Challenges in infrastructure and connectivity
Within e-commerce “customer behaviours are changing, [which] makes the entire logistics environment change” said DHL Global Forwarding Head of Marketing and Sales Mark Cheong. He also emphasised that new technologies needed to be adapted to tackle this challenge.
“We can define the connectivity [between good/parcels and customers] through data synchronisation [and] data transfer,” Mr Cheong explained when discussing how technology could help boost business. “This will improve the information that flows through from production to customers. And at DHL, we are online so you can get a quotation from anywhere in the world to anywhere in the world.”
Maersk Area Head of Operations (Vietnam, Cambodia, Myanmar and Laos) Tobias Gruemmer revealed that the application of new technologies could allow customers to monitor their shipping containers – their condition and security – in real time, with blockchain having the biggest potential to generate cost savings.
Ocean Export Manager of Expeditors Henry Vo discussed the opportunities for Vietnam that could come from the recent trade war between China and the US. “It might bring a lot of opportunities for us in import and export,” Mr Vo said. “Many factories approached us and expressed that they want to move production from China to Vietnam.”
Both Mr Vo and RMIT Vietnam Head of Management Department from the School of Business & Management Associate Professor Robert McClelland, agreed that the 12 free trade agreements that Vietnam currently has with many organisations in other countries will generate opportunities for the shipping and logistics industry.
Associate Professor McClelland said that even though there has been an advancement of infrastructure within Vietnam, it is not quite there yet: “In term of technologies, Vietnam is equivalent to most countries in Southeast Asia in some aspects. It has Lazada, an equivalent to Amazon, many retail businesses are moving to online sales, Grab, one of many high technology and digital businesses, as well as many holiday and hotel booking companies and businesses in the supply chain. All of those have equivalents across the whole of Southeast Asia.”
“However, transportation within the country [where infrastructure is involved], or the on-land connection, is not quite there yet,” Associate Professor McClelland said.
“The Government needs to speed up the improvement of infrastructure. It’s good now, but to stay good in the future, it needs to be invested in now,” Mr Gruemmer commented. He also urged the Government to develop the three major port complexes in the country and to speed up the development of Long Thanh airport to enable transport of bigger containers.
Sustainable approach