Taking advantage of its central location in the Southeast Asian corridor, Vietnam can develop synchronous infrastructure, promote regional connectivity, and form the role of the region's distribution "heart".
The strategy for developing logistics services for the period 2025-2035, with a vision to 2050, was approved by the Prime Minister on October 9, marking a long-term plan to enhance the industry's competitiveness. In particular, the Government's viewpoint is to develop logistics services into an important economic sector; with high added value, high knowledge content, efficiency, and sustainability in terms of economy, society, and environment, with many components participating.
In the period 2025-2035, the target is to have the proportion of logistics services in GDP reach 5-7%. Logistics costs per GDP decrease to 12-15%, ranking LPI (logistics performance index published by the World Bank) in the top 40 countries. Vietnam will develop at least 5 modern, international logistics service centers.
By 2050, the logistics ratio to GDP will reach 7-9%. Logistics costs to GDP will decrease to 10-12%. LPI index will be among the top 30 countries. During this period, our country expects to have 10 modern logistics centers on par with international standards. 90% of skilled workers, of which 50% have university degrees or higher.
To implement this, the Government has proposed many groups of solutions. Notably, investment in logistics infrastructure including roads, railways, waterways, aviation, supply centers, smart warehouses, specialized warehouses, free trade zones, etc. The solution also mentions investment in building a fleet of cargo planes and international transit ports in Vietnam.
The strategy states that the Red River Delta, the Southeast, and the Central regions are selected to become international logistics service centers. Hanoi, Hai Phong, Ho Chi Minh City, and Da Nang are the respective growth poles of these three dynamic regions. By 2050, these three dynamic regions will be expanded to neighboring localities, along major traffic routes.
Vietnam also invites multinational corporations to invest in large-scale logistics projects that can participate in the global supply chain. Our country can take advantage of its central position in the Southeast Asian economic corridor to call on global goods distribution corporations to build distribution centers for the region.
The Government will plan to support the establishment and development of internationally competitive logistics service enterprises, providing integrated 4PL and 5PL logistics services. The State will support logistics service enterprises in establishing an agency system, gradually moving towards establishing representative offices and branches abroad.
The strategy also mentions technology development through the establishment of research centers, developing solutions to optimize transportation routes, automate transportation and storage processes. The government wants to form and develop a logistics service technology market, develop a network of intermediary organizations of the science and technology market, and a technology database system to support businesses.
According to Imarc’s report on the Vietnamese logistics market, the industry’s size will reach over $30 billion by 2024 and is expected to reach $40 billion by 2025. According to the LPI, Vietnam currently ranks 43rd globally. The report said the industry is driven by strong export manufacturing, a steady rise in online shopping, improved transport and port infrastructure, and steady investment in digital tracking systems and smart warehousing. Trade agreements, low labor costs, and supportive government policies all help to transport goods efficiently.
According to the report of the Ministry of Industry and Trade, in the first 9 months of 2024, the country had 6,500 newly registered logistics enterprises with nearly 30,000 employees. The country has about 4 million square meters of warehouse floor space. The seaport system ranks 3rd in the ASEAN region.
In terms of emerging markets, Vietnam is in the top 10 out of 50 global markets, according to the emerging market index of the Agility Logistics and Transportation Services Provider. Among them, the criteria for international logistics opportunities ranked 4th in the world and is considered the country with the leading logistics development potential in Southeast Asia.
(According to VnExpress)Vietsun Logistics provides all domestic logistics solutions to help customers connect domestic markets with the region.