Trends and News for SMBs | July

Trends and News for SMBs | July
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Keep your business up to speed with the latest news.

How Vietnam plans to revamp its logistics infrastructure 

Vietnam seeks to revitalize its logistics infrastructure as it becomes an increasingly important player in global supply chains. 

The country’s Ministry of Transport has announced plans to attract investment in logistics in the North Central and Central Coast and coastal regions, the Financial Times reported. This comes as part of its plan to develop a comprehensive state-of-the-art transport system for the area by 2030.  

The centerpiece of this plan will be Da Nang City — which will become a major logistics hub in the central Key Economic Region (KER) and the key gateway of the East-West Economic Corridor. The Vietnamese government has a long-term plan to keep improving the city’s logistics until 2050. 

With an international container port and international airport, and a strategic location, Da Nang is a natural choice as a logistics center. But the government has admitted it will need to provide incentives to attract shippers’ business to the new facilities. 

However, the jewel in the crown of Vietnam’s infrastructure plan remains the $6 billion Can Gio super port in the south of the country – which the government aims to make Asia’s fourth largest port.  

These plans are experiencing teething troubles as Vietnam undergoes a rapid drive to create an infrastructure worthy of its status as a go-to destination for manufacturers looking beyond China.  A Vietnamese maritime researcher has urged the government to reconsider the project’s size, fearing that its distance from the Strait of Malacca trade corridor may deter ocean carriers from calling at the port. 

Tran Nguyen of the École de Management de Normandie told the Financial Times the port’s distance from Singapore and the two Malaysian hubs of Port Klang and Tanjung Pelepas would limit it to gaining transshipment business from other Southeast Asian countries. 

He believes authorities should rethink the port’s size and location and stop trying to rival South East Asia’s mega ports.  

 

Shippers applaud a $1.5 billion state funding boost to California’s ports 

Shippers have welcomed a California state funding package of over $1.5 billion for 15 West Coast port projects aimed at strengthening infrastructure and driving sustainability, Maritime Executive reports. 

The Ports of Long Beach, Los Angeles, and Oakland will be the primary beneficiaries of this funding. Los Angeles will receive $233 million for crucial infrastructure enhancements and sustainability initiatives. Funding will come from the California State Transportation Agency. 

Among the initiatives is the development of a chassis and empty container storage facility that will serve all 12 box terminals in Los Angeles and Long Beach. The storage capacity in Long Beach will be more than doubled, expanding from 30 acres to 71 thanks to a financial injection of approximately $149.3 million. 

One source said the improved chassis storage would be warmly welcomed by shippers. “Infrastructure at California ports has long needed improving, with the availability of chassis having been a big issue. This makes a lot of sense and represents a good start on what is needed to modernize the ports,” the source told The Loadstar. 

Oakland will receive $102 million as part of a $357 million modernization project aimed at attracting carriers back to the port, which has been deemed “under-utilized” by the agency.  The funding came just days after the U.S. Department of Transportation announced funding of around $40 million to enhance infrastructure and sustainability. 

PortMiami will benefit from $5 million to support completing crucial aspects of its Net Zero Program, help it reach carbon neutrality, construct two inland cargo centers, and reduce fossil fuel consumption. 

The Puerto Rico Port Authority will receive $3 million to enhance a vital roadway link — the only access point to the port’s eastern wharves.  

Messe Frankfurt bets on Vietnam with a new textile trade fair  

Leading trade fair organizer Messe Frankfurt appears to be betting on the strength of Vietnam’s textile sector as it schedules the inaugural Vietnam International Trade Fair for Apparel, Textiles, and Textile Technologies (VIATT). 

The event will run from February 28 to March 1, 2024, as Messe Frankfurt and the Vietnam Trade Promotion Agency (VIETRADE) collaborate to organize what they aim to be a comprehensive platform covering the entire textile industry value chain, the Knitting Industry reported. 

The event will be held at Ho Chi Minh City’s Saigon Exhibition and Convention Center (SECC). 

Driven by its strong textile and garment industry growth, Vietnam has become one of Southeast Asia’s manufacturing hubs. With annual growth rates ranging from 20% to 26% between 2018 and 2022, Vietnam’s textile sector has attracted international manufacturers and benefited from participation in key trade agreements. 

VIATT 2024 aims to connect textile players from Asia, Europe, and beyond with Vietnam’s vibrant market. The fair will feature international and domestic exhibitors representing textile sub-sectors, including garments, fabrics, accessories, yarns, fibers, digital printing, home textiles, technical textiles, nonwovens, and textile machinery. VIATT also plans to offer a global business matchmaking service, providing networking opportunities with industry leaders and offering market insights through seminars, forums, and panel discussions. 

Meanwhile, Vietnam’s textile industry is driven to embrace sustainability in textile production to meet international export demands and comply with increasingly stringent standards demanded by Western buyers.  

Several large manufacturers recently collaborated to manufacture recycled textiles, utilize solar energy, and reduce annual carbon emissions as Western buyers look for sustainability in their supply chains. 

Vietnamese textile units are adopting green materials, while research and development efforts focus on environmentally friendly fashion products and meet international certifications. 

Organizers have said that VIATT 2024 promises to shape Vietnam’s textile industry by fostering trade, networking opportunities, and sharing market insights. 

 

How Hong Kong is cementing its trade fair status with a major show and new events 

The Hong Kong Tourism Board (HKTB) has announced the return of one of the world’s leading leather trade fairs — APLF Leather, Materials + & Fashion Access 2024. The territory has also secured four new events to boost its position as a premier global trade show destination. 

APLF Leather, Materials + & Fashion Access 2024, a highly regarded leather and fashion trade show, will return to Hong Kong in March 2024.  David Bondi, Senior Vice President of APLF co-owner Informa Markets Asia, told media reports, “The enthusiasm is palpable as the city has long been our home base, connecting the global markets with Chinese suppliers and buyers.” 

Hong Kong has secured four new trade shows this year, including the DMP Greater Bay Area Industrial Expo, BioCHINA 2023, Greater Bay Area ESG & Sustainability Exhibition, and the JCtrans Global Freight Forwarders Expo 2023. Meanwhile, the All China Leather Exhibition (ACLE) is set to make its comeback in Shanghai after a four-year hiatus.  

Scheduled for August 29-31, 2023, ACLE provides a platform for international suppliers to access China’s leather and manufacturing industries. The event aims to reinvigorate the industry and strengthen supplier-customer relations. 

ACLE will take place between 29 and 31 August at the Shanghai New International Exhibition Centre (SNIEC) in Pudong. Before the Covid-19 pandemic forced it to make a temporary stoppage, ACLE attracted around 23,000 buyers, the vast majority of whom come from the central manufacturing provinces of China.  

Due to its combination of domestic and international exhibitors, ACLE has become the definitive sourcing fair in China and beyond for the China and ASEAN leather-making and manufacturing sectors. The automotive industry, a major consumer of leather products, is expected to grow by 3% in 2023, indicating positive market conditions for the leather industry. 

 

We at Ship4wd are dedicated to helping small and mid-sized businesses get the most out of their shipping processes. Regardless of their experience in logistics, business owners can count on us to get their shipments to where they need them. 

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