mai hien

Wan Hai confirms bumper order for 20 new boxships
Tuesday, 27 November 2018 03:09

Taiwan’s Wan Hai Lines has made a bumper order for 20 new container vessels with Japanese and Chinese shipyards.


The newbuilding contract includes eight 3,036-teu container vessels to be built at Japan Marine United (JMU) and twelve 2,038-teu container vessels at Guangzhou Wenchong Shipyard/China Shipbuilding Trading Company.


Deliveries will commence in end-October 2020 and early-January 2021 for the 3,036-teu capacity and the 2,038-teu capacity, respectively.

Wan Hai also has the option for four 3,036-teu vessels within six months and four 2,038-teu vessels within three months.


“The new shipbuilding contract is the company’s latest fleet renewal plan, so as to ensure the company’s vessel fleet is able to maintain competitive and support continuous market development,” Wan Hai stated.


At present, Wan Hai operates a fleet of 72 owned vessels and 24 chartered vessels.


E-commerce golden pass for logistics
Friday, 23 November 2018 01:31

The strong growth of the e-commerce sector has been turning Vietnam into a major magnet for investment in the capital-thirsty logistics industry.

Stephen Wyatt, country head of JLL Vietnam, has seen considerable growth in smartphone penetration in major cities across Vietnam. This has contributed to the significant growth of the domestic e-commerce market, following a year-to-year uptrend in shopping via smartphones.

“Many e-commerce companies are picking up the pace to keep up with the demand from customers,” said Wyatt.

The heightened emphasis on supply chain efficiency and effectiveness over the past 12 months, in a bid to deliver goods with speed and agility for consumers, has and will continue to have positive spillover effects on logistics services providers in Vietnam.

The heyday of e-commerce development

According to KPMG’s 2017 international survey titled ‘The truth about online consumers,’ online shopping is popular among Vietnamese consumers as they can easily compare prices, find online sales or get better deals from online retailing platforms such as Lazada and Tiki.

Many e-commerce companies are picking up the pace to keep up with the demand. The e-commerce market has witnessed some significant events such as the successful collaboration between Alibaba’s Alipay and National Payment Corporation of Vietnam (NAPAS) and Tiki receiving $44 million funding from (one of Alibaba’s major competitors). In 2016, Central Group bought Zalora Vietnam and officially changed its name to Robins Vietnam.


Dao Trong Khoa, deputy chairman of the Vietnam Logistics Association, said that Vietnam must follow digitalisation: “This is not optional for enterprises anymore: it will be a distinct disadvantage for the ones who fall behind,” Khoa said.

The number of businesses applying technologies in their activities has increased from around 15 per cent to 40-50 per cent. However, still half of the existing companies are not applying technology in their business.

“Logistics providers must apply technology and digitalise their database to cut costs and catch up with the new trends, as well as to receive more opportunities brought about by e-commerce,” Khoa added.

Major e-commerce and logistic players have been on the move to secure logistics space to efficiently fulfill both domestic and overseas distribution orders. This has spurred a renewed appetite for pure industrial space in inner ring locations, which is optimal for the last leg of delivery.

Wyatt confirmed that there is no doubt that major e-commerce players will improve their offerings and further develop and expand their logistics and supply chain network across the globe.

“This, along with the projected growth in the e-commerce sector, will ultimately mean more physical goods in circulation, and industrial space is at the forefront of capturing the positive spillovers from this expansion,” he added.

By 2025, according to a study of Google and Temasek, the Vietnamese e-commerce market will reach the size of $7.5 billion thanks to five key systemic changes, including the young population, increases in internet speed and penetration, stable GDP growth of over 5 per cent per annum, more conducive payment ecosystem, and lack of store access.

Logistics booming in Vietnam

The robust growth of the e-commerce market has accelerated the development of express and logistics services.

Logistics is a crucial component for the Vietnamese e-commerce market to reach its full potential. Many foreign logistics providers and e-commerce operators are crowding the market not to miss an opportunity. Vietnam is now home to around 3,000 logistics providers, 30 of which are international providers. Foreign-invested players are dominating the market, building on their experience and professional management, providing high value-added logistics services, such as international shipping and supply chain management.

Talking about the potential of logistics in Vietnam, Glenn Kong Wai Keong, general director of First Logistics Development Company, the operator of VITC port in Ho Chi Minh City, said that southern Vietnam will remain exciting for the logistics industry as a whole for many years, despite having its own challenges, as the government has been articulating the goal to industrialise Vietnam.

“Ho Chi Minh City and Binh Duong continued to receive the biggest registered investments among the provinces in Southern Vietnam in the first quarter of this year. Manufacturing and processing, which is directly beneficial to the port, shipping, and logistics industries, makes up close to 60 per cent of this total investment,” said Keong.

Road transport remains the backbone of Vietnamese freight transport. However, despite its dominant position in freight volume, it could not reach its full potential and serve the growing demand for cargo transportation due to the underdeveloped road network.

Figures from StoxPlus, which provides financial and business information products, analytic tools and market research services, show that in 2014-2017, the net profit margin of the logistics sector improved by double digits, thanks to lower costs and the prosperity of highlighted sectors. Stoxplus also showed that total logistic costs in Vietnam were around $39.6 billion in 2017, equivalent to 18 per cent of the GDP. Compared to regional peers, the Vietnamese logistics market is still in its infancy and strongly features low-specification premises located in remote locations. Significant investment is needed in technology, infrastructure, and factories and warehouses to deal with obstacles ranging from traffic congestions to failed deliveries, as well as higher logistical costs in rural areas.

MOL Consolidation Service (Vietnam) Co., Ltd (MCS) Official Opening On 15th November 2018
Wednesday, 21 November 2018 01:19

On 15th November, MOL Consolidation Service (Vietnam) had officially opened, being the Grand opening in Vietnam. Getting this chance, Vietnam Shipping Gazette had the exclusive interview with Mr. Michael Goh – Chief Executive Officer of MCS

Q: MOL is one of the top shipping lines in the world. Could you please tell us about your ideas on the combination of the digitalization and e-commerce on your services?

Technology such as e-commerce has been MOL's initiative since the era of digitalization emerged. MOL is a 130+ year old company so we continuously strive to go along with the changing business environment that demands us to be competitive. For many years, we have been operating and dealing with customers, vendors and our partners on a global scale hence digitalization such as e-commerce is vital and an important aspect of our business. Inter-connectivity is a key to success in e-commerce.

Q: What do you think about the Alibaba - e-commerce B2B joining in the supply chain business and cooperation with some top shipping lines? Does it influence into your plan to increase the market share globally and in Vietnam ?

We do not have direct relations with Alibaba but we do look at the Alibaba model of their B2B e-commerce supply chain process. MCS does have a similar “fulfillment model”, which is a value added service that provides a comprehensive total supply chain solution to our customers. We can say that our concept is similar with the Alibaba B2B e-commerce model.

Q: What do you think about with the trends in the global supply chains, joining to blockchain platform?MOL Consolidation Service (Vietnam) will join in this trend too and apply it in Vietnam?

Blockchain platform has been there although we can say that full adaptation is still premature from our perspective. As far as MCS is concern, there are two candidate modules that suit our business as far as blockchain is concern. We do run pilot programs on blockchain related to Document Repository and Invoicing. Our interest and key focus at this point will be on document versions, historical data, data security and data reliability. We see many companies today using blockchain but only as a marketing scheme, while we believe that blockchain would be more beneficial and advantageous if we are able to link it with our operator partners i.e. truckers, carriers, banks and customer platforms etc.

Q: Could you please tell us your ideas on global and Vietnam future trade, and its influences on the logistics/supply chain industry?

Amongst the ASEAN countries, we see that Vietnam together with Cambodia and Myanmar, remains in a positive position for robust growth. Although we have seen some slowdown in recent years, we expect that the emerging ASEAN markets including Vietnam are expected to regain momentum in the coming years. We expect Vietnam will lead its growth momentum driven by the improvements in domestic consumption, rising foreign investments and continued growth in manufacturing exports. The historical business and economic track record indicates that Vietnam remains to be a big potential market for growth which will surely influence the  logistics and supply chain industry to move along with it. In addition, Vietnam could potentially benefit from the escalating China-U.S. trade war. The Southeast Asian nation could be a "winner" if a lot of foreign direct investment shifts into Vietnam due to rising cost pressures from the U.S.-China tariffs. China might start to shift a lot more of its production to Vietnam. This is the inevitable and possible trend we see.

Q: As the global supply chain company, could you say something about company plan in next 5 years? Does MOL Consolidation Service plan to build the distribution centre like Schenker, Gemadept…to complete your chain?

Our aim is to continue to be a leading global supply chain company. We continue to expand to integrate our business portfolio as a 'one stop shop' global logistics provider. Most recently, we have launched the establishment of MOL Worldwide Logistics (MWL) last October 1 which is our non-vessel operating common carrier (NVOCC) arm in the MOL group. We continue to explore more business opportunities to enhance and to bring value to our customers' through innovative and customized supply chain solutions for general cargo transport with top quality services.

Q: What are your commitments or MOL Consolidation Service (Vietnam) to customers in near future to reduce Vietnam logistics cost as per Prime Minister Nguyen Xuan Phuc instruct in the decision No. 200/QĐ-TTG last time?

MCS is committed to be cost competitive to ensure that we bring service value to our customers. We always make effort and work closely with our local front offices to ensure that our cost is well in line with the service we provide. The company actively seizes opportunities to contribute to global economic growth and development. We value an open and visible management style guided by the highest of ethical and social standards and maintains strict operating standards.

Thank you for your interview and congratulations on your Grand Opening.

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