Dr. Nguyễn Văn Hội, General Director of the Ministry of Industry and Trade’s Vietnam Institute of Strategy and Policy for Industry and Trade, recently discussed Vietnam’s significant potential to become a leading logistics hub in both regional and global contexts. He highlighted the country’s strategic geographical location, extended coastline of over 3,260 kilometers, and a network of deep-water ports suitable for large vessels, all of which provide Vietnam with essential advantages for logistics development. With more than 4,000 islands, many are posited to be developed into deep-water ports, enhancing logistics capabilities further.
Vietnam’s growing trade landscape also bolsters its logistics sector. Export turnover was projected to reach around $800 billion in 2024, with expectations of exceeding $900 billion by the end of 2025. The domestic market is equally robust, forecasting total retail sales of approximately VNĐ6.3 quadrillion in 2024, likely rising to VNĐ7 quadrillion in 2025. With these promising trends and the existing Maritime Economic Development Strategy, Vietnam’s logistics industry is poised for substantial growth over the next five to ten years.
Despite these advantages, several challenges must be addressed to realize this potential. One of the primary concerns is the high logistics costs, with Vietnam ranking among the highest worldwide. Dr. Hội pointed out that inadequate mechanisms and policies, despite improvements in road and highway infrastructure, are critical barriers. Furthermore, logistics infrastructure—including service centers and technology—remains underdeveloped due to insufficient investment. Human resources are also a problem, lacking both in quantity and quality within logistics enterprises.
In terms of technology, Vietnam faces constraints in applying advanced solutions for traceability and cargo management, which are increasingly vital in global logistics operations.
To address these challenges and foster development, Dr. Hội emphasized several priority solutions. First, it is essential to improve existing mechanisms and policies, especially revising the outdated Commercial Law of 2000 to better reflect current logistics practices. A resolution from the National Assembly aimed specifically at logistics sector development could further support this goal.
Alignment and refinement of existing laws to facilitate the logistics industry’s growth according to national strategies are also recommended. Strengthening human resource training through educational institutions and government agencies focused on logistics is crucial.
Moreover, amending the Planning Law to define logistics service centers connected to seaports and major transport corridors could enhance the efficient use of logistics infrastructure. Dr. Hội concluded that these steps are vital for Vietnam to overcome current challenges and fully capitalize on its logistics potential, positioning the country as a significant player on the global logistics stage.
