With Vietnam’s exports of electronics and components reaching USD 38.42 billion in the first half of 2025, an impressive 40% year-on-year increase, the country is further cementing its position as a critical link in the global supply chain. Behind these remarkable figures, however, lies a highly demanding operational reality. Just a single NVIDIA AI chip can retail for up to USD 30,000. Even a minor disruption or transportation incident can result in substantial losses and potentially halt an entire production line.

To gain deeper insights into the logistics behind these high-value shipments, we spoke with Ms. Pham Thu Thuy, Deputy General Director of SOTRANS Logistics.

Transporting High-Value Cargo: When the Margin for Error Is Virtually Zero

Interviewer: Good morning, Ms. Thuy.

Ms. Pham Thu Thuy: Good morning to all readers. I am Pham Thu Thuy, Deputy General Director of SOTRANS Logistics. I am delighted to share some of my experiences from more than 21 years in the logistics industry.

Interviewer: Ensuring that high-value cargo arrives on time and in perfect condition appears to be a daily challenge for logistics providers handling machinery and equipment components. Beyond their monetary value, what are the key characteristics that make this sector so demanding?

Ms. Pham Thu Thuy: In the electronics components industry, we are not simply transporting goods, we are transporting a significant portion of our customers’ assets. With cargo of this nature, the acceptable margin for error is virtually zero. Consequently, operational standards must remain at the highest level, focusing on three key characteristics.

First is structural complexity. Machinery and equipment consist of thousands of individual components. The absence of a single part can bring an entire manufacturing line to a standstill, disrupting production schedules and export commitments.

Second is the challenge of regulatory compliance and customs requirements. Vietnam applies detailed 8-digit HS codes, requiring meticulous declarations for each constituent component. This differs significantly from many countries where a 4-digit classification may be sufficient for an entire machine system. Without a deep understanding of relevant regulations and customs procedures, declaration errors can easily occur.

Third is physical risk and quality control. Electronic components are often small in size but extremely valuable, making them highly vulnerable to loss and mechanical damage. As a result, storage, handling, and inspection requirements are far stricter than those applied to conventional cargo.

Another notable characteristic is that many companies prefer air freight to reduce transit time and minimize risk. However, sea freight remains a practical solution for larger shipments where cost optimization is a priority.

Identifying Bottlenecks in the Supply Chain

Interviewer: In day-to-day operations, what are the major obstacles that most commonly disrupt supply chains?

Ms. Pham Thu Thuy: Most of SOTRANS’ core customers are foreign-invested enterprises (FDIs), and they typically face two major challenges: documentation discrepancies and a lack of understanding of specialized handling requirements.

Regarding documentation, issues often arise because overseas suppliers do not provide information detailed enough to satisfy Vietnamese customs regulations. Therefore, SOTRANS places significant emphasis on pre-clearance document verification and correction to ensure full compliance before formal customs declarations are submitted.

As for handling standards, electronic components possess extremely sensitive physical characteristics. Requirements such as “no stacking” and complex packaging specifications are common. Given the highly sophisticated internal structures of these products, even a minor mishandling incident during loading or transportation can result in irreparable damage. This is why SOTRANS applies specialized operating procedures and stringent management standards for teams responsible for these shipments.

From Documentation Verification to Managing Thousands of Product Codes

Interviewer: With increasingly detailed declaration requirements and constantly evolving regulations, how does SOTRANS support its customers?

Ms. Pham Thu Thuy: At SOTRANS, we do not see ourselves as merely an outsourced service provider. We consider ourselves an integral part of our customers’ operational processes.

We invest heavily in understanding the regulatory framework applicable to each customer’s products. Many advanced technologies imported into Vietnam have unique functions that local regulatory systems may not yet fully recognize. Therefore, we implement dedicated workflows centered around three key pillars: people, technology, and time.

We maintain specialized teams with deep industry expertise and closely monitor customers’ item code systems to ensure consistency between customs declarations and internal material management systems, eliminating data discrepancies.

SOTRANS is also willing to license customers’ proprietary management software to synchronize Certificate of Origin (C/O) declarations, raw material tracking, and finished goods management. For new technologies entering Vietnam for the first time, SOTRANS often begins working with customers two to three months in advance, conducting research and consulting with customs authorities regarding the most appropriate declaration methods.

To ensure smooth customs clearance, we proactively conduct document pre-verification, requesting customers to submit documentation earlier than usual. This allows our specialists sufficient time to cross-check information, review regulations, and determine the most accurate HS classifications. For particularly complex shipments, a single 20-foot container may contain up to 1,000 product codes, making thorough preparation absolutely critical.

Interviewer: Could you share examples of customers with particularly complex machinery and component inventories?

Ms. Pham Thu Thuy: One of our notable projects is our end-to-end logistics service for Bonfiglioli in Binh Duong Province, a manufacturer of electric motors with extremely stringent import requirements.

These components are highly valuable because they utilize rare-earth materials to generate magnetic fields within motors. Such products play critical roles in power generation, wind energy, and solar energy industries worldwide. Beyond the energy sector, SOTRANS also supports companies in various industries. Hoafu Vietnam, for example, operates in the garment industry. Although its final products are textiles, production expansion and productivity improvements require the importation of sophisticated textile machinery and components.

Another recurring challenge involves managing spare parts and warranty-related components. Temporary import–re-export and temporary export–re-import procedures for repair purposes occur frequently in the machinery industry. With our extensive expertise, SOTRANS helps customers optimize these processes and maintain uninterrupted production operations.

Overcoming Time Constraints Through Distribution Hubs and Transportation Capacity

Interviewer: Recently, Decree 168 regarding driver working-hour limitations has created significant pressure on delivery schedules. How has SOTRANS adapted?

Ms. Pham Thu Thuy: Decree 168 imposes strict limits on drivers’ working hours, allowing a maximum of 8-10 driving hours per day and no more than 48 hours per week. In this environment, logistics companies must proactively develop adaptive solutions.

SOTRANS addresses this challenge through a network of strategically located distribution hubs situated near customer manufacturing facilities. Following customs clearance, cargo is transferred to these hubs, standing ready for immediate, on-demand delivery, reducing dependence on long-distance same-day transportation.

This approach shortens last-mile delivery times, minimizes empty mileage, and improves vehicle utilization rates, enabling manufacturers to maintain production schedules despite tighter driving-hour regulations.

Interviewer: As air freight demands exceptional precision in timing, what is SOTRANS’ competitive edge in this sector?

Ms. Pham Thu Thuy: In addition to our strong sea freight capabilities, SOTRANS provides comprehensive air freight solutions through direct contractual relationships with major airlines, including Vietnam Airlines.

A notable example is our transportation project for Samsung electronic products destined for Europe. For major customers, speed and security are non-negotiable priorities. Therefore, we work closely with customers well before shipments are ready, monitoring production schedules and demand forecasts.

Based on projected monthly volumes, we implement pre-fixed bookings, reserving guaranteed cargo space on weekly flights. This capability is only possible for companies with stable cargo volumes and strategic partnerships with airlines. Thanks to the trust we have built with airline partners, SOTRANS can secure cargo capacity even during peak periods when space is severely constrained. If actual shipment volumes fluctuate, airlines continue to prioritize our allocations to ensure transportation plans remain on track.

Interviewer: In other words, SOTRANS’ key advantage is its ability to secure consistent cargo space and ensure priority service for customers?

Ms. Pham Thu Thuy: That’s correct. Through our long-standing partnerships with airlines and our commitment to stable cargo volumes, we are able to secure reliable capacity for our customers, even during peak seasons. Shipment cancellations or delays are therefore kept to an absolute minimum.

Should production plans change, SOTRANS remains agile in reallocating shipments to alternative flights, ensuring continuity across the supply chain while preserving the capacity commitments we have made to our customers.

Risk Management in High-Tech Cargo Transportation

Interviewer: In air freight, how does SOTRANS manage the risk of loss or transit incidents to protect your customers’ interests?

Ms. Pham Thu Thuy: For high-value cargo, we prioritize direct flights to minimize risks at transit points. However, for routes where direct services are unavailable, we flexibly select reputable airlines whose transit hubs are major airports in Asia.

In the event of an incident, SOTRANS activates a multi-layered response process, coordinating closely with our global agent network and the carriers to swiftly track down and resolve the issue. Because customs authorities in importing countries typically require complete shipment clearance rather than partial release, SOTRANS makes every effort to collaborate with all parties to locate any missing package. This ensures the entire shipment lands at the destination airport intact within the shortest possible timeframe, preventing customers from having to make the critical decision to abandon a package in emergency situations.

In addition to our customs brokerage and international freight teams being continuously trained to stay updated on the latest regulations from transport associations and government authorities, SOTRANS also maintains Carrier’s Liability Insurance as a vital layer of protection to mitigate operational risks for our customers.

SOTRANS: A Strategic Partner in the Supply Chain

Interviewer: Looking ahead, how is SOTRANS positioning itself to support customers amid ongoing market changes?

Ms. Pham Thu Thuy: Since the COVID-19 pandemic, SOTRANS has evolved from a traditional service provider into a strategic business partner. We maintain regular communication with customers to better understand how market conditions affect their operations. Whether customers are expanding production or optimizing existing capacity, SOTRANS proactively allocates resources and specialized personnel to support their evolving needs.

The long-standing partnerships we have built with companies such as Colgate, Hoafu, and Bonfiglioli, many of which have remained with us since our early years, serve as the strongest testament to the quality, reliability, and trust that SOTRANS has established over decades.

Interviewer: It is clear that every company faces unique supply chain challenges, from operational risks to compliance requirements. In this context, the role of a logistics provider extends far beyond transportation—it is about ensuring continuity, reliability, and peace of mind for customers’ entire business operations.

Thank you, Ms. Thuy, for sharing these valuable insights into the logistics challenges and solutions surrounding machinery and electronic components.

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Thực hiện và biên tập bởi SOTRANS Group.

(SOTRANS Group News)