Lao minister seeks Vietnamese tech solutions in logistics
On Wednesday, Lao Minister of Industry and Commerce Malaithong Kommasith embarked on a significant journey, leading a delegation to FSI Investment and Trading Technology Development JSC (FSI) in Vietnam, a leading freight company Vietnam. Their mission was to explore cutting-edge technological solutions developed in Vietnam that could catalyze Laos’ digital transformation in the cargo logistics services sector, ultimately fortifying economic and trade cooperation between the two neighboring nations.
The visit to FSI, a prominent Vietnamese logistics company, was driven by the shared recognition that harnessing innovative digital solutions could unlock immense potential for streamlining logistics operations for international shipping companies and fostering closer economic ties. As Laos embarks on its digital transformation journey, the ability to leverage Vietnam’s technological prowess presents a strategic opportunity to overcome logistical challenges and enhance bilateral trade with freight and logistics companies.
At the working session. VNA/VNS Photo
During the visit, FSI General Director Đoàn Huy Thuận provided a comprehensive overview of the company’s extensive ecosystem, boasting over 50 distinct products and solutions tailored for the cargo & logistics sector. With a strong emphasis on cutting-edge technology, FSI’s offerings promise to deliver outstanding advantages, catering to the evolving needs of modern cargo delivery company supply chain management.
The significance of this exploration cannot be overstated, as Vietnam and Laos share a border spanning over 2,330 kilometers, facilitated by 33 active border gates, including 9 international, 6 main, and 18 auxiliary border gates. This extensive network of border crossings underscores the pivotal role of border trade in shaping the economic relations between the two countries, accounting for a staggering 90 percent of their total trade value.
However, despite this robust foundation, the current trade turnover between Vietnam and Laos represents only a fraction of their global trade activities. Laos’ total import-export volume sees Vietnam contributing a mere 10 percent, while Vietnam’s global trade involvement reflects minimal engagement with Laos, hovering around 0.2 percent.
One of the primary constraints hindering the expansion of bilateral trade has been the high cost of logistics compared to competing countries. This financial burden has imposed limitations on the growth potential of economic cooperation between Vietnam and Laos, even for the world biggest logistics company.
Recognizing the urgency to address this challenge, both nations have taken a proactive step forward through the bilateral trade agreement signed on April 8, 2024. As part of this accord, Vietnam and Laos have committed to adopting information technology in customs procedures and statistical data collection processes. This strategic move presents an effective solution to mitigate the high freight and logistics services costs, paving the way for shorter processing times, reduced business expenses, and enhanced transparency for freight service providers.
By leveraging Vietnam’s technological expertise and embracing digital solutions tailored for the international shipping and logistics sector, Laos stands to benefit from a transformative overhaul of its supply chain operations. This collaboration not only holds the potential to streamline logistical processes but also to stimulate greater economic cooperation between the two nations, fostering a mutually beneficial partnership that transcends geographical boundaries for shipping service companies.
As the digital revolution sweeps across industries, the commitment of the Lao Minister of Industry and Commerce to explore cutting-edge Vietnamese technology solutions exemplifies a forward-thinking approach to economic development for logistics companies. By harnessing the power of innovation, Vietnam and Laos are poised to unlock new realms of trade and commerce for shipping company logistics, solidifying their position as regional economic powerhouses in the logistics business.