Digital economy potential opens up opportunities for Vietnam logistics

International Business News  –  Over the past week, many newspaper outlets have assessed the prospects and challenges of logistics and smart rural Vietnam, according to recent reports in the Vietnamese media. Some of the reports suggest that with a digital economy, a young population, the spread of the Internet and the potential for a shift in the world’s supply chains, Vietnam is opening up new opportunities for growth in these areas.

The Nikkei Asian newspaper published the information: “Vietnam produces Apple Watch and MacBook for the first time”. Vietnam has become an important manufacturing center for Apple outside of China, producing a range of key products for the U.S. company, including iPad tablets and AirPods headphones.

According to Fiber2fashion, Vietnam’s digital economy has a market size of more than $50 billion, presenting huge opportunities for the logistics industry. However, the newspaper also noted that the transportation infrastructure system is out of sync and relies heavily on road routes. According to a report by global supply chain service provider Aligity, Vietnam’s logistics costs are almost twice the world average.

“Vietnam is becoming a destination with a strategic location. With this location, the logistics base is particularly important. Port, rail and air infrastructure that ensures Vietnam’s connectivity to the world is critical. Low infrastructure costs will be a huge attraction for FDI in Vietnam.” Kevin Burrell, Regional General Manager of Maersk Group, commented.

Opengovasia has released information that the Vietnamese government has approved a national plan for smart rural development. The programme will focus on building new modern villages through digital transformation. Vietnam proposes that by 2025, at least 90% of central government documents, 80% of county-level official documents, and 60% of township-level official documents will be processed online. At least 97% of the townships meet the new rural information and telecommunications standards.

“Vietnam’s population will soon exceed 100 million people, with many young people and widespread Internet access. These are Vietnam’s advantages that Japan does not have, not only in the construction of smart rural areas, but also in many other fields. Vietnam’s economy is expected to grow by 6.5% this year, from Starting next year, the increase will be even higher,” said Hiroyuki Moribe, director of the Japan-Vietnam Economic Research and Development Institute.

The opinions reported by various newspapers are basically the same. Although Vietnam has great potential, it also faces great challenges in developing logistics and smart agriculture. In particular, other countries will give priority to developing these two fields.