one of the nine initiatives under the “Dubai Silk Road” strategy, which the UAE has been implementing since 2019 with the aim of transforming Dubai into a global strategic trading hub. To date, 29 countries have registered to join the WLP network.

On August 14th, a signing ceremony and forum titled “World Logistics Passport Initiative and Exploring Logistics Cooperation Potential between Vietnam and the UAE” took place in Hanoi.

The World Logistics Passport (WLP), in collaboration with the Ministry of Industry and Trade, organized a workshop on “Exploring Logistics Cooperation Potential between Vietnam and the UAE.” This event also provided an opportunity for both countries to strengthen diplomatic ties on the occasion of the 30th anniversary of diplomatic relations.

The Head of the Asia-Africa Market Department stated that cooperation with the UAE in the field of logistics would significantly contribute to promoting Vietnam’s trade exchange with the region and the world. This would create favorable conditions for trade and enhance national competitiveness, not only for the Ministry of Industry and Trade but also for the entire national logistics ecosystem.

In the UAE, the UAE Ambassador to Vietnam, Mr. Bader Abdulla Al Matrooshi, emphasized that Vietnam is the UAE’s largest export market in the Middle East and among the top 10 largest import partners globally. From 2018 to 2022, the total trade exchange between the two countries has remained stable at $5 billion annually. Through the UAE, Vietnamese exports have the opportunity to reach many countries in the region.

Since May 2021, Vietnam has become one of the 29 Hub members of the WLP network. The UAE Ambassador to Vietnam believes that the WLP will create opportunities to enhance economic benefits and stimulate the interest of many partners, thereby promoting bilateral trade growth.

Mr. Abdulla Alsuwaidi, Director of Hubs and Global Partnerships of the WLP Program, mentioned that Vietnam plays an important role in the WLP network and serves as a transit and production hub in Southeast Asia. The WLP program is selecting strategic partners along the supply chain and logistics to remove trade barriers and enhance exports and imports between Hubs.

During the workshop, Mr. Tran Quang Huy, representing some businesses that signed cooperation agreements with WLP, expressed hope that this collaboration would bring benefits in cargo transportation, logistics, business expansion, and cost reduction.

WLP chose Vietnam as one of its 29 hub centers through the Vietnam Logistics Business Association (VLA) and with the support of the Ministry of Industry and Trade and the Vietnamese Embassy in the UAE. This helps Vietnamese businesses receive support in customs clearance, tax exemption, and reduced warehousing time.

In the future, promoting cooperation within the WLP network will help Vietnam expand its market and enhance its position as a transit and production hub in the regional and global context.

4. Connecting activities

Pursuant to Decision No. 54/QD-BCH dated July 9, 2022 of the Vietnam Association for Manpower Development on the Establishment of the VALOMA Scholarship Fund;

Pursuant to Decision No. 55/QD-BCH dated July 9, 2022 of the VVietnam Association for Manpower Development on Promulgating Regulations on reviewing VALOMA scholarships and managing the VALOMA Scholarship Fund;

Pursuant to Decision No. 56/QD-BCH dated July 12, 2022 of the Vietnam Association for Manpower Development on the Establishment and appointment of personnel of the VALOMA Scholarship Fund Management Board; The VALOMA Scholarship Fund Management Board announced the VALOMA scholarship selection plan for students in 2023, with specific content as follows:

  1. Purposes and requirements

– In order to inform students from training institutions throughout the country about the scholarship plan of the VALOMA Scholarship Fund 2023 for students.

– Introducing, exchanging, and building image for VALOMA scholarships – scholarships for students of colleges and universities who are members of the VALOMA Association with excellent achievements in study and research in Logistics and Supply Chain Management, or have attempted to pursue their studies under difficult conditions.

– Reward and find outstanding academic figures in the field of Logistics and Supply Chain Management; foster, support and build high-quality human resources for the country’s logistics industry.

– Communicate the VALOMA Scholarship Fund to businesses interested in sponsoring.

  1. Plan

The program starts from 01/08/2023 to 26/11/2023, the specific plan is as follows:

– From 01/08/2023 – 05/08/2023: Send official dispatches to training institutions nationwide. (note that training institutions which are members of VALOMA).

– From 01/09/2023 – 30/09/2023: Receive applications for VALOMA scholarships for students from training institutions.

– From 01/10/2023 – 30/10/2023: Organize scoring and consideration of VALOMA scholarships for students.

– 26/11/2023: Organize a scholarship awarding ceremony for VALOMA students in HCM City.. (in conjunction with the date of the Final Round of Vietnam Logistics Young Talent Contest 2023.)

  1. Time and location of the scholarship awarding event:

– Time (expected): expected 4:00 p.m. – 5:00 p.m. 26/11/2023 (Sunday)

– Location (expected): Ho Chi Minh City

To view detailed information about the VALOMA Scholarship Fund, please visit the following link: https://valoma.vn/quyhoc-bong/quy-hoc-bong-valoma-sinh-vien-logistics /

VALOMA organized a field survey at Long An International Port

On the afternoon of 09/08/2023, the Vietnam Association for Manpower Development (VALOMA) organized a field survey at Long An International Port (LAIP).

Joining the delegation were Mr. Tran Thanh Hai, Honorary Chairman; Mr. Nguyen Thanh Nha, Head of Membership Department; Assoc Prof, Dr. Ha Thi Ngoc Oanh, Deputy Head of the Inspection Department; Dr. Ha Minh Hieu, Deputy Head of Communications Department; Mr. Dang Quy Nhan, Deputy Head of the Foreign Affairs Department; Ms. Nguyen Thuy Loan, representative of VALOMA Mekong Delta Branch, along with business representatives, lecturers, and students from universities and colleges.

On LAIP’s side, there was the presence of Mr. Vo Quoc Huy, Chairman of the Board of Directors of Long An International Port Joint Stock Company; Mr. Tran Phi Bang, Executive Director and leaders of departments and divisions.

Long An International Port possesses an important strategic position in Long An province, connecting Ho Chi Minh City and the remaining areas of the Mekong Delta region. With the goal of contributing to local and national socio-economic development, the Port helps connect trade between the Mekong Delta region and key economic regions domestically and internationally. With a design of 9 berths with a continuous length of 2,368 meters, the Port can receive ships up to 100,000 DWT and expected output up to 3,000,000 TEU, promising to become an important gateway for regional economic development.

During the survey, the VALOMA delegation heard about the achievements and difficulties of LAIP, through which LAIP expressed its desire to build cooperation with VALOMA on human resource development in the field of logistics. Representative of VALOMA, Mr. Tran Thanh Hai expressed his joy and pride in LAIP’s achievements and hoped that in the near future, many VALOMA member businesses would accompany LAIP’s logistics services.

Sharing the same view, Mr. Nguyen Thanh Nha also shared the values that LAIP will benefit from cooperating with VALOMA, especially in training and recruiting human resources in the logistics industry.

Acquiring the orientations of VALOMA, Mr. Vo Quoc Huy, Chairman of the Board of Directors of LAIP thanked VALOMA for facilitating LAIP’s participation in VALOMA’s logistics and supply chain ecosystem, and pledged that LAIP would coordinate with departments of VALOMA to promote the development of a comprehensive cooperation program.

At the end of the visit and work at LAIP, the delegation was guided to visit the wharf system, warehouses, yards and especially took pictures at the flagpole, which is known as the highest in Indochina.

VALOMA visited and worked at Vietnam Logistics Review (VLR)

In order to promote connections with media agencies, on the morning of August 9, 2023, the Vietnam Association for Logistics Manpower Development (VALOMA) had a visit and working session at Vietnam Logistics Review (VLR).

The delegation included Mr. Tran Thanh Hai, Honorary Chairman, Mr. Nguyen Thanh Nha, Head of the Membership Department; Assoc Prof, Dr. Ha Thi Ngoc Oanh, Deputy Head of the Inspection Department; Dr. Ha Minh Hieu, Deputy Head of the Communications Department along with business representatives and lecturers from universities and colleges. On the VLR side, there was the presence of Dr. Le Van Hy, Editorial Director along with department leaders and reporters.

Established in 2009, VLR is the first and only media agency in the logistics field. Over the past 14 years, VLR has conveyed to readers a large volume of news, articles, photos, and reports on domestic and foreign logistics activities, including highly appreciated in-depth analysis articles.

Following the trend of applying modern technology, VLR has built an online content management system and will gradually transform into an online publishing press agency in the future. In recent times, VLR has become one of the useful information channels to help raise social awareness about the important role and position of logistics in the national economy as well as the international economic integration process.

At the meeting, the two sides shared about the results of recent activities, proposed the desire to cooperate and coordinate in developing content in training and developing Vietnamese logistics human resources as well as orienting information for scientific research in the field of logistics.

The VALOMA representative expressed his joy when knowing VLR’s orientation in the near future and shared the values that VLR will have when cooperating with VALOMA.

Le Van Hy, Editorial Director of VLR, thanked VALOMA for creating conditions for VLR to participate in VALOMA’s logistics and supply chain ecosystem, and committed to coordinating with VALOMA’s specialized departments to promote the development of comprehensive cooperation programs.

Translated by Pham Phuong Anh – Nguyen Huong – Dieu Linh