High logistics costs hindering exports

Despite being known for its low labour costs, higher logistics costs have continually reduced the competitiveness of Vietnam’s exports compared to elsewhere in the region.

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Export orders at this enterprise were not overly affected by COVID-19, but high logistics costs are now creating difficulties.

Besides the rising cost, there is also a shortage of containers, disrupting exports even further.

Goods must undergo trans-shipment in a third country before being shipped to the US and the EU, so enterprises must pay unloading fees twice, at up to 300 USD per container, compared to direct shipments from deep-water ports in Vietnam.

To address any inadequacies, relevant authorities have established an inspection group to check foreign vessels.

According to the Ministry of Industry and Trade, to ease the current difficulties, businesses need to pay attention to using full logistics package services, and be proactive in the management of raw material supplies, production, transportation, and delivery times, to control the market while increasing their competitiveness./.

VNA