Why should choose a local cargo care agent in the logistics supply chain in Vietnam


Even with the appearance of global logistics suppliers, local supply chain agents are also good choices for business that happens in export/ import activities in Vietnam. Why should choose a local cargo care agent in the logistics supply chain in Vietnam?

1. The position of Vietnam's logistics industry

The 2021 Logistics Index report of Agility - one of the world's leading logistics service providers, shows that Vietnam has increased three ranks compared to 2020, ranked 8th in the top 10 countries. Among ASEAN countries, Vietnam ranks 8th, higher three places compared to the previous year's ranking; while Indonesia (ranked at 3rd place), Malaysia (ranked at 5th place), Thailand (ranked at 11th place); The Philippines rose one spot to 21st place.

The factors help Vietnam to achieve the above position are:

1.1. Geographical advantage

Vietnam has more than 3,000 km of coastline with many ports and a border with China - the world's largest manufacturing centre. Over the past few decades, the Government has focused on building and improving infrastructure to operate two important deep-water ports: Cai Mep port (in the south) and Lach Huyen port (in the north). 

1.2. FDI investment flow

Vietnam has succeeded in attracting a steady flow of foreign direct investment capital, with many multinational enterprises such as Samsung, LG Electronics, Apple, Microsoft, Intel, Dell... Following that, the supply chain of giant multinational corporations will come to Vietnam, further increasing the market's attractiveness to FDI inflows.

1.3. Strong growth of export activities

Even though the Covid 19 pandemic badly affects global trade, the value of Vietnam's export goods market still positively increases. According to the General Statistics Office, in the first quarter of 2021, export goods value reached USD 77.34 billion, which increased 22% compared to the same period in 2020.

1.4. Trade agreements

Vietnam has participated in several free trade agreements and successfully positioned itself on the global trade map. It has received good signals as a result of joining globally.

2. Industry knowledge of domestic logistics units

When import-export activities happen in Vietnam, businesses should choose a domestic logistics unit to support, for the following reasons:

2.1. Extensive and ready-to-use network

Local logistics companies usually have widely distributed service networks, which are ready to provide services as soon as the business needs it, saving time and catching up with the production speed and "fast" customers' requirements. Otherwise, companies also get good quotes on freight - services, thereby improving their capital capacity reasonably.

2.2. Market understanding & policy competently

Vietnamese enterprises understand most how to operate mechanisms with the participation of lots of organizations and authorities. Specifically, logistics for import-export cargo involve Customs Agents, Security, Ministry of Transport, Ministry of Industry and Trade, even the Ministry of Health with supervision procedures for living animals for examples, fresh goods, agricultural products, ... and many other techniques. Therefore, choosing a domestic enterprise to serve logistics activities is a safe choice for businesses.

2.3. The Government's incentives for domestic enterprises

With the position of the import-export industry, which has been significantly contributing to the annual GDP, the Vietnamese government creates favourable conditions for the development of logistics companies, especially domestic ones. This is a significant advantage for local logistics agencies to compete with foreign enterprises.

3. Some well-known local cargo care logistics units in Vietnam

ALS Cargo Terminal

Besides the prestigious global companies such as DHL, UPS, FedEx, ... local enterprises are also very prominent and have remarkable development potential such as IndoTrans, Bee Logistics, ALS

To get advice about cargo care logistics services, contact us at 1900 3133 or email contact@als.com.vn for more details.

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