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Friday, February 3, 2023

Logistics digitization remains sluggish in HCMC

By T.Dao

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HCMC – The digitization level in the operations of HCMC-based logistics firms, which account for half of the country, has yet to meet expectations, according to data from the Vietnam Logistics Business Association.

Only 10.2% of logistics firms in the city use the barcode application, while it was 2.5% for adopting the RFID tag, or radio frequency identification technology, to support operations.

As for enterprise resource planning (ERP), the proportion of HCMC-based companies applying the technology in the logistics sector was 44.8%. Roughly 41.4% of businesses are equipped with a warehouse management system (WMS).

ERP is a platform for businesses to integrate and manage operational components effectively. Meanwhile, WMS provides a software system that enhances a company’s inventory management and activity control in the supply chain.

In addition, logistics firms in HCMC have had difficulty developing online services on websites, namely tracking orders, e-booking and uploading ship schedules, among others.

In Vietnam, there are roughly 5,000 firms operating in the logistics sector, with 89% being small and medium-sized.

Only 1% of the firms are fully foreign-invested and provide multinational logistics solutions. The rest are joint-venture businesses.

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