NATIONAL ECONOMICS UNIVERSITY

SCHOOL OF TRADE AND INTERNATIONAL ECONOMICS

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GROUP ASSIGNMENT

PRINCIPLE OF LOGISTICS MANAGEMENT

Logistics Performance Index

Name: Nguyen Khanh Huyen

Dao Chau Anh
Luu Thi My Duyen
Tran Van Hieu

Class: LSIC 63
Teacher: Dang Nguyen Khoi

Ha Noi, April 2023

 Introduction
Logistics has been present in human history for a long time, but it was not until the mid-
20th century that it was recognized for its strong development and achievements.
Logistics supports all activities in the process of production, distribution, and circulation
of goods. Countries with developed logistics operations, such as Japan, Singapore, Hong
Kong, the United States, China, have become leading logistics centers in the world and
have achieved significant economic growth. Logistics activities promote trade
development, improve efficiency, and enhance competitiveness for the entire national
economy.

The Logistics Performance Index (LPI) is a credible indicator that evaluates the logistics
capability, announced by the World Bank. Moreover, based on this indicator, countries
can compare overall efficiency and individual criteria, evaluate the speed of improvement
in each stage, or compare with other countries in the region.

Over a period of more than 10 years from 2007 to 2018, the LPI index was published a
total of six times. The LPI index for Vietnam recorded an increase in points and rankings
during the 2007-2014 period; however, the LPT index for 2016 saw a decrease in both
points and rankings for the first time. Recently, with the release of the World Bank's LPI
in July 2018, Vietnam's score and ranking have strongly increased. In this essay, our
group will study the changes in Vietnam's LPI index in recent years, compare it with
other ASEAN countries, identify some reasons, and propose recommendations to
improve Vietnam's logistics development, score, and ranking.

Table of contents
Chapter 1.....................................................................................................................................................
Major criteria to measure LPI.................................................................................................................
Chapter 2.....................................................................................................................................................
The leading countries in the ranking list (Top 30)..................................................................................
Chapter 3.....................................................................................................................................................
Vietnam’s ranking in the period studied.................................................................................................
Chapter 4.....................................................................................................................................................
Compare Vietnam’ LPI and selected countries.......................................................................................
Chapter 5.....................................................................................................................................................
Identify weaknesses of Vietnam in terms of logistics operation.............................................................

Chapter 1
Major criteria to measure LPI
Logistics performance index (abbreviated as LPI) is a national logistics capacity index,
researched and published by the World Bank in a report called “Connecting to the
competition - logistics industry in the economy”. global health ”.
 There are 6 evaluation criteria in the LPI:
- Infrastructure (infrastructure): the infrastructure related to the quality of
commerce and transport (ports, railways, roads, information technology).
- Competence logistics (competence logistics): capacity and quality of logistics
services (transport operators, customs broker).
- International shipments (shipments international): easy level when arranging
for shipments with competitive prices.
- Tracking & tracing: the ability to track & trace shipments.
- Customs service (customs): is the effect of the goods clearance process. For
example, speed, simplicity, and computation are in advance of other procedures.
- Timeliness: timeliness of shipments arriving at their destination.

Chapter 2
The leading countries in the ranking list (Top 30)

LPI LPI Customs Infrastructure International Logistics Tracking and Timeliness

Rank Score Shipments competence tracing

1 4.19 4.09 4.38 3.83 4.26 4.22 4.4

2 4.07 3.97 4.23 3.76 4.12 4.08 4.3

3 4.07 3.95 4.22 3.88 4.04 4.02 4.32

4 4.05 3.74 4.03 3.97 4.1 4.11 4.4

5 4.05 4 4.14 3.72 4.08 4.05 4.34

6 4.01 3.85 4.09 3.69 4.04 4.1 4.32

7 3.99 3.91 4.19 3.61 4.03 4.03 4.24

8 3.99 3.71 4.07 3.78 4.04 4.13 4.22

9 3.96 3.85 4.02 3.85 3.94 3.95 4.18

10 3.92 3.76 4.1 3.54 3.93 4.13 4.14

11 3.92 3.88 3.89 3.59 3.98 3.94 4.26

12 3.92 3.89 3.95 3.56 3.88 4.1 4.17

13 3.91 3.75 4.07 3.57 3.92 4.02 4.2

14 3.89 3.66 3.98 3.76 3.83 3.89 4.23

15 3.86 3.63 4 3.6 3.82 3.99 4.17

16 3.84 3.67 3.84 3.68 3.83 3.78 4.27

17 3.81 3.7 3.91 3.45 3.9 3.91 4.03

18 3.78 3.57 3.79 3.72 3.78 3.78 4.04

19 3.77 3.76 3.92 3.4 3.76 3.83 4

20 3.74 3.62 3.84 3.48 3.75 3.83 3.96

21 3.73 3.44 3.82 3.55 3.68 3.84 4.09

22 3.68 3.58 3.79 3.27 3.69 3.73 4.1

23 3.65 3.43 3.75 3.43 3.63 3.75 3.96

24 3.65 3.42 3.67 3.54 3.68 3.67 3.93

25 3.63 3.45 3.5 3.53 3.69 3.79 3.85

26 3.62 3.34 3.38 3.65 3.65 3.68 3.98

27 3.6 3.28 3.73 3.57 3.58 3.63 3.86

28 3.56 3.24 3.23 3.59 3.54 3.69 4.03

29 3.51 3.29 3.39 3.53 3.42 3.56 3.85

30 3.5 3.18 3.43 3.62 3.46 3.53 3.78

Table 1: The leading countries in the ranking list (Top 30)_WorldBank

According to the LPI, high-income economies dominate the top logistics rankings,
with the majority of them playing critical roles in global and regional supply chains. The
10 worst-performing countries, on the other hand, are virtually entirely from the low and
lower income categories.

As can be seen from the LPI ranking, the leaders of the list are among the most
developed countries with a strong international trade. It is understandable that a dominant
trade sector requires an innovative logistics industry which can handle the amount of
goods and services required for domestic and international trading.

According to the LPI, Germany was the leading logistics market in 2018 with a score
of 4.19. The LPI assesses the performance of trade logistics on the ground.
- Germany’s logistics performance:
According to the logistics performance index, Germany had the best infrastructure,
customs, and logistics expertise. With about 2.2 million tons of cargo moved in 2018,
Frankfurt/Main was the largest German cargo airport in terms of volume. DHL was the
leading German logistic firm in the same year.

Deutsche Post DHL, the world's largest courier and local delivery service provider,
owned 39% of the worldwide market share in 2018 and produced approximately 61.5
billion euros in sales. DHL spent more than five billion euros globally that year and had
total assets of 50.5 billion euros.

- The bottom of the LPI list:

Burundi, Angola, and Afghanistan are at the bottom of the 2018 LPI rankings,
accordingly. Africa's low- and middle-income countries, as well as isolated countries, are
at the bottom of the list. These are nations that are highly impacted by armed conflicts,
natural catastrophes, political instability, or are landlocked countries that have logistical
and economic challenges while engaging in the supply chain..
 Chapter 3
Vietnam’s ranking in the period studied

For the Vietnam’s ranking in the period studied, the changes of the LPI components
(“Customs”, “Infrastructure”, “Ease of arranging shipments”, “Quality of logistics
services”, “Tracking and tracing”, “Timeliness”)

Criteria 2007 2010 2012 2014 2016 2018

Score Rank Score Rank Score Rank Score Rank Score Rank Score Rank
LPI 2.89 53 2.96 53 3.00 53 3.15 48 2,89 64 3.27 39
Customs 2.89 37 2.68 53 2.65 63 2.81 61 2.75 64 2.95 41
Infrastructure 2.50 60 2.56 66 2.68 72 3.11 44 2.7 70 3.01 47
International 3.00 47 3.04 58 3.14 39 3.22 42 3.12 50 3.16 49
shipment
Logistics 2.80 56 2.89 51 2.68 82 3.09 49 2.88 62 3.40 33
competence &
service quality
Tracking & tracing 2.90 53 3.10 55 3.16 47 3.19 48 2.84 75 3.45 34
Timeliness 3.22 65 3.44 76 3.64 38 3.49 56 3.5 56 3.67 40
Table 2: Vietnam’s LPI from 2007 to 2018_World Bank.

a. Vietnam’s LPI from 2014 to 2016

According to table 2, In 2014, Vietnam's LPI increased in 5 out of 6 component points
compared to the previous year, reaching 3.15 points. Among them, the "Infrastructure"
and "Logistics Services" criteria increased the most, by 0.43 and 0.41 points respectively.
As a result, Vietnam's ranking increased by 5 spots (ranked 48/166 countries).

However, in 2016, for the first time, there was a decline in Vietnam's LPI, which
reached 2.98 points, a decrease of 0.17 points compared to 2014. Vietnam's ranking also
dropped to 64/160, a decline of 16 spots compared to 2014.
Table 3: LPI components between 2014 and 2016

Table 3 is a comparison chart of the LPI components between 2014 and 2016,
showing that out of the 6 LPI components, 5 of them had decreased scores in 2016
compared to 2014. The "Infrastructure" and "Tracking and Tracing" components had the
largest decreases, by 0.41 and 0.35 points respectively. The other three components,
"Customs", "International Shipment", and "Logistics Services", also had minor decreases.
Only one component, "Timeliness", had a negligible increase of 0.01 points in 2016
compared to 2014.

The main reason for this decline was due to the lack of overall planning. Vietnam has
yet to establish logistics centers, warehouses, and ports to facilitate the development of
logistics. Moreover, the management of disease prevention was inadequate.

It did not create infrastructure advantages for the flow of goods. With good planning,
the flow of goods will follow an optimal plan and vice versa. During this period, there
were some moments when supply chains and transportation activities encountered
difficulties, which could be endogenous such as the disruption in Binh Duong and Dong
Nai in May 2014, or exogenous such as the impact of the global port congestion
phenomenon, leading to some ports in Ho Chi Minh City and Cai Mep being congested in
the third quarter of 2014. These unforeseen incidents have affected the operations of
supply chains of businesses in Vietnam, thereby negatively impacting Vietnam's LPI
index.
 b. Vietnam’s LPI from 2016 to 2018

According to the World Bank’s 2018 Logistics Performance Index (LPI) (Table 2),
Vietnam placed 39th out of 160 examined countries, an increase of 0.29 points and 25
positions over the previous year. In addition, Vietnam is the top country in emerging
markets (Table 4) and the highest-ranking country in the category of low-middle-
income countries. In the ASEAN region, Vietnam ranks third (Table 5 ), after
Singapore (7th) and Thailand (32nd).

Table 4: Top 10 countries ranked the highest of the highest average income in 2018
(Source: WorldBank)
Table 5:ASEAN Logistics Performance Index (LPI), 2018 ( Source: ResearchGate )

The year 2018 was a turning point in Vietnam’s logistics industry. In 2018, the LPI
assessment index clearly demonstrates the exceptional rise of the indicators for assessing
the composition of logistics operations. For example, the ability to trace and trade items
scored 34th, up 41 places from 2016, and the quality capacity of logistics services ranked
33rd, up 29 places from 2016.

Furthermore, additional factors contributed considerably to the growth in LPI scores

in 2018, such as: via ranking 41, up 23 places, Logistics Infrastructure rated 47th, up 23
places, Delivery Time criterion ranked 40th, up 16 places, and International Delivery
criteria ranked 49th, up one rank.

Table 6: LPI components between 2016 and 2018

- Infrastructure:
According to table 2, the Infrastructure index of Vietnam ranked 47th (2018) , up 23
places compared to 2016. This can be explained because some following changes:

First, Railway transport is considered to be a method with a large amount of

mass, cheap price, high safety and environmentally friendly. Therefore, the
improvement of rail systems will help reduce logistics costs and improve
competitiveness.
 According to Bao Giao Thong, at a meeting between the Ministry of Transport and
the leaders of Thanh Hoa province in late June 2018, the North-South railway had
completed the installation of the automatic train control (ATC) signaling system. This is a
part of the railway system upgrade project with a total length of 1,726 km, which was
implemented from 2017 and is expected to be completed in 2021.

Regarding the Hanoi - Haiphong, Hanoi - Thai Nguyen, Hanoi - Lang Son, and
Hanoi - Halong railway lines, many works were also implemented in 2018. For
example, the Hanoi - Haiphong railway had completed propaganda and monitoring of the
construction of railway upgrade and repair works. The construction of a new overpass
bridge at Dong Anh station on the Hanoi - Lang Son line was also completed at the end
of 2018, facilitating the upgrade of the infrastructure at this station.

Second, in 2018, there was a significant development in roadway infrastructure

with a focus on modernization and prioritization. Many high-speed highways and
large bridges such as Phap Van-Cau Gie, Ha Noi-Lao Cai, Ha Noi- Thai Nguyen
were being upgraded and constructed with a focus on connectivity and expansion,
creating momentum for socio-economic development. Many of these projects were
invested in using the Build-Operate-Transfer (BOT) model, which greatly reduced the
burden on the state budget. Additionally, the Ministry of Transport implemented various
solutions to speed up the construction of some high-speed road sections on the East
North-South route during the 2017-2020 period.

- Customs
As a component of LPI, customs is measured by the effectiveness of border control
agencies, such as the speed, simplicity, and predictability of customs clearance
procedures. In Vietnam, the ranking for customs during the years was close to the
nominal score of the 6 components (around 2.6 to 2.95).

● Big improvement till 2018:

When joining the AEC, in the customs field, countries would continuously simplify
and harmonize processes and procedures to ensure fast customs clearance of goods. Since
the end of 2015 when Vietnam joined AEC, the customs system had to strengthen the
clearance ability, cutting time and transaction costs at the border gate.
 A survey published by the General Department of Customs in 2020 showed
satisfaction of enterprises in implementing import-export administrative
procedures.

According to the survey, nearly 80% of businesses are satisfied with the information
provided on the Portal of the General Department of Customs (in 2018 it was 76%). The
portal portals of the provincial/municipal Customs Departments and the National Trade
Portal also achieved an enterprise satisfaction rate of over 70%. When facing difficulties,
most businesses often seek help first from the customs sub-department, then the
provincial/city customs department.

In addition, businesses also appreciate the quality of service for businesses of customs
officers and employees compared to previous years. Specifically, the discipline aspect of
customs officers and businesses most appreciated the civility and politeness criteria when
interacting with 53.1% (in 2018 it was 46.7%); proper implementation of authority 51%
(in 2018 it was 44.9%); fairness and dedication when performing official duties 47% (in
2018 it was 39%).

- Ease of arranging shipments - International shipment:

The International shipment score is measured based on the ease to arrange
transportation of import and export goods at competitive prices, in relation to costs
such as agency fees, port fees, tolls, storage fees, etc.

● High logistics expense:

High tolls and fees in international shipment used to be one of the main difficulties
causing LSP to inhibit their competitiveness, especially during first-mile and last-mile
logistics. This resulted in a sharp decrease in the 2016 ranking (50th).

The costs for import-export businesses have to pay for logistics services (including
transportation services, storage, warehousing, customs clearance, paperwork, etc.) in
Vietnam is at a high level compared to the world average, accounting for 25% of GDP
- according to statistics of the Vietnam Logistics Association (VLA).

● Gradual improvement:
Since the period of 2017-2018, Vietnam is in the urgent phase of building and
upgrading the seaport system to be able to receive the largest ships in the world. As a
result, the expenses related has reduced and become more competitive compared to other
countries in the region. This made the ranking of Vietnam’s logistics performance for
international shipment see a slight development in 2018 score.

- Quality of logistics services:

All of 6 LPI components in 2018 almost increased, of which the highest increase
was Quality of logistics services. Quality of logistics services score is assessed based on
transport operators, customs brokers, etc.

● Before 2013-2014 phase:

Because of the low capital, the organizational structure of businesses was also basic,
not highly specialized, and unable to establish regional offices in foreign countries,
information sources were limited, all work abroad must go through agents of
multinational companies. As a result, most companies halted at level 2, level 3, and even
level 4 agents for foreign partners who have a worldwide network but have not yet
arranged to link multimodal transportation activities.

● An outstanding score for 2016:

In the phase of 2015 - 2016, Vietnam trade saw a motive power when signing VN-
EAEU FTA and joining CPTPP. In reality, the majority of the top 50 multinational
logistics firms have a presence in Vietnam. In the context of Vietnam's ongoing
integration into the global economy, foreign logistics service providers and transnational
logistics service providers play an essential role in the country's logistics industry.

Regarding technology supporting logistics, many logistics enterprises are currently

applying a number of high-tech scientific researches to logistics activities such as:
+ Transport Management System (TMS), GPS navigation system providing routing
for logistics managers as well as providing up-to-date shipment information to customers
+ Create Transport Exchanges
+ The exchange helps to connect trucks with shippers, connect supply (idle trucks)
and demand (shippers with goods to send), help utilize resources, save costs
+ The service for planning the route, tracking the amount of goods on the vehicle…
+ Warehouse management and automation have been set up in many warehouses
and yards, automating workflows using a warehouse management system (WMS).

- Tracking & tracing and Timeliness

With the positive improvement in position 34 (2018) compared to 75 (2016).
Timeliness ”has been increased from position 56 (2016) to 40 (2018). IT is one of the
important factors that meet "7 true" and has a direct influence on the ability to find and
determine the status of goods as well as all logistics activities such as doing the
declaration procedure. Overlooking, transporting goods, handling orders or controlling
warehousing activities, thereby affecting the time issue in the entire logistics service
chain. Therefore, in order to improve the two indicators "Tracking & Tracing" and
"Timeliness" in Vietnam's logistics activities, it is necessary to focus on assessing the
status of IT application in the field of logistics in a specific way, thereby looking for
Outputting long -term solutions to invest in the right direction and develop IT application
effectively in Vietnam's logistics activities.

Chapter 4
Compare Vietnam’ LPI and selected countries

a. Compare Vietnam against top performance in 2018 (Germany)

According to the World Bank's Logistics Performance Index (LPI) 2018 rankings,
Germany ranked first out of 160 countries with an overall LPI score of 4.20, while
Vietnam ranked 39th with an LPI score of 3.08.

When comparing the two countries' LPI scores across the six components that make
up the index, we can see that Germany outperformed Vietnam in all areas:

Germany Vietnam
Customs 4.89 3.56
Infrastructure 4.44 3.25
International shipments 4.66 3.39
Logistics competence 4.29 2.94
Tracking and tracing 4.39 3.24
Timeliness 4.23 3.02
 Customs: This component measures the efficiency and speed of customs clearance
processes, including clearance times and the frequency of inspections. Germany scored
4.89, the highest score among all countries in the LPI, indicating that its customs
processes are very efficient and streamlined. Vietnam scored 3.56, reflecting that customs
processes in the country are less efficient and less streamlined than in Germany.
Specifically, Vietnam has a higher frequency of physical inspections than Germany,
which can cause delays and increase costs for businesses.

Infrastructure measures the quality and adequacy of infrastructure, including roads,

ports, and airports. Germany scored 4.44, indicating that its infrastructure is of high
quality and well-maintained. Vietnam scored 3.25, indicating that its infrastructure is less
developed and less efficient than Germany's. Specifically, Vietnam has lower-quality
roads and a less developed port infrastructure, which can lead to delays and inefficiencies
in logistics operations.

International shipments measures the ease and efficiency of international shipments,

including the quality of transport services, the ease of arranging shipments, and the
frequency of delayed or lost shipments. Germany scored 4.66, indicating that its
international shipments are very efficient and reliable. Vietnam scored 3.39, indicating
that its international shipments are less efficient and less reliable than Germany's.
Specifically, Vietnam has a lower quality of transport services and a higher incidence of
lost or delayed shipments than Germany.

Logistics competence measures the competence and quality of logistics services

providers, including the quality of logistics staff, the efficiency of logistics services, and
the level of technology and innovation in logistics operations. Germany scored 4.29,
indicating that its logistics service providers are highly competent and efficient. Vietnam
scored 2.94, indicating that its logistics service providers are less competent and less
efficient than Germany's. Specifically, Vietnam has lower levels of technology and
innovation in logistics operations, which can lead to inefficiencies and higher costs.

Tracking and tracing measures the ability to track and trace shipments throughout
the logistics process, including the use of information technology and the efficiency of
tracking and tracing systems. Germany scored 4.39, indicating that its tracking and
tracing systems are highly efficient and reliable. Vietnam scored 3.24, indicating that its
tracking and tracing systems are less efficient and less reliable than Germany's.
Specifically, Vietnam has lower levels of adoption of information technology in logistics
operations, which can hinder the efficiency of tracking and tracing.

Timeliness measures the speed and reliability of delivery, including the timeliness of
shipments and the frequency of delayed or lost shipments. Germany scored 4.23,
indicating that its deliveries are very timely and reliable. Vietnam scored 3.02, indicating
that its deliveries are less timely and less reliable than Germany's. Specifically, Vietnam
has a higher incidence of delayed or lost shipments, which can cause disruptions to
supply chains and increased costs for businesses.

Overall, it is clear that Germany has a much stronger logistics performance than
Vietnam, particularly when it comes to customs, infrastructure, and international
shipments. However, it is worth noting that Vietnam has made significant improvements
in its LPI score over the years, and it is likely that the country's logistics performance will
continue to improve in the future.

b. Compare Vietnam against top performance in region (Japan)

According to the World Bank's Logistics Performance Index (LPI) rankings in 2018,
Japan had an LPI score of 3.93, while Vietnam's LPI score was 3.10. This means that
Japan's logistics performance is better than Vietnam's, but not as high as Germany's
(which had an LPI score of 4.14).

Germany Vietnam
Customs 4.60 3.97
Infrastructure 4.42 3.64
International shipments 4.52 3.92
Logistics competence 4.19 3.53
Tracking and tracing 4.48 3.97
Timeliness 4.20 3.57

Customs: Japan scored higher than Vietnam in this component, with a score of 4.60
compared to Vietnam's score of 3.97. This indicates that Japan's customs procedures are
more efficient and streamlined than Vietnam's.
 Infrastructure: Japan also scored higher than Vietnam in this component, with a
score of 4.42 compared to Vietnam's score of 3.64. This suggests that Japan's
transportation infrastructure, including roads, ports, and airports, is more developed and
efficient than Vietnam's.

International shipments: Japan had a higher score than Vietnam in this component
as well, with a score of 4.52 compared to Vietnam's score of 3.92. This indicates that
Japan's international shipment processes, such as customs clearance and documentation,
are more efficient than Vietnam's.

Logistics competence: Japan scored higher than Vietnam in this component too, with
a score of 4.19 compared to Vietnam's score of 3.53. This suggests that Japan's logistics
industry is more developed and competent than Vietnam's.

Tracking and tracing: Japan had a higher score than Vietnam in this component as
well, with a score of 4.48 compared to Vietnam's score of 3.97. This indicates that Japan's
ability to track and trace shipments is more efficient and accurate than Vietnam's.

Timeliness: Japan also scored higher than Vietnam in this component, with a score of
4.20 compared to Vietnam's score of 3.57. This suggests that Japan's logistics processes
are more timely and reliable than Vietnam's.

In summary, Japan is known for its efficient and advanced logistics system, with
world-class ports, airports, and highways. Japan has also invested heavily in technology
and automation, which has helped to improve logistics efficiency and reduce costs. In
addition, Japan has a highly skilled workforce, which is another factor that contributes to
its logistics performance.

On the other hand, Vietnam's logistics system is still developing, with infrastructure
and technology limitations that need to be addressed. However, Vietnam has made
significant progress in recent years, with improvements in infrastructure and trade
facilitation. Vietnam's strategic location in Southeast Asia also makes it an important hub
for trade and logistics, with increasing investment in ports and other transport
infrastructure.
 Japan's logistics performance is better than Vietnam's, but Vietnam has made progress
and has the potential to further improve its logistics system through continued
investments in infrastructure and technology.

Chapter 5
Identify weaknesses of Vietnam in terms of logistics
operation

The market of logistics services has not developed well with its potentials and has not
become a driving force or a key factor contributing to increasing national
competitiveness and for businesses. Enterprises providing logistics services in
Vietnam are small-scale with limited financial resources. In fact, most Vietnamese
logistics enterprises are small in scale and face many limitations in terms of capital,
technology as well as operational capacity in the international market. The lack of
connection between the business community in the same field and the lack of connection
between stages in the logistics supply chain has reduced the competitiveness of
Vietnamese enterprises. Accordingly, Vietnamese logistics enterprises only account for
about 30% of the domestic market share, the rest belongs to foreign enterprises.

The weakness of logistics infrastructures, especially transportation infrastructure,

which increases logistics costs, increases product transit time and reduces customer trust
in services of the supply industry. According to the survey results of over 80,000 orders
in 5 countries Vietnam, Thailand, Malaysia, Singapore, Indonesia by iPrice Insights and
parcel tracking service Parcel Perform, Vietnamese consumers currently have to wait the
second longest in the area to receive items when shopping online. The research goes on
to calculate the average delivery time for each of the five countries. According to the
below analysis, in Vietnam, an e-commerce parcel takes 5.6 days to reach its buyer. This
is higher than most of the remaining four countries, bar Malaysia, and more than doubled
that of Thailand, where consumers only have to wait 2.5 days for their parcels on
average.Moreover, parcels in Vietnam arrive late by up to 24 hours on average, which is
the highest among the five countries and far exceeds even the one ranking second, which
is Thailand with 7 hours on average.
 The organization and management of logistics activities are still overlapping and
inappropriate. Before 2021, enterprises only need to have a quality certificate from a third
party designated by the Ministry of Construction for the declaration to be cleared. But
from 2021 up to now, according to the new regulations, in addition to having the above
certification, enterprises also have to do an additional step of submitting documents to the
construction department to issue "Results of state inspection of the quality of imported
goods." . This leads to a much slower time for customs clearance of goods than before,
affecting the circulation of goods of enterprises. In the field of logistics, there is currently
no specialized state management agency, which has the function of managing these types
of transactions. There is no committee that is responsible for managing the development
of Logistics as a conductor as in Singapore, Malaysia and Thailand.

With the characteristics of the newly developed logistics service market in recent
years, the Vietnamese logistics workforce has its strong point of being young, dynamic,
adventurous and willing to take challenges and risks. However, the problem that Vietnam
is facing is a lack of quantity in human resources, weak qualifications and
professionalism. Besides, the preparation of knowledge, skills, attitudes and
psychological status of Vietnamese logistics workers to be ready to receive the wave of
labor movement between ASEAN countries is not high. Labor discipline issues, the
sense of compliance with the law as well as low labor intensity are also the
limitations that need to be overcome in the upcoming years for Vietnamese
logistics manpower (Vietnam Logistics Report, 2019).

Conclusion
 To improve Vietnam's logistics performance index, our team proposes 7 tasks
associated with the roles of ministries, sectors, and localities, including:

1. Implementing the project to upgrade and modernize the North-South railway;

renovating and upgrading the synchronized railway lines of Hanoi - Haiphong, Hanoi -
Thai Nguyen, Hanoi - Lang Son, Hanoi - Halong.

2. Improving delivery capacity: Reviewing and improving policies and regulations on

transit, transshipment of foreign goods through Vietnam in a smooth, convenient, and
compliant manner with Vietnam's international commitments to exploit the economic
geography advantages in providing logistics services.

3. Enhancing capacity and quality of logistics services: Boosting trade promotion

activities for logistics services, strengthening international cooperation in logistics to
develop cross-border logistics services, especially in neighboring countries and ASEAN
markets.

4. Applying technology and optimizing traceability capabilities: Supporting research,

development, and application of new and advanced technologies in logistics operations to
keep up with new trends in the international logistics market (for example, blockchain,
autonomous delivery devices, suitable delivery vehicles for urban traffic...), towards the
development of green logistics and smart logistics.

5. Shortening time and reducing costs: Limiting and simultaneously reviewing and
reducing fees and charges for using infrastructure that affects the circulation of goods in
domestic and import-export of most enterprises.

6. Improve customs clearance efficiency: promote the deployment of the National

Single Window mechanism, increase the number of level 4 online public services in
conjunction with this mechanism.

7. Coordinate with the World Bank to provide and update complete and timely
information and data to objectively and accurately assess and rank Vietnam's LPI.
 Reference

Aggregated LPI | Logistics Performance Index

https://lpi.worldbank.org/domestic/environment_institutions/2018/C/VNM
https://lpi.worldbank.org/international/scorecard/radar/254/C/VNM/2018/C/JPN/
2018#chartarea
https://logistician.org/blog/chi-so-lpi-logistics-performance-index-trong-logistics.html