According to the 2020 Southeast Asia E-commerce Report by Google, Temasek, and Bain Company, e-commerce has been consistently experiencing double-digit growth in the Vietnamese market in recent years, reaching over 14 billion USD in 2020.
The average annual growth rate (CAGR) of e-commerce for the period 2020 to 2025 is predicted to be 29%, reaching a scale of 52 billion USD by 2025. This indicates the promising potential and prospects for the logistics sector in Vietnam in 2023 and beyond.
E-commerce and logistics are closely intertwined. Logistics services play a vital role in the commercial chain from sellers to buyers, encompassing various stages of order fulfillment, including packaging, transportation, and payment. Therefore, the strong growth of e-commerce in Vietnam will drive the robust development of the logistics market in the coming years.
The booming trend of the Vietnamese e-commerce market, with giants like Shopee, Lazada, Tiki, has presented significant potential for Vietnamese logistics businesses to invest and develop modern warehousing infrastructure to facilitate supply chain growth.
Experts have predicted five main trends that will directly impact production and distribution solutions in 2023.
IoT Continues to Expand
In terms of connectivity, the Internet of Things (IoT) will continue to be a pursued trend not only in manufacturing and logistics but also in various technology-related fields.
Especially in manufacturing and post-production, IoT devices aid in collecting, analyzing real-time data, and delivering results to company systems, thereby improving business operations. The collected data can highlight areas operating inefficiently, necessitating change, reduction, or improvement. It's also a way for companies to enhance employee safety while reducing labor waste.
The total number of IoT devices used in this field is expected to more than double over the next two years. However, companies need to carefully consider security vulnerabilities related to smart devices to avoid data breaches.
Enhanced Adoption of PaaS Model
Another potential trend accelerating in 2023 is the adoption of the Platform as a Service (PaaS) model. This is a variant form of SaaS but provides a development environment as a service.
Companies will build applications based on the provider's infrastructure, then distribute them to users via the provider's servers. This model fosters better interaction with customers and extends into new business areas.
The PaaS business model also offers application providers other service and solution opportunities like maintenance, customization, based on specific needs and conditions. This helps create more personalized business relationships.
MES Systems Will Continue to Grow
Among the major technological trends in manufacturing and logistics, Manufacturing Execution Systems (MES) are highly regarded by experts and hold substantial potential. MES helps track and record the entire production process in real-time. This system also aids in monitoring everything from production planning to inventory control, employee schedules, and more.
LMaaS - Last Mile as a Service
E-commerce continues to boom (in contrast to B2B activities), and customers desire faster, more accurate deliveries at increasingly lower costs. Large companies like Amazon, Alibaba, Ebay, Bestbuy, Walmart can meet customer demands, but smaller firms may struggle. However, they must keep up to survive.
Outsourcing Supply Chain Management
Instead of just focusing on activities like Technology Acceptance Theory, Crown Shipping, Machine Learning... theories in these fields remain relatively incomplete and fragmented, despite a significant increase in posts and research in these areas over the last 5 years.
Third-party supply chain service providers (3PL) assist in meeting and resolving prolonged goods demand, making everything smoother and faster. With the wave of globalization, 3PL is demonstrating the potential to help alleviate the burden of transportation and delivery.
3PL providers can also assist in managing inventory, warehousing, distribution, and order fulfillment. Manufacturers and retailers can optimize any segment of the supply chain through rational utilization of these outsourcing teams, from finding raw material suppliers to distributing the end product.
Cre: "Economic and Beverage" Electronic Magazine
