Industrial real estate facilitates the growth of logistics market

The EVFTA Trade Agreement takes effect to promote trade activities between countries, contributing to facilitating the logistics market to recover and develop. Logistics enterprises have made moves to prepare for FDI inflows from abroad.
The success in controlling the Covid-19 disease combined with the strong relocation of factories from China has been an opportunity for Vietnam's real estate to shine. This has led to a rapid increase in logistics services in Vietnam.

Businesses from China are massively seeking "new bases" to stabilize production and business due to the trade war between China and USA. This gives Vietnam the opportunity to become a new production center of the world, and an essential foundation for the strong development of logistics services.

In this opportunity, many provinces possessing potential advantages of seaports quickly approved the planning to develop logistics centers. In particular, Ha Tinh Provincial People's Committee has just decided to approve the planning of Son Duong logistics center and logistics services at the rate of 1/500 in Vung Ang Economic Zone.

Developing the logistics center behind Son Duong port will form an important link in the supply chain connecting Son Duong - Vung Ang port cluster with other regions. This position is not only the main logistics center of the province, ensuring its role as a logistics center within Ha Tinh, the Central region but also connecting with the East-West economic corridor and serving delivery activities.

Earlier, the People's Committee of Hai Phong City had just issued Plan No. 153 / KH-UBND, implemented the planning for the development of Hai Phong city logistics service system to 2025, with the orientation to 2030. Currently, Hai Phong is the largest import and export gateway to the North, in 2019 the cargo throughput reached nearly 130 million tons. This is also the area with many businesses operating in the field of logistics.

However, in order to help the development of Vietnam's logistics service industry, experts recommend that the Government should have a mechanism to encourage and motivate enterprises. Because most Vietnamese enterprises are small and medium-sized enterprises, which make enterprises be in a disadvantageous position when dealing with big partners.

In particular, Vietnam is considered as Germany's second-largest trading partner in Asia with more than 4,000 German businesses exporting in Vietnam. Therefore, in order to promote the attraction of orders from FDI enterprises, Vietnam's shipping service enterprises need to add many important factors in terms of financial resources, capacity scale and technical level as well as a high level of trust in logistics activities.

Assessment of human resources Mr. Nguyen Tuong - Deputy General Secretary of Vietnam Logistics Association (VLA) said that at present, our logistics enterprises lack technology manpower, while foreign logistics enterprises do not have strong advantages in warehousing, but they own many big orders associated with foreign enterprises because they have grasped the technology and the causes of Vietnamese enterprises' export sales practices. Therefore, to compete fairly, the Vietnamese logistics industry must make more efforts in the administration and order management, especially the support from the Government to have a specific roadmap for logistics reformation.

In addition, VLA also said that it is necessary to select a number of reputable businesses in shipping and logistics services and create policies to help them have a long-term strategy such as tax policy, interest rate reduction, capital support for a loan. Along with that, it is necessary to develop railway transportation in logistics activities.