RMIT International University Vietnam

ASSIGNMENT COVER PAGE

Research Topic: “What are the opportunities of the seaport industry in

Vietnam after the post-COVID period?”

Course Code OMGT2279

Course Name Transportation and Freight Logistics

Location RMIT Vietnam-HN Campus

Title of Assignment Research Rough Draft
File(s) submitted Essay-TRAN TON NHU-s3980588

Student Name Tran Ton Nhu

Student ID s3980588
Student email address s3980588@rmit.edu.vn
Number of pages 6
(including cover)
Word Count 1215
 "I declare that in submitting all work for this assessment I have read, understood, and
agree to the content and expectations of the Assessment Declaration."

Abstract

Port logistics involves the provision of port services with the goal of optimizing
logistic utilization through better port integration in logistic networks. The study will show
the opportunities that Vietnam's seaport industry has after the post-COVID period. Seaport
logistics in Vietnam has always been growing strongly and is not inferior to any other
country in the world, especially after the post-COVID era, companies and governments in
Vietnam know how to seize the opportunity to be able to reach out to the world. breakthrough
and has clearly introduced many resolution policies and post-pandemic measures, which also
proves that this industry in Vietnam is always willing to renew itself, not afraid of challenges.
This study will provide evidence from actual data, as well as academic publications,...to
prove that after the pandemic there are more opportunities for the seaport industry in
Vietnam. Improving competitiveness and increasing support are important factors to help
Vietnam's logistics industry develop more sustainably in the long run.

Introduction

Logistics is the process of efficiently transporting and storing products from their
place of origin to their site of consumption. Over time, the seaport logistics industry in
Vietnam is growing thanks to technological factors, global integration or favorable
geographical conditions that Vietnam possesses, along with the development of opportunities.
Good management in the early steps of epidemic prevention, especially after the COVID-19
pandemic was under control, that's when the seaport logistics industry grew again and opened
up many new opportunities.

Opportunities

Outbreak in 2019 in China, a country of billions of people and one of the countries
with strong development in this industry, the major route from China and transport lines all
decrease the link of all routes, impacting delivery schedules and service quality (LEC
GROUP, 2022). During the ongoing covid epidemic, the seaport logistics industry in
Vietnam cannot avoid damage due to the consequences. However, it will quickly recover,
when evaluating the development possibilities in Vietnam's transportation industry, Truong
Tan Loc, Marketing Director, Saigon Tan Cang Corporation, stated that Vietnam's economy
would continue to recoup if socioeconomic metrics indicated growth in the first quarter of
2022 (Hai quan online, 2022). Despite the effects of COVID-19, Hanoi seaport firms reported
strong earnings. In general, in the period of COVID, the seaport was the least affected
industry, so after the pandemic, seaports thanks to that advantage, became more and more
developed. Tan Cang Logistic JSC (TCL) earned more than 42 billion dong in profit after tax,
an increase of 14% and 5.5% over the first six months of 2019. Da Nang port also earned
more than 113 billion in profit after tax, a rise of 17.5% and 16.6%, respectively, over 2019.
Other Vietnamese seaports are also profitable (Vietnam News, 2020). Mr. Loc once
mentioned "This is an opportunity to develop port and logistics services to meet the needs of
goods connecting to global major markets." The expansion of trade rules makes it simpler for
foreign enterprises to enter the Vietnamese market, increasing demand for international grade
warehouses, particularly unique types of warehouses for preserving high-value commodities
(Wtocenter, 2022).

Vietnam is an appealing location for FDI inflows, with a compound growth rate of up
to 8% from 2014 to 2022, increasing the amount of products handled through seaports by
9.2% between 2020 and 2021. The industry's expansion is being pushed by the global
economy's recovery and reopening, which is being aided by a greater COVID-19
immunization rate, which is facilitating trading operations (Vietnamplus, 2022). In 2021, the
seaport industry in Vietnam reached 706.13 million tons, up 2% compared to last year in the
context of Covid. The volume of international imports and exports increased by 54%
compared to 2020. The first 9 months of 2022 obtained 550.2 million tons, an increase of
3.4% compared to the same period in 2021. It can be seen that although after the pandemic,
The numbers in revenue or in terms of goods have increased steadily even during the
outbreak of the pandemic because at home, consumers' demand to buy goods online becomes
higher, and the shipping industry also benefits. Since then, although the pandemic does not
directly affect this transport industry, there will still be indirect effects, but that number is not
too significant. However, this transportation industry continues to develop and continues to
grow steadily over the years (Vantage Logistics Corp). That's why when the translation is
over, the profit numbers will have a significant growth. When the pandemic broke out, people
mainly shopped through online platforms, thus leading to the development of the logistics
industry. The pandemic has altered shopper habits; according to a Nielsen Vietnam study,
people have cut their trips to supermarkets by half. The pandemic has hastened this change as
Vietnam's e-commerce continues to expand (Vietnam Briefing, 2020). The forms of
transportation are more diversified and expanded along with the development of Vietnam's
international integration, so that forms shipping by sea is no longer a difficult problem when
it comes to consumers buying items from abroad.

In general, the logistics industry in Vietnam is drawing over 30,000 businesses in the
fields of shipping, warehousing, postal services, and delivery. Some economic experts
believe that Vietnam has a lot of potential opportunities from FTAs. The big companies of
the logistics industry in Vietnam now have a lot of experience to operate the company during
the outbreak of the epidemic, this is also considered a difficult time, so when the pandemic is
over, this will be a golden opportunity for businesses to develop and explode, even in the
conflict between Russia and Ukraine, Vietnam's export turnover in April 2022 continued to
recover strongly, estimated at US$33.26 billion, up 25% over the same period last year (Hai
quan online, 2022). Not to mention that thanks to the blessed geographical position where
goods are heavily circulated, having a favorable and open sea route, flowing through the seas
of other countries, so that trade is easy and without too many difficulties. Because barge crew
members are not permitted to go ashore during berthing, they are exempt from being tested
for Covid while going to other places. This has enabled the canal transportation system to be
designated as a green lane, ensuring cargo flow continuity (Saigon Newport, 2021). Due to
those factors, Vietnam will have a stronger comeback (The leader of the Ministry of Industry
and Trade).

Conclusion

After the pandemic is over, the logistics industry in Vietnam has many new
opportunities, creating a premise for long-term development for the future. To be able to
consolidate the post-Covid initial steps, the government could eliminate all fuel taxes and
levies, since they are considered the major expenditures for the industry, as well as other
transportation charges in order to minimize rates for road transportation while directly
supporting the aviation sector. Customs clearance should be accelerated, and cargo handling
capacity should be enhanced by expanding seaports, airports, and main border gateways.
Furthermore, the government should provide assistance to leading corporations and FDI
organizations in critical areas such as aviation, transportation, construction, and distribution
(The Saigon Times, 2020). There are available strengths along with good anti-epidemic work,
so that after the pandemic is over, the shipping industry seems to have more opportunities to
grow stronger and is expected to grow strongly in the future.
References

Haiquan Online (2022) ‘Golden opportunities for logistics industry after the pandemic’,
accessed 24 Mar 2023,
<https://english.haiquanonline.com.vn/golden-opportunities-for-logistics-industry-after-the-
pandemic-22524.html>

LEC GROUP (2022) ‘How does the Vietnamese logistics business affect the COVID-19
epidemic?’, accessed 24 Mar 2023,
<https://lecvietnam.com/en/operations/news/how-does-the-vietnamese-logistics-business-
affect-the-covid19-epidemic-172.html>

Pritesh Samuel (2020) ‘COVID-19 and the Effects on Supply Chains in Vietnam’ Vietnam
Briefing, accessed 24 Mar 2023,
<https://www.vietnam-briefing.com/news/covid-19-effects-supply-chains-vietnam.html/>

Nguyen Tuan Anh, Nguyen Thi Thu Huong, Vo Thi Van Khanh, Pham Thi Van Anh (2022)
‘Developing Logistics in Vietnam After Covid-19 Pandemic’ ResearchGate, accessed 24 Mar
2023,
<https://www.researchgate.net/publication/
366189651_Developing_Logistics_in_Vietnam_After_Covid-19_Pandemic>

David Essex (2019) ‘Definition Logistics’ Tech Target, accessed 7 April 2023,
<https://www.techtarget.com/searcherp/definition/logistics>

Viet Nam News (2020) ‘Seaport companies less affected amid pandemic’, accessed 7 April
2023,
<https://vietnamnews.vn/economy/772562/seaport-companies-less-affected-amid-
pandemic.html#>

Vietnamplus (2022) ‘Seaport enterprises set for promising year in 2022’, accessed 7 April
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Vantage Logistics Corp (2023) ‘Summary of Viet Nam Seaport System Capacity 2022’,
accessed 7 April 2023,
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bv218.htm>

Wtocenter (2022) ‘Golden opportunities for logistics industry after the pandemic’, accessed 7
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<https://wtocenter.vn/tin-tuc/19663-golden-opportunities-for-logistics-industry-after-the-
pandemic>
The Saigon Times (2020) ‘Opportunities for Vietnam post-Covid-19’, accessed 7 April 2023,
<https://english.thesaigontimes.vn/opportunities-for-vietnam-post-covid-19/>

Saigon Newport Corporation (2021) ‘Inland waterways transport: green logistics trends and
some remarkable advantages during the epidemic Covid-19’, accessed 7 April 2023,
<https://saigonnewport.com.vn/en/article/operation-news/inland-waterways-transport-green-
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