Opportunities abound in the logistics industry.

Currently, Vietnam's road network is limited, its seaport system is not yet modernized, and its railway and inland waterway systems are not being utilized efficiently. However, the government has continuously invested in infrastructure for many years, creating opportunities for the logistics industry to develop.

Currently, Vietnam's road network is limited, its seaport system is not yet modernized, and its railway and inland waterway systems are not being utilized efficiently. However, the government has continuously invested in infrastructure for many years, creating opportunities for the logistics industry to develop.

Investing in infrastructure and strongly promoting digital transformation will help elevate Vietnam's position as an important logistics hub.

Focus on infrastructure development.

Key infrastructure projects such as the plan to complete 3,000 km of expressways by 2025, the construction of a freight railway connecting Lao Cai with the ports of Hanoi and Hai Phong, the North-South high-speed railway, Terminal 3 (Tan Son Nhat International Airport), and the construction of Long Thanh International Airport, will significantly contribute to boosting Vietnam's economic activity.

In addition to these plans, the government's ongoing reforms aimed at streamlining administrative procedures, improving the quality of regulation issuance and enforcement, and supporting sustainable industries will be crucial in creating a more favorable environment for both domestic and foreign businesses.

Vietnam's current logistics system is characterized by the participation of many different economic sectors operating independently, leading to limited optimization and inefficient route planning. This fragmentation results in higher operating costs and reduced competitiveness for businesses.

While challenges remain, Vietnam's logistics sector is poised for transformative growth.

To fully leverage this core infrastructure development, logistics operators should adopt multimodal transport solutions that seamlessly integrate road, sea, and rail networks to optimize efficiency. Enhancing supply chain integration by fostering collaboration among stakeholders will help reduce costs and improve operational performance.

Vietnam's logistics costs remain significantly higher than those of other countries in the region due to fragmented supply chains, bureaucracy, and reliance on outdated processes. Delays in processing paperwork and administrative bottlenecks further increase operating costs for businesses.

However, the ongoing digital transformation in Vietnam presents opportunities to streamline these processes. The adoption of digital technologies has revolutionized logistics operations. These technologies can enhance real-time tracking, optimize supply chain management, and improve transaction transparency.

Eurocham's Transport and Logistics Subcommittee (TLSC) has been at the forefront of advocating for the streamlining and efficiency of customs procedures. A notable achievement is the TLSC's contribution to the process of promoting the issuance of the EUR.1 form, the certificate of origin for the Vietnam-EU Free Trade Agreement (EVFTA), in early 2024.

Through the EuroCham Business Confidence Index in Vietnam, EuroCham members have raised concerns about delays caused by goods shortages. TLSC has worked closely with relevant authorities to expedite the issuance of supplementary forms and resolve bottlenecks. Furthermore, TLSC is also collaborating with policymakers to encourage the issuance of electronic Certificates of Origin for EU exports. This could be a potential solution to simplify customs procedures and reduce complex and impractical rules and processes.

Enhancing sustainability

As Vietnam strives for economic growth, sustainability must remain a core priority. Green initiatives and digital transformation will ensure that economic growth is both environmentally sound and future-ready. A holistic approach—combining infrastructure development, regulatory reform, sustainable practices, and enhanced supply chain integration—will position Vietnam as one of the region's leading economies with long-term stability and prosperity.

The logistics sector is a significant contributor to carbon emissions, making environmental sustainability an increasing concern. Vietnam's commitments to carbon neutrality and global regulations such as the EU's Carbon Border Adjustment Mechanism highlight the urgent need for greener supply chain solutions. Green logistics initiatives, such as the use of electric vehicles, energy-efficient warehousing, and optimized delivery routes, offer viable solutions.

TLSC plays a crucial role in this transformation by facilitating dialogue between businesses and policymakers.

To ensure that Vietnam's legal framework supports sustainable logistics practices, TLSC helps businesses comply with global standards while maintaining profitability. Through ongoing collaboration with the Government, TLSC supports incentives and policies that encourage investment in environmentally friendly transport and logistics infrastructure.

The rapid expansion of e-commerce and cross-border trade is changing Vietnam's logistics landscape.

The rise of online shopping has led to a growing demand for faster, integrated logistics solutions, upgraded and increased warehousing capacity, last-mile delivery capabilities, and efficient cross-border customs clearance.

Vietnam's burgeoning digital economy presents opportunities for logistics providers to leverage AI-driven route optimization, real-time tracking, and smart warehousing. These technologies improve delivery speeds, reduce costs, and enhance customer satisfaction.

TLSC continues to collaborate with relevant authorities, supporting the development of a legal framework for cross-border e-commerce. By advocating for streamlined customs procedures and harmonized trade policies, TLSC helps businesses leverage Vietnam's growing role as a regional e-commerce hub.

One of the most pressing challenges in Vietnam's logistics sector is the shortage of highly skilled personnel.

As logistics operations become increasingly digitized and complex, the demand for expertise in supply chain management, data analytics, and automation is also growing. This opens up opportunities to foster stronger collaboration between businesses and educational institutions to bridge the skills, talent, and capabilities gap within businesses themselves.

Strengthening capacity-building workshops and public-private partnerships will be crucial. Furthermore, actively engaging in dialogues with government agencies can help businesses keep up with regulatory changes, understand policies, and contribute to the overall development of the logistics industry.

TLSC has taken proactive steps in this area. In September 2024, TLSC organized a crucial training and dialogue session with the Ho Chi Minh City Customs Department. The event brought together business leaders and customs officials to discuss the most effective implementation of regulations and procedures. These dialogue sessions serve as an important platform for knowledge exchange, ensuring that both businesses and the government are informed and prepared for future challenges.

While challenges remain, Vietnam's logistics sector is poised for transformative growth.

By addressing infrastructure gaps, vigorously promoting digital transformation, integrating sustainability, adapting to e-commerce trends, and investing in workforce development, businesses can unlock new opportunities and elevate Vietnam's position as a key logistics hub in Southeast Asia in the future.

(*) Chairman of the Eurocham Transport and Logistics Subcommittee

Source: https://baodautu.vn/co-hoi-rong-mo-voi-nganh-logistics-d250404.html