Nhat Viet Transportation Corporation (Vietnam)

The subject specializes in supplying services of transportation (LPG shipping), ship management, and shipping agency and fuel supply. Updated to 30 Sep 2023, Petrovietnam Transportation Corporation holds 51% shares of the subject. Its LPG fleet has gross tonnages from 1.000 MT– 6.500 MT. They are served for Dung Quat Refinery Factory and Vung Tau Gas Processing Company with a monthly volume of 50,000MT. In the international market, some of its major customers are E1, Dealim, SHV, Petredec with an average volume of 120,000 MT per month. Its fleet operates mainly on the Northeast Asia route; Middle East – India route; Southeast Asia route and inland route. Over the past 2 years, Vietnam Logistics has faced many challenges such as the COVID-19 epidemic, unfavorable macroeconomic conditions, and the war between Russia and Ukraine in February 2022, leading to supply chain disruptions and escalated inflation. As a result, large and small businesses in this industry stifled revenue and profits. According to the Vietnam Logistics report, there are 43,568 businesses operating in the field of transportation and warehousing, with 5,000 businesses providing 3PL (third-party logistics) services. However, 95% of these are small and medium enterprises. In 2022, Vietnam ranked 11th in the group of 50 global emerging logistics markets. The annual growth rate of Vietnam's logistics industry reaches 14-16%, with a scale of USD 40-42 billion /year. However, in reality, there are still some limitations and challenges for the logistics industry. Specifically, institutions and policies for the logistics field are not synchronized and overlapping; Transport and logistics infrastructure is not synchronized, and there is a lack of centralized warehouses. On the other hand, businesses providing logistics services in Vietnam are mostly small and medium-sized, fragmented, lacking experience and professionalism. Innovating the logistics system and applying technology platforms will be the key for businesses to break through and occupy an important market share in production and business activities.For sea transport, although sea shipping is still facing many difficulties, there are many signs that the shipping market is gradually improving. According to the Vietnam Maritime Administration, in the first 10 months of 2023, the total volume of goods through seaports is trending towards positive changes. Accordingly, the volume of goods through the seaport is estimated to reach 624.559 million tons, an increase of 3% over the same period in 2022. Notably, after many months of decline, some areas have seen the output of goods through seaports increase again, such as Ho Chi Minh City (2.72%); Quang Ninh Province (4.8%); Hai Phong City (0.8%)... As for the volume of container goods through seaports, although still decreasing, the decrease is much lower than in previous months. The volume of container cargo through seaports in the first 10 months of 2023 also decreased by 3%, estimated at 20.29 million Teus. The Vietnam Maritime Administration acknowledges: although shipping is still facing many difficulties, positive numbers have shown that the shipping market is gradually improving after many months of continuous decline.