Logistics cooperation crucial for exports to Europe
At the Meeting of Vietnamese Trade Counselors in Europe held in Italy on July 18-19, 2024, Nguyen Hong Thanh, Head of the Vietnam Trade Office Branch in the Far East region, delivered a presentation on the promotion of logistics cooperation and solutions for transportation of goods to European markets in the current context.
Currently, the transportation of goods from Vietnam to European markets primarily utilizes air, rail, and sea routes, with sea transport holding the largest share due to its cost advantages. However, maritime logistics have been affected by the ongoing Crimea situation since 2014, the Suez Canal incident in 2021, pandemic-related restrictions starting in October 2023, and attacks by Houthi forces in the Red Sea.
Illustrative image |
Sea freight rates between Asia and Europe are currently very high, with extended transit times due to many shipping companies having to reroute around the Cape of Good Hope in South Africa, adding approximately 15 days to the journey. International logistics companies are now considering alternative transportation routes and multimodal transport solutions to maintain efficient cargo flow between Asia and Europe while managing costs and transit times for exporters and importers.
In 2021, the Railway Transport and Trade Joint Stock Company (Ratraco) connected with Chinese and Russian railways to operate two intermodal cargo rail routes from Gia Lam Station: the first route runs through China, Kazakhstan and Russia to Europe, and the second route through China into Russia at Zabaikal in the Far East, then western Russia and Europe. Both routes run through Kaluga or Moscow before connecting to EU markets such as Poland, Germany, France, Belgium, and others. These intermodal rail routes have received substantial support from the Vietnamese Trade Office in Russia. Ratraco is considering increasing the frequency and volume of export goods transported by containers via these rail routes.
In 2022, due to the Russia-Ukraine conflict, international shipping companies canceled their routes to Russian seaports. However, thanks to efforts from various parties, the Russian shipping company Fesco resumed the direct sea route from Vladivostok to Vietnamese ports. To date, after two years of operation, Fesco has transported over 300,000 TEUs of goods between Vietnam and Russia.
Following Fesco, the Russian shipping company Trasit LLC is also operating a direct sea route from Vietnam to the port of Vladivostok. According to Russian Customs, in 2023, over 60 percent of Vietnam’s exports to Russia was transported through the Far East by rail and sea routes.
Nguyen Hong Thanh, Head of the Vietnam Trade Office Branch in the Far East region |
To maintain and develop logistics operations from Vietnam to European markets, the Vietnam Trade Office Branch in the Far East region recommends:
- To diversify and multimodalize transportation activities to mitigate risks associated with relying on a single type or fixed route for transporting goods from Vietnam to Europe.
- To establish a continuous information channel to provide the business community with regular warnings about risks, freight rate fluctuations, and guidance on appropriate transport modes and routes in Asia-Europe freight transport through media, logistics associations, and industry associations
For the Russian market, it is necessary to strengthen support for resuming more flights between cities. Utilizing cargo flights to transport fast-moving goods such as fresh fruits, clothing, and new mobile device models is crucial.
The Vietnamese Trade Office in the Far East hopes that trade offices will advise the Government to study the impacts and opportunities for global logistics, including for Vietnam, that the Northern Sea Route will bring in the next 5-10 years. This will enable Vietnam, as the first Southeast Asian country, to participate in this new critical global transportation route.
See also
US issues preliminary anti-subsidy findings on solar panel imports from Vietnam
09:25 | 08/10/2024 Foreign trade
Vietnam, Tunisia promote trade cooperation
10:04 | 07/10/2024 Foreign trade
Import-export revenue rises over 16% in nine months
08:54 | 07/10/2024 Foreign trade
Rice exports expected to exceed 5 billion USD target
17:04 | 06/10/2024 Major exports
US initiates probe into dumping and countervailing duties on Vietnamese steel
16:55 | 06/10/2024 Foreign trade
Vietnam's rice export turnover up 23.5% in nine months
17:16 | 05/10/2024 Major exports
See more news
Nine-month agro-forestry-fisheries exports rise 21%
09:35 | 04/10/2024 Foreign trade
Vietnam earns over 7 billion USD from fishery exports in nine months
09:11 | 04/10/2024 Major exports
Vietnam-France trade, investment ties expected to grow further
09:06 | 04/10/2024 Foreign trade
US initiates administrative reviews of anti-dumping duties on three products from Việt Nam
15:38 | 03/10/2024 Foreign trade
Positive signals for exports in remaining months of 2024
11:46 | 03/10/2024 Foreign trade
Expanding export opportunities for the crocodile industry
09:54 | 03/10/2024 Foreign trade
Turkey concludes anti-circumvention investigation on solar panel dumping from Vietnam
09:39 | 02/10/2024 Foreign trade
Top leader’s visit opens new door for Vietnam – Ireland trade: insiders
14:33 | 01/10/2024 Foreign trade
Vietnam's fruit, vegetable exports near 7 billion USD target
11:04 | 01/10/2024 Major exports
Cashew industry faces risk of trade deficit
09:51 | 01/10/2024 Foreign trade
Ca Mau Province accelerates public investment disbursement
17:29 | 11/10/2024 Investment
East Asian Summit calls for cooperation to enhance mutual understanding
17:22 | 11/10/2024 Cooperation
PM attends 12th ASEAN-US Summit in Vientiane
17:18 | 11/10/2024 News and Events
Vietnam ready to turn off 2G service
16:34 | 11/10/2024 Science - Technology
WTO highlights Vietnam’s role in restructuring of global supply chains
14:37 | 11/10/2024 Trade
Multimedia
Hanoi Liberation: Important milestones
15:39 | 09/10/2024 Infographic
Vietnam makes active contributions to ASEAN development
09:15 | 09/10/2024 Infographic
France becomes Vietnam's 8th Comprehensive Strategic Partner
08:57 | 08/10/2024 Cooperation
Two historic battles of the capital’s armed force and people
09:53 | 07/10/2024 Infographic
Numerous cultural, tourism activities to welcome 70th Hanoi’s Liberation Day
10:43 | 05/10/2024 Infographic
Multiple laws under review for revisions
08:55 | 11/10/2024 Policy
Top leader attends Hà Nội's Liberation Day anniversary, highlights potential to drive growth
20:31 | 10/10/2024 Policy
Vietnam, Cuba bolster defence cooperation
16:36 | 10/10/2024 Policy
NA urges capital market revitalisation
20:15 | 09/10/2024 Policy
MoIT approves price framework to purchase electricity from Laos
08:38 | 11/10/2024 Energy
Foreign investors interested in green development, semiconductor industry in Vietnam
17:34 | 09/10/2024 Industry
Việt Nam seeks Japan's cooperation in hydrogen energy development
14:33 | 09/10/2024 Energy
Việt Nam's industrial production saw positive growth in nine months
14:20 | 08/10/2024 Industry
Ca Mau Province accelerates public investment disbursement
17:29 | 11/10/2024 Investment
HCM City approves US$9b Cần Giờ coastal urban development project
10:04 | 11/10/2024 Investment
Bac Ninh leads nation in FDI attraction in nine months
18:05 | 09/10/2024 FDI
Total social investment capital disbursed in nine months up 6.8%: GSO
14:41 | 08/10/2024 Investment
PM urges WB to provide concessional loans for key infrastructure projects
08:52 | 11/10/2024 Finance-Banking
DIC Corp completes buyback of $18.6 million in bonds
09:25 | 10/10/2024 Finance-Banking
Update on exclusive partnership between Manulife Vietnam and Techcombank
14:52 | 08/10/2024 Finance-Banking
VPBank, LOTTE C&F cooperate to provide financial service with “Buy now pay later” product
09:31 | 07/10/2024 Finance-Banking
Leveraging power of community to protect unique Yok Đôn ecosystem
14:49 | 09/10/2024 Environment
Little cooperation from zoo operators in mass deaths of tigers, lions, panther: authorities
09:18 | 08/10/2024 Environment
Issuing “passports” for forest visits
22:12 | 05/10/2024 Environment
Vietnam’s forestry sector leads in achieving net negative emissions
09:16 | 04/10/2024 Environment
Vietnam ready to turn off 2G service
16:34 | 11/10/2024 Science - Technology
Digital infrastructure strategy approved
09:50 | 11/10/2024 Science - Technology
Vietnam, India seek further development through sci-tech cooperation
09:46 | 11/10/2024 Science - Technology
Digital transformation creates new momentum for national development
16:35 | 10/10/2024 Science - Technology
Implementation of Red River Delta Region Planning approved
09:00 | 11/10/2024 Society
Nine Vietnamese universities make global rankings 2025
17:05 | 10/10/2024 Society
Hanoi develops as dynamic, pioneering, innovation city: Int’l media
11:33 | 10/10/2024 Metropolis
Hà Nội's remarkable transformation after 20 years
11:25 | 10/10/2024 Metropolis
Fifteen Vietnamese banks named in the global top 500 banking brands
16:24 | 10/10/2024 Vietnamese Brands
Việt Nam's second rice brand enters picky Japanese market
09:03 | 10/10/2024 Vietnamese Brands
Ben Tre to export first batch of fresh coconuts to China in October
09:41 | 08/10/2024 Vietnamese Brands
Mê Linh harnesses the potential of OCOP products
09:36 | 07/10/2024 Vietnamese Brands
Việt Nam promotes location opportunities at Busan International Film Festival
09:41 | 11/10/2024 Culture
Hanoi – World’s Leading Culinary City Destination
16:15 | 10/10/2024 Lifestyle
Pride and patriotism: the ‘expat’ view
09:19 | 10/10/2024 Culture
German Film Awards winner opens Kinofest in Hà Nội
09:16 | 10/10/2024 Culture
Hà Nội develops tour to explore Thường Tín’s craft villages
09:32 | 11/10/2024 Tourism
Vietnam Airlines promotes tourism in Germany
09:27 | 10/10/2024 Tourism
Việt Nam sees surge of tourists from visa-exempt countries in 2024
09:46 | 08/10/2024 Tourism
Cultural tourism requires more investment to become cultural industry
09:24 | 08/10/2024 Tourism