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Sunday, July 21, 2024

The logistics sector lags behind

By Tam Pham

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Rivals from China are slashing delivery time and fees for international orders, placing huge pressure on domestic retailers and logistics firms. Nguyen Trung Hiep has a footwear brand based in HCMC. Despite lacking a physical storefront or warehouse, the 32-year-old entrepreneur efficiently manages to fulfill over 1,000 orders monthly across the country. Surprisingly, he has no full-time employees. Hiep handles the design aspect of his footwear, outsourcing production to workshops in China, and coordinates the shipment of the finished products to HCMC. His wife assists with tasks such as tax declarations, customs clearance, accounting, and sales management. The entire process, from transportation to packaging and delivery, is entirely outsourced. Some consignments even sell out before Hiep has had a chance to lay hands on them. Previously, Hiep operated a combination store and warehouse spanning 15 square meters, located in an unfavorable area. The monthly cost of space rental and staff for packaging was at least VND15 million, not to mention transportation and delivery costs. To offset these expenses, Hiep often included them in the sale price, marketed as “free shipping,” to enhance the appeal of his business. Competition with China “If I were to lease space as before, I could […]
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