In recent years, the Vietnamese government has been actively working to develop the logistics industry to support its fast-growing manufacturing and export sectors. Vietnam, as a key player in Southeast Asia, benefits from a strategic location that offers excellent connectivity to global markets.
To enhance logistics efficiency, lower costs, and meet international standards, the Vietnamese government has introduced a range of policies and regulations. These are focused on improving infrastructure, optimizing supply chain management, and encouraging the use of modern logistics technologies.
This guide provides a detailed look at the latest policies in Vietnam’s logistics industry and analyzes their potential effects on businesses and the overall market.
Background of Vietnam’s Logistics Policies
1.1 Government Development Plans
The Vietnamese government has laid out several plans to develop the logistics sector, aiming to reduce logistics costs as a percentage of GDP from 20% to between 16% and 18% by 2025. Key documents like the “2021-2030 Logistics Services Development Plan” and the “Vision for 2030” are central to modernizing the logistics industry. These plans involve significant investments in infrastructure such as ports, airports, roads, and railways to boost both domestic and international logistics efficiency.
1.2 Strengthening of Logistics Laws and Regulations
To further regulate the logistics market, the Vietnamese government has updated existing laws and regulations. For example, revisions to the “Investment Law” and the “Enterprise Law” have simplified entry requirements for foreign businesses in the logistics sector, allowing more foreign companies to enter the Vietnamese market. New regulations have also been introduced concerning warehousing management, cargo transport, and customs procedures to ensure transparency and efficiency in logistics operations.
Key Interpretations of Logistics Policies
2.1 Investment in Infrastructure Development
The Vietnamese government is ramping up investment in logistics infrastructure, particularly in ports and airports. In recent years, several port expansion projects have been approved, such as the expansion of Cai Mep Port in Ho Chi Minh City and the development plan for Lach Huyen Port in Haiphong. These projects aim to increase cargo handling capacity, reduce bottlenecks, and strengthen Vietnam’s role as a regional transshipment hub. In air logistics, Vietnam is expanding Noi Bai International Airport in Hanoi and Tan Son Nhat International Airport in Ho Chi Minh City to boost air cargo capacity.
In addition, Vietnam is investing heavily in the construction of road and rail networks to improve domestic logistics connectivity. The “2021-2025 National Transport Development Strategy” plans to build and upgrade over 5,000 kilometers of expressways and new railway lines to better connect inland regions with major ports and airports. These infrastructure projects are expected to lower transportation costs and improve logistics efficiency.
2.2 Digital Transformation and Smart Logistics
The Vietnamese government recognizes the importance of digital transformation in modern logistics and encourages logistics companies to adopt advanced technologies. To promote digital logistics, Vietnam has introduced several policies to support the use of cloud computing, big data, the Internet of Things (IoT), and blockchain technology in the logistics sector. These technologies help improve supply chain visibility and efficiency while reducing labor costs and errors. For instance, Vietnam has launched the National Logistics Platform (VLP) to integrate logistics resources across the country, enhancing information sharing and collaboration.
Moreover, the government is working on an Electronic Logistics Bill to standardize logistics data and ensure security, promoting the use of electronic documentation. This bill aims to reduce paperwork, lower administrative costs, and modernize logistics processes.
2.3 Opening the Market to Foreign Investment
To further open the logistics market and attract foreign investment, the Vietnamese government has revised the “Investment Law” to relax restrictions on foreign investments in logistics. Under the new rules, foreign companies can own up to 100% in areas like warehousing, transport, and logistics services, creating more opportunities for international logistics companies to enter the market.
Additionally, Vietnam has signed Free Trade Agreements (FTAs) with several countries and regions, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP). These agreements reduce trade barriers and promote further development and openness in the logistics market.
2.4 Overview of Major Logistics Policies
| Policy Name | Issuing Department | Date of Issue | Key Points |
| “2021-2030 Logistics Services Development Plan” | Vietnam Ministry of Transport | January 2021 | Aims to improve logistics infrastructure, streamline logistics service processes, and boost efficiency, with a goal to reduce logistics costs as a percentage of GDP to 16%-18% by 2030. |
| “2021-2025 National Transport Development Strategy” | Vietnam Ministry of Transport | February 2021 | Plans to invest in building and upgrading 5,000 kilometers of expressways and several new rail lines to improve connectivity between inland areas and major ports and airports, thus reducing transportation costs. |
| “Vietnam Logistics Industry Digital Transformation Initiative” | Vietnam Ministry of Industry and Trade | May 2022 | Promotes the use of advanced technologies such as cloud computing, big data, IoT, and blockchain in logistics, encouraging businesses to digitize operations to enhance supply chain visibility and efficiency. |
| “Investment Law” (Revised Edition) | Vietnam National Assembly | January 2021 | Eases restrictions on foreign investments in logistics, allowing 100% foreign ownership in warehousing, transport, and logistics services to promote market openness and foreign entry. |
| “Electronic Logistics Bill” | Vietnam Ministry of Information and Communications | March 2023 | Sets standards for electronic logistics and data security, promotes digitalization and standardization of logistics processes, reduces paperwork, lowers administrative costs, and speeds up modernization. |
| “Customs Modernization Plan” | Vietnam Ministry of Finance (General Department of Customs) | August 2022 | Focuses on simplifying and digitizing customs procedures, promoting smart customs systems, and adopting electronic clearance systems to boost logistics efficiency, reduce clearance time, and lower costs. |
| “Policy on Port and Airport Infrastructure Expansion” | Vietnam Ministry of Transport | October 2022 | Approves several port and airport expansion projects, including Cai Mep Port in Ho Chi Minh City and Noi Bai International Airport in Hanoi, to enhance cargo handling and air freight capabilities, supporting Vietnam’s position as a regional logistics hub. |
| “Green Logistics Development Strategy” | Vietnam Ministry of Natural Resources and Environment | February 2023 | Encourages the growth of green logistics through policies and incentives, including the use of low-emission vehicles, route optimization, and reduced carbon emissions to support sustainable development. |
| “Vietnam Warehousing and Distribution Development Policy” | Vietnam Ministry of Industry and Trade | May 2023 | Supports the development of modern warehousing facilities, optimizes warehouse network layouts, and particularly encourages the development of cold chain logistics to meet the logistics needs of special goods like agricultural products and pharmaceuticals. |
Analysis of Policy Impact
3.1 Impact on Domestic Companies
These new policies will have a significant impact on Vietnamese logistics companies. First, investment in infrastructure and the push for digital transformation will enhance logistics efficiency and reduce costs for domestic businesses. Companies can leverage improved transport networks and digital tools to optimize supply chain management and boost operational efficiency. Additionally, relaxing foreign investment restrictions will increase competition, prompting local companies to improve service quality and technological capabilities. Although this could pressure some small and medium-sized logistics firms, the overall market opening will drive modernization and development across the industry.
3.2 Impact on Foreign Companies
For foreign companies, Vietnam’s further market opening offers new growth opportunities. Foreign enterprises can enter the Vietnamese market through wholly-owned subsidiaries, joint ventures, or partnerships, utilizing their advantages in technology, management, and capital to quickly gain market share. There are significant opportunities in high-end logistics services, such as cold chain logistics, e-commerce logistics, and cross-border transport. However, foreign companies must also consider localization requirements, including language, culture, and regulatory compliance, to better adapt to the local market.
3.3 Overall Impact on the Logistics Market
Overall, these policies will drive rapid growth in Vietnam’s logistics market and promote modernization and digital transformation within the sector. Improved infrastructure will strengthen Vietnam’s competitiveness as a regional logistics hub, attracting more international trade and investment. Simultaneously, opening the market will heighten competition, encouraging companies to innovate and enhance their services, thereby improving the overall service quality and efficiency of the market. With the widespread adoption of digital technologies, Vietnam’s logistics industry will become more transparent, efficient, and smart, creating more business opportunities for companies.
Outlook
Looking ahead, Vietnam’s logistics industry is poised for continued rapid growth, supported by government policies and market liberalization. As infrastructure improves and digital transformation progresses, logistics costs are expected to decrease further, and efficiency will significantly increase. Companies should closely follow policy developments, proactively adapt to changes, and fully capitalize on the opportunities brought about by market opening and technological innovation. Additionally, businesses should focus on enhancing their competitiveness and service quality to achieve sustainable growth in Vietnam’s logistics market.
