VN urged to unlock bottlenecks to boost logistics

December 29, 2025 - 21:03
In recent years, the country’s logistics services industry has experienced strong expansion, gradually establishing a presence in regional and global markets. However, development still falls short of Việt Nam's potential and advantages.

 

A container storage yard at Cát Lái Port in HCM City. VNA/VNS Photo

HÀ NỘI — Việt Nam needs coordinated short- and long-term measures to secure rapid and sustainable growth in its logistics sector, experts have said.

Situated in one of the world’s most dynamic economic regions, Vietnam benefits from concentrated trade flows and a highly open economy, ranking third in ASEAN and 32nd globally. It is also among the world’s top 20 countries in terms of international trade scale and among the top 15 for foreign direct investment (FDI) attraction, offering significant opportunities for logistics development.

Recognising the sector’s importance, the Party and State have issued mechanisms and policies aimed at removing bottlenecks, cutting costs and improving competitiveness.

According to the Ministry of Industry and Trade, thanks to strong Government direction and active engagement from ministries and localities, Vietnam’s logistics sector has recorded annual growth of 14–16 per cent, more than double the global average. The market is now valued at US$45–50 billion, equivalent to around 10 per cent of GDP. In 2025, Vietnam ranked among the world’s top 10 emerging logistics markets, top four in the region for logistics opportunity, top five in ASEAN and top 40 globally in logistics performance.

However, logistics costs remain high compared with regional peers, weakening competitiveness. Infrastructure and regional connectivity are uneven, while shortages of skilled workers persist. Digital transformation and green logistics are still at an early stage. Experts warn that these bottlenecks must be tackled through feasible, well-coordinated solutions.

Coordinated measures

The Prime Minister on October 9 issued Decision No. 2229/QD-TTg approving the Strategy for the Development of Vietnam’s Logistics Services for 2025–2035, with a vision to 2050. It targets a sustainable, efficient and high-value-added sector with strong international competitiveness. By 2035, logistics is expected to contribute 5–7 per cent of GDP, grow 12–15 per cent annually and reduce logistics costs to 12–15 per cent of GDP.

Deputy Director of the Agency of Foreign Trade Trần Thanh Hải said Vietnam must refine its legal framework, invest in modern infrastructure, enhance regional connectivity, develop supply sources and markets, promote innovation and digitalisation, advance green logistics and train high-quality human resources, while building a national logistics database.

At the 2025 Vietnam Logistics Forum, international experts proposed further measures. Professor Thomas Sim, President of the International Federation of Freight Forwarders Associations (FIATA), said global logistics is rapidly shifting towards smart logistics. Vietnam, he noted, should seize opportunities to become ASEAN’s smart multimodal hub, accelerate digital trade integration, develop future-ready logistics zones and tap cross-border e-commerce. FIATA is ready to support Vietnam in training, digital standards, multimodal connectivity and green logistics.

Vietnam Logistics Business Association (VLA) President Đào Trọng Khoa proposed strengthening the national logistics coordination mechanism and establishing a national logistics office under the Ministry of Industry and Trade to consolidate policy inputs and act as a bridge with the business community. VNA

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