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Gemadept contributes the sharp notes in Vietnam logistics choir

(VLR) The door to 2021 opens a new era of development for the economy in general and the Logistics industry in particular with opportunities and challenges. Port and logistics enterprises in Vietnam are blending into the exciting choir of the industry with strong new spring tunes, in which there is brand name that has long been familiar to the market - Gemadept Corporation.

Gemadept contributes the sharp notes in Vietnam logistics choir

Gemadept contributes the sharp notes in Vietnam logistics choir

Vietnam's 2020 economy and the logistics industry viewed from positive lens

When the spring spreads brilliant sunshine, bringing confidence and hope for a new year with new opportunities, it is also the time for us to look back at the overall picture of the past year. Overcoming all the "low notes" of the global economy due to the effects of the COVID-19 pandemic, Vietnam's economic growth are still evaluated among the most positive ones by international organizations.

Vietnam is among the few countries that still maintain positive GDP growth and rapid economic recovery, surpassing 5 major economies in Southeast Asia to become one of the 16 most successful emerging economies in the world. These positive results are a resonance of the Vietnamese government's drastic control over the epidemic and early release of policies and solutions to support businesses and the community.

Being one of the "backbones" of the economy, in the context of the complicated pandemic along with major challenges facing the industry in 2020, logistics remains one of Vietnam’s fastest and most stable growth industries with the average growth rate of 14% - 16% per annum. The most recent World Bank's Logistics Performance Index ranks Vietnam at 39 out of 160 countries. This is the best ranking that Vietnam has ever achieved since 2007 and the 3rd highest in Southeast Asia.

The bright spots of the Logistics industry, viewed from positive lens, have contributed to creating strong motivations to speed up the "vehicle" of the national economy entering a new era, catching up growth opportunities, especially when Vietnam will benefit from the participation in bilateral and multilateral free trade agreements (FTAs); from the shifting, repositioning supply chains to countries with stable political and economic systems, better costs and great growth potential.

Leverages for logistics industry in the new era

A few notes cannot make a concert, recognizing the important role of the logistics industry in economic growth, continuing to create leverages to promote the industry is an urgent task not only for the government but also for the whole business community.

One of the main targets is to provide good solutions on logistics costs for businesses

One of the main targets is to provide good solutions on logistics costs for businesses

One of the main targets is to provide good solutions on logistics costs for businesses. According to the World Bank, Vietnam's logistics costs as a proportion of GDP are about 18% - 20%, almost double that of developed economies and 4% higher than the global average.

Looking at leverage solutions from the government's perspective, the improvement of the transport system, especially synchronous transport planning, will create a powerful support in the process of transporting goods and minimize logistics costs; It is necessary to consolidate the policy mechanism and incentives so that logistics enterprises will reduce costs and increase competitiveness; It is also necessary to reduce current high costs such as tolls, costs of using the infrastructure system, etc…; On the other hand, it is necessary to increase fees that are currently too low compared to other countries in the region such as charges for cargo handling at ports to have more budget for reinvesting in infrastructure upgrade. In addition, the simplification of procedures, sub-licenses and emphasis on the training and development of high-quality logistics human resources are also important levers.

Joining hands with the government, businesses need to focus on investing and developing integrated logistics systems to provide a chain of fullpackaged services with effective costs to customers; Working together to synergize strengths of each other; Being specialized, focusing on investment and develop modern technology application; Improving capacity for effective management and operation of the supply chain; Being proactive in investment and development of logistics human resources and the most important lever is to provide comprehensive logistics solutions.

Gemadept contributes the sharp notes in Vietnam logistics choir

Starting up its business in the early years after Doi Moi, exploring the potential land of the Logistics market, Gemadept has invested and obtained fruitful achievements. From a company providing separated services, nowadays, Gemadept has grown to become the leading Port and Logistics operators of Vietnam with the mission to promote and contribute to the flow of the country's economy.

Gemadept has grown to become the leading Port and Logistics operators of Vietnam with the mission to promote and contribute to the flow of the country's economy

Gemadept has grown to become the leading Port and Logistics operators of Vietnam with the mission to promote and contribute to the flow of the country's economy

Contributing to promote the country's economic flow through a chain of outstanding services and solutions, join hands to contribute improvement suggestions for the strong development of the Logistics industry in Vietnam, Gemadept has developed a system of 8 ports from North to South, including Gemalink deep-sea Port capable of receiving the largest mother vessels in the world, up to 200,000DWT, forming a Transit Hub right at the Cai Mep - Ba Ria - Vung Tau commercial port area for mother vessels to go directly to Europe, America without transshipment in a third country, significantly reducing transport time and costs for importers and exporters.

In Hai Phong, Gemadept has developed the largest port and ICD cluster in Dinh Vu area, including 4 ports namely Nam Hai, Nam Hai Dinh Vu, Nam Dinh Vu and Nam Hai ICD, establishing a solid port infrastructure, contributing to push up trading in the whole northern region.

With the comprehensive supply chain in 6 areas, including Air Cargo Terminal, Distribution Centers, OOG Cargo Transport, Shipping, Cold-chain and Automotive Logistics, Gemadept provides customers with both wide and deep services, with outstanding solutions to help businesses significantly reduce total logistics costs. By its experience, dedication, enthusiasm and highly professional capacity, Gemadept provides solutions to redesign the production model planning of businesses, thereby rationalizing costs and minimizing waste of business resources.

Each step in the development journey is marked by Gemadept's efforts, especially in the field of fierce competition that requires high investment in infrastructure, human resources, technology, solutions and brainpower. The company participates deeply in high logistics human resource development programs in Vietnam, actively contributing to the overall progress of the industry.

In 2020, once again honored in the Top 10 Prestigious logistics companies, Gemadept has created motivation and inspiration for many domestic logistics enterprises, contributing to the creation of the logistics ecosystem with healthy competitive environment, cost-optimization and service quality improvement.

Entering a new era, the global logistics market has been affected by major advances in technology, international trade fluctuations, new trends in e-commerce, the explosion of trading platforms and global electronic payment, automation trend... and especially the simultaneous booming of production and trade after the pandemic. Accordingly, the choir of Vietnam's Port and logistics industry will become more exciting than ever. Gemadept in particular and the Vietnamese logistics business community in general are continuing to write proud sharp notes, blending into the powerful choir of the industry, so that strong melodies will continue to resound in the new spring.

Nguyen Thi Thu Thao

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