Name: Doan Hong Tuan

Student id: s3689742

Course: Warehouse & Distribution Channels
Lecturer: Bart AfvA
ASSIGNMENT 1: ROUGH DRAFT
INDIVIDUAL ESSAY
"I declare that in submitting all work for this assessment I have read, understood,
and agree to the content and expectations of the Assessment Declaration."
Abstract
Since many Vietnamese businesses are expanding and becoming more globally
exposed as a result of globalization, there is an even greater demand for more
convenient and effective logistics. According to Viettonkin consulting, during the period
2022-2027, as predicted, Vietnam’s logistic market will increase more than 5.5% at a
CAGR (Lang Truong, 2022), making it potentially the most significant nation for freight
transport in the Asia - Pacific area. Meanwhile, the nation currently has a transportation
shortage and needs to increase its capacity for distribution. There are currently a few
challenges with Vietnam's logistics system. Some solutions for the difficulties will be
suggested in this essay.
Introduction
With increased consumer needs and business prospects, Vietnam's logistics sector is
expanding quickly. There are several issues with this sector, though. We will discuss the
difficulties distributors and warehouses confront in this essay, and how to lessen or
overcome these problems. Consequently, it can improve customer satisfaction and
logistical operations in Vietnam. Additionally, this essay will concentrate on ways to
modernize and enhance warehouses in Vietnam.
Findings and analysis
Challenges and Difficulties
 In Vietnam, running warehouses and distribution hubs is fraught with some
difficulties. Firstly, the location of the warehouses is recommended. Most of them
are situated in a rural location far from producers and clients (Anh Minh Duong,
2016)
 Next problem is the operation costs, which is mainly about the transport costs.
Because distributors and warehouses are located distant from other operators,
the transportation distance will increase, which contributes to this difficulty in part.
 The last challenge is about the Infrastructure of Vietnam. Vietnam has a high rate
of traffic congestion in the cities. Highways in Vietnam has some limitations. We
 can compare to China for as an example. The Chinese government has
attempted to invest infrastructure assets overseas to assist the development of
roads, trains, and ports in other nations since the first wave of globalization and
its position as a global industrial powerhouse (Rhenus).
Recommendation
 Distributors and warehouses should be relocated in more advantageous
locations, such as those that are near manufacturers and consumers, to
compensate for their limited efficacy positions. Additionally, in recent years,
private corporations have planned and built logistics parks (HKTDC, 2015) for
facilities such as distributors and warehouses in prime locations like those near
roads, ports, etc.
 Collaboration is another way to reduce the cost of transportation. Building strong
bonds with transportation companies would enable warehouses and distributors
to receive dependable service from such companies and perhaps even enjoy
cost savings. Infrastructure upgrades should be invested immediately in the next
few years.
 The most of warehouses in Vietnam are outdated and inadequate. They will thus
require a thorough infrastructural update. The first one talks about the defense
mechanism. Goods are kept in warehouses for
Conclusion
In conclusion, this article addressed a few issues with how distributors and warehouses
operate. As a result, distributors and warehouses surely encounter difficulties including
finding a site that would please consumers and be cost- and resource-effective. There
are several recommended methods that might lessen or resolve the challenges.
Reference
Anh Minh, D 2016, ‘The status quo of Vietnam’s logistic, the opportunities and
challenges to become the regional transshipment hubs’, World Maritime University
Dissertations, pp.22
HKTDC 2015, Vietnam’s Logistics Market: Overcoming the Challenges, HKTDC
Research, accessed 10 November 2022
<https://hkmb.hktdc.com/en/1X0A12CI/hktdcresearch/Vietnam%E2%80%99s-Logistics-
Market-Overcoming-the-Challenges >

Lang, T 2022, ‘Key Trends In Vietnam’s Freight And Logistics Market’, Viettonkin
consulting, accessed 10 November
2022.<https://www.viettonkinconsulting.com/general/key-trends-in-vietnams-freight-and-
logistics-market/ >