OPERATION

MANAGEMENT
ASSIGNMENT

5/25/2014
Student: Nguyn Quang c
Class: Benedictine 11
Subject: Operation management
Lecturer: Andy Sze
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One year to go through the turbulent Vietnam's economy, including logistics industry,
although imports and exports reached 202 billion dollars, and foreign trade continued to
grow higher in conditions of crisis financial world has not recovered and hovering euro
crisis, debt .

In 2013, Vietnam faced with the highest inflation in the region, causing many to affect
prices, materials, services, special additives are higher freight, sea freight market,
aviation world is in a recession accompanied by shipping companies, airlines Vietnam in
a similar situation.

Despite these difficulties, more optimism about the prospects for Vietnam's economy in
2012 and expectations for the long-term potential of the economy, a "new stage for
increased competitive growth".

In the positive changes to improve the business environment of Vietnam, areas most
clearly observed in the change in 2011 as administrative procedures and infrastructure,
telecommunications ... this is the point light paved the way for 2012, and as noted above,
Vietnam's logistics industry needs to look more optimistic contributed significantly to
bringing Vietnam import-export turnover to a new stage production and servicing,
consumer domestic to large fluctuations occur.
The optimism of the logistics industry in Vietnam in 2012 through the following
presentation:
Take a look at the indicators optimistic about Vietnam's logistics industry, it is also
the most stable signals:
Vietnam's logistics industry has matured, it is confirmed not only VIFFAS (Association
of Freight Forwarders Vietnam), in other words the Vietnamese logistics industry has
entered through a period of "young" with more than 30 years of development of which
more than half the time rubbing with the market economy. From the new place is called
the right name (logistics services in the Trade Act 2005) until now, we have expanded
into the concept of supply chain, supply chain eg Vietnam seafood products in the United
States, Europe, or the coffee supply chain, dragon Vietnam international fashion market
... In all that supply chain, logistics plays an important role implementing the process of
bringing "flow" of goods, information, payment to the final consumer in a most
satisfying: true cost, condition, price, place and time.
Evaluation of logistics capabilities in Vietnam, the world has just LPI (Logistics
Performance Index) by the World Bank (WB) conducted twice a year, in which Vietnam
relegation in 53 of 155 countries 2011 This is a truly objective assessment, external sense
says Vietnam logistics capabilities are at average or even above average (Vietnam ranks
first among the top 10 low-income countries) that also shows that the rise of
breakthrough Vietnam's logistics industry in recent years.
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Attached to connect online index of international shipping (LSCI) annual review by
UNCTAD, in 2011, Vietnam ranks 36/162 countries and increased steadily for years.
This is a positive signal for the coming years, especially when Vietnam has a deep water
port.
However, besides the above assessment, we often contradictory information, due to lack
of knowledge, lack of statistics and complete analysis of the percentage of the GDP
logistics costs are "translated" to different meanings, or inconsistent: at 25%, sometimes
20%, sometimes even 15% ... and even worse if we consider it as a separate basic criteria,
without regard to the structure factor the GDP of each country, will lead to results limp
affect the confidence of businesses or downplay large logistics industry in Vietnam.
To put the logistics industry to new heights, surely the State, the agency, the industry, the
logistics industry associations in Vietnam in the coming time urgently need to build the
system of statistical indicators, the assessment of Vietnam's logistics industry correctly,
in accordance with Vietnam and practices according to international standards.
The positive signal from the owners:
- Shippers Vietnam is the "Shipper" have direct relationships with logistics services
in Vietnam, in his capacity as users of logistics services.
- In terms of global competition, international economic integration, Vietnam
shippers these days just require a penetrating vision of the global supply chain, but
the chain itself is also very fast change, crispy thin and fragile, very much depends
on the terms of trade, economic, social, legal and political domestic and
international.
- An overview, recent manufacturing enterprises, import and export of Vietnam, is
the largest motion to control their supply chain, interested in supply management,
logistics management, management costs, inventories and value added ... to
achieve competitive advantage in international trade. May raise a few examples,
such as gradually changing buying habits CIF FOB, materials selection and
stability of origin in order to enjoy the preferential tax rate, or enhanced retail
shipments (LCL), enhanced outsourced logistics, using the 3PL logistics service
providers, utilizing the method of INCOTERM 2010 in the commercial contract
will be the advantages of the business.
- The link between shippers with logistics service providers in the country were
more active and close cooperation than the time before.
- State management sectors, industry associations recognize this need to have
policies to support and promote this link; particularly interested in increasing
awareness and application of the principles of logistics management, supply chain
management and advocacy Vietnam shippers to use logistics services in Vietnam.
- VIFFAS are putting themselves targets for 2012: to mobilize enterprise logistics
services in the industry associated with more shippers, create trust for trusted
shippers Vietnam more than the spirit of the two mutual benefit.
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Reduce congestion and Customs "one stop shop" is the new signals:
- The messages about congestion government trade was mentioned frequently, and
recently in the media we have heard about the government's drastic restructuring
of the Vietnamese economy next time. If from the beginning we 2011chung glad
to see firsthand some of the major trains (90000-130000 tons) deep water port of
Cai Mep, Ba Ria - Vung Tau opening period went straight for the big West Coast
ports, East Coast of America, North America, Europe without transiting
denominations gathered Singapore, Hong Kong ... as before. In 2012, continued
investment gateway port of Hai Phong, Can Tho .. besides the traffic, road,
highway, airport upgrades, air cargo terminal, dredging channels and lines of
office important ... in the capital raising policies to expand ... to connect multi-
modal transport, reduce congestion in the trade.
2012 is the year of implementation of electronic customs clearance system
NACCS cooperation with Japan, called the "one-stop customs" with the target set
after completion (2014) Real-time import and export procedures and is related to
aviation 1 and 2 days, 6 days for sea (compared with the current average is 20
days).
- We are also in the process of ASEAN logistics connections that goal in 2013 to
connect the entire region Logistics, implement electronic customs, proceed to an
ASEAN Economic Community Integration (Single Window) in 2015.
- These are positive signs that Vietnam's logistics industry forward, we can say the
take-off of Vietnam's logistics industry has added a basic motivation and firm.
The opening of the logistics business providing Vietnam are also positive signs:
- From the end of 2010 and 2011, although there are difficulties in funding, space ...
the logistics market has emerged of foreign 3PLs and logistics services venture,
especially a lot of new investment of the logistics centers, warehouses VMI
(vendor managed inventory: inventory management for providers), distribution
centers ... the enterprise logistics service providers tend Vietnam has actively
enhanced qualifications , to raise awareness about the logistics and supply chain
management, has conducted some warehouse investment, equipment and means of
transport, information and communication technology. More importantly, the
enterprise logistics services in Vietnam has actively with owners to share
experiences, professional consultants, including sharing of payment.
- The logistics business in Vietnam, the majority of small and medium sized
businesses get the motto "agile, enthusiastic, highly responsive, though not as
large and powerful companies" .On fact proved to be supportive role for Vietnam
shippers, particularly import-export businesses, manufacturing businesses.
- From 2012 to 2014, the sub-sectors related logistics services were open for
business overseas, this is still a challenge and opportunity for the logistics business
in Vietnam.
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Anyway, the signal on the rise, agile triumph of logistics enterprises Vietnam would
be a good sign needs to be supported and nurtured.
Advanced knowledge of logistics, supply chain and professional skills are optimistic
signals.
- In fact incomplete, disregarding the recent optimism about the human resources of
Vietnam's logistics industry. Many schools towards vocational training, research
and development institutes, universities and colleges. (including: the Institute of
Logistics VIFFAS) also participated Diploma level training in theory and logistics
management skills, knowledge of supply chain management. Many objects in the
field of manufacturing, commerce, industry research participation, learning served
basis journals, conferences and abroad rapid growth in the number of help putting
knowledge logistics and supply chain more exciting and more practical.
- Certainly there is still much work to be done in developing human resources
logistics industry in Vietnam, is an important driving force for Vietnam's logistics
industry development and regional level in the world.
- 2012 a "new phase of growth, competitiveness" of Vietnam enterprises, including
businesses providing logistics services in Vietnam.
- Vietnam's logistics industry to really become a key, the "continental shelf"
Vietnam's economy, in addition to having a policy, appropriate institutions to
promote and facilitate coordination create synergy themselves in associations and
in particular the provision of enterprise logistics Vietnam had to "take off" for
integration, actively build trust with their owners, creating linkages to
development.

After all, the challenges are always there even a chance!