The trend of online shopping opens opportunities for transportation and logistics businesses

The trend of online shopping opens opportunities for transportation and logistics businesses

Vietnam's transport and logistics industry has a lot of potential for growth, participating more deeply in the world transportation centers because the Government has many policies to facilitate the development of the industry, along with the trend global economic integration, many signed trade agreements, strong development of the e-commerce market and automation industry, and increasingly improved infrastructure.

 

In addition, the transport and logistics industry also has more opportunities to open from the US-China trade war, when many Chinese companies moved factories to Vietnam and Southeast Asia. Accordingly, nearly 91% of businesses in the survey of Vietnam Report said that the industry growth in 2020 will be over 10%, many experts said the growth rate reached 14% - 16%, according to Average index of recent years.

 

Application of technology 4.0 in transportation and logistics

 

With the explosive development of the 4.0 revolution, there have been many applications of science and technology in logistics activities. Currently, developed countries are gradually implementing E-Logistics, green logistics, E-Documents ... and applying cloud computing technology, blockchain technology, artificial intelligence or robots to implement some services, such as container loading or unloading, container loading and unloading, etc.

 

Although at present, Vietnam's logistics service providers apply technology to their business activities at a low level, mainly using electronic customs declaration software, vehicle positioning technology, email. and basic internet ..., but according to nearly 80% of experts in the Vietnam Report's survey, before the digitalization trend, businesses in the transport and logistics industry of Vietnam will gradually adapt and accelerate. research and application of technology in logistics activities, to standardize operational processes, optimize costs and resources of enterprises, monitor and enhance management capabilities, evaluate service quality, and increase customer loyalty.

 

The trend of online shopping opens opportunities for transportation and logistics businesses

 

With the rate of 70% of Vietnam's population using the Internet, the average access per person is about 28 hours/week, creating conditions for the e-commerce industry to thrive. In 2018, according to a report of the Department of E-Commerce and Digital Economy of Vietnam, the e-commerce market reached US $ 8 billion, with a growth rate of 30% compared to 2017 and is forecast to continue to grow higher in many next years, reaching US $ 10 billion by 2020. E-commerce development has led many consumers to turn to online shopping and the development of a new business model for delivery service companies with frequency. Large and small delivery and service coverage across provinces. Many e-commerce sites also invest in building technology platforms and logistics systems, expanding warehouse sizes, increasing distribution points to meet the needs of users.

 

Merger and acquisition (M&A) continues to be active with transport and logistics

 

Experts in the Vietnam Report's survey have forecasted that in the next 2-3 years, the M&A wave will continue to be active in the field of transport and logistics due to fierce competition pressure in the context of economic integration global economy, together with the advancement of science and technology and the impact of the 4.0 revolution.

 

Along with the high growth potential of Vietnam's transport and logistics industry and the low competitiveness of domestic enterprises, creating great opportunities for many foreign enterprises to participate in Vietnam's logistics market through the form of M&A to take advantage of the existing network, customer base, and domestic operating experience. In 2019, there were many M&A deals worth millions of dollars, such as Symphony International Holdings (Singapore) shares of Indo Tran Logistics and Transport Joint Stock Company (ITL Corp) from Singapore Post for 42.6 million USD, SSJ Consulting spent nearly 40 million USD to buy 10% of Gemadept's outstanding voting shares.

 

M&A activities also create challenges for water enterprises to innovate and innovate to optimize their businesses, but also a good opportunity for businesses and other businesses to learn management experience and transfer. technology transfer, logistics cost optimization of experienced businesses in many continents.

 

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