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Friday, 19 July 2019 10:44

The development will be backed by increasing industrial activities, growing e-commerce, and stronger investment in logistics infrastructure.


Vietnam logistics and warehousing market is likely to reach US$86.7 billion by 2022 thanks to expanding industrial activities, growing e-commerce industry, continuous investment in infrastructure and logistics facilities, and consistent economic growth.


The logistics and warehousing market is expected to register a positive compound annual growth rate (CAGR) of 13.3% in the 2018-2022 period, according to Ken Research – a market research and consulting company based in India and the US.

Vietnam’s logistics sector is expected to escalate its way thanks to the following reasons. 

First of all, a good connection amongst the urban cities where a huge share of traffic is coming from the tier 2 and tier 3 cities. 

Modern technologies like enterprise resource planning, electronic data interchange, customs and accounting software, GPS, bar code system, radio frequency identification (RFID), automatic retrieval system, robotics, drones, among others are anticipated to improve the logistics services in near future. 

Macroeconomics has supported the sector’s growth with various free trade agreements (FTAs) signed between Vietnam and single economies or economic blocs which will boost the country’s trade relations in the long term.

Additionally, foreign investments are estimated to rise strongly in Vietnam as many logistics enterprises in ASEAN countries are keen to invest and have a better understanding of the laws, customs and culture of Vietnam. 

The country will focus on attracting investment in logistics infrastructure development, constructing regional and international logistics service centers, improving the efficiency of connection between Vietnam and other countries, thereby becoming a modern logistics hub in upcoming years, Ken Research said.

An overview on Vietnam’s logistics sector

Vietnam’s logistics and warehousing sector provides mix services including freight forwarding, warehousing, cold chain, express delivery, e-commerce logistics, and third party logistics for end users like foods and beverages, engineering equipment, retail, electronic devices, textile and footwear, wooden products and others in Red River Delta, Da Nang, Ho Chi Minh City, and other regions.

Vietnam’s freight forwarding market covers both normal and express delivery with freight movement like sea freight, road freight, air freight, and rail freight participated by international and domestic freight forwarding in flow corridors namely Asian Countries, European Countries, America and African Countries. 

Vietnam’s express market is formed by international and domestic express by air and ground express, and by market structure like B2C, B2B and B2C.

Meanwhile, Vietnam e-commerce market is formed by speed of delivery with two-day delivery, one-day delivery, same day delivery, within 2 hours, and others; by area of delivery such as intercity, and same region; and by payment method like cash on delivery and others.

Major players include DHL Express Vietnam, FedEx Vietnam, GHN, Damco Vietnam, Sotrans Vietnam, Vinafco, Kerry Logistics Vietnam, Bac Ky Logistics Vietnam, Nippon Express Vietnam, Vietnam Airlines, Transimex Saigon Corporation, Sea and Air Freight International, Vinalink Logistics, PetroVietnam Transport Corporation, Noi Bai Cargo Terminal Services, and others.
Tuesday, 16 July 2019 07:43

US$577 million was allocated to infrastructure construction and US$98 million will be used to finance the commercial operation.


Hanoi city plans to borrow over VND2,300 billion (US$98.35 million) from the Vietnamese government to soon put the long-delayed Cat Linh - Ha Dong Railway project into operation.
The railway project was approved since 2008, with an initially-approved cost of VND8.77 trillion (some US$376.4 million at current exchange rate). However, the project has undergone overruns of VND9.23 trillion (US$396 million) to a total cost of VND18 trillion (US$868 million at previous exchange rate). Of the total, US$669 million was sourced from Chinese ODA and the rest was Vietnam's counterpart fund.

Of this amount, US$577 million was allocated to infrastructure construction and US$98 million will be used to finance the commercial operation. 

The US$98-million loan will be used to purchase automatic ticket controllers, equipment for train maintenance, locomotives, and cover training and technology transfer.

A report from the Hanoi People's Committee said that central agencies have agreed to authorize the Railway Project Management Board to sign an agreement to borrow the amount from foreign sources with the interest rate of 4% per year.

If failing to pay the debt on time, the borrower must pay the penalty of late payment equal to 150% re-lending interest rate applicable to the overdue days. Loan principal and debt interest will be paid every six months.
Monday, 08 July 2019 03:17

The Vietnam National Shipping Lines (Vinalines) will delay its annual shareholders’ meeting until July 29, one month later than expected.


This delay is due to the amending of the Ministry of Finance’s Circular 34/2019/TT-BTC guiding the initial sale of shares and managing the proceeds from the equitisation of enterprises, which will officially take effect on July 29, 2019.


The corporation must wait until the circular takes effect to meet the provisions of the Government’s Enterprise Law and Decree No. 126/2017/NĐ-CP on transforming State enterprises and one member limited companies into joint stock companies.


This is the third time Vinalines has had to change the time of its first shareholders' meeting to officially switch to a joint stock company model. The meeting was originally set for the first quarter of the year, and then moved to June 24.


To prepare for the equitisation process, Vinalines has organised two share offerings.The initial public offering session attracted 42 investors who registered to buy 5,439,800 shares (accounting for more than 1.1 per cent of the nearly 490 million shares offered for auction). At the second negotiation session, the number of shares offered by Vinalines is more than 483.3 million.

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