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Vietnam logistic speeds up post-pandemic


Post-pandemic, logistic companies’ profits are surging as transportation booms, but industry insiders foresee further use of automation to reduce costs.

According to property data source, the occupancy rate for warehouses in Ho Chi Minh City and Hanoi last year was over 90%.

Vietnam’s logistics market was ranked 11th out of the world’s 50 developing markets last year as a result of the adoption of technology by service providers and their clients, according to supply chain service provider Agility.

It was reported that an e-commerce logistics company in Vietnam, has noticed a rise in the demand for storage last year. As it records hundreds of thousands of orders daily, the business has been compelled to undergo a digital transformation. In order to improve operations and decrease the number of employees, a sorting center is set to open.

Since the end of 2021, the e-commerce site has started sorting with robots, and delivery services have also embraced new technologies to reduce expenses.

According to a global logistics company, developed countries use automation to cut costs in half compared to Vietnam.

In China, an e-commerce fulfilment center in the past required 4,000 workers to sort and pack items; however, since employing robots last year, the center only requires 1,000 to run the center. This also cuts delivery time by six hours, and he added that if Vietnamese companies can adopt logistics automation, the country will become a hotspot for investors in Asia.

Another concern for Vietnamese companies is that the transport infrastructure, including airports, seaports, and warehouses, do not meet international standards.

However, given the intense competition in the transportation sector today, notably from well-known international companies, the nation has great potential.

In the next ten years, Vietnam’s GDB is expected to grow by 8%, therefore increasing its logistic share.

According to the Vietnam Industry Research and Consultancy, the country’s logistics industry is anticipated to grow 15-20% annually by 2025, when it reaches $80 billion.




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