After the COVID-19 epidemic, will there be logistical obstacles or opportunities?

The emergence of covid-19 has had severe effects on a variety of global issues and the economic growth condition, particularly in the logistics business, which is directly and heavily impacted by the circulation and transit of products and the development of global barter items. The impact of the COVID-19 epidemic on the global flow of trade and investment, causing congestion on container transport routes, particularly on transport routes to Europe and the United States, where a lack of large-scale empty containers will continue beyond 2020, has severely impacted Vietnam's exports to the European-American market.

Approximately two years ago, the logistics business in Vietnam, in particular, experienced severe challenges due to the COVID-19 pandemic. According to statistics, in the first quarter of 2020, approximately 15% of businesses experienced a 50% decline in revenue compared to the same period in 2019, and more than 50% of businesses reduced the number of domestic and international logistics services by 10% to 30% compared to the same period in 2018. Approximately 97% of logistics service organizations are small or medium-sized, so they are badly impacted. Since May 2020, logistics operations have been recovering at a pace with the economy, although around 20% of logistics firms are still experiencing a fall in activity.

The General Statistics Office reports that in September 2020, there were 10.3 thousand newly established enterprises with a registered capital of 203.3 trillion VND and 83 thousand registered employees, representing decreases of 23.1%, 29.6%, and 13.8 %, respectively, from the previous month's numbers. In September 2020, there were 5.3% fewer logistics companies established than in September 2019. (to a total of 4,033 businesses, a figure that's lower than the yearly average decline across all sectors). In the United States, 485 transportation and storage companies formally dissolved between January 1 and September 30, 2020. (Ministry of Industry and Trade, 2020). In the logistics industry, many smaller and medium-sized businesses are on the verge of collapse, meaning that many people would lose their jobs if the pandemic continues for much longer than currently predicted.

The Vietnam Logistics Report 2021 reported that during the first nine months of 2021, the number of transportation and storage facilities was up 4.61 percent, while capital was up 43.1 percent over the same period in 2020. However, the pace The percentage of businesses in the transport and storage sector that have applied to set up shop is still quite low, making up only 4.08 percent of the total number of businesses in the country. This sector also represents only 1.88 percent of the total number of businesses in terms of capital and 1.8 percent in terms of employees. Only 3.04 percent! This suggests that companies in the sector often have small capital bases.

During the first nine months of 2021, there were 2,509 transport and warehousing businesses that had to temporarily halt operations, a 14.1% increase over the same period in 2020, accounting for 5.56% of the total number of temporarily suspended businesses in the nation. During the same time period, 571 businesses completed dissolution processes, representing a 17.7 percent increase over the same period in 2020 and accounting for 4.46 percent of all dissolved businesses in the country.

Despite problems caused by the pandemic, Vietnam's logistics industry has made efforts to develop and rise in the aftermath of the pandemic. being recognized as a nation that can be competitive in the logistics business due to its inherent advantages, such as its geographical position, deep-water ports, and variety of transportation options. Despite fast expansion and average yearly growth at a healthy pace, it must be acknowledged that the logistics service business has yet to reach its full potential and has numerous remaining limits. All of this is extremely relevant to domestic and international companies and services. Vietnamese logistics companies continue to face fierce competition from overseas logistics companies, which is one of the reasons why Vietnam still faces numerous hurdles in terms of current backlog concerns. Not to mention, Vietnam's logistics service enterprises account for a large proportion (approximately 95 percent), but the majority of them are small and micro enterprises providing services with low added value, so the revenue of foreign logistics enterprises accounts for a greater share of the logistics market. In addition, Vietnamese logistics companies continue to lack the necessary capacity and resources. For instance, Vietnam lacks a big shipping corporation capable of transporting products across the continent. The logistics operation is mostly dependent on the wharf infrastructure and, consequently, on international shipping lines. Most businesses in the supply chain only offer small, unique services that don't add much value.

Therefore, in order to remedy the aforementioned scenario, all experts agree that it is imperative to invest in logistics infrastructure, which stresses the development of multimodal transport, in which rail and inland waterway transport must be developed. In addition, supporting the application of information technology and digital transformation in the logistics industry, so that Vietnamese businesses may quickly exploit export development possibilities through cross-border e-commerce. Vietnamese logistics firms have gained experience in adjusting to and conquering the second most difficult year of the Covid-19 outbreak; consequently, the following time will be a breakthrough and a period of rapid development for logistics. Free trade agreements and the rapid growth of e-commerce therefore present several prospects for Vietnam's logistics business. After the Covid-19 outbreak, even according to economic analysts, Vietnam's logistics sector has a "golden" chance. Therefore, it is of the utmost importance to discover a solution to develop and conquer together.

The more in-depth international conferences comprehend the function and challenges of the logistics industry's present growth. Therefore, the Faculty of Commerce at Van Lang University will generate complete perspectives by including contributions from professionals, new research methodologies using technology, and artificial intelligence. The most exhaustive and thorough analysis of the future orientation and growth of the Logistics business. It is expected to be a prosperous time for the contemporary shipping business in Vietnam and worldwide.