bongdasoTop List logistics companies in Vietnam in 2023

bongdaso foundation of bongdaso top 10 respectable logistics firms for 2023 is made up of impartial, scientific criteria. Three key factors are used to assess and rank companies: (1) bongdaso most current year's financial statements demonstrate bongdaso company's financial capacity; (2) bongdaso Media Coding method is used to evaluate bongdaso company's media reputation by coding articles about it on prominent media channels; (3) A survey of research participants and pertinent parties will be carried out in October and November of 2023.

List 1: 2023's Top 10 Reputable Logistics Businesses - Industry group International logistics services for third and fourth parties, warehousing, and freight forwarding

List 2: Freight transport industry group's top 10 respectable logistics firms in 2023

List 3: Port exploitation industry group's top 5 respectable logistics corporations for 2023

List 4: Express delivery and last-mile delivery industry group's top 5 respectable logistics organizations in 2023

bongdaso international economy is going through a challenging period as bongdaso main forces behind global growth are waning as a result of a number of incidents as COVID-19, trade and political tensions, and consumer spending surges. very widespread, causing uncertainty to permeate bongdaso whole global economic landscape. With a GDP growth rate of just 4.24% in bongdaso first nine months of 2023 and an estimated 5.0% rise for bongdaso whole year, bongdaso General Statistics Office presents a serious challenge to bongdaso Vietnamese economy. bongdaso aforementioned growth rate, however, is still greater than bongdaso 3.0% worldwide growth rate predicted by bongdaso International Monetary Fund (IMF).

bongdaso aforementioned issues impact not only bongdaso overall economy but also bongdaso logistics sector, as they provide significant obstacles for companies operating within it. Businesses and bongdaso government are working nonstop to help bongdaso logistics sector restore its development momentum, highlighting its critical role and positioning it as bongdaso primary engine of bongdaso economy.

bongdaso signing of sixteen free trade agreements shows that bongdaso trend of international economic integration also benefits logistics companies. Environmentally friendly logistics solutions and a robust digital transformation are also crucial supporting elements. After overcoming bongdaso present challenges, local logistics companies will take advantage of fantastic chances to establish a solid reputation and strengthen their place in bongdaso domestic and global supply chain.

Economic picture of bongdaso Logistics industry in 2023

As a vital link between bongdaso production, distribution, and consumption of commodities, bongdaso logistics sector is one of bongdaso major economic drivers. Vietnam's logistics sector has had significant growth in bongdaso last few years, averaging between 14% and 16% annually. According to Mordor Intelligence, bongdaso market for freight transport and logistics is expected to reach 45.19 billion USD by 2023 and develop at a compound annual growth rate (CAGR) of 6.34%.

bongdaso first 11 months of this year saw a decline in bongdaso export and import turnover of products, with declines of 5.9% and 10.7%, respectively, in comparison to bongdaso same time last year due to unanticipated bad events in bongdaso world economy. bongdaso whole amount of freight transit in our nation is anticipated to reach 2,062.3 million tons during bongdaso first 11 months of 2023, up 12.9% from bongdaso same period in 2022. bongdaso volume of products showed a considerable decline of 22.4% when rail travel was bongdaso only mode of transportation. Air, road, and sea transport climbed by 13.6%, 11.7%, and 9.9%, respectively, while inland canal transport had bongdaso biggest rise, reaching 18.5%. When bongdaso total amount of products that passed through seaports in 2023 is taken into account, only bongdaso amount of goods imported via seaports showed positive growth at bongdaso end of bongdaso first quarter. In January, bongdaso total amount of goods that passed through bongdaso port increased negatively. Over bongdaso course of bongdaso first eight months of this year, bongdaso quantity of products exported has not improved cumulatively but has instead tended to decrease; in contrast, bongdaso amount of goods imported and domestically produced has increased positively but has not surpassed 4.0%.

Figure 1: Over bongdaso first eight months of 2023, bongdaso cumulative increase rate of cargo volume via seaports

According to a Vietnam Report poll, bongdaso majority of logistics companies saw a drop in their financial performance. Interestingly, up to 40.0% of companies reported a considerable decline in earnings out of bongdaso 66.7% of enterprises that reported lower profitability. Up to 60.0% of enterprises had lowered their overall expenses, which was one of bongdaso many bright spots in bongdaso cost factor of logistics organizations. Additionally, this appropriately depicts bongdaso government's initiatives to cut lending interest rates, manage inflation, and stabilize macroeconomics.

Figure 2: Variations in logistics companies' income, expenses, and earnings throughout bongdaso first nine months of 2023

Obstacles that logistics companies must overcome

In light of bongdaso global economic downturn and bongdaso business outcomes of bongdaso first nine months of 2023, local logistics companies are now dealing with bongdaso following issues:

First, let's talk about bongdaso trio of 03 factors: declining order volume, sluggish economic expansion, and global political unrest. bongdaso production, distribution, and consumption of commodities both locally and globally are all related to bongdaso logistics sector. It is difficult for bongdaso economy to prevent growth slowing down when negative variables for bongdaso economy present, such as political instability and high inflation following stimulus programs in many nations during bongdaso COVID-19 era, which marked bongdaso end of bongdaso time of rapid expansion. This is bongdaso unfavorable element that affects logistics companies bongdaso quickest, particularly those that support global logistics operations.

Second, having to do with bongdaso rivalry among companies in bongdaso sector. As more and more international companies join bongdaso market with bongdaso intention of controlling it and are ready to lose three to five years to win market dominance, there is intense competition in terms of both price and service. Moreover, these companies are developing their ecosystems, entering bongdaso logistics market, and managing delivery tasks on their own thanks to bongdaso growth of e-commerce platforms, where bongdaso output of bongdaso logistics sector is now rising in size. items of bongdaso business. Businesses must make sure that vehicles attain their full load capacity, minimize expenses, and take advantage of scale in order to participate and stay in bongdaso game. bongdaso aforementioned difficulty also requires firms to streamline operations and encourage bongdaso use of automation technologies and digital transformation; this is particularly challenging for small logistics companies that lack bongdaso funding and staff.

Figure 3: A few difficulties faced by logistics companies

Thirdly, with respect to bongdaso set of variables influencing company expenses, these are: volatility in energy prices; pressure on exchange rates; high rates of inflation; and challenges in obtaining funding for investment endeavors. Logistics companies are bongdaso most severely impacted by bongdaso economic downturn, despite bongdaso fact that bongdaso government has effectively regulated and supported these variables. This is because bongdaso significant drop in income makes firms more vulnerable to factors that raise operating expenses.

In addition, bongdaso infrastructure supporting bongdaso logistics sector has an impact on costs. Space and area play a major role in logistics infrastructure, interfering with public transit and infrastructure. Public investment has been strongly encouraged by bongdaso government, particularly in transportation projects including bongdaso North-South road, Long Thanh Airport, and high-speed rail. Better transportation infrastructure, nevertheless, hasn't been able to advance bongdaso sector. short-term logistics. Based on bongdaso findings of bongdaso Logistics Industry of Vietnam Report expert interviews, bongdaso infrastructure for warehousing to process and store products is not truly linked with bongdaso planning of economic area growth. Vietnam lacks a centralized location for logistics companies, which results in dispersed infrastructure for logistics, which is bongdaso main driver of high logistics costs.

And lastly, about human resources in bongdaso logistics sector. Human resource issues predominate and restrict corporate potential. Due to bongdaso industry's formation and rapid global growth, as well as bongdaso defined limitations of bongdaso implementation process, bongdaso professional component of bongdaso logistics sector's human resources is becoming more and more concentrated. bongdaso Valoma Logistics Human Resources Development Association projects that over 200,000 personnel will be required in bongdaso logistics industry by 2030. In bongdaso meanwhile, only roughly 10.0% of market demand is satisfied by bongdaso capacity to fulfill logistics human resource demands. Only around 5.0% to 7.0% of bongdaso workforce now employed in this industry is appropriately educated in logistics services. As a result, it may be said that Vietnam lacks both sufficient and high-quality human resources for logistics.

Outlook for bongdaso logistics sector in 2023 and some tactics to assist companies in solidifying their positions

When 34.5% of firms responded to Vietnam Report's study, logistics companies also expressed confidence about bongdaso country's economic recovery and its growth objective of 6.0% in 2024. It is predicted that bongdaso logistics sector will expand more favorably. Positive indications of a rebound in global demand have led to optimistic predictions, which will have a favorable effect on bongdaso logistics sector's earnings in bongdaso near future. Furthermore, bongdaso Vietnam Maritime Administration's policy adjustments on bongdaso draft to replace Circular 54/2018/TT-BGTVT have given bongdaso port system—bongdaso gateway for international trade—a launching pad. In light of this, bongdaso draft suggests raising bongdaso cost of container loading and unloading services by 10% starting in 2024 in certain locations, including bongdaso Hai Phong port and bongdaso Cai Mep - Thi Vai port cluster. Ports may raise their service fees by an additional 10% if they are able to handle ships with a gross weight exceeding 160,000 DWT. This would result in a 20% increase in loading and unloading expenses over current levels. bongdaso future for logistics companies generally, and port operators in particular, is becoming increasingly favorable due to bongdaso combination of rising transportation demand and rules permitting higher service costs.

Supply chain flexibility

Because of bongdaso constant application of technical innovations and changing supply chain patterns, business moves more quickly than before. In today's digital landscape, companies and their supply chains need to be flexible to be competitive, much alone grow. Logistics companies must be able to self-manage, execute, and control phases in bongdaso operating process, proactively managing directly instead of depending on external units, in order to achieve supply chain flexibility and remain ahead of bongdaso curve. Above all, logistics companies are able to address issues as they arise, minimizing or eliminating their negative effects on bongdaso company. Moreover, any modifications to a company's procedures may be managed internally. If not, they will be forced to depend on a managed service provider to identify and resolve any issues that arise with their systems.

Accept automation and satisfy bongdaso need for data and visibility in real time.

bongdaso persistent worldwide labor shortage is a glaring issue for bongdaso logistics and 3PL sectors. This scarcity has an impact on bongdaso manufacturing and delivery processes by raising bongdaso cost of items by a considerable amount. Manufacturers and logistics service providers are using automation to address bongdaso manpower deficit. By establishing end-to-end connectivity between back-end WMS/ERP systems and a range of e-commerce solutions that are becoming more and more popular, logistics companies may take advantage of automation.

It should be mentioned, nevertheless, that organizations need to have a long-term and thorough understanding of their business processes because as additional platforms and systems are used in those processes, an increasing amount of data must be gathered. Control data flows to enhance operations monitoring and management. Furthermore, it's getting more and more typical for clients to ask for ongoing information updates throughout bongdaso shipment procedure. Customers and companies alike gain from having insight into delivery locations and timings since it enables them to better plan and manage their operations.

Demand less than truckload,Less than truckload (LTL)

Smaller shipments are being requested increasingly often from logistics companies in general and those involved in last-mile delivery in particular due to bongdaso growing popularity of e-commerce and bongdaso demand for speedier distribution. This is a result of firms' lack of time to wait until they get enough orders to cover bongdaso total tonnage of shipping vehicles. Less-than-truckload, or LTL, is one way to solve bongdaso problem. This approach involves placing several smaller orders from various units on a single carrier, which results in numerous delivery stops replenishing bongdaso vehicle's load. Leaders in bongdaso sector claim that this approach is frequently used by them and offers several financial advantages along with a considerable reduction in environmental effects.

Digital freight marketplace

​ A digital network called bongdaso Digital Freight Marketplace connects shippers and carriers to coordinate shipments. In addition to helping carriers identify additional business prospects, bongdaso platform facilitates shippers' search for carriers and assists both sides in negotiating bongdaso best project pricing.

Implement ecosystem integration

Logistics companies want a solution that unifies all bongdaso many systems both internally and externally since they are integrating more platforms and apps into their digital ecosystems than ever before. Integration of bongdaso ecosystem is bongdaso answer to this issue. By merging B2B and EDI (electronic data interchange), integrating data and applications, and integrating secure data transfer technologies into a single software platform, an organization can connect and integrate its primary revenue-generating business processes with ecosystem partners. This is known as ecosystem integration.

Therefore, businesses may utilize a single, all-inclusive integration platform rather than using many alternative solutions to link various systems and trade partners. This simplifies connections and procedures, which lowers integration complexity while also reducing mistake rates. Furthermore, since information can be exchanged over time, ecosystem integration often results in improved data flow across systems and businesses and is less expensive than using several solutions. true.

bongdaso poll indicates that Logistics firms focus onthe following 5 short-term tactics to achieve exceptional growth, support businesses during this challenging time, and understand bongdaso development patterns in bongdaso market. bongdaso following are bongdaso businesses of Vietnam Report: Simplify operations to reduce costs;(2) Develop and enhance human resources;(3) Find new markets and expand bongdaso supply chain;(4) Boost after-sales initiatives to engage customers; &(5) Raise funds for technological equipment to support digital transformation.

Figure 4: Top 5 strategies prioritized by Logistics businesses

By 2024, logistics trends are expected to continue to rise in order to stay up with advancements in technology and bongdaso world economy. In order to improve supply chain management, bongdaso logistics sector will, in general, give priority to automation, solve bongdaso manpower deficit, and pursue real-time monitoring.

Even if these trends will still have an influence on bongdaso logistics sector in 2024, trend-setting emerging technologies must be integrated with current infrastructure and solutions in order to succeed.

Promoting inland shipping in Vietnam: saving costs, reducing emissions

As part of bongdaso domestic Logistics development strategy, domestic maritime transport will be bongdaso key to go hand in hand with bongdaso development of bongdaso road network. Considering bongdaso structure of goods through seaports in bongdaso first 8 months of 2023, domestic goods account for half of bongdaso total volume of goods and is equal to bongdaso total volume of export and import goods. In addition to serving international trade activities, bongdaso seaport system also serves domestic goods circulation and is an essential part of Vietnam's Logistics network.

Vietnam has a long coastline, favorable for bongdaso development of a seaport system. Among bongdaso 34 seaports in Vietnam, there are 2 special seaports: Hai Phong seaport and Ba Ria - Vung Tau seaport; 11 class I seaports; 7 type II seaports and 14 type III seaports. These ports are distributed along bongdaso coast from North-South. Transporting goods by sea has a huge advantage in terms of transport costs per volume of goods, with costs 10.0% - 15.0% lower than road transport. In addition, concentrating a large amount of goods on one vehicle helps reduce emissions. This is also a green transportation method, contributing to reducing bongdaso negative impact on bongdaso environment caused by Logistics activities in general. Despite such advantages, inland maritime transport, as well as inland waterway transport, have not developed rapidly, improving Vietnam's Logistics efficiency due to bongdaso connection of seaports to other modes of transport as well as bongdaso location of industrial parks is still not high.

Figure 5: Goods movement structure via seaports in bongdaso first eight months of 2023

In order to promote inland shipping, it is necessary to link seaports to bongdaso inland port system, as well as to highways and railroads. Due to bongdaso link, sea transport is a more advantageous option for firms looking to transfer products, since it lowers logistics costs and fosters local economic growth. More significantly, sea transportation by itself cannot guarantee bongdaso greatest levels of efficiency and flexibility. For this reason, it is urged to combine with at least one other form of transportation.

Furthermore, a long-term strategy for lowering logistics costs is to balance bongdaso "trade balance" of economic areas. This is a problem that requires attention. In order to maintain a balance between bongdaso quantity of "exported" and "imported" commodities from that place or economic zone, this is considered as economic growth in such locales and regions. bongdaso aforementioned approach fully optimizes bongdaso state of empty containers in addition to using technology, which raises existing logistics expenses. Physical impediments prevent technology from helping to minimize logistics costs, which is why there is an imbalance in "trade balance" in many communities and economic zones.

Analyze logistics companies' communication efforts.

bongdaso issue categories Finance/Business data and Stocks continue to be bongdaso most regularly appearing in bongdaso media, making up 17.6% and 14.9% of bongdaso total quantity of encrypted material, respectively, according to media analysis data. good developments in stock prices indicate that bongdaso subject group Stocks has seen a significant rise in bongdaso rate of good news compared to bongdaso previous year. There is an extra subject group, Image/PR/Scandals (10.7%), with a percentage of above 10.0%, in addition to bongdaso two previously indicated topic groups. Investing in opening ports has been a major focus of bongdaso past year. Finishing agreed cooperation projects with industry firms has helped bongdaso Management subject group move up to fifth place and set an upward trend over bongdaso previous three years.

Figure 6: bongdaso top five issue groupings that will be covered by bongdaso media most often between 2021 and 2023

When bongdaso ratio of positive to negative information difference to bongdaso entire quantity of encrypted information is 10%, a firm is deemed "safe" in terms of information quality; nevertheless, this is also when bongdaso "best" level is attained. exceeds 20%. Approximately 55.8% of companies in bongdaso logistics sector presently meet bongdaso 10% threshold, which is a decrease of (-6.1%) from bongdaso previous year. bongdaso above results can be explained by bongdaso fact that bongdaso global and Vietnamese economies are having an adverse effect on bongdaso amount of goods in circulation, which is causing a decline in business results for industry participants. This, in turn, is contributing to a rise in negative news.

In terms of information sources, although it has increased from bongdaso previous year (+7.1%), companies are still reluctant to speak out proactively and bongdaso press often provides bongdaso bulk of information. bongdaso press.

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