Vietnam plans to expand logistics sector amid strong trade, FDI

Vietnam ranks among the top 20 countries in international trade and the top 15 in foreign direct investment (FDI) attraction, Dien said.

The country's logistics market is valued at US$45-50 billion, equivalent to about 10 percent of GDP and five percent of export-import turnover.

Despite several years of double-digit growth, Dien said the sector remains underdeveloped relative to Vietnam's potential.

High logistics costs, fragmented infrastructure, and limited regional connectivity reduce competitiveness, he said.

Dao Trong Khoa, chairman of the Vietnam Logistics Business Association, said the sector faces challenges including high costs, underdeveloped multimodal transport, fragmented small businesses, and the lack of a central industry database.

Tran Thanh Hai, deputy director of the Ministry of Industry and Trade's export-import department, said the central region could become a logistics hub, especially with the development of the Da Nang Free Trade Zone.

Hai said the region has strategic corridors connecting north-south and east-west trade routes, but cargo volumes are limited and infrastructure is fragmented. 

He proposed creating a regional logistics management board and streamlining customs procedures to support trade and cross-border e-commerce.

Dien said Vietnam ranks among the top 10 emerging logistics markets globally, top four in Asia by logistics opportunity index, and top five in ASEAN.

The government aims to develop a sustainable and efficient logistics sector over the next decade to strengthen Vietnam's position as a logistics hub.