LOGISTICS COST CHALLENGES EXPORT BUSINESSES

This is the share of most businesses at the seminar "Solving difficulties for import-export businesses". The program is coordinated by the US Agency for International Development and the Department of Industry and Trade of Ho Chi Minh City to find solutions to support import and export, cut time and costs for businesses.

Due to the impact of the COVID-19 epidemic, the freight rate for 1 shipping container from Asia to the US increased many times compared to before. Food processing enterprises admit that product prices are also greatly affected by this factor, although businesses have good advantages from many signed trade agreements.

"The increase in logistics costs and some other costs causes the source of input materials to increase 30-40% and even 50%. We also hope that when the global epidemic decreases, the materials and costs will decrease. bring back to the relative price level", Ms. Ly Kim Chi - President of Ho Chi Minh City Food Association

Although there was very good growth from markets last year, wood processing enterprises also said that logistics costs are really a big challenge this year.

Mr. Nguyen Chanh Phuong - Vice Chairman of Fine Arts and Woodworking Association of Ho Chi Minh City. Ho Chi Minh said logistics prices are very high. This makes many businesses not dare to accept long-term orders.

Regarding the solution, Mr. Huynh Van Cuong - Vice Chairman of the City Logistics Association. Ho Chi Minh City proposed to increase inland waterway transport connections, especially from the Mekong Delta and Southeast provinces to major logistics centers such as Ho Chi Minh City and seaports, thereby contributing to reducing overall costs in the region. logistics activities.

Representatives of logistics businesses also frankly admitted that Vietnamese logistics companies only provide basic services. In addition to limited resources and experience, there is a core problem that 65%-73% of imports and exports are carried out by FDI enterprises.

Most logistics packages are specified from international bidding packages and so the remaining "piece of cake" is only a small part of the supply chain. Therefore, in the long term, the Logistics Association also proposed to create a special mechanism for Vietnamese enterprises to lead the market.