Logistics enterprises under heavy burden

Logistic companies are working through various difficulties posed by the pandemic and have suggested a range of solutions, leaders of logistics companies told VnEconomy.

Mr. Dinh Huu Thanh, Chairman and CEO of the Bee Logistics Corporation, said its domestic transportation business is almost running at a loss due to the cost of testing and the prolonged turnaround time, making the time for a single trip increase from one day to two days. Disease checks and tests are also time-consuming.

There are other problems relating to customs and labor at ports and airports, regulations, Covid-19 testing, and so on. It takes the company two to three days to apply for road permits in southern cities and provinces, and most employees are working remotely. The company has to pay extra to rent an office near the worksite for its field workers, and higher fees for PCR Covid tests. Mr. Thanh calculated that the challenges have reduced Bee Logistics’ business capacity by up to 50 per cent.

Mr. Le Minh, General Director of the Vietnam Logistics Joint Stock Company (Vinalogistics), added that the main problem for the industry is the circulation of vehicles and workers. The directions coming from the government are understandable, but implementation is not consistent at the local level. For example, the government has recently issued a list of goods that are “prohibited from circulation” replacing a list of “essential goods” that are allowed to circulate, but some localities still apply the old regulations.

In order to support logistics businesses, Mr. Thanh said the most important thing at this time is consistent directions and administration between ministries and central and local authorities. Policy makers should also carefully consider the impact when issuing decisions. Logistics is an important industry that should be prioritized, since it promotes the circulation of goods and also helps reduce the warehousing burden facing manufacturers. There should also be policies on extending and deferring fees to help businesses recover. Mr. Thanh suggested prioritizing and accelerating vaccinations for all logistics workers not only in pandemic-hit areas but also all around the country.