In recent years, Vietnam has become a popular destination for foreign investment, particularly in manufacturing and logistics, thanks to its low labor costs, stable political environment, and improving transportation infrastructure. The Vietnamese government has also actively implemented policies to modernize and globalize its logistics industry, aiming to make Vietnam a regional and global logistics hub.
According to the Vietnam Logistics Association (VLA), Vietnam’s logistics market size surpassed USD 65 billion in 2023 and is expected to reach USD 67-70 billion. This represents a nearly 50% growth compared to five years ago, with an annual growth rate of 14-16%. This rapid expansion is driven by the development of logistics centers and parks, which enhance efficiency, lower costs, and foster collaboration along the supply chain, significantly boosting Vietnam’s economic growth.
This document explores the main logistics centers and parks in Vietnam, including their basic information, geographic advantages, functions, development trends, investment policies, rental costs, and logistics expenses, providing comprehensive guidance for investors interested in entering or already operating in Vietnam.
Long An Province Logistics Center
1.Overview
Long An Province, a key economic area in southern Vietnam, has developed multiple logistics centers to support transportation and the import/export of goods. These include centers in Thanh Phu, Tan Lap, and Long Hoa communes of Ben Luc District, as well as at Binh Hiep International Border Gate, My Quy Tay Border Gate, and Long An Port. The centers at Thanh Phu Commune and Long An International Port are already operational, supporting industrial manufacturing and trade in Long An Province and the broader southern economic zone.
2. Location
The logistics centers in Thanh Phu, Tan Lap, and Long Hoa communes are situated along the southern coast of Long An Province, offering easy access to ports and highways. The centers at Binh Hiep and My Quy Tay Border Gates are located near key border crossings, facilitating quick cross-border trade. The Long An Port logistics center benefits from direct access to port resources, enabling seamless sea-rail transportation.
3. Functions
These centers offer essential services such as cargo handling, storage, preservation, sorting, and packaging. They also integrate various transportation modes, including road, river, and sea, to facilitate domestic and international cargo transport, logistics, and distribution. Their goal is to shorten supply chain delivery times, reduce costs, and enhance regional business efficiency and competitiveness.
4. Investment Incentives
New logistics projects can enjoy a four-year corporate income tax exemption, followed by a nine-year period at a reduced rate. There are also incentives for land use, with up to a 50% rent reduction for up to seven years. These policies are designed to attract investors to develop local logistics infrastructure. Additionally, partnerships with local educational institutions provide training and workforce development for logistics companies.
5. Logistics Costs
Storage costs range from USD 2.5 to 4 per square meter per month, making Long An Province competitive for regional distribution centers. The province also benefits from lower transportation costs when connecting Ho Chi Minh City and the Mekong Delta due to its strategic location.
6. Development Trends
With continued government investment and policy support, Long An’s logistics centers are advancing towards multimodal transport, digitization, and smart technology. Future developments will focus on leveraging information technology to enhance automation and intelligence in logistics operations, meeting the growing demand for efficient and rapid logistics services.
Ho Chi Minh City Logistics Center
1.Overview
Ho Chi Minh City, as Vietnam’s economic hub, is surrounded by several key logistics centers. These centers serve not only the city’s industrial production and commercial activities but also the broader southern region and the entire country.
2. Location
Most of these logistics centers are located in the suburbs of Ho Chi Minh City or near industrial areas with good transportation access, such as around Tan Son Nhat International Airport, the Saigon Port, and major highways.
3. Functional Positioning
The logistics centers in and around Ho Chi Minh City provide a full range of logistics services, including storage, handling, packaging, and transportation. They are equipped with advanced storage facilities and efficient management systems to meet diverse business needs. They also actively adopt new technologies and intelligent equipment to boost operational efficiency and accuracy.
4. Investment Incentives
Foreign-invested companies in high-tech logistics enjoy a four-year tax exemption and a nine-year reduced tax rate. Large-scale logistics projects may receive land rent reductions of up to 50% for up to 15 years. To attract high-quality logistics talent, the government offers special recruitment programs and training subsidies. The government also promises to accelerate the construction of supporting infrastructure such as roads, electricity, and water supply.
5. Logistics Costs
While logistics costs in Ho Chi Minh City are relatively high within Vietnam, they remain competitive compared to other major regional cities. Container handling fees are around USD 150-200 per TEU, lower than in Singapore and Bangkok. High-standard warehouse rental costs range from USD 4-6 per square meter per month, depending on location and facilities. Labor costs in the logistics sector are 30-40% lower than in Singapore and Malaysia but slightly higher than in other regions of Vietnam.
6. Development Trends
As Ho Chi Minh City continues to grow economically and urbanize, the demand for logistics is increasing. To meet market demand and enhance competitiveness, logistics centers are upgrading and expanding facilities, introducing more smart and green logistics solutions. The government is also increasing support to modernize and internationalize the logistics industry.
Hanoi Logistics Center
1.Overview
Hanoi, as the capital and a political and cultural hub of Vietnam, is also home to several important logistics centers. These centers not only support Hanoi’s commercial and manufacturing activities but also serve as crucial links connecting the northern region to the national logistics network.
2. Location
Most logistics centers in Hanoi are located in the suburbs or near industrial areas with convenient transportation, such as near the Friendship Border Gate, Noi Bai International Airport, and along major transport routes.
3. Functional Positioning
Hanoi’s logistics centers provide a wide range of logistics services, including storage, transportation, distribution, and information processing. They are equipped with modern facilities and efficient management systems to meet the needs of various industries. These centers also actively incorporate new technologies and smart equipment to enhance operational efficiency and accuracy.
4. Investment Incentives
Newly established logistics enterprises in Hanoi enjoy a four-year corporate income tax exemption, followed by a nine-year period at a 10% reduced tax rate, which is significantly lower than the standard 20% rate. For large or high-tech projects, longer preferential periods may be available. The government also offers land rent reductions of up to 50% for up to 15 years, substantially lowering initial setup costs for businesses.
5. Logistics Costs
Storage costs in Hanoi are around USD 3-5 per square meter per month, which is 10-15% lower than in Ho Chi Minh City. Cross-border transportation costs vary depending on the route and type of goods, but overall, they remain competitively priced.
6. Development Trends
As Hanoi’s economy continues to grow and urbanization progresses, the demand for logistics services is steadily increasing. To keep up with market needs and improve competitiveness, logistics centers in Hanoi are continuously upgrading and expanding their facilities, incorporating more smart and green logistics solutions. The government also continues to support the modernization and internationalization of the logistics industry.
Binh Duong Logistics Park
1.Overview
Lazada Logistics Vietnam has established the Lazada Logistics Park in the Song Than 1 Industrial Park in Binh Duong Province, featuring a modern, high-tech goods sorting center. Binh Duong, one of the most urbanized provinces in Vietnam, has developed synchronized and modern transportation infrastructure, creating ideal conditions for logistics park development.
2. Location
Lazada Logistics Park is strategically located within the Song Than 1 Industrial Park in Binh Duong Province, close to major transportation routes and highways, facilitating efficient goods collection and distribution.
3. Functional Positioning
The park revolves around a high-tech sorting center that can process up to 1 million parcels daily with an automation rate of 99%. It utilizes advanced technologies, including artificial intelligence and machine learning, to automate sorting, weighing, measuring, barcode reading, and other logistics processes. The park also features areas for truck unloading, parcel preprocessing, sorting, and dispatching, ensuring smooth and efficient logistics operations.
4. Investment Incentives
To attract investment, the park offers several incentives, including a four-year corporate income tax exemption, followed by a five-year period at a reduced rate for newly established logistics businesses. For large or high-tech projects, longer preferential periods may apply. Land rent reductions of up to 50% for up to 10 years are also available.
5. Park Rental
Rent for standard warehouses ranges from USD 5-7 per square meter per month, depending on the location, facilities, and rental area. Due to the special requirements of cold chain logistics, rents are slightly higher, typically ranging from USD 8-10 per square meter per month. Office space rent is around USD 8-10 per square meter per month.
6. Development Trends
The park’s establishment marks a significant move towards high-tech, intelligent logistics in Vietnam. Future investments will continue to focus on logistics infrastructure, promoting innovation and technology application to meet growing online shopping demands. The park aims to become a critical component of Vietnam’s e-commerce ecosystem, driving rapid development and digital transformation in the sector.
Quang Ngai VSIP Logistics Park
1.Overview
Shengke Logistics Park is the third modern logistics facility by Shengke Industrial in Vietnam and the first in the central region. The park supports the Vietnam-Singapore Industrial Park (VSIP) with a total area of 35 hectares and a total floor area of 50,203 square meters. Built according to the Lotus standards of the Vietnam Green Building Council, the park includes three modern single-story warehouse buildings offering high-performance and sustainable warehousing solutions.
2. Location
The park is located within the Vietnam-Singapore Industrial Park (VSIP Quang Ngai) in Quang Ngai Province, a strategically advantageous location for connecting major domestic markets and international ports.
3. Functional Positioning
Shengke Logistics Park provides a range of modern features, including automated fire protection, loading docks with elevated work areas, high floor load capacities, high ceilings, and 24/7 security and facilities management. These features cater to manufacturers’ needs for efficient, safe, and sustainable warehousing.
4. Investment Incentives
Companies in the park benefit from a 15-year corporate income tax preferential period, including a four-year tax exemption followed by nine years at a 10% tax rate, much lower than the standard 20%. Additionally, there is an 11-year land rent reduction policy, with up to a 50% reduction, significantly cutting initial investment costs.
5. Park Rental
Rent for standard warehouses ranges from USD 3.5-5 per square meter per month, which is 20-30% lower than in major cities. Cold chain warehouse rents, due to their special equipment and operational needs, are slightly higher, typically USD 6-8 per square meter per month. Office space rent is around USD 6-8 per square meter per month.
6. Development Trends
The construction of Shengke Logistics Park represents Shengke Industrial’s expansion in Vietnam’s logistics market. With Vietnam’s ongoing economic growth and rising foreign investment, the park is expected to become a central logistics hub in the region. Shengke Industrial will leverage its global expertise in energy and urban solutions to promote sustainable development within the park.
Bac Ninh Logistics Park
1.Overview
Bac Ninh Logistics Park is a significant logistics hub in northern Vietnam, serving industrial and commercial enterprises in Hanoi and surrounding areas. It is one of the largest modern logistics bases in northern Vietnam, with a total planned area of 200 hectares. The park has attracted numerous prominent domestic and international logistics companies since its opening, becoming a key driver of economic growth in northern Vietnam.
2. Location
Located in Bac Ninh Province, about 30 kilometers from Hanoi, the park is near Noi Bai International Airport. Strategically situated in the Hanoi-Haiphong Economic Corridor, it maintains close links with nearby industrial parks and ports, making it an essential logistics node connecting northern Vietnam with southern China and an ideal distribution base for the Hanoi metropolitan area.
3. Functional Positioning
The park serves as a comprehensive modern logistics base, focusing on warehousing, distribution, and container transshipment. It specializes in high-value-added product warehousing, cross-border e-commerce logistics, cold chain logistics, and bonded logistics. The advanced warehouse facilities cater to the logistics needs of the electronics, machinery, and consumer goods industries.
4. Investment Incentives
Companies in the park enjoy a 10-year corporate income tax preferential period at a 10% rate, significantly lower than the standard 20%. Large projects with investments exceeding USD 100 million may qualify for extended preferential periods. The park also provides one-stop services for resident companies, including business registration, tax consulting, and labor permits, simplifying administrative processes.
5. Park Rental
Rent for standard warehouses ranges from USD 3-4.5 per square meter per month, approximately 25-30% lower than in Hanoi. Cold chain warehouses, requiring specific temperature control and higher operational costs, range from USD 8-10 per square meter per month. Office space rent is around USD 5-7 per square meter per month.
6. Development Trends
As industries in Hanoi and surrounding areas continue to expand, the demand for Bac Ninh Logistics Park is increasing. The park plans further expansions to meet growing logistics needs, focusing on developing a “smart logistics” demonstration area by incorporating 5G and IoT technologies to enhance operational efficiency. It is also developing more cold chain logistics facilities to cater to the rising demand from high-end manufacturing and strengthening logistics cooperation with southern China to optimize cross-border transport routes.
Dong Nai Logistics Park
1.Overview
Dong Nai Logistics Park is an important logistics center located east of Ho Chi Minh City, primarily serving southern and central Vietnam. Situated in a key industrial area in southern Vietnam, it is a strategic logistics hub connecting Ho Chi Minh City to major seaports. The park covers 300 hectares, focusing on warehousing, distribution, and value-added logistics services.
2. Location
The park is located in Dong Nai Province, about 30 kilometers from Ho Chi Minh City and near Bien Hoa Port. Strategically positioned within the Ho Chi Minh City-Dong Nai-Ba Ria Vung Tau economic triangle, the park is well-connected to major industrial parks, ports, and airports.
3. Functional Positioning
Dong Nai Logistics Park primarily focuses on warehousing, transportation, and distribution services, catering to various industries, particularly manufacturing and consumer goods. Key facilities include large distribution centers, cross-border e-commerce warehouses, and specialized hazardous materials warehouses.
4. Investment Incentives
Companies in the park can benefit from a 12-year corporate income tax preferential period, with a 5% rate for the first six years and 10% for the following six, significantly lower than the standard 20% rate. Projects with investments over USD 50 million or employing more than 1,000 people may receive extended preferential periods. Land rent reductions of up to 40% for eight years are also available, helping reduce initial business costs.
5. Park Rental
Rent for standard warehouses ranges from USD 4-6 per square meter per month. Hazardous materials warehouses, requiring special handling, are more expensive, ranging from USD 10-12 per square meter per month. Office space rent in the park is around USD 7-9 per square meter per month.
6. Development Trends
Dong Nai Logistics Park, with its strategic location and comprehensive logistics facilities, aims to expand its service range further and become a regional logistics hub. The park is enhancing multimodal transport services to improve connectivity with nearby ports and airports and investing heavily in smart logistics technologies, such as automated warehousing and AI-driven distribution optimization. It is also expanding its cross-border e-commerce logistics center to capitalize on the growing e-commerce market in Southeast Asia.
Conclusion
As globalization accelerates and Vietnam continues to rise as an emerging market, its logistics industry is undergoing significant transformation and development. In the future, as a vital bridge between Southeast Asia and China, Vietnam’s logistics system will continue to support rapid domestic economic growth and remain a significant attraction for international investors.
The development of Vietnam’s logistics centers and parks will focus on increasing digitization and intelligence, promoting green logistics, improving multimodal transport systems, strengthening international and regional cooperation, and innovating services with customized solutions. These trends will collectively drive Vietnam’s logistics industry towards greater efficiency, sustainability, and global competitiveness.
