Assessing the Capability of Cross Border Transportation Operators in Savannakhet Province, Laos PDR – Vietnam

Abstract

The objectives of this research were to 1) study the factors in assessing the capacity of cross-border transport operators in Savannakhet Province, Lao PDR – Vietnam, 2) assess the management capability of cross-border transport operators in Savannakhet Province, Lao PDR – Vietnam and 3) propose the suggestions for increasing cross-border transportation operators' service efficiency. The research technique was a quantitative survey of cross-border freight forwarders and users in Savannakhet Province, Lao PDR, using a questionnaire. The sample was split into two groups: eight cross-border freight forwarders and 153 cross-border freight forwarders.

The results of the assessment of the capability of cross-border transport operators revealed that the majority of cross-border transport operators were small and medium-sized companies. The transport operators rated their management capabilities as good in all eight criteria, with vehicle management being the highest operational capability, followed by operational capability and overall organizational aspect respectively. In comparison to foreign competitors in Vietnam, the results of the operational capability and competitiveness assessment were favorable. The major problems and obstacles in transportation in Vietnam were the country’s law and regulations. In terms of user evaluation, it was discovered that service customers rated cross -border transport carrier's capacity lower than the cross -border transport carrier's self-assessment in every aspect. The organization's overall capability assessment was the lowest. The researchers proposed three approaches for enhancing operator’s competency in cross-border transportation operator’s competency in cross-border transportation operators were opportunity creation strategy, risk reduction strategy and capability building strategy.