Vietnam’s logistics industry is on the rebound and is forecasted to have a lot of growth potential in the coming time, possibly one of the strongest breakthrough areas in 2021.

Experts say that this is thanks to the recovery of trade when economies reopen, as well as Vietnam’s increasing position in the global supply chain.

Ships docked and unloaded goods at Tan Cang – Cai Mep port (Saigon Newport Corporation) in Ba Ria – Vung Tau province. Photo: Trong Duc/VNA

Great potential

According to a report by ResearchAndMarkets.com, the global logistics market size is estimated at 3.215 billion USD in 2021, up 17.6% compared to 2020. This shows that the logistics industry still has great potential for development.

According to the Center for Industry and Trade Information (Ministry of Industry and Trade), logistics services are considered as one of the fields with great potential and the strongest breakthrough in Vietnam in 2021. In particular, in the context of deeper economic integration and the process of shifting and restructuring international supply chains is taking place more and more clearly.

The creation of a solid infrastructure and logistics service foundation is considered as one of the particularly important components in the process of “cleaning the nest to welcome the eagles” as well as creating a basis for production and business enterprises. import and export business integration with a more proactive, effective and sustainable attitude.

This is also a great concern of the Government, functional agencies, investment organizations, independent international consultants and evaluations, and especially the logistics business community and shippers in Vietnam. Male.

In fact, Decision No. 221/QD-TTg dated February 22, 2021 of the Prime Minister amending and supplementing Decision No. 200/QD-TTg dated February 14, 2017 approving the plan to improve capacity By 2025, the contribution of logistics services to GDP will reach 5-6%, the growth rate of logistics services will reach 15-6% by 2025. 20%, the rate of outsourcing logistics services reaches 50-60%, logistics costs are reduced to 16-20% of GDP, ranked by the national logistics capacity index (LPI) in the world, reaching 50th or higher. up”.

Decision 221/QD-TTg also sets out 6 main groups of tasks that ministries, branches, localities and associations need to perform to achieve the above-mentioned goals; in which, developing the logistics service market is one of the six main groups of tasks that Decision 200/QD-TTg and Decision 221/QD-TTg have issued.

With a favorable geographical position, stable politics, a young population with increasing purchasing power and a booming online retail market, the logistics industry in Vietnam is forecasted to grow thanks to the increasing demand for goods. increase.

Demand for international shipping, inland transportation and distribution services is on the rise. The prospect of the economy in general and production and exports in particular offers the potential for rapid growth and is a good opportunity for Vietnam’s logistics industry in 2021.

In fact, logistics is always associated with import and export, while Vietnam’s import and export activities in the first 4 months of 2021 are very active.

According to the General Statistics Office, import and export activities nationwide in the first four months of 2021 compared to the same period last year achieved the highest growth rate in the past 10 years. Specifically, it is estimated that in April 2021, the country’s export turnover of goods will reach US$25.5 billion, down 14% from the previous month and up 44.9% over the same period last year.

Generally, in the first 4 months of 2021, export turnover of goods was estimated at 103.9 billion USD, up 28.3% over the same period last year. Meanwhile, in the first 4 months of 2021, the import turnover of goods was estimated at 102.61 billion USD, up 30.8% over the same period last year.

In the first 4 months of 2021, the total retail sales of consumer goods and services reached VND 1,695.6 trillion, up 10% over the same period last year. Thanks to vibrant trade activities, in the first 4 months of 2021, freight transport reached 617.6 million tons of transported goods, up 14.6% over the same period last year.

Industry and Trade Information Center, Ministry of Industry and Trade said, in the first quarter of 2021, freight transport by road still accounts for the largest proportion; Railway transport grew the most, while transport and aviation still recorded the heaviest impact because of the COVID-19 pandemic.

Logistics business thrives

In fact, logistics enterprises have excellent business results in the first quarter of 2021. One of the enterprises with impressive business results is Transimex Joint Stock Company (stock code: TMS).

In the first quarter of 2021, this business has a net revenue of 1,084 billion VND, nearly 2 times higher than the same period. Cost of goods sold increased, so gross profit reached VND 112.6 billion, up 54% compared to the first quarter of 2020. After deducting expenses, Transimex’s after-tax profit was 101.2 billion dong, up 75.7% over the same period.

Thanks to high revenue, Transimex (TMS) made a net profit of 99 billion dong, up 77% over the same period last year. Earnings per share (EPS) reached 1,429 dong, which is the quarterly profit