HANOI: Vietnam aims to expand its logistics services sector by 12 to 15 per cent annually over the next decade, while cutting logistics costs to 12 to 15 per cent of GDP and building 5-10 international-standard logistics hubs, according to a new national strategy recently approved by the Government.
The plan also seeks to establish Vietnam as a logistics hub in South-East Asia by 2035, according to state news agency VNA.
VNA reported he 12-15 per cent annual growth goal is viewed as attainable, given the sector’s 14 to 16 per cent expansion in recent years. A key goal is trimming logistics costs to 12 to 15 per cent of GDP from the current 18 to 20 per cent to bolster competitiveness.
The plan also targets lifting the industry’s value-added share to 5 to 7 per cent of GDP and pushing Vietnam’s Logistics Performance Index (LPI) ranking into the global top 40.
Under the strategy, at least five modern logistics centres meeting international standards will be developed.
By 2050, the sector is projected to contribute 7 to 9 per cent of GDP, with logistics costs lowered to 10 to 12 per cent of GDP and the LPI ranking entering the world’s top 30, backed by 10 state-of-the-art logistics hubs.
To meet these targets, Vietnam is courting major investments from multinational logistics companies able to link into global supply chains. The Government will also back local firms in delivering integrated 4PL and 5PL services.
At the same time, the country intends to step up spending on infrastructure, including roads, railways, waterways, aviation, distribution centres, smart warehouses, specialised storage and free-trade zones.
In 2024, Vietnam ranked among the world’s top 10 emerging logistics markets, top four in the logistics opportunity index and top 43 in the LPI.
Vietnam’s transport network covers all regions via five main modes - rail, road, air, inland waterway and sea, with almost 3,000km of expressways. Warehouses and logistics centres continue to grow in size and number.
The approved strategy aims to create a better business climate, draw capital and cement Vietnam’s role as a regional logistics powerhouse. With its strategic location as Asean’s gateway and extensive network of free trade agreements, Vietnam is primed to emerge as a major hub, according to the report. - Bernama-VNA
