Road transport is expected to grow strongly in the coming years and is expected to benefit greatly from Vietnam’s continued development as a regional manufacturing hub.
After peaking in December 2020, the volume of goods transported by road decreased sharply in the third quarter of 2021, peaking in August 2021 when the whole country and especially the City. Ho Chi Minh and southern provinces implemented strict blockade and distancing measures to prevent epidemics.
Overall, in the first 9 months of 2021, road freight transport reached more than 892.59 million tons, down 7.4% compared to the same period in 2020. Road freight turnover reached 61.85 billion tons/km, down 5 .2% over the same period last year.
Although road transport services are more expensive than rail, waterway, and maritime, businesses still choose this mode of transport.
The fastest growth will be in short-haul freight
However, according to Mr. Dao Trong Khoa – Vice Chairman of Vietnam Logistics Services Business Association, road transport businesses are forecast to still account for the largest proportion of Vietnam’s total transport logistics businesses. Male. Because this field is easier to penetrate than rail, air or sea transport.
In addition, road transport now plays an important role in Vietnam, serving over 70% of total freight transport. Road transport businesses grow from the scale of households with 2-3 trucks and gradually increase the number of vehicles entering the market, creating fiercer competition, especially in these segments. general cargo. Refrigerated trucks are imported into Vietnam more and more easily when the country opens its market, also creating conditions for small-scale businesses to enter the market – Mr. Khoa said.
Mr. Khoa also predicted that the segment of oversized and super heavy transport, transport of specialized goods, dangerous goods (chemicals), and frozen goods also has good prospects to serve infrastructure and construction projects. Factories, industrial parks… will be very vibrant in the near future. However, the fastest growth will be short-haul freight, serving last-mile delivery within the city, especially for the e-commerce delivery segment because this industry is expected to grow strongly in Vietnam. next time.
Why is it expensive but still chosen?
According to Mr. Le Van Tien – Chairman of Hai Phong Freight Transport Association, in road transport costs, gasoline accounts for about 30-35%, average road tolls account for about 10%. In addition to the above costs, road transport also has to bear a significant amount of unofficial costs (also known as negative transport fees). This number accounts for no less than 5%.
Specifically, a 20-foot container from Hai Phong to Ho Chi Minh City costs about 30 – 35 million VND; A 40-foot container costs about 37 million VND, while by sea only costs over 5 million VND/20-foot container and nearly 7 million VND/40-foot container – Mr. Tien said.
In terms of transportation method, road is still the dominant method, accounting for 74.7% of the total freight transport volume in the first 9 months of 2021. However, in terms of cost, road transport is much higher than with other types such as waterway and maritime. However, reality shows that although road transport services are more expensive than railway, waterway, and maritime services, businesses still choose this mode of transport.
Road transport is expected to grow strongly in the coming years.
According to calculations, the cost of transporting a 40-foot container from Hanoi to City. Ho Chi Minh is about 40 million VND, 9.7 times higher than shipping by sea and 2.5 times higher than shipping by rail. However, shippers still choose the road option because road transport connects directly to the seaport, airport, and train station systems, is highly adaptable to all terrains, and can be proactive. about shipping time.
The COVID-19 epidemic is becoming more and more complicated than in 2020, breaking out in big cities and industrial parks in key economic regions in both the North and the South. In the North, it is mainly concentrated in the two provinces of Bac Ninh and Bac Giang. The South focuses mainly on the city. Ho Chi Minh, Binh Duong, Dong Nai where there are many FDI-invested enterprises, so when these localities became epidemic centers, many transport logistics businesses encountered difficulties, especially being affected. Infection of drivers and cargo staff.
For import and export goods transportation activities: Due to the uneven flow of goods, as well as the complicated epidemic situation, operations face many difficulties, especially intermittently. Additional costs such as testing, quarantine, or ancillary items are entirely paid by the business itself.
For example, a container truck that is not in operation for a month will lose the following fixed costs: 1.5 million road maintenance fees, 1.2 million parking fees, 100,000 VND for journey monitoring and 100,000 VND for vehicle maintenance. Surveillance cameras, total 2.9 million not including other costs. The volume of goods transported across the border has decreased sharply, having to quarantine drivers, or change drivers or tractors, which are huge difficulties for road transport services.