Nguyen Ngoc Logistics & the ambition of capturing Vietnam logistics market

(Vietnam Logistics Review)While foreign enterprises have been gaining the upper hand in the logistics market, Nguyen Ngoc logistics corporation has also been trying its best in the effort of gaining more market shares by changing and providing solutions with comprehensive supply chain model.

Big investment- big achievement

Supply Chain - Logistics were previously military terms for management of transporting, maintaining. In order to make a Supply Chain - Logistics service professionally, it should have large investments. With over 13 years of developments, Nguyen Ngoc Logistics owns and operates a fleet of over 150 trucks with various kinds from 2-15 tons, dozens of specialized vehicles, 3 parking places of over 30,000m2 in HCMC and Binh Duong, and a warehouse in Can Tho of 12,000m2. Dozens of million dollars of investments from Nguyen Ngoc Logistics Corporation. In addition, with over 20 years of experience of the Founder in the logistics industry and great contribution from its staff, the company has the growth rate of 25% pa. It is obviously one of the strong competitors to local and foreign enterprises operating in Vietnam logistics market.

Nguyen Ngoc Logistics is exceptional with other competitors, the company provides full-package solutions, from solution consultancy to transportation (NN Logistics), express delivery from door to door (NN Express), repair, maintenance, replacement parts for the entire line of trucks (NN Services). These services help to cut costs and save time for customers.

Decades ago, local enterprises lacked both investments and logistics knowledge, which stretched the distance between local enterprises and foreign ones. In addition, those using logistics services were multinational corporations and they usually put their trust in foreign logistics ones. Local companies at that time were not strong enough and not aware of the importance of cooperating with a professional logistics company for their supply chain. However, with significant changes in technology and human resource, these are creating balance between local and foreigner logistics enterprises. Further more, thanks to understanding clearly about local market, culture of each area in Vietnam, and business environment, this brings to the competitive advantage for local companies, especially for Nguyen Ngoc Logistics

The heat of the potential market

A supply chain is an important indispensable part of any sectors - it is known as a blood vessel bringing goods from the stage of materials to producers and then, distributing them to end consumers. Economic development in Vietnam has led to the expansion of the logistics market. According to the Ministry of Industry - Commerce, Vietnam logistics makes USD 20-22b pa, accounting for 20.9% of the country’s GDP. In which, Transport - the most important stage - constituted to 60%, equally to USD 10b pa: It can be seen clearly that logistics industry is a great potential market obviously.

For the market size being expanded and developed over 22% pa, many foreign enterprises have expanded their market shares in Vietnam for a long time such as DHL Supply Chain, Maersk Logistics, APL Logistics, Nippon Express or Kerry Logistics. However, the trend is changing as local ones, which are trying to recapture the market.

VLA’s latest survey says over 3,000 logistics enterprises are operating nationwide and foreigner ones are holding 70% of the market shares. The number, however, has been changing.

Mr. Nguyen Tan Dung, the Chairman of Nguyen Ngoc Logistics said: “Local logistics market shares as trucking, warehousing, seaports, and customs brokerage are mostly held by Vietnamese ones as MP Logistics, Transimex, Indotrans or Nguyen Ngoc Logistics. Moreover, both local and foreign ones tend to use perfect logistics service supply chain to cut transport cost and to increase maximum profits to customers. For example, Nguyen Ngoc Logistics are serving Vietnam’s multi-sector reputable corporations as Petrosetco, Vinamilk, Coca-Cola, Vingroup, Mobile World JSC, Budweiser and hundreds of other customers.”

Facing challenges from the market, Nguyen Ngoc Logistics is exceptional with other competitors, the company provides full-package solutions, from solution consultancy to transportation (NN Logistics), express delivery from door to door (NN Express), repair, maintenance, replacement parts for the entire line of trucks (NN Services). These services help to cut costs and save time for customers.

Additionally, in order to satisfy all multinational company’s demands with standard services, human resource and technology are also top elements Nguyen Ngoc Logistics has been paying attention and developing

Mr. Nguyen Van Thanh, General Director of Nguyen Ngoc Logistics said: “Technology has been changing the faces of many sectors, and logistics is surely not of the exception. Investing in cutting edge system as Warehouse Management System (WMS), Transport Management System (TMS) to track, manage and optimize things is what we have been making. In addition, young staff coming from other multinational corporations, with specialized knowledge from foreign countries, is also one of the important factors that helps us to be well-established in the market.”

E-commerce in the time of Industry 4.0 promises severe competitions; however, there will be great potentials as well. The two leaders also show the intention of calling for equitization for investments from public, funds and other local and foreign J.Vs together with Nguyen Ngoc Logistics to capture Vietnam logistics market.