SUPPLY CHAIN IN

VIETNAM OVERVIEW–
CHALLENGES AND
OPPORTUNITIES
PRESENTER: MR. NGUYEN THANH NHA
 CONTENTS

I Overview

II Challenges affected by the world market.

III Challenges from the Vietnamese market.

IV Opportunities

V SNP’ ecosystem
I. Overview Total Area: 331,212 km2 Central cities & provinces: 63

Young
Population Abundant HR

99 million (ranking 15th, 56 million labors

average age = 33) (ranking 3rd in ASEAN

Mekong Delta Highland

My Son Sanctuary

Open Policies Stable Politics

Ho Chi Minh City Heart of
Ha Noi City
Southeast Asia
GRDP of HCM city first 9
months 2022: 804,728 bil International
VND Integration
Phong Nha Ke Bang Logistics companies: 30,000
Ha Long Bay National Park (including 4,000 foreign-owned)
High Growth Ranked 8th of Global Index of
Da Nang & Hoi An Rate Emerging Logistics Markets

Ave CPI 9 mth/ 2022:

2.73% <4% (est CPI)
GDP 6mth/2022:▲8.83%
FTA BETWEEN VIETNAM AND THE WORLD
Total number of FTA: 17 – 15 signed and in effect; 02 under negotiation

ATIGA ACFTA AKFTA AJCEP JVEPA AIFTA AANZFTA VCFTA

ASEAN, ASEAN,
VKFTA
ASEAN ASEAN, Vietnam ASEAN, ASEAN, Australia, Vietnam Việt Nam,
China Korea Japan Japan India New Zealand Chile Korea
17/05/2010 01/01/2005 Since 2007 01/12/2008 01/10/2009 01/01/2010 01/01/2010 01/01/2014 20/12/2015

RCEP Vietnam 
CPTPP ASEAN, China, – EFTA Vietnam
VN – EAEU FTA Vietnam, Canada, AHKFTA EVFTA Korea, Japan, – Israel
Vietnam, Russia, Mexico, Peru, Chile,
FTA
ASEAN, Vietnam, EU India, Australia, Vietnam, EFTA FTA
Belarus, Amenia, New Zealand, Australia, New Zealand
Hongkong (28 menbers) (Switzerland, Vietnam,
Kazakhstan, Japan, Singapore,
Kyrgyzstan Norway Israel
Brunei, Malaysia
Iceland,
05/10/2016 14/01/2019 11/06/2019 01/08/2020 03/2013 Liechtenstein) 12/2015
05/2012

Source: Center for WTO and Economic Integration

 Vietnam’s FDI
(Until 20/11/2022 )
FDI Percentage by counterpart

FDI
25.0%
23.0%

19.68b$ Foreign Direct Investment 20.0%

18.3%

(increase 15.1% QoQ) in VietNam 16.4%

15.0%

5.78b$ 4.6b$
10.0%
4.1b$$ 8.8%

19
7.6%

Invested sectors 5.0%

1.9b$ 2.2b$

1st is manufacturing
2nd is real estate and others 0.0%
FDI 2022 (Until 20/11/2022)

Korea Singapore Hong Kong (China) Japan China

Big FDI projects in 2022: 1st is The LEGO Group’ Project

Countries
107
(Denmark); 2nd is Vietnam-Singapore Industrial Park (VSIP)
Project (Singapore); 3rd is Samsung Electro-mechanics Vietnam
Which have invested in Co., Ltd Project in Thai Nguyen ; 4rd Is the plant project of
Vietnam manufacturing electronic and multimedia products and network
equipment of Goertek (Hong Kong - China)
 Vietnam Import - Export

Until November, 2021 Until November 2022

(599.12B$, ▲22.3% QoQ) (673.82B$, ▲11.8% QoQ)
MAIN
MARKET
EXPORT IMPORT EXPORT IMPORT

Compared Compared Compared Compared

USD Bill to 2020 (%) USD Bill to 2020(%)
USD Bill to 2021 (%) USD Bill to 2021 (%)

USA 84.8
76,4 22.2
24.5 14.2
13,7 14.6
-4.9 101.5 18.0 13.6 -3.8
EU 35.7
34,8 11.
-2.79 15.5
14,5 18.2
3.5 43.5 21.0 14.1 -7.9
China 50.5
48,5 16.8
17,1 98.5
83,9 32.0 53.0 5.7 109.9 9.9
ASEAN 25.9
23,1 23.3
-8.7 37.0
30 36.1
-6.9 31.1 19.4 43.3 16.4
Japan 18.0 3.0 20.3
20,5 10.1
5 22.0 21.2 21.8 6.9
Korea 20.0 14.6 50.3 20.3 22.5 13.4 58.2 15.0
TOTAL 299.67 17.5 299.45 27.5 342.21 13.4 331.61 10.1
Vietnam’s Seaport Network

● Group No.4 Southeast Ports

● Group No.1 Northern Ports
● Group No.5 Mekong Delta Ports
● Group No.2 North Central Ports
● Group No.3 South Central ports

● 45 sea ports
● 296 terminals
● 95km berth length
● Total design capacity to 2030: 1.140 to 1.423 mil.tons/year
● Throughput volume 2021: 703 mil. tons (+2%)
● Container throughput 2021 (domestic/international):
24 mil. Teus (+6%)
 Vietnam’s ICDs and Logistics Center Plan
by MOT by 2030

Logistics
Area ICD
Center

Northern 08 23

Central Highland 07 09

South-Eastern 04 29

Mekong Delta 02 02

Total 21 63
 THE GROSS D OMESTIC PR ODUCT P E R C AP ITA IN VIET NAM
F ROM 2012 TO 2022.

The G ross Do me stic Produ ct per ca pit a in Vietnam was last recorded at
3373.0 8 U S dolla rs in 2021 . Th e GD P per C apita in Vietnam is equivalent
to 27 percent of the w orld's ave rag e.
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
GDP
Current 195.592 213.711 233.450 239.257 257.096 281.353 308.702 330.391 343.242 362.637
US$
11 MONTHS OF 2022 VIE TN AM ENJ OY S T RADE SUR PL US OF 10.6 B ILL ION USD

Source: General Statistics Office

11 MONT HS OF 2022 F DI EX CEE DS 2 5.1 B ILL ION USD

Source: Ministry of Planning and Investment (as of November 20, 2021.

 VIET NAM IN FL ATION - CONSU MER P RIC E IND EX

The annual inflation rate in Vietnam increased to 4.37% in November of 2022 from 4.30% in October. It was
the highest inflation rate since March 2020, due to a faster rise in prices of food & catering services (5.23% vs
5.13% in October); housing & construction materials (5.965 vs 5.42%); and education (10.96% vs 10.64%).
L OGISTICS PER FOR MANCE INDE X

Vietnam ranks 39th among 160

countries and territories, and third in
the Association of Southeast Asian
Nations (ASEAN) in logistics
performance index (LPI), heard a
workshop held by the Ministry of
Industry and Trade (MoIT) on July 30.
II Challenges affected by the world market.

1 T he world situation con tinue s to be unstable,

unp redicta ble forecast.

2 T he shipping mark et ha s cooled down and is

moving towards a situation where supply
exc eeds de mand.

3 Increasingly high sta ndards and re quireme nts

for sustainable de velopment.
 1 T he world situation c ontinues to be unstable,
unp re dic ta ble forec ast.

Forecast of major global economies recession in 2023.

E conomic
The political Ene rgy prices High inflation
sanctions agai nst
c onflict betwee n increase
R ussia from the
R ussia - Ukraine US and E urope
 2

T he s hipping ma rket has cooled

down and is moving tow ards a
situation where supp ly exce eds
demand .

A large supply of sh ips

Logisti cs e nt e rprises
wh ile deman d Co st s more ex pe n sive.
un de r great pre ssure.
sudd en ly d ecre ases.
 2) The shipping market has cooled down and is moving towards a situation
where supply exceeds demand.

Carriers take measures to cut costs, optimize ships by increasing vessel sizes, and
restructure existing service lines.
For example:
The freight rate for transporting a 40
feet container of regular cargo from Ho
Chi Minh City to Los Angeles on the
West Coast of the United States of
America:
2021: about 10,000 - 12,000
USD/40’GP .
Shanghai Containerized freight rate index from January 2019 to November 2022
At present: about 1,500 USD/40’GP .
III. Challenges from the Vietnamese market.

1) The transport system is not synchronous and the

connectivity.

2) Administrative procedures are still not clear.

3) Vietnamese Logistics companies are small and

have not participated much in the supply chain.

4) The rate of application of automation and robotics

in the manufacturing industry is not high.
 1) The transport system is not
synchronous and the
connectivity.

Vietnam's road transport

infrastructure lags behind and is often
congested compared to some countries
in the region such as Malaysia and
Thailand.

Vietnam's total road network covers

200,000 km, of which only about 65%
are paved, compared with more than
77% in neighboring countries. Nearly
93% of national highways have only
two lanes (Source: OECD)
 2) Administrative procedures are still not clear.

FOR EXAMPLE

Procedures for adjusting the MNF to Some regulations on the control of

change the destination port between transshipment and transit goods still
ports located in the same area of Ho have many procedures.
Chi Minh City are still not clear.
 3) Vietnamese Logistics companies are small and have not
participated much in the supply chain.

FOR EXAMPLE

Logistics companies in 65% and 73% of Small and medium-sized

Vietnam only provide imported/exported goods enterprises account for
basic basic services, in are carried out by foreign the majority of more than
addition to not having direct investment 4,000 domestic
enough potential and enterprises enterprises operating in
experience the field of logistics
 4) The rate of application of automation and robotics in the manufacturing
industry is not high.

The high dependence on humans, it is easy to be interrupted when there is a shortage of

human resources.
 IV. Opportunities

1 T he tre nd of mo ving production fac tories from

C hina to Vietna m.

2 T he rate of inve stment in tec hnolo gy factories

has inc rea sed.

3 Vietnam’s population of w orking age ranges

from 66-70%, me eting the demand for labor
re sources in the sup ply cha in.

4 T he logistic s industry is rece iving atte ntion

from the Vietnamese gove rnme nt.
 V. SNP’s ecosystem

Inland
shipping Barges
Deepwater seaports
Logistics centers
>100 shipping lines fleet

SHIPPIN
> 30,000 enterprises G LINES
Contain
er Contain
services er trucks
Local authorities Feeder
ICD system
ports
Marine
safety
Associations services
 SNP port –
PRESENT -
logistics
FUTURE
ecosystem’s
special features
Future integrated port – logistics ecosystem

More sustainable

Smarter and more

digitalized

More efficient

More
comprehensive
More comprehensive
TC-128; TC- 189
TC-HICT

Expansion – connectivity investment:

- Port – logistics facilities
- Multimodal transport Hoang Sa Islands
- Service to new markets
Cam Ranh Intl’ terminal

TC – mien Trung

TCCL; TCHP
TCIT, TCTT
Mekong Delta
port clusters Truong Sa Islands
Comprehensive IT strategies with timelines

Project "Modernizing
delivery/receipt
formalities at ports"

ARMS

IoT application on
reefer container
temperature monitor

Single-window
Customer Care
 Smarter and more digitalized
Project "Modernizing delivery/receipt formalities at ports"

ePort

Seaport Security Monitoring System

TCSG – Hãng tàu

Đồng hành & phát triển bền vững

D I 29
 More substainable
Green transportation

Inland waterway connection

Bac Ninh – Hai Phong

Binh Duong – Thanh Phuoc

Cai Mep – HCM – Mekong Delta

TCSG – Hãng tàu 30

Đồng hành & phát triển bền vững
 Port of Cat Lai
Strategic value 1. Economic growth
 The largest container port in Vietnam
 A major gateway for imports and exports
 Supporting the growth of industries by providing access to
markets and suppliers 

2. Increasing competitiveness
 Reducing transportation costs
 Increasing competitiveness for Vietnamese businesses 3. Improving connectivity
 Location on the Saigon River
4. Providing employment opportunities  Proximity to major shipping lanes

 The important role of port operations to provide employment

opportunities for local residents 

5. Revenue generation
 Revenue generation for the government, taxes,
duties and other fees, used for public services and
infrastructure development

TCSG – Hãng tàu 31

Đồng hành & phát triển bền vững
 More substainable
Green warehouse
Warehouse
system
> 1 mill. m2

Solar energy

Eco-friendly

TCSG – Hãng tàu 32

Đồng hành & phát triển bền vững
THANK YOU