Hanoi (VNA) – To meet the demands of domestictrading and import-export activities, the logistics sector is working towardsprofessional and competitive services meeting international standards, in whichsmart logistics development is considered the key solution.

According to Director of the Import-Export Department underthe Ministry of Industry and Trade Phan Van Chinh, local logistics firms havebeen increasingly aware of the need to speed up digital transformation andapply technology into their business operations, aiming to cut cost andincrease competitiveness.

Supply chain director at Nestle Vietnam Nguyen Tran HoangYen said that digitalisation has helped the firm better connect with the globalmarket and optimise goods transport and distribution activities in thedomestic market.

Nestle has launched its Cargoo app to connect manufacturers,importers and shipping lines, enabling them to follow the transportationprocess of each order and track the goods information, book ships and manageall related documents, she said.

Meanwhile, Marketing Director of the Saigon Newport CorporationTruong Tan Loc said that the firm has launched a system of e-port ande-warehouse, while applying artificial intelligence (AI) in customer services,thus improving its service quality.

However, as 90% of the logistic firms are small- and medium-sizedenterprises, the application of smart logistics has remained limited.

Pointing to major barriers hindering smart logisticsdevelopment in Vietnam, Vice Chairman of the Vietnam Logistics Business AssociationLe Quang Trung mentioned limitations in mindset and confusions in selectingsuitable technologies as well as a shortage in financial and human resourcesand a lack of harmonious policies for digital transformation.

Experts held that strengthening the application of IT and modernisingmanagement and operation methods as well as using logistics optimisingplatforms are among the effective measures to reduce logistics cost and improveservice quality.

Loc said that domestic logistics firms should work closelytogether to enhance the competitiveness of Vietnam’s logistics sector by buildinga shared database on Vietnam seaport system with connections with other portsin the region and the world.

At the same time, the State and localities should furthersimplify administrative procedures, while building a joint database and processingadministrative procedures online, he said, stressing the need for updating thelegal system to encourage businesses to develop new services and technologies.

Director of Northern Operations Division at Lazada Vietnam NguyenTrieu Quang said that logistics businesses should standardise their processesand build a sustainable ecosystem to grasp opportunities from the boominge-commerce, while improving the delivery experience from every touchpoint.

Vice Director of the Import-Export Department under the Ministryof Industry and Trade Tran Thanh Hai underlined the need for coordination andstrong linkage among not only logistics firms but also all relevant agenciesin order to successfully promote the application of digital technology./.