High logistics costs and no signs of cooling down are causing import and export enterprises to face many difficulties. In particular, the most worrisome impact negatively affects the performance of enterprises, reducing the competitiveness of Vietnamese goods in the international arena.
Profits eroded because of high fees
The Covid-19 epidemic caused the global supply chain to be disrupted, and freight rates simultaneously increased sharply, especially in routes to Europe and America. , fuel continued to skyrocket, making import and export costs become a burden beyond the tolerance of many enterprises. Currently, the cost of transporting goods by sea and air has increased many times compared to the time before the epidemic.
For example, before the Covid-19 epidemic, shipping freight was only about $1,000-3,000/container, then it increased to $10,000/container and is now $14,000-15,000/40-foot container. Or the freight rate for freight from Asia to the US is about 1 – 1.8 USD/kg, but now it has increased to 17 – 18 USD/kg.
General Director of Junmay Longan Textile Co., Ltd (Dong Nai province) Quach Thuan Duc shared: “The freight price for nearly two years has increased continuously, causing enterprises to face many difficulties in production because all costs are covered. added to the cost of the product. Currently, the shipping fee to Europe and the US has increased by more than 10 times compared to the time before the Covid-19 epidemic, but the selling price has only increased slightly. Therefore, the company recalculated all stages in production and business to reduce costs to compensate.”
Not only did logistics costs increase, but the time to transport goods also extended by 1.5-2 times compared to the beginning of 2020. For example, before, enterprises transporting goods by sea to the United States took from 30-35 days, but now increased to 45-60 days. This forces enterprises to rebuild all short-term and medium-term production plans to suit the actual situation. Most businesses speed up the completion of orders to make up for the possible extra shipping time.
According to an assessment report by the Vietnam Association of Logistics Service Enterprises, the Covid-19 pandemic has strongly disrupted the global supply chain, including logistics activities. Survey results show that about 97% of small and medium logistics enterprises are severely affected. From May 2020, logistics activities have been restored according to the economy, but currently about 20% of logistics enterprises are still in decline in activities. Compared to before the pandemic, goods transported across the border, especially with China, are still congested.
How to reduce logistics costs?
Vietnam’s logistics costs are much higher than the common level in the world, causing Vietnam’s cost of goods to increase and lose its competitive advantage compared to other countries in the Asian region. Therefore, the implementation of this cost reduction solution is an urgent requirement to improve the competitiveness of Vietnamese goods.
Enterprises must actively develop and apply logistics solutions to improve corporate governance in the new situation in order to optimize costs and increase product competitiveness. On the part of state management agencies, it is necessary to continue to cut administrative procedures and release goods at ports simply and quickly to reduce costs and time for businesses.
Dr. Trinh Thanh Thuy – Deputy Director of Institute of Strategy and Policy of Industry and Trade (Ministry of Industry and Trade)
Many economic experts said that in the context of constantly fluctuating gasoline prices, it is difficult to control due to the dependence on world gasoline prices and the political situation. such as: cutting import tax and environmental tax at times.
Offering solutions to help businesses reduce the burden of logistics fees, Head of the Transportation Department – Vietnam Logistics Association Vo Thi Phuong Lan said that import-export businesses need to actively negotiate with carriers to allow the policy to be applied. swap container” – means that when importing a quantity of raw materials, the enterprise negotiates with the shipping company to keep the number of empty containers to transfer export goods and vice versa. This helps import and export activities not be interrupted by waiting for empty containers and booking seats on the ship, thereby reducing costs and transportation time.
“Enterprises also need to find a reputable, reputable tier 1 shipping agent in the market to limit bookings through the hands of many agents, leading to higher freight rates and surcharges compared to published prices. of the shipping company. At the same time, it is necessary to understand and control the structure of transportation costs for each route, for each unit of goods to have the optimal choice for transportation, “-Ms. Vo Thi Phuong Lan recommended.
According to Dr. Trinh Thi Thanh Thuy – Deputy Director of the Institute for Strategy and Policy Research (Ministry of Industry and Trade), in the long run, logistics enterprises and manufacturing enterprises need to work closely together to reduce transportation time. goods, minimizing cumbersome procedures in import and export. In addition, businesses associate to buy and sell domestic raw materials, replace interrupted or increased import supply; link to share orders… This is considered a preeminent solution for Vietnamese enterprises to adapt to all circumstances for development.
According to Kinhtedothi.vn
