Tiếng Việt
1. HIGHLIGHTED EVENT
The 4th “Passionate VALOMA Blood Donation” volunteer program
On May 6, 2023, the 4th edition of the “Passionate VALOMA Blood Donation” volunteer program was successfully held at the Central Institute of Hematology and Blood Transfusion. This biannual activity, organized by the VALOMA Membership Board, aims to contribute to society and the community. This edition of the event had a significant impact, attracting the participation of over 50 VALOMA members. Notable participants included Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department, Ministry of Industry and Trade and Honorary Chairman of VALOMA; officials from the Ministry of Industry and Trade; lecturers from universities and colleges such as the School of Business, the University of Education 2, the Hanoi University of Industry, and the Academy of Finance; and representatives from businesses such as Gemadept Corporation, Real Logistics Company, ALP Logistics Joint Stock Company, and more.
The spirit of humanitarian blood donation extended beyond VALOMA members to university students, particularly outstanding students from the Vietnam Student Logistics Club Network, who joined hands in this noble gesture. Humanitarian blood donation is a beautiful act that embodies the values of humanity and reflects the cultural beauty of “loving others as oneself.” Participating in voluntary blood donation not only helps provide precious blood for patients but also stimulates the blood regeneration process, instills a positive mindset, and reduces the risk of cardiovascular diseases and cancer.
Through this event, VALOMA aims to foster unity among its members and build a logistics workforce community in Vietnam that develops professional expertise while bringing valuable humanistic contributions to the community and society. The program concluded with a donation of 10,850ml of blood and the radiant smiles of all participants, with a promise to meet again in the October 2023 program, which is expected to have a larger scale and wider reach to bring more positive values to the community.
2. DOMESTIC
Digitizing logistics to adapt to the market context
On the afternoon of April 27, 2023, the Ministry of Industry and Trade organized a seminar on “Digital Transformation for Building a Modern and Sustainable Logistics Industry” in Hanoi. At the seminar, experts recognized Vietnam as a promising market for developing logistics services, with the growth rate, quantity, and quality of logistics services continuously improving.
Alongside notable achievements, the logistics industry still faces several limitations. These include high service costs in Vietnam, weak collaboration among logistics companies and between logistics companies and manufacturing and export enterprises, and the absence of a large-scale network of technology-enabled logistics companies to promptly meet development needs in the current situation.
During the seminar, representatives from government agencies, associations, industry organizations, and experts and researchers engaged in exchanges, reviews, assessments, and discussions on the current state of digital transformation in the logistics industry. Based on practical business activities and lessons learned, participants actively shared insights and experiences regarding technology and automation in logistics, connecting logistics with e-commerce in the digital age.
According to a survey conducted by the Ministry of Industry and Trade and published in the Vietnam Logistics Report 2022, over 66% of surveyed enterprises have adopted green logistics development strategies, but only around 31% of these companies utilize renewable energy in their warehouse operations. Hence, although businesses’ awareness of sustainable development is increasingly recognized, the widespread effectiveness in implementing sustainable development activities is still limited.
To foster the development of a modern and sustainable logistics industry, businesses need to shift from old mindsets to new ones, establish interregional connectivity to create a comprehensive network, invest courageously in developing new services and technologies. Furthermore, seaport enterprises in Vietnam should enhance the establishment of a common data system for the Vietnamese seaport network and connect with ports within the region and worldwide to enhance operational efficiency and competitiveness. The government and local authorities need to build synchronized infrastructure systems and expedite the progress of transportation infrastructure projects and multimodal connectivity to facilitate logistics service development.
At the conclusion of the seminar, the Ministry of Industry and Trade highly valued the valuable ideas, experiences, and effective practices regarding digital transformation in logistics shared by associations, logistics service providers, domestic and international experts, and researchers. Recommendations were made to competent authorities and functional agencies regarding policies and solutions to encourage and support digital transformation in logistics. The Ministry of Industry and Trade stated that this event provided an important foundation for further research and the development of Vietnam’s logistics service strategy until 2035, with a vision toward 2045, in collaboration with relevant ministries and agencies.
Vietnam is set to become the “Logistics Star” of Asia
Logistics is one of the fastest-growing economic sectors in Vietnam, with an average annual growth rate of 14-16%. In 2023, Vietnam’s logistics market ranked among the top 10 emerging markets globally, 4th in Southeast Asia, and 10th worldwide, according to Agility’s annual ranking.
During the seminar “Digital Transformation for Building a Modern and Sustainable Logistics Industry” organized by the Ministry of Industry and Trade on April 27, Mr. Nguyen Trieu Quang, the Director of Operations for the Northern Region at Lazada Logistics Vietnam, noted that Vietnam’s logistics market is experiencing robust development due to supply chain shifts and optimistic economic growth. Mr. Dinh Hoai Nam, the Business Development Director of SLP Vietnam, also highlighted that Vietnam is an economy centered around manufacturing and exports, which consistently maintains a high annual growth rate of about 9%.
As a result, Vietnam’s import and export volumes continue to increase despite supply chain disruptions caused by the pandemic. Vietnam has become an ideal destination for leading manufacturers worldwide. However, while the average logistics cost globally stands at 10%, in Vietnam, it reaches 16.8% (data from 2022). This is an issue that logistics service providers will need to strive to improve in the near future.
Mr. Dinh Hoai Nam further shared, “In the past 5 years, with the participation of leading global infrastructure developers, traditional warehouses still account for over 50% of the total supply. Meanwhile, in the US market in 2021, modern warehouses made up to 65% of the supply.” The warehouse and factory market is developing alongside FDI capital inflows, but the predominant supply still consists of traditional warehouses that fail to meet stringent quality requirements from investors.
On the other hand, according to the survey conducted by the Ministry of Industry and Trade in the Vietnam Logistics Report 2022, over 66% of surveyed businesses have adopted green logistics development strategies, but only about 31% of these businesses are utilizing renewable energy. It can be observed that sustainability awareness is clearly recognized by businesses, but practical implementation is still limited. Mr. Truong Tan Loc, the Marketing Director of Saigon Newport Corporation, proposed that Vietnamese businesses should enhance collaboration and cooperation to increase competitiveness in logistics services. Businesses need to proactively change their mindset and approach to minimize risks and streamline the process of developing solutions for logistics systems. Specifically for seaport enterprises, establishing a common data system for the entire Vietnamese seaport system and connecting with ports in the region and worldwide will contribute to increasing efficiency and competitiveness.
3. Regional and Global News
Income of Maersk Decreases due to Declining Freight Rates and Cargo Volume
A.P. Moller-Maersk has announced a significant decrease in net profit for the first quarter of 2023. The reason behind this is the adjustment of inventory levels in Western economies, which has led to reduced transportation demand, pushing freight rates and shipment volumes lower. Container shipping companies have been attempting to counter the prolonged decline in freight rates by canceling voyages and putting vessels into idle mode. Many shipping companies have reduced their capacity by up to 30% this year. Last month, some carriers increased prices by approximately $600 in the Trans-Pacific market. Maersk stated that they hope the enormous inventory buildup from last year by retailers will be released in the second quarter, although trading volumes continue to decrease. CEO Vincent Clerc mentioned in an interview, “At this point, we haven’t seen a strong normalization. Some customers are coming close to completing the inventory liquidation, but it’s not uniform.”
Maersk reported a net profit of $2.28 billion for the first quarter of 2023, a decrease compared to $6.78 billion in the same period last year, as revenues declined by 26% to $14.2 billion. The company’s forecasted net profit is expected to be $1.79 billion on revenues of $14.83 billion. Maersk stated that revenue from the ocean transportation segment decreased by 37%, primarily due to a 9.4% decline in transported container volumes compared to the same period last year and reduced freight rates in the Asia-Europe and Trans-Pacific markets.
Maersk’s logistics and services segment performed better with a 20% revenue growth compared to last year, thanks to income from acquisitions of freight forwarding and warehouse companies. Maersk still expects pre-tax, depreciation, and amortization (EBITDA) to range from $8 billion to $11 billion in 2023, pre-tax and depreciation (EBIT) from $2 billion to $5 billion, and minimum free cash flow of $2 billion. The company also anticipates a return to 0.5% growth in global container trade volume after a 2.5% decline in 2022. As a result, Maersk Line’s business results will grow at the market pace.
Freight Rates for Shipping from Asia to the US Increase
According to transportation data company Xeneta, the average spot market price to transport a 40-foot container from Asia to the US West Coast has risen by 34% in the past two weeks to $1,659. The price has tripled in the past two weeks as container lines compensate for reduced rates to prepare for the high-volume import season into the US in the fall. The Wall Street Journal reports that while this rate is still lower than the average price of $9,203 a year ago, it indicates that “rapid price declines that began in mid-2022 as supply chains contracted and retailers restrained efforts to restock may have bottomed out.”
Some ocean carriers implemented a general rate increase of around $600 per container on the Trans-Pacific trade earlier this month, and since then, the higher costs reported by Xeneta and other freight groups show that customers are generally willing to pay higher fees in the spot market. Nathan Strang, Ocean Freight Director at transportation and logistics firm Flexport, told the WSJ that shipping service users have accepted an average proposed increase of about $400. He added that these rate hikes “mark the first time in over a year from the carriers and come as the field approaches its traditional peak shipping season this summer.”
E-commerce Logistics Predicted to Surpass $3.221 Trillion by 2033
E-commerce logistics is showing signs of growth as supermarkets and retailers shift their operations to micro-distribution centers. The e-commerce logistics industry is expected to achieve a growth rate of 17.8% by 2033, equivalent to over $3.2 trillion, an increase of nearly $2.7 trillion compared to 2022.
Cross-border e-commerce has also exploded, contributing to market growth. This model is prevalent in countries such as the United States, China, Australia, Mexico, and India. Among them, China, India, and Europe are leading exporters of textiles and apparel. France and the United States are major exporters of cosmetics and personal care products. In the Asia-Pacific region, the e-commerce logistics market is rapidly developing in some powerhouses. China, in particular, is highlighted with an estimated CAGR of 19.6% during the 2023-2033 period. Customer demand for cross-border e-commerce has increased as average per capita income improves, making foreign brands more accessible. As a result, trade corridors, or transportation networks, facilitating enhanced trade with integrated infrastructure such as railways and highways connecting countries, are being reinforced and developed. Experts emphasize the importance of logistics chains in cross-border e-commerce, as the flow of goods heavily depends on transportation and distribution networks. With the expansion of this field, the demand for e-commerce logistics is predicted to experience significant growth in the next 10 years.
Furthermore, other factors influencing market growth, as identified by experts, include the increase in cross-border e-commerce transactions and the development of companies in this industry. In addition, distribution facilities such as supermarkets and convenience stores also contribute to market expansion. Specifically, with the surge in shopping demand, the pressure on handling shipping orders has increased. Store owners have relocated warehouses closer to residential areas to save time. Many businesses and supermarkets have transformed their stores into mini-distribution centers to expedite the delivery process.
Meanwhile, major e-commerce companies are focusing on building smaller stores to accelerate product distribution. Since February 2018, e-commerce giant Amazon announced that Prime members in four U.S. cities—Austin, Cincinnati, Dallas, and Virginia—could receive their orders at mini-supermarkets like Whole Foods Market IP, L.P. just two hours after successful placement.
4. NEW MEMMEMBERS
VALOMA visits and works at Ho Chi Minh City University of Technology
On the morning of May 13, 2023, the Vietnam Human Resource Development Association for Logistics (VALOMA) had a visit, work session, and participated in a seminar on high-quality human resource training in Logistics and Supply Chain Management with the Ho Chi Minh City University of Technology (HUTECH). Leading the delegation were Associate Professor, Dr. Ho Thi Thu Hoa – Vice President of VALOMA; Dr. Ha Minh Hieu – Deputy Head of VALOMA’s Communication Department, along with representatives from businesses and lecturers from universities and colleges in the southern region. The VALOMA delegation at HUTECH also welcomed the presence of Mr. Tran Thanh Hai – Deputy Director of the Import and Export Department, Ministry of Industry and Trade, and Honorary Chairman of VALOMA.
At HUTECH, the delegation received a warm welcome from Professor, Dr. Nguyen Trung Kien – Vice Rector of the university; Associate Professor, Dr. Nguyen Thanh Phuong – Vice Rector; Dr. Tran Thi Trang – Head of the Department of Business Administration, as well as the heads and deputy heads of various departments and faculties, along with esteemed faculty members.
During this visit and work session, Professor, Dr. Nguyen Trung Kien shared the process of formation and development, as well as the achievements that HUTECH has attained over time. Furthermore, Dr. Tran Thi Trang emphasized the university’s focus on training quality and business cooperation, with the university’s training model being closely tied to practical application and internships. According to Dr. Bui Nhat Le Uyen – Head of the Logistics and Supply Chain Management Department at HUTECH, students from the second year onward are introduced to practical training opportunities through the university’s collaboration with businesses, which will continue until they graduate.
Representing VALOMA, Associate Professor, Dr. Ho Thi Thu Hoa also shared the achievements that VALOMA has made recently, as well as upcoming plans and commitments to provide maximum support for HUTECH to become an official member of VALOMA.
From the perspective of state management, Mr. Tran Thanh Hai expressed his delight at learning about HUTECH’s upcoming direction and the guidance provided by VALOMA to support the admission of new members. In addition, he shared insights about the industry with the students attending the seminar and expressed his interest in the university’s applied training model. During the work session and seminar, the delegation also listened to the dedicated sharing of Professor, Dr. Vo Thanh Thu regarding the current situation of the logistics industry in Vietnam and the enhancement of high-quality human resources in logistics in the digital age.
At the end of the work session, Dr. Tran Thi Trang expressed her gratitude to the delegation, as well as the businesses, lecturers, and students who participated in the seminar. The university hopes for collaboration and support from VALOMA to provide high-quality human resources in the current context of digital transformation and the shortage of skilled labor.
5. ACTIVITIES OF MEMBERS
Faculty Roundtable Program on “Developing Research Capacity for Logistics and Supply Chain Management Lecturers”
On the afternoon of May 24, 2023, the Training Committee led the Faculty Roundtable Program on “Developing Research Capacity for Logistics and Supply Chain Management Lecturers” on the Zoom platform. The event was attended by Associate Professor, Dr. Trinh Thi Thu Huong – Vice President of VALOMA, Dr. Dinh Le Hai Ha – Head of the Training Committee, and numerous lecturers teaching Logistics and Supply Chain Management from universities and colleges who are VALOMA members.
During the Faculty Roundtable, two speakers shared content related to scientific research in the field of logistics and supply chain management. Associate Professor, Dr. Nguyen Vu Hung (National Economics University) presented insights on the similarities and differences between academic research and policy consulting research, as well as the complementary relationship between these two types of research. Dr. Nguyen Thu Giang (University of the West of England, United Kingdom) shared about the research process and research directions in the field of logistics and supply chain management.
The presentations by the two speakers received great interest from the attending lecturers. Various comments, questions, and discussions related to research capacity and research topics being pursued in the field of logistics and supply chain management were exchanged and shared during the Roundtable. It is hoped that in the near future, the Training Committee will continue to organize meaningful and beneficial programs like this for lecturers from universities and colleges who are VALOMA members.
6. NETWORKING ACTIVITIES
VALOMA organizes a visit to the ACECOOK factory for the Vietnam Student Logistics Club Network (Southern region).
On May 10th, the Vietnam Human Resources Development Association for Logistics (VALOMA) organized a visit to the ACECOOK factory in Binh Tan Industrial Park for the Vietnam Student Logistics Club Network (LCN) to provide an opportunity for students to explore the famous Japanese instant noodle brand that has been established for over 64 years, as well as witness the closed, safe, and highly efficient production process.
The practical trip was attended by Mr. Vo Thanh Tu – a member of the VALOMA Research Committee, and 36 first to third-year students from 10 different universities and colleges, such as the University of Economics Ho Chi Minh City, International University (National University Ho Chi Minh City), Ho Chi Minh City University of Transport, Ho Chi Minh City University of Industry, Ho Chi Minh City University of Finance and Marketing, etc.
The visiting delegation received a warm welcome from ACECOOK Vietnam. The company provided opportunities for sharing, exchanging, and answering students’ questions. Afterwards, the delegation was guided to the production plant to directly observe the 12-step production line along with the company’s most advanced equipment and machinery.
Through the exchange activities, the students gained a better understanding of ACECOOK Vietnam and received information related to the company’s supply chain and logistics operations, as well as job opportunities and working environment there. Before bidding farewell to ACECOOK Vietnam, the VALOMA representative expressed sincere gratitude to the company for providing the opportunity for the Association to fulfill its mission of developing logistics personnel through meaningful connection activities between clubs and students.
At the end of the practical visit, the heads of the clubs expressed their gratitude to VALOMA and LCN for organizing this meaningful and memorable trip, and expressed the desire for VALOMA and LCN to continue providing valuable real-life experiences for member clubs in the future.
Although the visit was short, it left a deep impression on the students. It was not only an opportunity for students who have a passion for the logistics industry to gain practical insights but also a platform to connect universities and Logistics Clubs, enabling students to learn from each other and further develop. In the future, VALOMA will continue to organize more connection events and business visits for the Vietnam Student Logistics Club Network.
7. NEW MEMBERS
VALOMA admits individual members
Based on Decision No. 113/QD-BCH, dated May 8, 2023, the Chairman of the Vietnam Human Resources Development Association for Logistics (VALOMA) – Mr. Mai Xuan Thieu has signed a decision to admit Ms. Tran Mai Thao My as a member of VALOMA – CE Logistics Vietnam Company Limited.
Congratulations to Ms. Tran Mai Thao My. It is hoped that as a VALOMA member, she will make positive contributions to the association’s development process.
Based on Decision No. 114/QD-BCH, dated May 16, 2023, the Chairman of the Vietnam Human Resources Development Association for Logistics (VALOMA) – Mr. Mai Xuan Thieu has signed a decision to admit Ms. Trinh Thi Thanh Thuy as a member of VALOMA – Strategy and Policy Research Institute of Industry and Trade.
Congratulations to Ms. Trinh Thi Thanh Thuy. It is hoped that as a VALOMA member, she will make positive contributions to the association’s development process.
8. JUNE, WHAT’S HAPPENING AT VALOMA?
8.1. Activities led by the Communication Committee
Panel discussion “Media in logistics human resources development” at the University of Commerce on June 17, 2023.
8.2. Activities led by the Research Committee
Panel discussion “Logistics students and entrepreneurship: Yes or no?” on June 3, 2023, organized in collaboration with the Membership Committee. Panel discussion “Enhancing the training needs for operational management capability of logistics companies in Hai Phong” on June 10, 2023, organized in collaboration with the Training Committee.
8.3. Activities led by the External Relations Committee
Student Coffee Program.
VALOMA COMMUNICATION COMMITTEE
Read more about VALOMA’s May newsletter here.