Assessing the capacity of logistics service enterprises in Vietnam
Among Vietnam's LPI evaluation criteria in 2018, service quality and the ability to track goods are the best improved indicators (increased by 29 places and 41 places, respectively). This partly reflects that the operational capacity of Vietnamese logistics service businesses (LSPs) has made significant changes and improvements. This improvement partly stems from changing business awareness in the widespread application of information technology in the field of logistics services. Specifically, the rate of IT application in this field has increased from 15-20% in 2015-2016 to 40-50% in 2016-2017 (VLA, 2017).
The results of evaluating different criteria in Vietnam's logistics capacity are mainly based on qualitative assessments of freight forwarders, international shipping and logistics companies that are currently having relationships with each other. trade relations with Vietnam. Although the number of units participating in the survey is not too large, the assessment results can be a reference channel to consider a preliminary assessment of the operational capacity of Vietnam's LSPs in 2018. Rated as Much improved compared to 2016, Vietnam's LSPs in 2018 still have many issues that need to be considered.
Specifically, based on the specific indicators used to comprehensively evaluate Vietnam's national logistics capacity in 2018, the indicators related to "international delivery" (representing the ease of collecting arrange shipments at competitive prices); “on schedule” (on-time delivery/successful delivery) is improved to a limited extent. It can be said that one of the reasons leading to the above situation is that the organization of freight forwarding, storage of goods and other ancillary services in LSPs is not really effective. The table below compares order completion times of Vietnamese LSPs with Thai LSPs (a country located in the region, with many similar conditions to Vietnam) and German LSPs (a country with the best LPI index in the world today).
Thus, compared with logistics service businesses in neighboring Thailand, the operational productivity and delivery reliability of Vietnamese logistics service businesses still have a certain gap. This gap is especially large when compared with the performance of German logistics service businesses (2018).
Meanwhile, investigations at more than 31 large logistics service enterprises in Vietnam show that the capacity of Vietnamese LSP enterprises is expressed by 3 factors: time (25%), cost (32%) , reliability (43%). Accordingly, businesses are focusing on building trust with customers (reliability) rather than costs and time. This can be a good trend because without customers, no business can exist. This is also the general trend of logistics and supply chain development.
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