Other BriefingsVietnam’s New Logistics Service Strategy: Market Reality and Investment Opportunities
Vietnam is accelerating the development of logistics services with a new national strategy to modernize infrastructure, increase efficiency, and boost competitiveness in global trade.
The logistics sector has become a crucial part of Vietnam’s economic growth plan. As Vietnam develops into a major manufacturing export hub and its e-commerce market rapidly expands, the need for efficient logistics is increasingly clear, especially for small and medium-sized enterprises (SMEs). The sector plays a crucial role in connecting producers to global markets, reducing supply chain costs, and facilitating cross-border digital trade.
Vietnam has recognized the growing importance of logistics and has been working to enhance its global reputation. In 2023, the country ranked in the top 50 on the World Bank’s 2023 Logistics Performance Index.
Building on this foundation, the government has recently introduced the National Logistics Service Development Strategy (NLSDS), outlined under Decision No. 2229/QD-TTg, which aims to improve infrastructure, reduce costs, and expand high-value services, to drive the sector’s growth.
This article examines the objectives of the strategy, the current performance of the market, bottlenecks, emerging investment opportunities, implementation challenges, and how Vietnam compares with its regional competitors.
Overview of Vietnam’s logistics service strategy
Approved in October 2025, the NLSDS seeks to enhance national competitiveness and firmly position logistics as a key economic sector with high added value, rather than a purely supporting service.
It sets out to build a sustainable, efficient, and high value-added logistics industry with strong competitiveness, leveraging Vietnam’s existing advantages in global supply and value chains.
A number of policy levers have been identified as potential mechanisms to achieve the objectives, including enhancing human capital. In addition, the country has set its sights on a digital transformation, a goal pursued through a series of legal and administrative reforms aimed at enhancing market efficiency.
The government is allocating significant resources to developing various infrastructure projects to establish Vietnam as a prominent logistics hub.
|
Indicator |
2025–2035 targets |
2050 targets |
|
Logistics value-added share of GDP |
5% – 7% |
7% – 9% |
|
Average annual logistics growth |
12% – 15% |
10% – 12% |
|
Logistics outsourcing rate |
70% – 80% |
80% – 90% |
|
Logistics costs as % of GDP |
12% – 15% |
10% – 12% |
|
LPI (World Bank) ranking |
Top 40 |
Top 30 |
|
Digital transformation adoption |
80% of providers |
100% of providers |
|
Green logistics/emissions |
Move toward emission reduction, transition to green energy |
Contribute to national net-zero emissions |
|
Workforce training |
70% trained; 30% with bachelor’s degree or higher |
90% trained; 50% with bachelor’s degree or higher |
|
Logistics hubs |
At least 5 international-standard hubs |
At least 10 international-standard hubs |
|
Source: Decision No. 2229/QD-TTg |
||
Most notable tasks to implement the strategy
To successfully implement the key objectives, the NLSDS has outlined nine main tasks and solutions aimed at creating new incentives and opportunities for logistics service businesses.
Strengthening the legal framework and state management
A comprehensive legal review will align logistics regulations with actual enterprise operations and global practices. The government aims to streamline administrative procedures, improve competition rules, enhance the role of associations, and update tax/fee incentives to support domestic production and trade.
Revisions will also cover capital incentives, land access, labor market policies, and electronic documentation standards. Vietnam will adopt international logistics standards and establish national competitiveness metrics.
Developing a modern, synchronous logistics infrastructure system
Vietnam will upgrade multimodal transport networks, modernize logistics hubs in key economic zones, and expand free trade zones. Infrastructure priorities include roads, railways, inland waterways, airports, seaports, dry ports, e-commerce handling centers, smart warehouses, and agricultural logistics hubs.
The government will mobilize capital for digital infrastructure, strengthen national shipping and cargo fleets, and support the development of international transshipment ports.
Enhancing regional connectivity in logistics
By 2035, logistics growth poles will be developed in the Red River Delta, Southeast, and Central regions, anchored by major cities such as Hanoi, Hai Phong, Ho Chi Minh City, and Da Nang. Infrastructure connections will expand across ASEAN, China, and India through major corridors.
After 2035, regional networks will broaden to midland, mountainous, and Mekong areas, forming a nationwide logistics ecosystem with international connectivity via expressways and inland waterways.
|
Period |
Main tasks |
Key business impacts |
|
By 2035 |
|
|
|
After 2035 |
|
|
Developing goods sources and expanding logistics markets
Vietnam will create breakthrough investment policies to attract manufacturing giants and multinational logistics players. New policies will support non-tariff zones, free trade areas, and distribution centers linked to key ports and corridors.
Trade promotion activities will expand market access, positioning Vietnam as a regional logistics and trading hub. Specialized logistics segments, including agriculture, industrial goods, e-commerce, and cross-border services, will receive targeted support.
Vietnam highlights two economic corridors, namely China-Vietnam-ASEAN and India-Vietnam-ASEAN, as key elements in expanding its commodity sources and logistics market. These corridors are vital in attracting global distribution companies to establish distribution centers in Vietnam for regional connectivity.
Improving competitiveness of logistics service providers
Businesses will gain support to build internationally competitive logistics models, expand service offerings, and strengthen capabilities in negotiation, contracting, and dispute resolution.
The government will foster collaboration under free trade agreements, enhance links between foreign-invested and domestic firms, and broaden access to market intelligence. Providers are encouraged to move toward integrated 4PL/5PL solutions and global expansion.
Promoting research, innovation, digital transformation, and green logistics
Vietnam will promote collaboration with global logistics leaders to build digital platform ecosystems and logistics technology markets. Key areas include route optimization, warehouse automation, digital customs systems, and clean energy logistics.
Policies will support green certification, carbon neutrality pathways, reverse logistics, and behavioral change in international trade. Digital and green transformation will be embedded into sectoral restructuring.
Developing a high-quality logistics workforce
The strategy includes national occupational standards, diversified training pathways, and stronger international cooperation. Training institutions will integrate digital and advanced technologies, while training programs will target teachers, experts, regulators, and enterprises.
Promoting pioneering enterprises and industry associations
Associations will act as critical intermediaries between businesses and regulators. The government will support pioneering enterprises capable of innovation, international expansion, and sector-wide development. Cooperation between foreign-invested and domestic firms will be strengthened.
Dialogue mechanisms, such as the Vietnam Logistics Forum, will be expanded to improve policy feedback and coordination.
Additional tasks
Vietnam will boost awareness of sustainable logistics, expand market forecasting capacity, and promote environmentally friendly practices. Critical initiatives include building national databases on infrastructure and logistics providers, publishing annual logistics indicators, and organizing national events such as Vietnam Logistics Day and Vietnam Logistics Week to boost visibility and engagement.
Current performance of Vietnam’s logistics market
Analysts estimate Vietnam’s logistics and freight market is projected to be worth about US$52 billion in 2025, with a compound annual growth (CAGR) of 6.67 percent, attaining approximately US$72 billion by 2030.
Since Vietnam’s economy relies heavily on SMEs, which account for nearly 98 percent of all active businesses, improvements in logistics efficiency directly impact the competitiveness and growth prospects of a significant part of the domestic economy.
Concurrently, the country’s logistics performance has been steadily improving. Vietnam was among the top 10 globally in the 2023 Agility Emerging Markets Logistics Index. This ranking reflects Vietnam’s emergence as a fast-growing logistics market, though it still faces efficiency gaps relative to leading regional hubs. The newly approved national logistics strategy, therefore, aims to build on this progress by lowering costs further, strengthening connectivity, and expanding high-value logistics services.
How Vietnam’s logistics sector compares in ASEAN
Within ASEAN, Vietnam’s performance in logistics is positioned at a mid-level tier. While it lags behind established hubs such as Singapore, Malaysia, and Thailand in terms of service quality and logistics costs, it stands out as a fast-growing, reform-driven market with clear catch-up potential.
The recently formulated national logistics strategy aspires to capitalize on this advantageous position by implementing cost-reduction measures, enhancing multimodal connectivity, and augmenting service quality across the supply chain.
The most promising opportunities for foreign investors include modern logistics parks and warehousing, e-commerce fulfillment and last-mile services, cold-chain infrastructure for high-value goods, and digital logistics solutions that assist local operators in enhancing efficiency.
FDI opportunities in Vietnam’s logistics sector
Vietnam’s new logistics strategy explicitly aims to attract foreign capital to the sector. Several key areas stand out to overseas investors in this context.
Growing opportunities in port-adjacent logistics assets
Logistics real estate and warehousing facilities located near seaports have strong potential. According to Vietnam’s seaport master plan, the Cai Mep–Thi Vai complex, including Cai Mep Ha, will become a future gateway and international transshipment hub.
On February 18, 2025, the province of Ba Ria–Vung Tau signed a memorandum of understanding with the logistics company DP World to study and develop Vietnam’s first free trade zone linked to the Cai Mep–Thi Vai complex, with the aim of attracting large-scale logistics and manufacturing projects.
While most logistics companies are domestic, foreign and joint-venture companies already dominate high-value international logistics and modern warehouse rentals, highlighting the sector’s openness to foreign investment.
Emerging free trade zone development
The fast growth of Vietnam’s online retail market is creating a high demand for modern fulfillment centers and last-mile delivery networks, particularly among small and medium-sized enterprises that rely on dependable nationwide distribution from warehouses to end customers.
Strong foreign presence in high-value logistics
Vietnam’s increasing consumption and trade in perishable goods, including fresh and processed foodstuffs, seafood, and pharmaceuticals, has driven robust demand for cold storage facilities, refrigerated transportation, and integrated cold-chain solutions. This dynamic renders the sector particularly appealing to foreign investors with technical expertise.
Consequently, enterprises that provide digital and green logistics solutions stand to benefit from Vietnam’s commitment to digitalization and low-carbon development policies. Investments in transportation and warehouse management systems, data-driven optimization, and energy-efficient or low-emission logistics assets directly align with the new strategy’s goals and can help foreign investors stand out in the Vietnamese market.
Implementation challenges and reform outlook
Despite its ambitious goals, the new strategy faces several implementation challenges.
Coordination across administrative levels
Effective delivery requires close administrative coordination among the central, provincial, and local levels of government in order to align infrastructure planning, licensing procedures, and investment approvals. Otherwise, fragmented implementation could reduce the strategy’s effectiveness.
Customs procedures and trade facilitation challenges
Second, although simplified procedures have recently been implemented, customs and trade facilitation procedures remain a concern for foreign investors. Many businesses still encounter complex documentation requirements and multiple processing steps, which slow cargo clearance and increase operational costs relative to those of leading regional logistics hubs.
See also: Vietnam Customs Procedures in 2025
Skills gaps in the logistics workforce
As the sector shifts toward technology-driven, value-added services such as digital freight platforms, warehouse automation, and cold-chain logistics, shortages of trained professionals in supply chain management, data systems, and equipment operations may hinder execution in the near term.
Complex regulatory environment
The sector must navigate a complex regulatory environment. The licensing requirements, service-scope restrictions, and foreign investment compliance require further clarification and streamlining.
Still, if reforms are consistently and thoroughly implemented, these challenges should subside over time. Vietnam possesses the capacity to implement robust policies through regulatory reform, infrastructure investment, and workforce development initiatives. These measures would establish a substantial foundation for the effective execution of the logistics modernization agenda.
(With inputs from Vu Nguyen Hanh.)
This article first appeared on Vietnam Briefing, our sister platform.
