Development Plans and Trends of Vietnam’s Logistics Infrastructure

With globalization accelerating and regional economic integration deepening, logistics infrastructure has become a critical element of national competitiveness. As an emerging economic power in Southeast Asia, Vietnam is taking on a growing role in the global supply chain. To support this role, the Vietnamese government has recently released a series of policy documents outlining a roadmap for the future development of its logistics infrastructure.

This document provides an overview and interpretation of Vietnam’s logistics infrastructure development plans and policies, and analyzes the development plans and trends for the next 5-10 years.

Overview of Vietnam’s Logistics Infrastructure

Situated in the heart of Southeast Asia, Vietnam has a 3,000-kilometer coastline, making it a key gateway connecting China, ASEAN, and other Asia-Pacific countries. Vietnam’s logistics infrastructure, which includes ports, airports, railways, highways, and inland waterways, plays a vital role in the country’s economic growth.

Vietnam’s Logistics Infrastructure Development Plans

To boost the logistics sector, the Vietnamese government has developed several policy documents and plans that provide a clear direction for future infrastructure projects.

1. National Logistics Development Master Plan 2020-2030

This plan is a fundamental document designed to promote the growth of Vietnam’s logistics sector, outlining the general direction for infrastructure development over the next decade. Key objectives include:

  • Enhancing the overall efficiency of the logistics sector to reduce logistics costs to 8-10% of GDP.
  • Increasing investment in logistics infrastructure and fostering the development of modern logistics hubs.
  • Promoting multimodal transport to optimize the use of roads, railways, and waterways.

2. Vietnam’s Port System Development Plan 2030

This plan focuses on the development of Vietnam’s port system, with the goal of establishing the country as a regional international port hub by 2030. It includes:

  • Expanding current port facilities to boost cargo handling capacity.
  • Building new ports, particularly in the south, to ease congestion at Ho Chi Minh City’s ports.
  • Enhancing port efficiency through the introduction of automation and digital technologies.

3. National Transportation Infrastructure Development Plan 2021-2030

This comprehensive strategy aims to develop Vietnam’s national transportation network. Key elements of the plan include:

  • Expanding the highway network, with a focus on expressways and cross-border roads.
  • Improving rail transport to increase freight capacity.
  • Promoting inland waterway transport by enhancing the use of rivers and canals.

4. Vietnam’s Logistics Industry Development Strategy 2030

This strategy seeks to enhance Vietnam’s international competitiveness in logistics. It includes:

  • Developing modern logistics parks to support large-scale, efficient logistics operations.
  • Adopting advanced technologies and management practices to improve service capabilities.
  • Promoting cross-border logistics and strengthening partnerships with neighboring countries.

Development Plans for Key Logistics Hubs

Key provinces and cities are critical to developing Vietnam’s logistics infrastructure. These regions serve as engines for economic growth and are core areas for logistics infrastructure expansion.

1.Ho Chi Minh City Logistics Development Plan 2020-2030

Issued by the Ho Chi Minh City People’s Committee, this plan aims to strengthen the city’s role as a national logistics hub. It focuses on expanding and modernizing infrastructure, particularly ports and logistics parks. Key elements include:

  • Expanding Saigon Port and its related facilities to increase cargo capacity.
  • Upgrading cargo facilities at Tan Son Nhat International Airport to meet growing international freight demand.
  • Building additional modern logistics parks in nearby areas like Binh Duong and Dong Nai provinces.
  • Developing smart logistics systems to enhance efficiency through digital solutions.

2. Haiphong City Logistics and Port Development Plan 2020-2030

As the largest port city in northern Vietnam, Haiphong’s plan focuses on expanding and modernizing port infrastructure and improving road and rail networks. Key elements include:

  • Expanding Haiphong Port, particularly the new port area, to handle more international cargo.
  • Upgrading rail freight facilities to improve connections between Haiphong, Hanoi, and southern China.
  • Enhancing road networks to provide faster access between ports and logistics parks.
  • Developing smart logistics parks to boost warehousing and distribution efficiency.

3. Da Nang City Logistics and Transportation Development Strategy 2030

Da Nang, a key gateway in central Vietnam, focuses on developing multimodal transport and logistics parks. Key elements include:

  • Expanding Da Nang Port to increase its cargo handling capabilities as a major port in central Vietnam.
  • Developing a multimodal transport system that integrates sea, rail, and road transport to improve logistics efficiency.
  • Building modern logistics parks that offer integrated warehousing, distribution, and transportation services.
  • Implementing advanced logistics management systems to enhance overall logistics chain efficiency.

4. Binh Duong Province Logistics and Industrial Park Development Plan 2021-2030

As a key logistics and industrial base near Ho Chi Minh City, Binh Duong’s plan emphasizes the integrated development of industrial and logistics parks and the enhancement of road and rail infrastructure. Key elements include:

  • Expanding existing logistics parks to increase storage and distribution capacity.
  • Strengthening road and rail connections with Ho Chi Minh City and nearby provinces through new expressways.
  • Promoting smart logistics systems to improve park management and logistics operations.
  • Developing green logistics by promoting eco-friendly vehicles and energy-saving measures.

5. Dong Nai Province Transportation and Logistics Development Plan 2021-2030

Located next to Ho Chi Minh City, Dong Nai is a vital logistics and transportation hub in southern Vietnam. The plan emphasizes expanding logistics infrastructure and improving transportation links with Ho Chi Minh City. Key elements include:

  • Expanding and upgrading logistics parks, particularly near Long An Port and Tan Son Nhat International Airport.
  • Enhancing road and rail networks to improve connectivity with Ho Chi Minh City and boost freight efficiency.
  • Developing smart transportation systems to increase overall logistics efficiency.
  • Supporting green logistics initiatives to reduce carbon emissions from transportation.

Future Trends in Vietnam’s Logistics Infrastructure Development

Over the next 5-10 years, the development of Vietnam’s logistics infrastructure will likely follow several key trends:

1.Modernization and Expansion of Port Systems

To handle the growing volume of cargo, the Vietnamese government will continue to modernize and expand its port systems. Over the next decade, major expansions are planned for ports in Ho Chi Minh City and Haiphong, along with new deep-water ports in the southern region, such as Cai Mep-Thi Vai Port in Ba Ria-Vung Tau Province, to distribute the load more effectively. The focus will also be on automating and digitalizing port operations to improve efficiency, aiming to establish Vietnam as a regional international logistics hub.

2. Comprehensive Upgrading of Highway and Railway Networks

Vietnam plans to significantly expand and upgrade its national highway and railway networks over the next decade. By 2030, the country’s highway mileage is expected to more than double, connecting all major economic regions and ports. Rail development will focus on north-south and east-west cross-border routes to increase rail freight’s share of national transport. Smart technologies will also be applied to monitor traffic in real-time, further enhancing transportation efficiency.

3. Revival of Inland Water Transport

Inland water transport, a traditional mode in Vietnam, will experience a revival. The government plans to improve river navigation routes significantly, particularly in the Red and Mekong River basins, to increase water transport’s share of national freight. The construction of inland ports and logistics parks will also be enhanced to make water transport more convenient and cost-effective.

4. Upgrading of Air Logistics

As Vietnam becomes a significant manufacturing and export hub in Southeast Asia, air logistics is becoming increasingly important. Over the next decade, Vietnam will focus on developing air freight infrastructure, including expanding and building new air cargo hubs in Ho Chi Minh City and Hanoi to accommodate rising international air freight demand. The emphasis will also be on digitalizing and smartening air logistics through advanced management systems and information platforms to improve efficiency and service quality.

5. Green Logistics and Sustainable Development

In response to growing environmental awareness, Vietnam’s logistics infrastructure development will emphasize green and sustainable practices. The future focus will be on promoting green logistics by encouraging the use of clean energy vehicles, optimizing logistics routes, and reducing carbon emissions to achieve sustainable growth in the logistics sector. Logistics parks and ports will also prioritize environmental protection and energy efficiency, adopting advanced green technologies and management practices to support a sustainable transformation.

Conclusion

Vietnam’s logistics infrastructure development is at a critical juncture. Over the next 5-10 years, the modernization of ports, comprehensive upgrades to highways and railways, the revival of inland water transport, the upgrading of air logistics, and the growth of green logistics will collectively propel Vietnam’s logistics industry to new heights.

Key provinces and cities will enhance their logistics capabilities through substantial infrastructure investments, driving the optimization and modernization of Vietnam’s national logistics network. With the broader adoption of smart logistics technologies and green practices, Vietnam’s logistics sector will become more efficient and sustainable.

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