EXPERTS in their fields cautioned that Vietnam's fledgling air cargo sector has much to learn before it can realise its air freight ambitions, reports Kuala Lumpur's Malaysian Star.
Vietnam needs to have an appropriate strategy to promote the development of air logistics and tap its large potential, experts say.
Le Vuong Quc, director of Gemix Viet Nam Joint Stock Company, which exports fresh fruit, said that shipping fresh farm produce to Switzerland is not easy because the country did not have seaports.
As there were no direct flights from Vietnam to Switzerland, his company must ship through a third country, he said.
Mr Quc said this pushed up transportation costs, and his company could only export in a small volume.
In addition, air freight rates in Thailand, he said, were 30 per cent lower than in Vietnam, plus there is a direct route from Thailand to Switzerland, which makes it difficult for Vietnamese firms to compete with Thailand.
Nguyin Dinh Tung, general director of Vina T&T Group Import - Export Company, said transporting agricultural products by air would ensure quality and shorten the time compared to by railway or by sea. However, high air logistics charges remained a limitation.
Mr Tung pointed out that many Vietnamese airlines had not yet built routes to countries like Switzerland, Canada and the US, and shipping largely depended on foreign airlines.
In a recent workshop, Lars Wackerbauer, senior advisor of IPP Air Cargo, the first cargo airline in Vietnam, said that more than 80 per cent of Vietnam's logistics market was in the hands of foreign companies. Meanwhile, the freight demand kept increasing, fueled by the boom of e-commerce.
Statistics of the Ministry of Industry and Trade showed that the market share of international air freight of three domestic carriers, Vietnam Airlines, Vietjet Air and Jetstar Pacific, was around 12-15 per cent, while the rest was foreign airlines.
Meanwhile, the air logistics of Vietnam had significant room for growth, driven by the enforcement of free trade agreements which would boost the goods circulation volume.
According to the International Air Transport Association (IATA), air logistics of Vietnam could expand at an average of 6.7 per cent per year in 2015-35, higher than the world average at 3.9 per cent and 4.6 per cent of the Asia-Pacific region.
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Vietnam needs to have an appropriate strategy to promote the development of air logistics and tap its large potential, experts say.
Le Vuong Quc, director of Gemix Viet Nam Joint Stock Company, which exports fresh fruit, said that shipping fresh farm produce to Switzerland is not easy because the country did not have seaports.
As there were no direct flights from Vietnam to Switzerland, his company must ship through a third country, he said.
Mr Quc said this pushed up transportation costs, and his company could only export in a small volume.
In addition, air freight rates in Thailand, he said, were 30 per cent lower than in Vietnam, plus there is a direct route from Thailand to Switzerland, which makes it difficult for Vietnamese firms to compete with Thailand.
Nguyin Dinh Tung, general director of Vina T&T Group Import - Export Company, said transporting agricultural products by air would ensure quality and shorten the time compared to by railway or by sea. However, high air logistics charges remained a limitation.
Mr Tung pointed out that many Vietnamese airlines had not yet built routes to countries like Switzerland, Canada and the US, and shipping largely depended on foreign airlines.
In a recent workshop, Lars Wackerbauer, senior advisor of IPP Air Cargo, the first cargo airline in Vietnam, said that more than 80 per cent of Vietnam's logistics market was in the hands of foreign companies. Meanwhile, the freight demand kept increasing, fueled by the boom of e-commerce.
Statistics of the Ministry of Industry and Trade showed that the market share of international air freight of three domestic carriers, Vietnam Airlines, Vietjet Air and Jetstar Pacific, was around 12-15 per cent, while the rest was foreign airlines.
Meanwhile, the air logistics of Vietnam had significant room for growth, driven by the enforcement of free trade agreements which would boost the goods circulation volume.
According to the International Air Transport Association (IATA), air logistics of Vietnam could expand at an average of 6.7 per cent per year in 2015-35, higher than the world average at 3.9 per cent and 4.6 per cent of the Asia-Pacific region.
SeaNews Turkey
