LITERATURE REVIEW ABOUT OCEAN TRANSPORTTATION 8 1.1 Overview
Concept, role of ocean íreight Services
a The concept of forwarding Service.
According to the International Federation of Freight Forwarders Associations (FIATA), forwarding services encompass a wide range of activities related to the transportation of goods This includes single or multimodal transport, consolidation, storage, handling, packing, and distribution Additionally, these services involve ancillary and advisory support, such as customs and fiscal matters, official declarations, insurance procurement, and the collection or management of payments and documents associated with the goods (FIATA, 2015).
Under Vietnam's Commercial Law, merchandise exchange is defined as a commercial activity in which freight forwarders handle the receipt of goods from shippers, along with their transportation, storage, and related paperwork, all while ensuring delivery to the designated recipient on behalf of the owners, transporters, or other forwarders.
Forwarding encompasses a range of services and procedures involved in the transportation process, facilitating the movement of goods from the shipper to the consignee Forwarders may provide these services directly or collaborate with agents and third-party service providers.
Forwarding services share common characteristics with other types of services, as they are intangible goods that lack a standardized quality assessment Unlike physical products, forwarding services cannot be stored in a warehouse, and their production and consumption occur simultaneously The perceived quality of these services is largely influenced by the experiences and perceptions of the customers receiving them.
Freight forwarding services play a crucial role in logistics by facilitating the movement of goods without altering their physical form While they do not produce tangible products, these services significantly enhance supply chain efficiency, contributing positively to production development and improving people's lives.
The service is influenced by customer demand, carrier regulations, and the legal and regulatory requirements of the exporting country, importing country, and any third countries involved.
Seasonality significantly impacts forwarding services for export and import activities, as these logistics operations are closely tied to the fluctuating volumes of goods being transported The cyclical nature of export and import activities directly influences logistics, making it essential to consider seasonality in planning and executing these services.
In addition to paperwork, brokerage, and billing, service providers offer essential services like consolidation, division, loading, and unloading To ensure these tasks are completed effectively, they rely heavily on the technical capabilities and expertise of the forwarder.
Freight forwarding services lack standardized qualitative criteria for evaluating quality; however, they do have specific requirements that must be met to satisfy customer needs These requirements are essential for ensuring efficient and effective logistics management.
Timely and efficient delivery of goods is crucial, emphasizing the importance of minimizing transport duration from the point of dispatch to the destination This includes optimizing loading and unloading times, as well as ensuring accurate counting to reduce overall delivery time Consequently, it is essential for forwarding agents to understand the technical processes involved, the nature of the goods, the shipping schedule, and to arrange transportation vehicles effectively.
Safe delivery is crucial for protecting the interests of both the owner and the carrier High accuracy in delivery is essential, as it directly impacts the quality and completion of the work, including the precise quantity and condition of the goods Ensuring accurate delivery minimizes discrepancies and reduces the risk of loss, safeguarding the owner's assets and brand integrity.
To maintain a competitive edge, forwarders must prioritize minimizing delivery costs This can be achieved through strategic investments in infrastructure, establishing comprehensive standards, and implementing waste reduction practices Additionally, training skilled personnel is essential to enhance operational efficiency and effectiveness.
In today's globalized economy, the transportation of goods from sellers to buyers often involves multiple transport modes and complex export and import procedures Freight forwarders play a crucial role in managing these logistical challenges by coordinating all necessary procedures and transport modes to ensure efficient and cost-effective delivery across borders Their services extend beyond traditional tasks like packing and freight forwarding to include professional advice on transportation routes, customs clearance, and comprehensive goods handling.
The definition of a freight forwarder is not universally standardized, but it is commonly recognized as a professional or business responsible for the logistics of transporting goods According to FIATA, a freight forwarder acts as a fiduciary, ensuring the safe delivery of cargo while managing various tasks associated with forwarding contracts, including storage, transshipment, customs clearance, and inspection.
In Vietnam, the forwarder responsible for cargo delivery can be the cargo owner, the ship-owner acting on behalf of the cargo owner, a loading and unloading company, a professional forwarder, or any registered individual in the freight forwarding business According to the Commercial Law of Vietnam, those providing goods delivery services must be traders with valid certificates of registration for freight forwarding services.
From the above deílnitions we can draw a comment:
- Forwarders operating under entrustment contracts signed with goods owners, protecting the interests of goods owners.
Authority, obligations and responsibilities of the forwarders
A freight forwarder must diligently safeguard the entrusted goods and adhere closely to the customer's instructions regarding shipping Acting as an agent for the goods owner, the freight forwarder plays a crucial role in ensuring that all aspects of freight management are executed properly.
Depending on the functions of the forwarder, the forwarder must fulfill all his obligations under the signed contract and shall be responsible for:
- Shortcomings in purchasing Insurance for goods despite guidelines.
- Shortcomings while carrying out customs procedures.
- Cargo to the wrong place.
- Delivery without charge from the consignee.
- Re-export does not follow the necessary procedures or non-refundable tax.
- Property damage and the third person he caused.
It is essential to understand that the forwarder cannot be held liable for the misconduct of third parties, such as carriers or other forwarders, provided that they can demonstrate they made the appropriate selections.
When acting as a forwarding agent, you must comply with your "Standard Trading Conditions". b As a carrier.
As a carrier, the forwarder acts as an independent contractor, who in his / her name is responsible for providing the Services requested by the customer.
A forwarder is liable for the actions and mistakes of both the carrier and any additional forwarders they engage to fulfill the transportation contract, treating these acts and omissions as if they were their own.
The authority, duties, and responsibilities of the collector are defined by the regulations governing various transportation modes The collector charges customers based on the service provided, rather than receiving a commission.
A forwarder serves as a carrier not only when transporting goods using their own means of transport (performing carrier) but also when they issue a commitment to take responsibility for the carrier, whether their own or another's (contracting carrier).
When a forwarder offers transportation-related services such as packing, storage, and loading or unloading, they assume carrier responsibility if these services are performed using their own resources or if it is clearly stated that they act as a carrier In such cases, standard business conditions typically do not apply; instead, international treaties or regulations from the International Chamber of Commerce govern the situation However, the forwarder is not liable for any loss or damage to goods resulting from specific circumstances.
- Due to customer or customer's fault.
- Customers do not pack and mark the code.
- Due to the nature or nature of the goods.
- Due to force majeure circumstances.
The forwarder is not responsible for any loss of benefits the customer may incur due to delays or deliveries to incorrect addresses that are not caused by their fault.
The process of collecting export and import goods
Consolidation in container shipping refers to the process of transforming bulk shipments into outbound shipments, effectively reducing transportation costs This essential service can be managed by a shipping carrier, a freight forwarder, or a designated consolidator.
The delivery process is as follows:
- The collector receives the goods from the shippers and they will give the sender a document called B / L.
- The collector lays the Container to the Container and sends the Container to the real carrier (carrier).
The carrier issues a Master Bill of Lading (Master B/L) to the consolidator upon receiving the container Upon reaching the destination port, the container shipping company unloads the vessel and delivers the container to the collector's agent based on the recipient's Master B/L.
- The collector's agent, at his own expense, unloaded the Container and delivered it to the recipient on the basis of the recipient presenting the House B / L.
- Carrying out customs clearance procedures (if any).
- Pay for freight (if postpaid), take delivery orders from collectors
- Receive goods at the CFS warehouse delivered from the consolidator
- Bring goods to your own warehouse at your own expense
Order of delivery and import of goods by sea
❖ For goods not stored at the port.
These are export goods which are transported from domestic locations for export, which can be stored in their own warehouses rather than in the port warehouses.
From private warehouses, shippers or consignees can deliver directly to ships. The delivery process is the same as for the port.
• Delivery to the port: carried out by the shippers.
• Make shipment procedures, delivery to the ship.
- The íồreign trade owner must register with the port for the trough, the place and loading bridges.
- Do export-related procedures such as customs, quarantine
- Organization of transportation, queue up the ship.
- Contact the captain to get a line chart.
Port workers must adhere to a specific process when handling goods on the ship, ensuring they queue appropriately and accurately record all transactions in the tally sheet.
To ensure a smooth shipping process, it is essential to create a receipt for the vice-captain that accurately records the quantity and condition of the goods loaded onto the ship This receipt serves as the foundation for issuing the bill of lading and must be clear and free of any errors.
- The carrier delivers a bill of lading, signed and signed by the owner of the ship.
- Set up payment documents for contracts or L / c regulations.
- Inform the buyer of the delivery and purchase Insurance for the goods (if needed).
- Calculation of rewards for fast loading and unloading (if any).
The delivery process for these goods involves two key steps: first, the foreign trade owner or domestic supplier transports the export goods to the port, and second, the port facilitates the transfer of these goods onto the ship.
• Deliveries to the port include:
• The goods owner or the person entrusted by the goods owner to enter into a storage contract for goods preservation with the port.
• Before delivery to the port, the porter must deliver the following documents:
- List of cargo (cargo list).
- Shipment notice of the shipping company (shipping order) if needed.
- Delivery to the warehouse, port yard.
• Before shipment to the ship, the shipper must:
- Do export-related procedures: customs, quarantine, testing (if any).
- Tell the port of expected arrival time (ETA), accept NOR.
- Delivered to the port of loading map.
- Organization of goods delivery and delivery to ships:
Before loading, it is essential to coordinate the transportation of goods from the warehouse to the port This involves managing order queues, determining the number of loading docks required, and arranging vehicles and personnel, including escorts if needed.
Shipping and delivery for the ship The loading of ships by port workers Goods will be delivered to the ship under the supervision of a customs representative.
During the delivery process, the port's tally recorder is responsible for documenting the quantity delivered in the Tally Report, which is then summarized in the Daily Report at the end of the day Upon completion of the ship's delivery, the final details are recorded in the Final Report Additionally, the ship has its own tally recorder that logs the results on the Tally Sheet.
The tally can also be hired by the company's staff.
- When receiving a batch or whole ship, the port shall have to receive the vice- captain's receipt so that B / L can be made on that basis.
According to the purchase and sale contract and the letter of credit (L/C), the forwarding agent is responsible for preparing the required documents and submitting them to the bank to facilitate payment.
For payment via Letter of Credit (L/C), it is essential that the payment documents are mechanically compatible with the L/C and consistent with one another Additionally, these documents must be submitted within the validity period of the L/C.
• Inform the buyer of the delivery and purchase of insurance for the goods (if needed).
• Pay for port charges such as shipping, handling, storage, etc.
• Calculate the penalty for handling, if any.
❖ For export goods in Container:
The owner or their designated representative is responsible for completing the booking note and submitting it to the shipping company's representative along with the cargo list for signature.
After registering the note, the shipping company will issue the order to deliver the Container to borrowers.
The owner takes the empty Container to his place of loading.
Inviting seaíồod representatives, inspecting, quarantining and inspecting (if any) to inspect and supervise the packing of containers Once íinished, the customs officer will Seal the Container.
The shipper is responsible for transporting and delivering containers to the Container Yard (CY) on time, typically at least 8 hours before the scheduled loading of the ship, ensuring compliance with the closing time for each shipment and the receipt of the Container receipt.
After the Container has been loaded onto the train, take MR for the bill of lading.
• If shipping in bulk (LCL):
The owner sends the booking note to the shipping company or shipping agent, providing them with necessary information about the shipment.
After booking note is accepted, the owner will agree with the shipping company about the date, time and place of delivery.
The owner or the person authorized by the owner of the goods to deliver the goods to the carrier or agent at the CFS or ICD.
Shippers engage customs representatives to oversee the inspection and loading of containers onto the carrier or collector Once the customs seal is applied to the container, the shipper finalizes the loading procedures.
Container onto the vessel and requests the bill of lading.
The carrier delivers the receipt or a bill of lading.The Container is loaded onto the ship and transported to the destination. b For import.
❖ For cargo not to be stored at the port.
In this case, the goods owner or the person entrusted by the goods owner shall take delivery and receipt directly with the ship.
• In order to proceed with the discharge, 24 hours beíồre the ship arrives at the pilot position, the cargo owner must give the port a number of documents.
- Detail of the hatchery (2 copies).
- Oversized, too heavy (if any).
• The owner of the goods presents the original bill of lading to the representative of the shipping company.
• Receiving goods directly from the ship and making necessary documents in the receiving process such as:
- Minutes of ship inspection (made beíồre discharge) in order to take responsibility for the tragedy of the latter.
- Discharge record (COR) for obvious loss.
• Letter of Resistance (LOR) for unknown losses.
- Certiílcate of insufficient goods (prepared by shipping agent).
During the cargo discharge process, the shipper has the option to transport the goods to their own warehouse for customs inspection If the lead seals are unsealed, it is essential to escort the cargo to customs for verification.
• Transportation to warehouses or distribution of goods.
❖ For warehousing and storage at the port.
• Unloading and receiving cargo from the ship (by port).
• Make necessary paperwork in the delivery process (the forwarding agent must work together).
• Take goods to port warehouse.
• Port of delivery to shippers.
Upon receiving the arrival notice, the goods owner is required to present the original application form along with a recommendation letter from the agency to the shipping company to obtain the delivery order (D/O) The shipping company or agent will retain the original bill of lading and provide three copies of the D/O to the consignee.
• Cargo owners pay storage fees, loading and unloading charges and receipts.
To complete the shipping process, the owner must present the receipt, three copies of the Delivery Order (D/O), the invoice, and the packing slip at the shipping management office at the port This step is essential for signing the D/O and locating where it is stored.
• The owner brings two copies of the remaining D / o to the warehouse to make a delivery note This unit holds 1D / o and makes 2 delivery notes to the owner.
• Customs clearance through the following steps:
- Presentation and submission of papers.
- The goods owner signs the receipt on the tax notice (can pay tax within 30 days) and ask for certiíication of completion of customs procedures.
- After the customs authorities certify "completion of customs procedures", the goods may be brought out of the port and transported to a separate warehouse.
• If it is raw (FCL).
When receiving the NOA, the shipper will bring the original bill of lading and the agency's letter of introduction to the shipping company for D / o.
Goods owners must present the Delivery Order (D/O) for customs clearance and inspection They have the option to transport both containers to a separate warehouse or Inland Container Depot (ICD) for customs inspection; however, timely payment for the container is essential to avoid penalties.
- After completing the customs procedures, the goods owner must bring the documents of receipt with the D / o to the ship management office at the port to certify the D / o.
- Get the delivery and receipt
Shippers must present the original bill of lading to the shipping company or the agent responsible for collection to obtain the delivery order (D/O) Following the CFR regulations, they will then receive the goods after completing the necessary procedures.
Methods to analyse
Comparison is a fundamental analytical tool that enhances our descriptive abilities and is crucial for concept formation by highlighting similarities and contrasts among different cases It is commonly employed in hypothesis testing and can also aid in the inductive discovery of new hypotheses and contribute to the development of theories.
- Determine the original íigure for comparison
When analyzing the rate of change, it is essential to consider the growth rate of specific indicators in relation to another comparable object at the same time, ensuring a clear understanding of their correlation.
- Conditions to compare the indicators
+ On the content of the indicator
+ Agreed on methods of calculating and measuring norms
+ Unify the unit of calculation, in terms of quantity, time and value
- Comparative objective in research analysis
+ Determine the degree of absolute and relative íluctuations along the trend of changes in the analysis
+ Absolute variation: The actual data is measured independently
+ Relative volatility: Relational data is calculated based on one original data
Absolute numbers represent the scale or volume of economic indicators at a specific time and location, measured in terms of quantity, value, or time.
Relative volatility is the result of the comparison between the actual and the original, adjusted by a relevant indicator in the direction of determining the size of the analytical target.
Average is the quantity expressed in terms of quantity of units by the following:
By all the difference in value between the se units, to reílect the general characteristics of each number, part or whole phenomena of the same nature.
The average comparison will assess the general situation, the íhictuation in quantity, quality in the process of production and business, assessment of development trends of enterprises.
In order to better understand the current situation of the company, in the thesis I give some information to compare as follows:
- Comparing the proportion revenue of ocean Ểreight to other Services of the company in 2011-2016 to emphasize the important role of ocean freight in the company.
The literature review highlights the comparison between the cargo handling processes of shipping companies and general shipping practices, emphasizing the advantages offered by specialized shipping companies.
- Compare the cost of ocean freight beíồre and after applying the new System to demonstrate the role of the System for the company.
In order to provide a better understanding of the current State of ocean freight at
To enhance DB Schenker's strategic planning, a SWOT Analysis can be employed to assess its Strengths, Weaknesses, Opportunities, and Threats This analytical tool is essential for evaluating various aspects of a project or decision-making scenario By implementing this method early in the OBIA lifecycle, we aim to leverage the insights gained to fortify and steer the development of this emerging discipline effectively.
In practice, once an objective has been established, a multidisciplinary team representing a broad range of perspectives should carry out SWOT analysis; which is typically presented in the form of a matrix.
Table 1 SWOT matrix (adapted from Winer, 2006)
Iidprui tử achie\ tng the ữbjective llarmíìil to aehievtng the obieLtive htterual
Evtenial íũítiibutei ure 3 Services Structurc at DB Schcnkcr Victnam 2016
DB Schenker acts as a vital link in the shipping process, serving as both a carrier for customers and an agent for shipping lines They manage the entire logistics chain, from consolidating shipments and transporting goods to port warehouses, to overseeing the loading of cargo onto vessels and facilitating the receipt of imported goods.
Managing logistics processes requires significant manpower and resources, particularly when it comes to time-consuming administrative tasks like customs declarations and document checks Any errors or missing documents during transportation can lead to increased time and costs To address these challenges, DB Schenker has implemented advanced software systems, including the latest innovation, the Schenker Tango software system, to streamline and enhance the delivery process.
The Tango System streamlines the shipment process for DB Schenker employees by enabling them to efficiently receive and share essential information from the charterer, including shipment details, warehouse and port locations, and invoices This comprehensive delivery interface simplifies operations by consolidating all necessary steps into a user-friendly software solution.
The simplification of processes has significantly decreased the processing time for the company and its partners A clear illustration of this efficiency is seen in two key activities: transporting cargo from the warehouse to the seaport and completing customs declarations.
DB Schenker efficiently manages cargo delivery from warehouse to seaport by processing shipment requests that include shipper, consignee, and shipment details The company utilizes a system to create a charter based on shipping costs and maintains comprehensive customer and carrier information, allowing employees to quickly select the appropriate IP code, significantly streamlining application processing Additionally, customers can choose a container depot at the port, as shipping lines typically have designated warehouses for pre-shipment inspections Once all details are finalized, an email is sent to the seller, who then transports the goods to the warehouse as per the provided information.
- provided All of these operations take an average of 3 minutes, compare with one day of the normal process which is much lower than the normal administrative Processing time.
The company's system is seamlessly integrated with the e-customs system, streamlining customs procedures for efficiency Information entered is automatically transmitted to the customs office, which relies on this data for processing This results in an average processing time of just three minutes, allowing the company to proactively check for errors In contrast, traditional customs clearance can take up to two days, leaving little room for error correction due to fixed carrier schedules.
- The import process is the same with the export process.
The System enhances security by preventing the loss of important files, as all transactions are conducted within its framework Additionally, it strictly regulates the issuance of bills of lading, ensuring each bill is printed only once, thereby safeguarding shipments and protecting the owner's interests.
- With its advantages, the System has contributed an important part to the growth of its shipping operations.
2.3.5 Analysis Income Statement of Ocean Preight at DB Schenker Vietnam
- Table 3 : Ocean Preight Income statement 2011-2016
- Sources: DB Schenker Vietnam l-inancial report (2011-2016)
- According to tiie busmess results report, we can see some ciiaractenstics as follows:
From 2011 to 2016, the company's revenue consistently grew at an average rate of 12.56%, with a notable acceleration in growth Specifically, during the years 2011 to 2013, revenue increased by 8%, culminating in a significant rise to 221 billion dong and a growth rate of 22% by 2015.
- Pigure 5: Revenue and Cost of Good Sold of Ocean Preight (billion dongs)
- Proíit of the company increased from 45.75 billion in 2011 to 392.1 billion in
2016, reaching 757% compared with 2011 with the average growth rate of 63.9%.
- These successes are the result of many reasons:
- - In globalization trend, logistics is a growing industry in the world Especially
Vietnam is a country with many advantages to develop this Service industry And in fact proved that DB Schenker with the advantages of reputation and quality of
- Service has attracted more and more customers using its transportation Services.
As a result, the revenue of the company has increased continuously over time.
In the initial growth years, the company's income exhibited a slow and steady rate of 4% However, by 2015, this figure surged dramatically to 180%, despite a mere 15% increase in revenue In 2016, the income experienced a decline of 50%, yet it still achieved significant results.
In February 2015, the official launch of the TANGO software at the Ocean department led to a significant revenue increase to 130 billion dong, up from 15 billion dong in previous periods Although the cost of goods sold had also risen at a similar pace, the introduction of TANGO resulted in an 18% decrease in these costs compared to the previous year This software not only reduced company expenses but also enhanced daily productivity and customer growth By 2016, revenue was projected to rise by 22% compared to 2015, while the cost of goods sold remained lower than in 2014, demonstrating the substantial benefits TANGO provides.
SWOT Analysis
Logistics, particularly sea transport, plays a crucial role in the distribution of goods from producers to consumers and facilitates global trade Modern shipping is interconnected with warehousing, transportation, and other logistics activities, optimizing the flow of raw materials from suppliers to manufacturers and ultimately to consumers This integration reduces costs associated with rotation and storage Maritime transport encompasses various commercial activities, including receiving, transporting, and storing goods, as well as handling customs procedures and customer consultations Efficient transportation enhances service quality and reduces costs, leading to greater business and economic efficiency With an annual scale of $20-22 billion, the shipping industry is vital to economic integration.
- development in Vietnam As Vietnam joins the new generation
Free Trade Agreements (FTAs) will increasingly boost the industry, necessitating a deeper examination of logistics and the shipping sector to capitalize on emerging opportunities and enhance competitive advantages Consequently, companies must maintain a comprehensive understanding of the logistics market to effectively navigate these developments.
Vietnam to propose policies in order to help companies promote their strengths, especially shipping Services.
DB Schenker, a well-established and highly reputable logistics company, enjoys a strong presence both in Vietnam and globally Its extensive network of loyal customers, including industry giants like Samsung, Apple, and HMD, underscores its reliability Additionally, the company has forged significant partnerships with shipping and logistics firms worldwide, enhancing its operational capabilities.
The company boasts a team of highly qualified professionals proficient in English, essential for handling international freight forwarding documentation and communication As the company continues to grow, it plans to expand its workforce in the coming years to better meet customer demands.
The integration of information technology and e-commerce in logistics, particularly in global supply chain management and radio wave identification technology, has gained significant traction DB Schenker Vietnam Co., Ltd effectively utilizes a global information system to facilitate communication between corporate offices and clients, enabling the issuance of vouchers, real-time updates, and comprehensive data analysis for timely reporting As Vietnam's information technology and e-commerce landscape evolves, it presents new opportunities for companies to enhance their logistics capabilities in freight forwarding services, ensuring efficient management and tracking of goods throughout the distribution and processing phases.
- of goods across multiple segments, routes, means and locations. timely request timely.
In Vietnam, the company functions as a shipping agency, necessitating the hiring of vessels from shipping lines for its operations This practice leads to increased costs for charterers, often exceeding the expenses associated with utilizing their own ships Furthermore, reliance on external shipping lines affects delivery timelines, making it challenging for the company to manage vessel journeys effectively Despite employing its own system for information updates, several limitations persist.
In recent years, major corporations have increasingly outsourced their logistics and supply chain operations to third or fourth-party service providers, contributing to significant growth in the global logistics market This trend presents a promising opportunity for the logistics sector in Vietnam, benefiting both foreign companies operating in the country and local businesses For instance, DB Schenker Vietnam can enhance its focus on core services like shipping by outsourcing non-core activities such as cargo handling and inland transportation, allowing for deeper investment in personnel and information systems.
Vietnam's shipping industry is poised for significant growth, bolstered by recent agreements like the VKFTA and EVFTA, as well as the establishment of the ASEAN market in 2016 These developments present substantial opportunities for improvement and expansion within the sector.
Vietnam is enhancing its integration into the global economy by reforming mechanisms, policies, and administrative procedures, while also developing a legal and financial system that aligns with international standards By participating in new generation Free Trade Agreements (FTAs), Vietnam aims to deepen its economic integration, facilitating increased trade in goods and boosting both imports and exports.
Vietnam has enhanced its mechanisms and procedures, enabling companies to expedite goods clearance and lower costs This development presents a significant opportunity for shipping companies, as the majority of the nation's import and export goods are transported by sea.
Vietnam's favorable geographical position, characterized by over 3,200 km of coastline and a diverse seaport system along key international maritime routes, significantly enhances its logistics development This natural advantage not only boosts trade with global partners but also positions Vietnam as a potential commodity hub in the region Additionally, the country's extensive river system, particularly in the Southern delta, supports the growth of inland waterway transport, allowing goods to seamlessly transition from seaports to the mainland Furthermore, the improved road and rail networks serve as vital links in multimodal transport With these advantageous conditions, DB Schenker Company Limited is well-positioned to expand its logistics operations in Vietnam, including shipping and warehousing services.
Foreign investment, particularly through Official Development Assistance (ODA) and public-private partnership (PPP) projects, is crucial for enhancing Vietnam's transport infrastructure This development will significantly boost connectivity between seaports and production zones Additionally, the government's planning and support, coupled with ongoing improvements in customs procedures, are contributing positively to this progress.
The robust advancement of information technology is a crucial factor for the growth of Vietnam's shipping industry, enabling it to adapt to the demands of deeper international economic integration As a result, DB Schenker Ltd can swiftly connect with and respond to both domestic and foreign customers, implementing timely and effective policy adjustments.
DB Schenker is a global logistics company, and many of its affiliates in Vietnam are subsidiaries located overseas As a result, when goods are processed through these partnerships, DB Schenker Vietnam retains a share of the profits.
- known as DB Schenker Global Support Fee (Proílt Share) Especially with the export volume of Vietnam in 2017 reached 400 billion us dollars, the revenue is not a small number.
- The System of laws and policies is not synchronous
Vietnam's legal framework for logistics remains incomplete and uncoordinated, despite the development of several fundamental legal documents While regulations governing logistics and legal entities in this sector have emerged, their scope is still limited Logistics was officially recognized as a commercial activity in the 2005 Commercial Law, but the definition provided is simplistic, which may result in misunderstandings and a tendency to conflate logistics with mere freight forwarding activities.