Digital economy opens up fresh opportunities for development of logistics sector
Several foreign media outlets have recently published articles highlighting the various prospects and numerous challenges to the logistics industry and smart rural areas in the country.
The articles point out that with the great potential of the digital economy, a young population, expanded Internet, and the continued shift of global supply chains, there remain bright prospects ahead for the further development of the local logistics sector.
Japanese news service Nikkei Asia recently published an article outlining that Apple is in the process of holding talks to produce Apple Watches and MacBooks in Vietnam for the first time.
The news outlet stated that the Vietnamese market is already Apple's most crucial production hub outside of China as it produces a wide range of flagship products for the tech giant, including iPad tablets and AirPods earphones.
According to Fiber2fashion, the digital Vietnamese economy market is projected to reach more than US$50 billion, thereby opening up a wealth of opportunities for the logistics sector. However, the publication also noted that the nation lacked a synchronised transport infrastructure system and is heavily dependent on road routes.
Furthermore, a report by global supply chain service provider Aligity last year highlighted that the logistics cost in the country stood at over 20% of GDP, compared to the global average of 11%.
Kevin Burrell, managing director of Maersk for Vietnam, Cambodia, and Myanmar, analysed that the country is a beneficiary as several large manufacturers seek to their factories away from China.
He underscored the importance of being a logistics base, including infrastructure such as ports, railways, and aviation in helping the nation connect with the rest of the world, noting that low costs of infrastructure have made the Vietnamese market extremely attractive for foreign direct investment (FDI).
Moreover, newswire Opengovasia published an article highlighting that the Vietnamese Government has granted approval to a national programme for smart rural development which will primarily focus on building new and modern rural areas through digital transformation.
By 2025, the Government aims to have at least 90% of central, 80% of district-level, and 60% of communal public documents handled online. In addition, at least 97% of communes should meet the new-style rural criteria relating to information and telecommunications, according to the news outlet.
Hiroyuki Moribe, director of Japan's Vietnam Economic Research Institute (VERI), emphasized that the young Vietnamese workforce and expanded Internet can be viewed as Vietnamese strengths, not only in the development of smart rural areas, but also in other fields.
Moreover, the Vietnamese economy is projected to grow at 6.5%, with this growth rate set to be even higher from next year, added Moribe.
All of the articles outlined that despite the existing advantages, the country will face a number of challenges as it seeks to develop logistics and smart agriculture, including the challenge of competition, as several countries have given top priority to these industries.
