Vietnam positions logistics as strategic growth engine

Speaking at the Vietnam Logistics Forum 2025 on November 29 in Danang, Prime Minister Pham Minh Chinh proclaimed that logistics is the lifeblood of the economy, contributing to growth and enhancing national competitiveness.

Local logistics have recorded positive results in recent times: services have grown steadily by 14-16 per cent, per year, contributing 4.5-5 per cent of GDP, ranking 43 out of 139 in terms of logistics performance index and in the top five among ASEAN members.

The country boasts more than 34,000 logistics businesses, many of which have participated in the global supply chain and applied high technology.

The PM, however, noted that the logistics industry still has many obstructions: notably high costs of about 16 per cent, exceeding the world average by 11-12 per cent.

With an expected import-export value of $900 billion, by reducing logistics costs by just 1 per cent, Vietnam can save $9 billion, said PM Chinh. “Reducing costs by 5 per cent could therefore save $45 billion. This figure is very convincing and further shows the need for drastic innovation,” said the PM.

Addressing the forum, Minister of Industry and Trade Nguyen Hong Dien acknowledged that Vietnam’s logistics industry has not been developing commensurate with its potential.

Costs remain high compared to the region, reducing competitiveness; regional connectivity and infrastructure connection are not yet synchronised; and high-quality personnel are still lacking. Digital transformation and green transformation are still in the early stages and there is no shared database.

“These are major issues that need to be removed with synchronous and feasible solutions to unlock resources and boost the development of the industry,” said Minister Dien.

To overcome this, the PM requested ministries, sectors, and localities to focus on tackling existing problems. The Ministry of Industry and Trade (MoIT) must implement the logistics strategy towards 2035; the Ministry of Finance must complete the one-stop mechanism, deploy smart customs, and complete the National Investment Portal; and the Ministry of Construction must plan modern logistics infrastructure, connect regions, and meet climate change response demands.

Other ministries and sectors must build a complete and interconnected logistics database, while localities such as Danang, Haiphong, and Ho Chi Minh City are tasked with accelerating the formation of free trade zones and international financial centres. The entire sector must increase international cooperation and connect more widely to reduce costs and apply new tech.

The government also identified that advances are required in terms of institutions, infrastructure, and human resources in order to reduce costs and improve productivity.

Dao Trong Khoa, chairman of the Vietnam Logistics Service Association, said that as Vietnam is entering a new playing field, it demands a logistics infrastructure commensurate in terms of scale, quality, and level of international integration.

Khoa proposed that the Prime Minister recognise May 6 every year as Vietnam Logistics Day to honour the 80-year history of logistics service development. “This will be an annual traditional communication and education highlight for the business community and localities,” Khoa said.

Vietnam currently has the third-largest trade scale in ASEAN, and 32nd in the world. It is listed in the top 20 economies with the largest international trade scale and the top 15 in pulling in foreign investment.

In recent years, the logistics industry has maintained an average growth rate of 14-16 per cent annually, more than twice the world’s average figure.