Connection between shippers and logistics service providers to get closer

Logistics in Vietnam is developing strongly, but the connection in the logistics market is still fragmented.

shipping and logistics market

Logistics in Vietnam is developing strongly and is one of the fastest growing industries with an average growth rate of 12% - 14%/year, contributing 4% - 5% of the country's GDP. Despite strong development, the connection in Vietnam's logistics market is still fragmented.

Therefore, according to industry experts, there needs to be a new solution to effectively connect shippers and logistics companies based on a deep understanding of the logistics industry, combined with technology factors to meet the needs of customers fully, to meet the requirements of both shippers and international logistics companies in Vietnam. Vietnam's first Phaata e-commerce platform for the logistics industry is considered to help simplify the way bosses bring goods from Vietnam to abroad.

Phaata officially came into operation in early 2020 at the e-commerce website Phaata.com.

Through Phaata, importers and exporters can choose a shipping partner, departure date, transit time, etc. In particular, the shipping costs are detailed according to the freight rates and each type of surcharge incurred... only with a few mouse clicks instead of having to wait all day or longer as before.

For companies providing logistics services/freight forwarders, Phaata helps businesses easily and quickly reach many potential customers, deploy effective marketing campaigns. Like other e-commerce platforms, Phaata's revenue now comes from fees for "premium" e-stores and advertising contracts from logistics companies, shipping lines and ports.

As a person who has worked in the import-export and logistics industry for more than 20 years, Mr. Nguyen Hoai Chung, Founder and CEO of Phaata said, in the past, when there was a need for logistics services, shippers did not have information about the market and very little choice of logistics service providers. The companies providing logistics services that shippers were known could not meet their needs such as high freight rates, non-specialized routes, poor quality services, etc. This caused shippers to lose competitive advantage in logistics over their competitors.

On the other hand, in the field of international transport, the validity period of freight rates is usually quite short, sometimes valid for only a few days. Therefore, Mr. Nguyen Hoai Chung said that when there are good freight rates, logistics companies/freight forwarders need to offer their services quickly to the market, otherwise it will be meaningless when it expired. Phaata platform helps logistics companies to instantly promote their services throughout the market, thereby optimizing business opportunities. At the same time, it also helps shippers have the opportunity to find very good rates.

Phaata e-commerce platform for shipping and logistics

Phaata e-commerce platform for shipping and logistics

According to Mr. Nguyen Hoai Chung, in Vietnam, there are about 4,000 enterprises providing international logistics services and about 90,000 import-export enterprises. After two years of operation, Phaata now has more than 1,300 e-stores of logistics companies registered to use such as COSCO Shipping Lines (COSCO Shipping Lines), Saigon Newport Corporation (Saigon Newport Corporation), U&I Logistics Corporation, Dong Nai Port (Dong Nai Port), INTERLINK, ASL Logistics, Pacific Lines, Seahorse Shipping, Legend Cargo, PAM CARGO, Pigeon Logistics, VTL…

Besides, Phaata is also registered to use by thousands of goods owners/import-export companies such as KAMY Import Export, Soltec Vietnam, TD Food Asia, Mosc Vietnam, Phuong Nam, Dong Tam, Furniture Today Group, European Plastic , Dien Quang Lamp, Mekong Seafood Connection, Ecoplexus, Vikohasan Fiber, Michem Vietnam, Polytek Corporation, TOYO Grinding Ball, Nafoods Group…

Mr. Nguyen Hoai Chung shared, within the next 2 years, the company aims to invite most of the logistics and import-export enterprises in Vietnam to participate in using Phaata, thereby as a lever to continue expanding into Southeast Asian countries. Like Vietnam, many countries in the region are lacking a transparent information platform.

Digital transformation is the trend and driving force for the development of manufacturing, trade and service industries today. According to the latest research by Statista, the revenue of the B2B e-commerce market in particular has increased by 5 times compared to the B2C model, and is predicted to be at $80 billion in 2022. In Vietnam, this is a new model but to be forecasted to promote efficient and fast business, not only at domestic scale but also easily support global transactions.

Source: Ha Anh /BNEWS/VNA