Promoting digital transformation in logistics, e-commerce: Workshop

WVR/VNA - Applying technology in logistics and e-commerce will bring many benefits, thus optimising the efficiency of these two sectors, and contributing to reducing logistics costs for the entire economy, according to a workshop in Hanoi on May 16, 2024.
Promoting digital transformation in logistics, e-commerce: Workshop
Promoting digital transformation in logistics, e-commerce: An overview of the workshop on technology applications in logistics and e-commerce. (Photo: MOIT)

Deputy Director of the Ministry of Industry and Trade’s Agency of Foreign Trade Tran Thanh Hai said that in the National Digital Transformation Programme by 2025, with a vision to 2030, logistics is one of eight industries that need to be prioritised for digital transformation.

In addition, one of the tasks of improving competitiveness and developing Vietnam's logistics services by 2025 in accordance with the Prime Minister’s Decision No. 200/QD-TTg dated February 14, 2017 is to research and apply new and modern technologies in management, operation, and supply chain training to achieve higher quality logistics services.

Vietnam’s Logistics Performance Index (LPI) reached 3.3 points in 2023, which is 43rd out of 154 countries and territories, and fifth among ASEAN members. Its annual growth rate of services revenue is 14 - 16% with a scale of about 40 - 42 billion USD a year. The quantity and quality of logistics services have been improved as well, making an important contribution to promoting the growth of Vietnam's import-export turnover.

According to the Vietnam Logistics Business Association (VLBA), the domestic logistics industry accounts for 20-25% of gross domestic product (GDP) and is expected to grow 12% per year in the near future.

Experts said that the strong growth of the e-commerce industry brings more opportunities for logistics companies, as a rise in e-commerce transaction volume leads to increasing demand for transportation, logistics and delivery. The increase has been both an opportunity and a challenge for logistics services in e-commerce.

They also pointed out that applying technology to logistics activities helps businesses reduce delivery costs by 14% and increase the number of deliveries per vehicle by 13%.

Additionally, these breakthrough technologies enable logistics companies and service providers to further optimise costs and increase delivery productivity by intelligently planning routes to ensure operation quality.

Businesses and investors were advised to focus on expanding and modernising warehouses, planning networks to solve delivery options and forms, and optimising route deliveries to minimise delivery costs for both enterprises and users.

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(Source: WVR/VNA)