Over the past four years, the EU-Vietnam Free Trade Agreement (EVFTA) has significantly bolstered trade relations between Vietnam and the European Union. According to Nguyen Cao Hien, Deputy Director of the European and American Markets Department at the Ministry of Industry and Trade, this agreement has been pivotal in driving bilateral trade growth. Data from the first eight months of 2024 indicate that trade between the two parties reached nearly $45 billion, a 15.8% increase, with Vietnam’s exports to the EU reaching $34.1 billion, up by 17.4%. This success reflects not only the EU’s economic recovery but also the adept utilization of the EVFTA by Vietnamese enterprises.

However, as trade scales up, the logistics industry faces increasing challenges. Nguyen Cao Hien emphasized that while Vietnam’s logistics sector has actively contributed to Vietnam-EU trade, there is a need for improvements in infrastructure, operational capacity, and cost management to enhance export efficiency and competitiveness.

Chandler So, CEO of GEODIS (Vietnam), noted that Vietnam’s participation in various free trade agreements has boosted its production capabilities, benefiting export development. He highlighted that trade wars and pandemics have pushed companies to diversify their transportation networks, helping Vietnam become a leading manufacturing hub in ASEAN.

Maritime economist Carlos Zepeda predicts that by 2050, container trade between Vietnam and Europe could double. He stressed the need for Vietnam to improve infrastructure, optimize major port operations, and coordinate with industrial zones and clusters to enhance transport efficiency and reduce logistics costs.

Tran Ngoc Quan, Vietnam’s Commercial Counselor in the EU and Belgium, pointed out that post-pandemic labor shortages, the Russia-Ukraine conflict, and tensions in the Red Sea have led to significant transportation difficulties. Since early 2024, shipping costs from Vietnam to the EU have doubled, severely affecting the competitiveness of Vietnamese goods. Additionally, the EU’s demands for logistics transformation, including maritime emission controls, pose new challenges for Vietnamese exporters.

Truong Tan Luc, Marketing Director of Saigon Newport Corporation, stated that the main challenge for Vietnamese port enterprises is infrastructure limitations. Currently, Vietnamese ports can only accommodate vessels below 14,000 TEU, while ships from the EU often reach 24,000 TEU. The global economic downturn has also caused fluctuations in Vietnam’s main export markets, such as the US and the EU, affecting transport price stability and port operations.

In light of these challenges and opportunities, Vietnam’s logistics industry must rethink its development strategies to fully leverage the potential benefits of the EVFTA while adapting to changes in the global trade environment.

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