In the context of Vietnam's textile industry is having to compete with the emerging countries have more advantages in terms of workers and preferences from the local government ... while the cost of logistics activities in Vietnam is quite high. This paradox has made the textile and garment industry less competitive, as well as the cost of production and business of the textile and garment companies in the country is affected not small ...

The cost of logistics pull down the competitiveness of textile and garment enterprises

According to statistics of the Vietnam Textile and Apparel Association (VITAS), the textile and garment export turnover in 2017 will reach 31 billion USD, up 19.23% compared to 2016. However, the cost of logistics activities Textile and garment enterprises accounted for 9.1% of total export turnover (about USD 2.79 billion).

According to VITAS, the cost of logistics activities in Vietnam is much higher than that of neighboring countries and in the region. In particular, logistics costs in Vietnam are 6% higher than in Thailand, 7% in comparison to China, 12% in Malaysia and 3 times higher than in Singapore. Despite the reasonable cost of labor, high logistics costs have made Vietnam's textile industry less competitive.

According to Pham Thi Thuy Van, Deputy Director of Marketing of Saigon New Port Corporation, Vietnam's leading container port operator, said that logistics costs are high in Vietnam due to many factors. Accordingly, the current regulations on fees and charges of the State logistics is high, transport costs are also relatively high. This represents about 30-40% of the cost of the product, compared to about 15% in other countries.
 

 

To concretize, Thuy Van has provided evidence that BOT charges at Ha Noi - Hai Phong expressway for businesses from Hanoi and Bac Ninh about 75 USD / trip, equivalent to the cost of gasoline of the car , and accounted for 40-42% of the total trucking fee while in Malaysia the BOT cost accounted for only 6% of the trucking costs. In addition, the surcharges of the high shipping lines are also one of the causes for the cost of logistics operations in Vietnam, while companies are not agreed on these fees by the A foreign partner is a unit that designates a shipping company when imported / exported goods are imported. Specifically, cargo handling charge (THC) is currently $ 90 - $ 250; Delivery order price (DO) is 550,000 - 730,000 dong; Container cleaning fee from 490,000 VND to 680,000 VND / container;

Besides the revenue, Van also has additional information, which is currently in the North, the textile and garment enterprises are mainly located in the provinces of Thai Binh, Nam Dinh, Ha Nam ... However, here there are no Hence, enterprises have to pay and get empty in Hai Phong, the distance from Haiphong to the areas where the garment factory is located. The cost of logistics has increased, not to mention that each vehicle can only carry one empty, expensive and ineffective.

Similarly to the north, in the South currently mainly paid empty in the city. In Ho Chi Minh City, most recently Cai Mep port (Ba Ria-Vung Tau), with textile companies located in the areas of Dong Nai, Binh Duong, Tay Ninh or Can Tho ... this is a relatively " headache "for businesses.

Find the way for textile enterprises

According to Thuy Van, the demand of textile and garment enterprises and logistics services companies are not connected. Therefore, businesses can consider the possibility of buying materials to reduce the cost of transportation. Along with that is changing business practices, importing raw materials from the CIF form (enterprises transported actively negotiating international freight, manufacturers only receive goods) to form FOB (active manufacturers designation of international shipping and freight services). In addition, garment enterprises can use the package logistics services to control, take initiative in the management of raw materials supply, production, transportation, control the delivery time, thereby Market owners and increase competitiveness for enterprises.

Answer Vietnam Textile and Garment Magazine reports on how many local textile and garment enterprises account for the bulk of Vietnam's total exports to and from Saigon New Port, as well as What is the company's preference for textile and garment companies? According to Saigon Newport, the output of textile and apparel products imported by enterprises is about 3 - 5%. However, according to Van, in the near future, the volume of textiles and garments may continue to increase. But because of the specificity of the textile industry that is so much commodity but relatively light weight, it is difficult to persuade the shipping lines to open the hulls because the weight is too small for the total volume. With the creation of favorable conditions for garment enterprises, Ms. Van said that the company realized that the collection and pay now is relatively far and expensive, The company has opened a number of auxiliary stores to pay and get empty at some points near the factories, then the company convinced the shipping companies to open the trunk, or connect with other branches. In filling the container to the port to support and reduce costs for businesses. In addition, the company will invest in expanding some new roads, not through another intermediate city, but will have direct transportation from the areas to the port. Even Saigon New Port is studying to expand the development of inland waterways (river way) to transport containers to ports, which will be relatively cheaper than road and transport more containers. Then the company persuaded the shipping companies to open the trunk, or connect with other lines to fill the container to the port to support and reduce costs for the business. In addition, the company will invest in expanding some new roads, not through another intermediate city, but will have direct transportation from the areas to the port. Even Saigon New Port is studying to expand the development of inland waterways (river way) to transport containers to ports, which will be relatively cheaper than road and transport more containers. Then the company persuaded the shipping companies to open the trunk, or connect with other lines to fill the container to the port to support and reduce costs for the business. In addition, the company will invest in expanding some new roads, not through another intermediate city, but will have direct transportation from the areas to the port. Even Saigon New Port is studying to expand the development of inland waterways (river way) to transport containers to ports, which will be relatively cheaper than road and transport more containers. The company will also invest in expanding some new routes, not through another intermediate city, which will have direct access from the port to the port. Even Saigon New Port is studying to expand the development of inland waterways (river way) to transport containers to ports, which will be relatively cheaper than road and transport more containers. The company will also invest in expanding some new routes, not through another intermediate city, which will have direct access from the port to the port. Even Saigon New Port is studying to expand the development of inland waterways (river way) to transport containers to ports, which will be relatively cheaper than road and transport more containers.

Answering PV's question about Saigon Port's proposals to state management agencies in facilitating the reduction of logistics costs not only for textile and garment enterprises but also for other industries, Ms. Van said: On the proposal to the Government, this we are very earnest. Firstly, the government should reconsider the BOT price. More vehicles can not go by car, for example there are monthly tickets for businesses. Besides, consider the price of BOT why so high, how depreciation of that road, why is higher than other countries in the region. Secondly, the proposal to the State in areas where many enterprises are concentrated will facilitate the improvement of waterways, as the existing roads are too overloaded. "

According to vinatex.com