Prime Minister Pham Minh Chinh, speaking at the Vietnam Logistics Forum 2025 in Danang, has emphasised the crucial role of logistics as the lifeblood of the Vietnamese economy. He highlighted its significant contribution to economic growth and the enhancement of national competitiveness.
The Vietnamese logistics sector has demonstrated positive performance in recent years, marked by:
- Steady growth of 14-16 per cent annually.
- A contribution of 4.5-5 per cent to the nation’s GDP.
- A ranking of 43 out of 139 in the Logistics Performance Index.
- A position among the top five logistics performers within ASEAN.
Vietnam currently boasts over 34,000 logistics businesses, many of which are actively participating in global supply chains and implementing advanced technologies.
However, despite these achievements, Prime Minister Chinh pointed out persistent challenges within the logistics industry, notably the high costs, which are approximately 16 per cent, exceeding the global average by 11-12 per cent. He stressed the potential savings that could be realised through cost reduction.
- Reducing logistics costs by just 1 per cent could save Vietnam $9 billion, based on an expected import-export value of $900 billion.
- Reducing costs by 5 per cent could potentially save $45 billion.
“This figure is very convincing and further shows the need for drastic innovation,” he asserted.
Minister of Industry and Trade Nguyen Hong Dien, also addressing the forum, acknowledged that Vietnam’s logistics industry has not been developing at a pace commensurate with its potential. He identified several key issues hindering its progress:
- High costs compared to regional competitors, impacting overall competitiveness.
- Insufficient synchronisation in regional connectivity and infrastructure.
- A shortage of highly skilled personnel.
- Digital transformation and green initiatives are still in their nascent stages.
- The absence of a unified, 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,” Minister Dien stated.
Addressing the Challenges: Government Initiatives
To tackle these challenges, Prime Minister Chinh has directed various ministries, sectors, and localities to focus on resolving existing problems. The specific responsibilities assigned include:
- Ministry of Industry and Trade (MoIT): Implement the logistics strategy towards 2035.
- Ministry of Finance: Finalise the one-stop mechanism, deploy smart customs solutions, and complete the National Investment Portal.
- Ministry of Construction: Plan modern logistics infrastructure, connect regions effectively, and address climate change response demands.
Furthermore, other ministries and sectors are tasked with building a complete and interconnected logistics database. Localities, including Danang, Haiphong, and Ho Chi Minh City, are expected to accelerate the establishment of free trade zones and international financial centres. The government is urging the entire sector to enhance international cooperation and broaden connections to reduce costs and adopt new technologies.
The government has recognised that improvements are necessary across institutions, infrastructure, and human resources to drive down costs and boost productivity.
Industry Perspective: Vietnam Logistics Day Proposal
Dao Trong Khoa, chairman of the Vietnam Logistics Service Association, highlighted the need for a logistics infrastructure that aligns with Vietnam’s growing prominence on the global stage. He emphasised the importance of scale, quality, and international integration.
Khoa proposed the recognition of May 6 as Vietnam Logistics Day to commemorate the 80-year history of logistics service development in the country.
- “This will be an annual traditional communication and education highlight for the business community and localities,” Khoa explained.
Vietnam’s Position in Global Trade
Vietnam currently holds the third-largest trade scale in ASEAN and ranks 32nd globally. It is among the top 20 economies with the largest international trade scale and the top 15 in attracting foreign investment. The logistics industry has consistently achieved an average growth rate of 14-16 per cent annually, which is more than double the world’s average.