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Exploiting logistics’ niche market

​Recently, the transportation company of Mr. Dang Quoc Nghi, Director of Nam Viet Rong One Member Company Limited, Tan Hiep Ward, Bien Hoa City, has been operating at full capacity. Not only before Tet but after the Lunar New Year is also the busiest time for shipping and transporation.


 

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Mr. Dang Quoc Nghi, Director of Rong Nam Viet Co., Ltd.
 
A demanding industry
 
   Sharing his opinions toward the field of transportation of food products, Mr. Nghi often joked that this is a demanding industry, because it cannot be carried by ordinary cars but those feature internal cooling and refrigeration systems. In the fleet of more than 10 vehicles for transportation, 2/3 of them will be equipped with such systems. "Delivering industrial food for companies as well as fresh products for supermarkets requires vehicles equipped with cooling and refrigeration systems. Investment in this area is more expensive than normal freight and the risk is very high because the market is quite narrow," said Mr. Nghi.
 
   According to the owner of the Rong Nam Viet fleet, the hardship here is not just to use specialized vehicles but timely manner, especially the industrial food ration for workers. If such delivery fails to arrive as schedule, it will affect the lunch break of workers as well as production lines. Therefore, his clients always require accuracy in terms of timing.
 
   His transportation fleet does not only operate locally, but among other provinces such as Binh Thuan, Binh Phuoc and Ba Ria – Vung tau. Interprovincial operation normally involves fresh materials such as: vegetables, fruits, fish and meat.
 
Price is not the key
 
   Having operated in the field of logistics for over a decade and worked with many foreign partners, Mr. Nghi realized that in the context of competition for development, the low cost is not the decisive factor as many people mistakenly believe. Mr. Nghi said: "Recently, many shipping companies adopt the discount measures to compete, causing chaos within the market. Discounting to compete is primarily applied by new entrants to the industry." According to Mr. Nghi, major customers, especially foreign ones, pay more attention to quality of service than price. The biggest concern of these companies is the time of delivery which affects production, which is much more expensive, rather than the difference in prices. This is also the key to his branding and maintaining the market share. Recently, many companies have no orders to fulfill, while Mr. Nghi's fleet is still operating at maximum capacity and he is planning to invest more vehicles to meet the needs of customers.
 
   Not only operating by vans, Rong Nam Viet one member limited company also use 20 motorcycles to deliver small goods within the city. Mr. Nghi said that the use of various forms to optimize the delivery of goods to meet the needs for guests in necessary. He is also planning for a "shopping for you” service. This service is aimed at office workers who do not have enough time for shopping. "Customers just order over the phone, we will buy at the supermarket system and ensure home delivery as requested. This service works quite well in other places, but it is still not available yet in Bien Hoa city," Mr. Nghi shared.
 
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