Binh Duong Transport Association finds solutions to enhance competitiveness

Although Binh Duong Transport Association has been newly established, with enthusiasm, experiences, determination to overcome difficulties, Executive Committee and members of the association have promoted solidarity, shared experiences in building corporate image and brand name in the current competitive environment.

Information sharing, capacity building

The outstanding issue, which has been focused by Binh Duong Transport Association, is the fierce competition in transport rates, the invasion of technology companies that have affected business activities of member enterprises, traditional taxis. In addition, input cost of the transport industry is constantly increasing, especially fuel: From Jan to mid-Jun 1818 fuel prices increased 6 times, causing a huge impact on transport costs.

In the immediate future, the association will send a written document to provincial Department of Transportation to make suggestions about Grab cars in the province affecting member enterprises doing business in passenger transportation by taxi; Develop a training plan for drivers, car service personnel and operators... A member of the Executive Committee stated that in addition to the mentioned disadvantages, the goods transport market in the province has the appearance of transport companies from outside the province, mainly from Ho Chi Minh City, to win the market, but they do not operate according to regulations, set lower prices even under the floor price to win customers...

Executive Committee of Binh Duong Transport Association visit and congratulate its members on opening a Transport club-house.

In response to the above-mentioned unfair competition, provincial Transport Association agreed on the plan for enhancing information exchange and cooperation regulations signed between Department of Transport and the association; based on the shared information, the association will rapidly make analysis, quantification, and forecasts so that members could apply effectively into business tactics. Thus, the mentioned disadvantages would become advantages to member businesses by ensuring the time, ensuring requirements stated in contracts, and saving transportation costs.

Nguyen Thoi Hoang Dung, Director of Dong Tay Transport Company, said that the current transportation market was a fierce competition, but low price is not enough to meet customer requirements. "The price of our company is higher than other companies from VND 100,000-200,000/container. We have just asked another company to share our order, because our vehicles did not arrive in time. After that deal, this company offer services with cheaper price to our customers, but customers refused directly, because they did not have enough faith to cooperate”, said Ms. Dung.

Competition to further develop

A taxi company, as a member of provincial Transportation Association, said that currently traditional taxis were under a fierce price competition and the loss of human resources. Therefore, solutions are in need to curb, prevent... Nguyen Van Hung, Permanent Vice Chairman of provincial Transport Association, informed that Grab drivers had to contribute over 28% of their revenue to the company, while many traditional taxi companies have switched to franchise mode. Therefore, apart from cutting down the cost of intermediaries and unreasonable costs, businesses need to cut their costs more, because their cost structure is still high. In addition, companies need to strengthen human resource management combined with education, training to improve skills, responsibilities, ethics and attitude to customers. At the same time, businesses also have to increase the use of information technology, modern technologies in management and administration to improve management efficiency, cost savings.

According to experts, in order to increase linkage, increase competitiveness, create trust of customers, provincial Transport Association and its members in the coming time, need to strengthen cooperation with transport trading platform (Vietnam Trucking.vn) to exploit return loads (empty loads) to reduce costs, strengthen trust of customers.

Ms. Dung said that everyone wants to have a high income to take care of family, but it is not the case that high wages could retain workers. In addition to ensuring stable employment, companies must have appropriate solutions to retain employees. In her company, employees are entitled to benefits, including insurance and accruals. These contributions have helped the company stand up in a competitive environment; skills and responsibilities of employees are improved, customer loyalty is heightened. The competitiveness will help businesses stand firm against the storm.

Reported by Duy Chi – Translated by Ngoc Huynh

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