Vietnam Logistics and the aspiration to reach regional level

PGS.TS Ngô Trí Long – chuyên gia kinh tế |

With the goal of becoming a logistics center of the region, Vietnam needs to reduce costs and improve quality with institutions, infrastructure and human resources.

Cost and regional linkage problem

Vietnam's logistics is growing rapidly and is becoming a foundational service industry. The average growth rate is about 14–16%/year, market size is about 45–50 billion USD, equivalent to approximately 10% of GDP and about 5% of import and export turnover. However, a leading logistics center must meet 3 conditions: truly smooth multimodal connectivity infrastructure; low and predictable compliance procedures and costs; value-added services strong enough to "hold goods" and "maintain flow" in Vietnam, instead of just passing by.

In 2025, government leaders pointed out many "bottlenecks" of Vietnam's logistics, notably high costs, regional linkages and infrastructure connections are not synchronized, businesses are mostly small and medium-sized, and green digital transformation has not met requirements...

From practical operation, it is possible to systemize it into 6 major bottlenecks:

Logistics costs are still high and "hidden costs" in the chain are still numerous. Infrastructure and transport organization are strong in roads, weak in multimodal "backbones". Regional linkages and logistics center planning are not sufficiently "network-based". We have many industrial parks, many ports, many border gates, but have not created a "hub map" according to the principle of each region a dynamic center + satellites, connected by clear transport corridors. When regional linkages are lacking, goods have to go around, businesses have to "bridge the bridge" themselves at their own expense. Enterprises are large but small; lack of integrated service providers (3PL/4PL). Digital transformation lacks data standards, lack of integration, lack of digital human resources. Green logistics puts increasing pressure on carbon standards and the requirement for "sustainable supply chains".

Institutional and infrastructure breakthrough

To reach the position of leading logistics center, Vietnam needs a synchronous solution package according to the principle of institutions go first - infrastructure follows - businesses and human resources are the center - data is the foundation.

Institutional breakthrough to reduce compliance costs, creating a "procedural highway".

First, standardize and simplify logistics-related procedures in the direction of one-stop shop - digitization - predictability. Unify specialized inspection processes according to risk management; reduce the rate of duplication of inspections. Promote the connection of logistics data with the national/ASEAN one-stop shop mechanism according to the orientation emphasized at policy forums. Second, create a stable legal framework for logistics centers, ICDs, bonded warehouses, cold logistics, and e-commerce logistics. The point that needs to be changed is that the "definition - standards - conditions - incentives" must be clear, avoiding each locality understanding in a different way.

Infrastructure breakthrough prioritizes "couloirs" and "bottles" to create network effects. It is necessary to focus on the logic of "couloir - gateway - rear". Seaport corridor - ICD - industrial park reduces congestion, reduces transshipment, increases cargo collection capacity; Railways and inland waterways enhance the role of large volume transport, reduce road pressure, reduce emissions; Modern logistics centers. The strategy sets a target for the period 2025-2035 to build at least 5 modern logistics centers of international stature, towards 10 centers by 2050. This is a "key" point without standard logistics centers, Vietnam is difficult to play the role of transshipment - distribution in the region.

To become a "hub", Vietnam needs a strong enough force of 3PL/4PL enterprises. Encouraging the formation of leading enterprises through long-term credit mechanisms, green logistics development funds, investment incentives for warehouses and technology; the orientation of supporting green and digital transformation has also been emphasized at the policy level.

Digital transformation builds "national logistics data infrastructure". If the hard infrastructure is roads - ports - warehouses, then the soft infrastructure is data. Building logistics data standards (location codes, route codes, cargo codes, EDI/API standards), creating conditions for integration between customs - ports - shipping lines - warehouses - businesses. Supporting SMEs to apply WMS/TMS, eDO, e-invoice, real-time tracking; because digital transformation in reality still faces many difficulties at the business level.

Green logistics turns standard pressure into a competitive advantage. Prioritize fuel-efficient vehicles, optimize load capacity, optimize routes; develop waterway/railway transport for large volumes of goods. Encourage green rooftop solar warehouses, energy management, and construction standards. Pilot "green logistics corridor" associated with ecological industrial parks and green ports. The spirit of "green – digital – smart" has been emphasized as a central development direction.

PGS.TS Ngô Trí Long – chuyên gia kinh tế
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