The relationship between international trade and logistics performance

Recent research highlights the complexity of the relationship between logistics performance and international trade; the efficiency of logistics plays an important role in international trade. In terms of global supply chain, logistics efficiency is the determinant of international trade flow and logistics cost reduction, is which measured by logistics performance. In general, logistics is an important measure of trade flows in the global supply chain, and it is necessary to analyze countermeasures at regional or country level, given the fundamental pillars of a country’s economic development.

Therefore, this study analyzes the impact of logistics performance on international trade, focusing on Vietnam. In addition, it identifies the factors of logistics performance that affect each commodity item from an industrial perspective. The analysis focused on Vietnam owing to its export-dependent economic structure and the special nature of the overseas markets.

The results indicated that components of the Logistic Performance Index (LPI) are significantly relevant to international trade. In particular, the components of the LPI illustrate different influences by international trade commodity. It was also confirmed that the priorities of logistics performance factors have different effects depending on import and export items. Consequently, the estimation results suggest that to promote international trade in the global economy, improving logistics services such as international transportation, tracking and tracing, and timeliness should be prioritized.

International trade is one of the key determinants that influence international competitiveness. For this reason, numerous countries are focusing on “trade facilitation” for economic growth through increased international trade. This is because international competitiveness depends on the ability to manage logistics in today’s global business environment. Logistics has become a key element of international trade as the importance of international competitiveness increases due to globalization, and the efficient service of such logistics ensures trade flows within the global supply chain and the reduction of logistics costs between countries. In other words, globalization will increase the importance of logistics services not only by expanding trade and production networks between countries but also by building national production capabilities.

Logistics is the process of maximizing management such as procurement, movement of goods, and inventory through the organization and supply chain. Logistics has become the back-bone of the global economy, and is driven by production and consumption; however, until recently, logistics services have been considered secondary factors. However, Logistics is regarded as an important factor for sustainable development because it is related to various industries and directly and indirectly affected by changes in industrial structure.

Therefore, understanding international logistics performance should be priority in order to increase international trade. Logistics performance is an important factor in developing a country’s competitiveness and prosperity, and it emphasizes logistics measurement at the regional or national level because it plays an important role in analyzing trade flows. Therefore, understanding international logistics performance should be priority in order to increase international trade. To this end, it is necessary to understand the logistics performance at the national level in order to establish a plan for future trade and transportation promotion policies…