Vietnam’s logistics industry has emerged as a vital component supporting the country’s robust economic development and integration into the global market. With Vietnam’s strategic location as a gateway to Southeast Asia and its extensive coastline, the country has significant potential to become a regional logistics hub.

In recent years, the sector has experienced rapid growth. This is largely driven by the expansion of international trade, foreign direct investment (FDI), and Vietnam’s increasing role in global supply chains. Key markets such as the U.S., EU, and China have helped boost demand for effective logistics services, ranging from transportation and warehousing to freight forwarding and last-mile delivery.

Despite its potential, the industry faces certain challenges. Infrastructure development, although improving, still requires significant investment, particularly in seaports, highways, and intermodal transport systems. High logistics costs—one of the highest in Southeast Asia—remain a key issue, accounting for approximately 16-20% of Vietnam’s GDP, which affects the nation’s competitiveness. Additionally, fragmented logistics players and the lack of digitalization create inefficiencies.

Nonetheless, Vietnam’s government is committed to improving the logistics industry. The establishment of better policies, modernization of infrastructure, and promotion of digital transformation are paving the way for improvement. With the rise of e-commerce, companies are increasingly adopting technological solutions, further shaping the future of logistics in the country.

As Vietnam continues to industrialize and urbanize, the logistics sector is poised to play a crucial role in sustaining economic growth and enhancing global connectivity.