Research purpose and tasks
Research purposes
Analyzing the current logistics service quality at JSC Part of Vinalines Logistics, this article proposes solutions to enhance and perfect the quality of logistics services at Vinalines Logistics Joint Stock Company, aiming for operational excellence.
Research mission
(i) Clarifying the theoretical basis for the quality of logistics services of enterprises
Vinalines Logistics Joint Stock Company's current logistics service quality requires a thorough analysis to identify successes, shortcomings, and limitations, alongside their root causes, to facilitate targeted improvements.
(iii) Proposing solutions to improve the quality of logistics services in the company Vinalines Logistics Joint Stock Company in the coming years.
Object and scope of research
Research object
Quality of logistics services at Vinalines Logistics Joint Stock Company luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Research scope
Time range: Statistical data and surveys for research were collected from
2018 to the end of 2020 Vision of specific solutions to 2030
Spatial scope: The topic focuses on in-depth research on the quality of logistics services at Vinalines Logistics Joint Stock Company.
Research Methodology
Using dialectical methods, methods of information collection, statistics, analysis, comparison and contrast, actual survey, synthesis, to clarify the content of analysis Primary data was collected by survey method.
Structure of the thesis
In addition to the introduction and conclusion, the thesis has three chapters:
Chapter 1: General theoretical basis of logistics service quality Chapter 2: The quality of Logistics services at Vinalines Logistics Vietnam Joint Stock Company
Chapter 3: Some solutions to improve the quality of Logistics services at
Vianlines Logistics Vietnam Joint Stock Company in the future luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
GENERAL THEORETICAL BASIS ON LOGISTICS
Overview of Logistics services
Logistics, derived from a Greek term, encompasses the scientific management of goods and services distribution It includes meticulous planning, organizing, implementing, and controlling the movement of products from their origin to the final consumer The primary goal is to minimize costs while ensuring a seamless and continuous social production process that effectively meets customer needs.
Logistics is now integral to various economic sectors, driving the success of global companies Before the 1950s, logistics was a fragmented activity, lagging behind advancements in marketing and production The 20th century's technological and managerial progress sparked a logistics renaissance.
Logistics has progressed through three stages, according to the Economic and Social Commission for Asia and the Pacific (ESCAP):
In the late 1960s and 70s, logistics evolved into managing the physical distribution of production, also known as output logistics Output logistics systematically manages activities to ensure the effective supply of products to customers.
In the 1980s and 1990s, logistics evolved by integrating material supply and product consumption stages to reduce costs and improve efficiency.
Logistics management stage (Supply chain management): This is the development stage of Logistics at the end of the twentieth century
Logistics concepts vary across industries and research, but some key definitions provide a foundational understanding of logistics services.
Logistics encompasses planning and executing the efficient movement and storage of goods, from raw materials to finished products, aiming for cost-effectiveness and speed It also integrates information flow from production to the final consumer, ensuring customer satisfaction.
Logistics involves planning, implementing, and controlling the efficient flow and storage of materials and information from origin to consumption, aiming to satisfy customer needs cost-effectively.
Logistics encompasses the management of materials as they move through storage and production, ultimately reaching consumers based on their demands.
In Vietnam, logistics services, as defined by Article 233 of the Commercial Law 2005, encompass a wide array of business operations These operations include receiving, transporting, storing, and handling goods Furthermore, logistics services cover customs clearance, documentation, client consultation, packaging, labelling, delivery, and other goods-related services agreed upon with the customer for a fee.
Logistics services encompass a range of commercially organized and scientifically managed operations These services relate to the stages of production, distribution, circulation, and consumption within the economy, specifically in a social production setting.
Logistics services encompass a range of commercial activities, integrating shipping, warehousing, and customs with customer consultation to ensure efficient distribution and meet client needs.
1.1.2 Some characteristics and classification of Logistics services 1.1.2.1 General characteristics of logistics services
Logistics is pivotal in supporting comprehensive business activities, managing the flow and storage of materials from entry to consumer delivery, thereby aiding overall corporate operations.
Secondly, Logistics is the synthesis of business activities on three aspects: Survival Logistics, Operational Logistics and System Logistics, specifically:
Survival logistics addresses fundamental human needs, stemming from our innate survival instincts It focuses on determining necessities: what, how much, when, and where, forming the core of all logistical activities.
Operational logistics, an evolution of survival logistics, encompasses the end-to-end process and production system of a company's products It manages the flow and storage of materials entering, traversing, and exiting the enterprise, extending into distribution channels until the product reaches the final consumer.
(iii) System logistics helps to keep the system running The elements of system logistics include machinery and equipment, human resources, technology, factory infrastructure, etc
Survival logistics, operations and systems are closely related, creating the basis for the formation of a complete logistics system
Logistics is a highly developed freight forwarding service, integral to broader logistics services, that has expanded beyond traditional freight forwarding Modern freight forwarders manage a synchronized system encompassing transportation, raw material supply, warehousing, and distribution, leveraging electronic information for tracking This evolution positions the freight forwarder as a comprehensive logistics service provider.
Overview of the quality of Logistics services
A service is an intangible activity or benefit offered in exchange, without transferring ownership Service quality, a concept widely debated, lacks a universally accepted definition and measurement Service quality is assessed based on the service delivery process and its outcome It is also composed of technical quality (what the customer receives) and functional quality (how the service is delivered) Service quality is the degree to which a service meets customer needs and expectations.
Service quality, as defined by Parasuraman et al., is the gap between customer expectations and their perceptions of the service outcome This definition extends to logistics, where service quality reflects the difference between customer expectations of the logistics service and their perception of the actual service results.
1.2.2 Evaluation of logistics service quality
Customer satisfaction is a key indicator of logistics service quality, reflecting a customer's emotional response to their experience with a product or service, and is determined by comparing expected outcomes with the actual results obtained.
Customer satisfaction hinges on the alignment between perceived results and pre-existing expectations; exceeding expectations leads to high satisfaction, meeting them results in satisfaction, and falling short causes dissatisfaction Expectations are shaped by past experiences, word-of-mouth, and marketing Businesses should invest in marketing to boost satisfaction and outperform competitors, harmonizing customer interests with profitability Ultimately, customer satisfaction significantly influences brand loyalty.
Customer value is the true driver of customer loyalty, influencing customer satisfaction Businesses should actively measure their customer satisfaction levels against competitors to preempt potential losses in market share Establishing accessible channels for customer feedback is crucial, as the absence of complaints doesn't necessarily indicate satisfaction The RATER criteria is used to assess the quality of Logistics services based on customer perceptions.
(Source: Group of authors Zeitham V.A.Parasurama and Leonard L.B, 2003)
Figure 1.2: Rater service quality measurement criteria
1 Reliability: The ability to perform the promised service accurately and reliably A service can be trusted if it does it right the first time
2 Responsiveness: Respond to customer requests for services and information in the fastest and most professional manner
3 Assurance: Provide customers with confidence in the capabilities of the business The qualities of employees that will create trust for customers such as politeness, professionalism, respect for customers, ability to communicate
4 Empathy: Efforts to understand the needs of customers, show concern and care for each individual customer
Responsiveness luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
5 Tangibility: Including elements of means, facilities, employee appearance, equipment used in providing services, documents serving communication
The meaning of improving the quality of Logistics services
Improving the quality of Logistics services is an urgent and important issue for businesses doing business in the field of Logistics today for the following reasons:
Firstly, high service quality helps increase profits for businesses
Improving logistics service quality is crucial for businesses to retain existing customers and attract new ones, ultimately boosting profits.
(i) Minimizing marketing costs, advertising costs this means minimizing other costs for the company
(ii) Increasing market share and maintaining a high growth rate in customer targets will increase revenue for the company
In today's competitive logistics market, cultivating customer loyalty is paramount for enhancing brand reputation, a goal shared by every business striving for success.
Secondly, increase the competitiveness of enterprises in the market
Logistics in Vietnam accounts for 25% of GDP, approximately \$25 billion, demonstrating significant growth However, the industry faces paradoxes, including foreign enterprises holding 80% of the market share High logistics costs due to outdated infrastructure hinder Vietnam's potential as a key East Sea gateway Improving logistics quality requires businesses to address weaknesses in infrastructure, resources, and human capital, enhancing their competitiveness.
Businesses in logistics haven't focused on service quality, presenting an opportunity for companies to improve and gain a competitive edge Investing in service quality increases customer retention and attracts new customers, reducing marketing costs Furthermore, improved service quality allows businesses to increase prices while maintaining their reputation and market position.
Thirdly, improving the quality of Logistics services helps to reduce business costs for businesses
Improving service quality is an effective measure to save business costs, reducing errors during service delivery and minimizing marketing and advertising costs.
(i) Minimize the waste of time and costs for inspection and monitoring of service provision;
Mitigating errors is crucial for businesses to curtail expenses related to customer compensation, negative publicity, and complaint management, ultimately safeguarding profitability and brand reputation.
High service quality will reduce unreasonable costs of human resources because:
Enterprises prioritizing service quality foster a positive work environment, increasing employee retention and loyalty Consequently, reduced labor turnover lowers recruitment costs.
Working for a reputable company boosts employee pride, linking business success to individual benefits This motivates them to enhance their skills and address shortcomings, improving Logistics service quality Consequently, this reduces training costs for the business.
Factors affecting the quality of logistics services
The world economic environment significantly impacts Vietnam's economy and its logistics service industry The Covid-19 pandemic has disrupted supply chains, narrowed aggregate supply and demand, and increased financial risks, leading to a global economic downturn According to the World Bank (WB), the world economy shrank by 4.3% in 2020 due to these factors.
The Covid-19 pandemic, starting in early 2020, caused significant global losses across economic, cultural, social, and human life aspects The pandemic heavily impacted global production capacity and supply chains while simultaneously creating new opportunities for the logistics industry The transportation and warehousing sectors were particularly affected during the Covid period, with Vietnamese airlines initially losing approximately VND 30,000 billion in revenue.
Logistics relies on national and international legal systems, which evolve alongside the industry through treaties, agreements, and practices in shipping, warehousing, and customs Vietnam's legal framework includes the Commercial Law (2005), Law on Customs (2014), and various decrees and circulars, alongside specific instructions addressing arising issues.
1.4.1.3 Infrastructure system for Logistics activities
The rapid development of international trade and logistics necessitates a solid infrastructure system for safe and efficient economic activities Infrastructure for logistics includes seaports, roads, railways, waterways, and pipelines Gateway ports combined with international transshipment have been established in the North and South regions.
Vietnam boasts a robust network of 32 shipping routes, including 25 international and 7 domestic lines, facilitating trade and transportation The Northern region operates 2 routes to North America, while the South excels with 16 long-distance routes to North America and Europe, positioning Vietnam competitively in Southeast Asia's maritime landscape.
On the other hand, 44 public navigation channels have been put into operation,
Vietnam's maritime infrastructure boasts 34 specialized navigational channels and 94 lighthouses, ensuring safe passage for vessels A network of 32 radio stations, along with LRIT and VTS systems at major seaports, enhances maritime management and monitoring of ship positions, crucial for supervising activities in seaport waters.
1.4.1.4 Other objective factors Firstly, social culture is a fast-acting and sensitive factor for businesses
Businesses can leverage regional and class-based sociocultural standards, beyond national norms, to enhance logistics service quality and mitigate market risks.
1) Perspectives on ethics, aesthetics, profession, lifestyle;
4) Level of education and awareness
Logistics costs encompass transportation expenses, which constitute a significant portion of circulation and distribution costs, ranging from one-third to two-thirds These costs also include the opportunity cost of capital, representing the minimum return forgone when capital is tied up in inventory instead of other ventures Furthermore, expenses related to goods preservation, such as warehouse rentals, preservation measures, handling, and insurance, alongside customs clearance fees, contribute to the overall logistics expenditure.
To thrive, businesses must leverage external factors to enhance logistics service quality Competition drives service improvements, emphasizing the significant impact of external elements A robust external information system is crucial for analyzing opportunities and optimizing logistics services.
1.4.2 Subjective factors 1.4.2.1 Enterprise's human resources
Logistics is a rapidly growing industry, contributing significantly to the national GDP, but faces a critical shortage of skilled human resources Human capital is a decisive factor for success in logistics, as people are essential for management, administration, and implementation, despite technological advancements Addressing this human resource gap is crucial to unlocking the industry's full potential and sustaining its growth.
Logistics service enterprises in Vietnam will need an average of 18,000 more employees in the next three years, while manufacturing, trading, and service businesses will require over one million logistics experts, according to the Vietnam Logistics Research and Development Institute and the Vietnam Logistics Association (VIFFAS).
VIFFAS reports that its 140 member companies employ roughly 4,000 professionals, with an additional 4,000-5,000 semi-professionals The logistics industry's labor supply only meets about 40% of the demand, highlighting a significant shortage of systematically trained and highly qualified human resources in Vietnam's logistics service companies.
Logistics companies often face challenges due to inadequately trained human resources, particularly within their management teams These teams frequently lack essential business knowledge, struggle to stay updated with industry advancements, and exhibit leadership and management styles that need improvement Research indicates a significant shortage of qualified logistics personnel in Vietnam, with a concerning weakness in overall quality A survey in Ho Chi Minh City revealed that over half of the businesses reported a lack of staff possessing professional logistics qualifications, highlighting the urgent need for enhanced training and expertise in the sector.
Logistics has evolved from its early military applications to a critical component of the global economy, now understood as the management of physical distribution systems The growing interest in logistics is evident in the increasing number of specialized publications analyzing its impact across various economies Enhanced awareness of logistics is vital for its further development, requiring a deeper understanding of market needs, especially in regions where logistics is still underdeveloped and requires a complete change in perception.
Logistics services are influenced by markets, customers, and competition, all crucial for success Time is a key factor affecting the quality of logistics, increasingly emphasized with the development of information technology Businesses must plan accurate transportation times to avoid impacting customer plans, as transportation time is closely related to logistics costs.
SITUATION OF LOGISTICS SERVICE QUALITY AT
General introduction about Vinalines Logistics Vietnam Joint Stock
2.1.1 General information about the Company
Vinalines Logistics Vietnam Joint Stock Company operates legally under Vietnamese law, adhering to the Law on Enterprises and its own charter As a logistics specialist and subsidiary of Vietnam National Shipping Lines, Vinalines Logistics functions according to the parent company's organizational charter.
+ Name written in Vietnamese: VINALINES LOGISTICS VIETNAM CORPORATION
+ Name written in English: VINALINES LOGISTICS - VIETNAM JOINT STOCK COMPANY
- Company headquarters: Room 405 4th Floor, Ocean Park Building, No
1 Dao Duy Anh, Phuong Mai Ward, Dong Da District, Hanoi
- Email: info@vinalineslogistics.com.vn
- Website: http://www.vinalineslogistics.com.vn
- VIMC's logo: luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
2.1.2 The process of formation and development of the Company: 2.1.2.1 Formation process
Vietnam's logistics sector features approximately 3,000 enterprises, predominantly SMEs, which face limitations in resources and technology Consequently, there's a shortage of enterprises capable of managing end-to-end logistics processes.
✓ With the status and characteristics as above and based on current legal bases such as:
✓ Commercial Law No 36/2005/QH11 passed by the 11th National Assembly at the 7th session on June 14, 2005
✓ Investment Law No 59/2005/QH11, approved by the 11th National Assembly at the 8th session on November 29, 2005
✓ Enterprise Law No 60/2005/QH11 passed by the 8th National
Assembly Xi session on November 29, 2005
✓ Other documents stipulating conditions for inland port business (ICD), multimodal transport, bonded warehouses
Vinalines Logistics Vietnam Joint Stock Company was established on August 10, 2007, following a general meeting of shareholders at Vietnam National Shipping Lines The company's founding was approved under business registration certificate No 0102345275 issued by the Department of Planning and Investment of Hanoi The initial charter capital was 158,000,000,000 VND (One hundred and fifty-eight billion VND).
The company was established for the following purposes:
Vinalines Logistics aims to unify member companies into a robust logistics network, enhancing competitiveness and supporting domestic container market dominance.
Expand business operations by forging strategic alliances with international partners in key Asian markets like Hong Kong, Taiwan, Singapore, China, and Thailand, while also targeting expansion into developed economies including Europe, Japan, and the United States.
Secondly, the Company implements the policy of not competing with member companies of the Corporation, but the main activity is investment and development of infrastructure at key focal points
As for 2021, Vinalines Logistics Vietnam Joint Stock Company has 14 years of experience in the Logistics industry Here are some development stages of Vinalines Logistics Joint Stock Company until now:
❖ August 10, 2007: Established Vinalines Logistics Vietnam Joint Stock Company
❖ 2008: Established a branch in Hai Phong and a branch in Quang Ninh
❖ 2009: Established Ho Chi Minh Branch and Representative Office in Mong Cai
❖ 2010: Established Lao Cai branch - Inland port (ICD Lao Cai)
❖ 2011: Established representative offices in: Noi Bai, Lang Son, Cao Bang
❖ 2012: Connecting the national railway to the Lao Cai ICD Inland Port and establishing a joint venture company named Vinalines Honda Logistics (VHL)
❖ 2013: Deploying shipping agency activities to sign a contract with
CCL Shipping Agency (Vietnam) Co., Ltd
❖ May 2014: Established a freight forwarding team in Ha Tinh
❖ September 18, 2015: The company was officially listed for trading on UPCOM with the reference price of the stock of 12,600 VND
❖ 2016: Obtained a quality management certificate according to ISO 9001-2008 and established a freight forwarding team of Texhong - Mong Cai factory cluster
In 2017, the organization was recognized as an excellent unit in the emulation movement and celebrated its 10th anniversary of construction and development.
In 2018, Vinalines expanded its operations through a joint venture with Happy Land Viet Nhat, focusing on investment in the Cai Lan Port administrative service area This collaboration led to the establishment of Vinalines Hoa Lac Logistics Joint Stock Company (VLHL), enhancing Vinalines' logistics capabilities.
❖ In 2019: Receiving 16.2ha of warehouses at Dinh Vu Industrial Park of Vietnam National Shipping Lines for Vinalines Logistics - Hai Phong Branch for management and exploitation
In 2021, the company was finalizing procedures to change its name to VIMC Logistics Vietnam Joint Stock Company, with legal documents expected to be completed by early June 2021.
2.1.3 Company's field of business a) Business areas of the Company
- Delivery of domestic goods, import-export goods;
- Transport agency services by sea, road, railway, air;
- Import and export of goods, commercial brokerage, buying and selling agents, and consignment of goods are some of the services available;
- Entrusting services and receiving investment entrustment;
- Customers receive advice on transportation, distribution, storage, and other goods-related services;
- Leasing specialized equipment and vehicles for loading, unloading, conserving, and transporting products;
Vinalines Logistics is strategically investing in the logistics industry to broaden its multimodal transport services, enhancing its capabilities in key logistics areas.
• Airline and shipping agency field
Vinalines Logistics Vietnam, a subsidiary of Vietnam National Shipping Lines, focuses on investing in logistics services to develop multimodal transport, offering customers optimal benefits worldwide With a vast network of air and sea service agents in Vietnam, the company provides diverse options, including sea, road, and air transport, coupled with strong relationships with multimodal transport agents, ensuring comprehensive customer service.
Door-to-door transportation services offer high-quality and competitive freight solutions globally As a comprehensive logistics service provider, the company transports goods to meet specific customer requirements, ensuring delivery to any location worldwide.
Leveraging a team of seasoned drivers and operators, the company delivers high-quality, professional fruit transportation services Boasting a diverse transport fleet and a North-Central-South network, they offer comprehensive inland transportation solutions These include North-South freight, Northern border transport, and distribution from warehouses to agents.
Besides, there is always a team of professional and experienced logistics staff in container transportation, especially super-heavy goods
Vinalines Logistics Vietnam offers comprehensive customs brokerage and value-added services, including import, export, and customs declaration, alongside services like shipping agency, container agent, maritime brokerage, and freight forwarding, catering to diverse logistics needs.
With a professional team and extensive experience in transportation, the company is developing warehouses in key locations such as Cai Lan, Mong Cai, and Dinh Vu to meet technical standards for storing various goods and containers The company invests in CFS bulk warehouses, bonded warehouses, and distribution centers, complemented by a professional trucking team capable of transporting containers to industrial zones across Vietnam.
Vinalines Logistics strategically allocates capital across diverse sectors, including container services and financial investments, to maximize customer benefits Future investments will focus on expanding the transportation fleet to meet regional and national demands With over a decade of experience, Vinalines Logistics has supported numerous import-export businesses, handling major export items like garments and raw materials, and importing essential production materials and project-related goods, while also providing logistics services to individual businesses.
Factors affecting the quality of Logistics services of Vinalines Logistics
Favorable geographical conditions are one of the factors for logistics development Our country is a country with a sea, with a coastline of more than
Vietnam's strategic geographical location, featuring a 3200 km coastline with a diverse system of seaports, is ideal for sea transport development This advantage facilitates international trade and positions Vietnam as a potential transshipment hub in the region The country's extensive river system, particularly in the Southern Delta, enhances inland waterway transport Furthermore, the two large deltas connected by central land support the development of railway and automobile traffic, crucial for multimodal transport infrastructure.
Vietnam boasts 266 seaports across 24 coastal areas, with 9 equipped for 50,000 DWT ships or 3,000 TEU container ships Northern cargo primarily flows through Hai Phong and Cai Lan ports Hai Phong port's cargo transport has surged by 25% in the last 5 years, marking Vietnam's highest growth rate.
Southern ports like Cat Lai and Cai Mep-Thi Vai are overloaded, handling 72% of Vietnam's cargo volume in 2008 and aiming for 3 million TEUs in 2009 In contrast, Central ports such as Da Nang and Quy Nhon manage only 2% of the national cargo volume, with significantly lower throughputs of 40,000 and 50,000 TEUs/year respectively, highlighting a disparity in port utilization.
Established in 1977, the Northern airport cluster has matured over 30 years, achieving significant milestones in aviation safety, security, and infrastructure development to meet the demands of the growing aviation market Current initiatives include planning and investment projects for new airports in Gia Lam (Hanoi), Mong Cai (Quang Ninh), and Lao Cai (Lao Cai) Cat Bi Airport in Hai Phong city has successfully operated domestic routes, contributing to regional connectivity.
The Central Airport Cluster, established under Decision No 113/1988/QD-TTg, operates as a state-owned enterprise providing both aviation and non-aviation services Authorized by the Civil Aviation Administration of Vietnam, it also performs state management functions for civil aviation in the central region's airports.
Following the reunification of Vietnam in April 1975, the Southern Airports Cluster was established under the Civil Aviation Authority of Vietnam to manage and operate airports in the southern region Over three decades, the Southern Airports Cluster has significantly advanced, adapting to the growing demands of Vietnam's industrialization and modernization This progress has been crucial for the nation's development and integration into the global economy.
Vietnam Railways, with over 120 years of history, spans 2,632 km, connecting key regions across Vietnam, excluding the Mekong Delta The railway network includes bridges, tunnels, locomotives, and wagons for both freight and passenger transport The main lines cover 2,632km, with a gauge distribution of 85% at 1,000mm, 6% at 1,435mm, and 9% as nested track.
Table 2.2: Length of sugars in Vietnam Main road and branch road 2.632 km
Bypasses and side roads 511 km
(Source: General Statistics Office of Vietnam) Some other infrastructure of the industry
The railway system includes 1,790 railway bridges (45,368 meters) and 31 common rail-road bridges (11,753 meters), with 63% of the total bridge length concentrated on the Hanoi - Ho Chi Minh City route Temporary steel girder bridges account for 31% of the total railway bridge length, while concrete bridges total 13,274 meters Additionally, the railway features 5,128 culverts (80,850 meters) and 39 tunnels (11,512 meters), with a significant portion of the tunnels located on the Hanoi - Ho Chi Minh City route.
Vietnam Railways relies on outdated Hungarian-made loader machines from the 1970s for its information systems High-frequency radio systems serve as emergency backups in certain areas Bare wiring is extensively used for long-distance communication, while copper pair cables handle local signals Since 1998, the corporation has utilized a channel multiplier system on leased 64 kbps data transmission channels for data and telephone transmission via Microband ATM technology.
Favorable geographical conditions and secure infrastructure are foundational for logistics technology implementation However, the effectiveness of logistics hinges on an adequate and open legal framework Modern businesses require a comprehensive legal structure to safeguard their production and commerce interests Clear laws codifying trade, forwarding, transportation, and customs regulations are crucial; without them, enterprises struggle to achieve desired outcomes.
Vietnam's legal system has rapidly developed, focusing on production, business, international economic relations, and transportation Key laws such as civil, commercial, investment, and insurance law have been institutionalized alongside supporting ordinances and regulations Further legal developments, revisions, and supplements are expected in the near future.
Vietnam actively participates in international agreements to boost economic development and meet global integration demands Despite imperfections, Vietnam's legal system is evolving to support socio-economic activities, including logistics, and information technology development.
Information technology and e-commerce are rapidly developing in Vietnam The number of internet users is growing daily, and computer literacy is being addressed in training programs at all levels Businesses in Vietnam are increasingly using the internet to support their activities, leading to greater economic efficiency E-commerce is being utilized in various aspects of business, including marketing, contracts, and payment.
Leveraging the current growth of information technology and e-commerce in Vietnam presents significant opportunities for logistics technology applications, particularly for transport and forwarding businesses Logistics plays a crucial role in physical distribution by utilizing information to manage the movement of goods across various segments, routes, and locations, ensuring timely responses to demands Economic integration further emphasizes the importance of efficient logistics in the supply chain.
Foreign enterprises significantly contribute to Vietnam's logistics industry while intensifying competition for domestic businesses Possessing superior management and capital, foreign entities gain advantages, impacting the ASEAN economy The rise of logistics as a critical component of international trade raises concerns within the community.
Logistics service business situation of Vinalines Logistics Vietnam Joint
2.3.1 The current state of infrastructure and human resources for the Company's Logistics activities
Facilities significantly impact service quality, encompassing transportation, warehouse quality, and human resources Warehousing, a key revenue source, involves secure storage, with the company offering rental services at various locations, including VMSC - Hai Phong, Hai An - Hai Phong, Hung Yen, and Cai Lan - Quang Ninh The Lao Cai ICD port features extensive container storage and a CFS warehouse, providing comprehensive logistics services and acting as a crucial freight hub for Northeast and Northwest Vietnam, facilitating transit from China's Yunnan A network of warehouse systems spans from North to South, ensuring optimal storage and preservation for customers' goods.
Vinalines Logistics' service quality is influenced by its fleet of approximately 20 vehicles, which sometimes faces shortages impacting delivery times To ensure timely delivery, Vinalines Logistics collaborates with external partners and seeks experienced vehicle fleets The company operates specialized equipment, including two crane trucks (one in Laos since May 2019) and a 45-ton bridge truck at Quy Nhon Port (since June 2020), both currently operating stably.
Vinalines Logistics utilizes an information system connecting customers directly with dispatch and vehicle management, moving beyond traditional 24/7 phone support Their website, vnll.com.vn, offers comprehensive information on the company's history, services, and financial reports However, direct customer interaction is limited to phone numbers and email, lacking a real-time question-and-answer section.
Vinalines Logistics assures service quality through its well-trained, proactive, and highly responsible employees, emphasizing the human factor in logistics excellence.
Table 2.3: Statistics of personnel at Vinalines Logistics Joint Stock
Staff with university and post- university degrees 90 90 91
Staff with intermediate and college degrees 19 17 13
Vinalines Logistics Vietnam Joint Stock Corporation maintains a stable workforce while enhancing labor quality by increasing the number of highly qualified workers The experienced staff, particularly in sales and customer service, are vital for customer relations Highly qualified leaders with extensive experience conduct regular training sessions to improve employees' logistics knowledge and performance.
2.3.2 Logistics service business results of Vinalines Logistics Vietnam Joint Stock Company in the period of 2018 - 2020
2.3.2.1 Profit from logistics service business
Table 2.4: Profit from logistics service business
Structure of Transportation Forms in 2019
Structure of Transportation Forms in 2020
(Source: Financial statements for the year 2020 - audited figures)
Graph 2.3: Percentage of revenue by business method
The logistics department's revenue heavily relies on three key business methods: sea, air, and rail transport These strategies constitute the majority of the company's total revenue, especially within the logistics department.
Sea transport emerges as the top revenue-generating business approach, contributing VND 10.2 billion (39.96%) in 2019 and VND 12.1 billion (43.93%) in 2020.
Structure of Transportation Forms in 2019
Transportation by airplanes Transportation by railways Transportation by sea lines
Structure of Transportation Forms in 2020 luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
In 2020, marine transportation accounted for approximately a quarter of VIMC's total revenue, a strategy heavily reliant on its extensive fleet of 104 ships with a combined cargo capacity of 1.2 million DWT VIMC prioritizes the development of its seaport system, strategically investing in coordinated infrastructure within the northern port cluster of Hai Phong and Quang Ninh, and the southern port cluster in Cai Mep, Thi Vai, and Ho Chi Minh City, to effectively leverage shipping activities.
In 2019, railway transport generated VND 8.9 billion in total income, accounting for 35.36 percent of VIMC's total revenue By 2020, this revenue increased significantly to VND 11.09 billion, nearly matching marine transport VIMC focuses on rail transport due to its large freight capacity, higher safety levels, and cost-effectiveness While rail transport offers these advantages, its main disadvantage is longer shipping times compared to other modes.
Air freight contributes a small portion to total revenue, fluctuating between VND 6.3 billion in 2019 and VND 4.3 billion in 2020 While offering faster transit times, air freight is limited to medium and small volume commodities and is notably expensive The Covid-19 pandemic in 2020 further complicated air transportation due to tightened quarantine and security measures, leading to increased costs and a decline in revenue.
2.2.1.3 Profit from logistics service business by market structure
Table 2.5: Profit from logistics service business breakdown by market structure
(Source: Financial statements for the year 2020 - audited figures)
Graph 2.4: Proportion of revenue by market structure
- Comment on revenue by market structure:
After 16 years, the company has significantly expanded its business market, yet the domestic market remains primary Consistent goods movement from north to south and domestic revenue are crucial for maintaining operations across numerous branches.
Vietnam Asian European Africa America Middle East
The Company has gained significant trust from domestic customers due to its extensive network of branches operating throughout the country for many years While the Asian region provides relative revenue compared to the home market, the company's global presence aids its overall revenue and network, despite challenges in the European and American markets, which still contribute viable income The African and Middle Eastern markets remain largely unexplored, accounting for only 10% of total sales In 2019, logistics activities generated VND 25.43 billion in revenue, boosted by new warehouse space and the establishment of Vinalines Hoa Lac Logistics Joint Stock Company (VLHL), allowing VIMC to maintain a stable revenue level by keeping pace with the market.
The Covid-19 pandemic led to tightened international trade security in 2020, causing revenue drops in Europe, Africa, and America Despite the global economic downturn, Asia, the Middle East, and Vietnam stabilized quickly and achieved revenue growth due to effective management.
VIMC experienced minor revenue increases in the East, with domestic revenue growing to VND 8.6 billion, driven by strict adherence to government epidemic prevention measures, though growth remained low due to ongoing restrictions.
2.3.3 Some indicators on the results of the Company's logistics activities
Table 2.7: Some indicators of VIMC's logistics business results
Net profit from business activities 7,132 5,870 - 21.5%
In 2019, the overall cost was 18.3 billion VND, considered relatively high compared to the income, with sea freight accounting for approximately 45% of the Logistics department's total cost This high cost was influenced by key technological advancements, global trade fluctuations, new e-commerce regulations, and environmental concerns affecting the worldwide transportation and logistics industry The emergence of global e-payment and commerce platforms increased competition, while socioeconomic challenges and rising input prices put pressure on the logistics industry, resulting in a profit of only 6.2 billion VND, significantly lower than the income.
Actual situation of logistics service quality at Vinalines Logistics Joint
Vinalines Logistics Vietnam Joint Stock Company employs a survey questionnaire, based on the RATER model, to evaluate customer perceptions of their logistics service quality This study aims to identify areas of customer dissatisfaction and their requirements, ultimately providing suggestions for service quality improvement Due to time and distance constraints, the survey is conducted via email, and to ensure information security, specific customer details will remain undisclosed, with only aggregated evaluation results being presented.
The survey process is as follows:
Step 1: Set up the survey;
Step 2: Determine the overall sample of the study There are more than
150 businesses already using Logistics services of Vinalines Logistics Vietnam Joint Stock Company;
Step 3: Conduct the survey: Contact businesses before sending the form and Send the survey by email to the businesses, the person in the survey is the authorized person and is related to the use of Logistics services of Vinalines The survey was carried out for 1 month from May 1, 2021 to June 1, 2021
Step 4: Synthesize the survey: After withdrawing the votes, conduct a vote count and select valid votes;
Step 5: Use the survey results for analysis; luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
2.4.2 Research scale design and research model 2.4.2.1 Building a questionnaire scale
To accurately gauge customer satisfaction with our logistics services, we've developed a questionnaire based on five key factors: reliability, responsiveness, assurance, empathy, and tangible elements.
Specifically, the questionnaire will be built as follows:
• Reliability component: Reliability represents the ability to perform services accurately and safely of goods to meet customer requirements The scale consists of 4 questions:
1 The company always provides goods reliably (implements the commitment to deliver and receive goods on time)
2 The company always ensures the safety of goods (no loss, all details are faulty)
3 The company always guarantees from official certificates
(vouchers do not make mistakes)
4 The company always conducts certification procedures quickly
• Component responsiveness: Responsiveness is expressed in responding to customer requests for services and information in the fastest and most professional manner The scale consists of 3 questions:
1 The company solves customer queries quickly
2 The company always performs the service consistently
3 The Company's services are always diverse and available
(whenever and wherever) luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
• Assurance component: Being able to brand assurance is providing customers with confidence in the capabilities of the business The scale consists of 4 questions:
Table 2.10: Scale of assurance ability
1 Customers know a lot of information through the advice of the
2 The company's ability to track freight is good, always guaranteed
3 Attitude and service of the company's staff are professional, polite, good communication
4 Customers feel confident in the professional qualifications of the Company's staff
• Empathy component: Empathy is expressed in making efforts to understand the needs of customers, showing concern and care for each individual customer The scale consists of 3 questions:
Customers know a lot of information through the advice of the company's staff The company's employees are always ready to respond to customers' requests and questions as quickly as possible
2 Employees have good knowledge of the requirements and needs of customers to serve each customer in the most thoughtful way
3 The company understands the needs and requirements of customers luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
• Components of tangible means: Tangibles include elements of vehicles, facilities, employee appearance, equipment used in providing services, documents serving communication The scale consists of 4 questions:
Table 2.12: Scale of tangible media
1 The company has full equipment and facilities to serve customers' needs at all times
2 The company's infrastructure is good, the office is spacious
3 The company always ensures complete information about goods information and delivery time
4 Company employees dress politely, suitable for the working environment
• Components of the overall satisfaction rating:
1 Customers are completely satisfied with the service provided by the Company
2 Customers will continue to transact with the Company in the near future
The Likert scale, a tool for gauging attitudes, presents respondents with a range of options from "very dissatisfied" to "very satisfied," typically numbered 1 to 5, to quantify their opinions.
5 Completely unsatisfied luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Survey method: send the evaluation questionnaire to 115 customers of the Company during the period from May 1, 2021 to June 1, 2021 and receive
Here is the rewritten paragraph:"Despite the challenges posed by the outbreak, a total of 101 customers of Vinalines Logistics participated in an online survey, providing valuable feedback that offers insight into the company's logistics service quality As these respondents are among the company's most frequent customers, their opinions serve as a reliable gauge of the company's service standards, offering a partial yet significant assessment of its overall logistics performance."
2.4.2 Survey results on the quality of logistics services of the Company
Based on 101 survey questionnaires obtained, the results of customers' evaluation of the Company's logistics service quality are analyzed below a) Reliability:
Graph 2.5: Customer satisfaction on reliability of the company VIMC Note:
(1) The company always provides goods reliably (to fulfill its commitment to deliver and receive goods on time)
(2) The company always ensures safe goods
(3) The company always ensures the accuracy of documents
(4) The company always conducts the documentation procedures quickly
Completely satisfied Satisfied Normal Unsatisfied Completely unsatisfied luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
The company prioritizes reliable service, fulfilling delivery commitments with 70% of customers rating the service quality as satisfactory While unforeseen issues like weather or documentation problems can cause delays, the company strives to maintain accurate delivery times.
The company prioritizes safe goods delivery, with 85% of customers positively reviewing the goods guarantee Quality is managed from packaging to warehousing by company employees to ensure the safety of delivered goods While rare, instances of damage during loading or wet shipments can affect the company's reputation.
Vinalines Logistics excels in swift documentation, with a 94% customer satisfaction rate As a subsidiary of Vietnam National Shipping Lines, the company leverages strong relationships with customs branches to expedite declarations and resolve issues efficiently This responsiveness ensures smooth and timely processing, a key advantage for clients.
Graph 2.6: Level of customer satisfaction with the response of
(1) The company solves customer queries quickly
(2) The company always performs the service consistently
(3) The Company's services are always diversified and available (whenever and where)
With a customer satisfaction rate of 90%, the company prides itself on quickly resolving customer queries, ensuring dedicated staff are always available to address any logistical issues, leading to overwhelmingly positive feedback and high customer satisfaction.
Consistently delivering reliable logistics services is a top priority, with 70% of customers expressing satisfaction; however, some inconsistencies in processes and procedures remain a concern, highlighting areas for improvement to ensure uniformly positive experiences.
Delivery delays cause customer apprehension regarding the company's logistics services, impacting satisfaction levels ranging from completely satisfied to completely unsatisfied.
The Company excels in providing readily available logistics services, with a customer satisfaction rate of 65% However, approximately 35% of customers express a desire for greater diversification in the Company's service offerings to better meet their specific logistics needs.
Customers desire updated logistics services, including ECUS5 VNACCS customs declaration software, to ensure comprehensive support.
Graph 2.7: Customer satisfaction on the assurance factor of VIMC Note:
(1) Customers know a lot of information through the advice of the Company's staff
(2) The company's ability to track freight is good, always guaranteed
(3) Attitude and service of the company's employees are professional, polite, good communication
(4) Customers feel confident in the professional qualifications of the Company's employees
Completely satisfied Satisfied Normal Unsatisfied Completely unsatisfied luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Customers highly value the information provided by company staff, with 90% reporting satisfaction with the completeness and quality of consultations; a small percentage expressed a need for more tailored and comprehensive information.
Customer satisfaction with the company's freight tracking is high, with 80% expressing satisfaction; however, some customers have concerns regarding the company's guarantees, specifically citing a lack of trust in employee qualifications.
Overall assessment of logistics service quality at Vinalines Logistics
2.5.1 Advantages 2.5.1.1 Advantages of the trust factor
Vinalines Logistics ensures proactive and timely delivery through its extensive fleet and warehouse network As a subsidiary of Vietnam National Shipping Lines, Vinalines Logistics benefits from strong relationships with customs branches, facilitating swift and smooth customs clearance.
Vinalines Logistics ensures accuracy and consistency through a quality plan and standardized processes Their global agent network, strategically located in key ports, meets diverse customer needs The company's expanding partnerships with international firms further enhance service availability worldwide.
Establishing strong relationships with related parties creates favorable conditions for Vinalines Logistics' service provision, such as resolving customs issues quickly Vinalines Logistics leverages relationships with various shipping lines to negotiate the best prices, understanding that each carrier excels on specific routes By focusing on partners' strengths, Vinalines Logistics can offer optimal solutions, such as using Maersk for Europe-bound FOB goods and MISC, COSCO, or MSC for CIF goods Vinalines Logistics also identifies and utilizes agents based on their strengths in specific locations, ensuring maximum service quality through these regular partnerships.
2.5.1.3 Advantages of the element of assurance
Vinalines Logistics enhances service quality through a growing, highly qualified workforce, emphasizing continuous professional training to improve staff expertise.
Vinalines Logistics prioritizes customer psychology training for its staff, ensuring a consistently friendly and enthusiastic attitude across all interactions, whether by phone, email, or in person Employees maintain a cheerful and open demeanor, even when customers decline services, focusing on building lasting relationships through polite gratitude and expressing hope for future collaboration Positive customer feedback highlights the enthusiasm and empathy of Vinalines Logistics' staff, from the General Director to all employees, which is crucial for retaining existing clients and attracting new business.
Vinalines Logistics prioritizes empathy and dedication in its customer service, fostering strong customer relationships Regional employee divisions ensure specific customer requirements are met effectively Dedicated staff members oversee each customer's contract from start to finish, providing updates and direct support, enhancing customer satisfaction and trust.
2.5.1.5 Advantages of the tangible element
Vinalines Logistics prioritizes technological innovation and infrastructure improvements, including key ports like Cai Lan and ICD Lao Cai These enhancements have solidified Vinalines Logistics' position in both the Vietnamese and global logistics markets.
Vinalines Logistics faces limitations in service quality despite a rapidly developing logistics market To compete effectively, Vinalines Logistics Vietnam Joint Stock Company must identify and invest in its core strengths to capture a larger market share both domestically and internationally.
2.5.2.1 Limitations on the trust factor
Vinalines Logistics' extensive agent network faces control challenges, leading to occasional issues such as delayed delivery due to paperwork, damaged goods, discrepancies in delivered items, and rare instances of wet shipments, potentially impacting the company's reputation.
To enhance customer satisfaction, meticulous preparation of valid and legal shipping documents is crucial for accurate and timely customs declarations, minimizing errors and delays in import and export procedures.
2.5.2.2 Limitations on the responsiveness factor
According to RATER criteria, customer satisfaction with service and order information is incomplete, highlighting the need for improvement In the information age, enhanced information systems can significantly reduce shipping times and improve order confirmation, better meeting customer needs and minimizing risks in international trade Investing in a robust information system is crucial for the Company to optimize processes and mitigate risks.
2.5.2.3 Limitations on the guarantee factor
While the company's human resources possess adequate qualifications and demonstrate politeness, there's a gap in fully understanding and meeting each customer's unique needs, as indicated by survey results revealing customer dissatisfaction with staff knowledge and empathy.
Staff knowledge gaps hinder service quality, and slow response times to unforeseen issues remain a challenge.
2.5.2.4 Limitations on the empathy factor
The company's human resources team, while staffed, needs further development to fully satisfy customer needs Employees require more specialized knowledge in areas like legal terms, insurance, and risk management to improve customer satisfaction Enhancing advisory skills is crucial for meeting client expectations regarding professional qualifications.
2.5.2.5 Limitations on the tangible element
In the competitive logistics landscape, where numerous domestic and foreign enterprises vie for market share with state support, companies must prioritize customer relationships Businesses need to re-evaluate marketing services to boost service consumption and enhance brand promotion, addressing concerns about information integrity during goods delivery despite a well-regarded infrastructure.
Through the process of reviewing and re-analyzing the survey table and the actual situation of the Company, we can point out some subjective reasons as follows: