When private businesses solve the logistics bottleneck problem

(Chinhphu.vn) - In the context of constantly changing global trade, logistics is increasingly becoming a decisive factor in national competitiveness. Vietnam has made strong strides in production and export, but the logistics system still suffers from many long-standing shortcomings, driving up costs and eroding competitive advantages…

Vietnam has made significant strides in production and exports, but its logistics system still suffers from many long-standing shortcomings, driving up costs and undermining its competitive advantage…

This was frankly pointed out by Prime Minister Pham Minh Chinh at the recent Vietnam Logistics Forum 2025 held in Da Nang . These bottlenecks are both technical in nature and reflect limitations in structure and development thinking, requiring strong participation from both the State and the private sector.

Six major bottlenecks in Vietnam's logistics

At the Forum, Prime Minister Pham Minh Chinh emphasized: Logistics is a vital sector in the movement of goods and one of the pillars driving national competitiveness. Over the past period, the Party and the State have paid great attention to and implemented many important policies and initiatives to develop the logistics industry.

Nevertheless, the Prime Minister also noted that Vietnam's logistics industry still has shortcomings and limitations, most notably six main bottlenecks, including:

The Vietnamese logistics industry is still facing many major bottlenecks.

Firstly, Vietnam's logistics costs remain among the highest in the region, accounting for a large proportion of product prices. Currently, the transportation system still relies heavily on road transport, which is prone to congestion and high costs, while rail and waterway infrastructure is not yet developed proportionally.

Secondly, regional linkages and infrastructure connections are not synchronized, are limited, and are vulnerable to natural disasters. According to experts, many localities, despite having large production capacities, still depend on a few isolated transportation routes, making supply chains easily disrupted when incidents occur.

Thirdly, the market is fragmented. Small-scale logistics businesses still dominate, possessing weak competitiveness, and lacking large enterprises. This leads to a market lacking capable entities to lead and set common standards; indirectly causing costs to increase at each stage, making it difficult for businesses to optimize their supply chains.

Furthermore, Vietnam currently lacks a national-level logistics center for international cargo transshipment. The industry also suffers from a shortage of highly qualified, professionally trained personnel suitable for an international work environment.

The fifth bottleneck is that the logistics system has not yet specifically regulated new types of logistics services for e-commerce, green logistics, and special cargo logistics.

The final bottleneck relates to digital transformation and green transformation. Experts believe this is an inevitable trend in the global logistics industry, but most Vietnamese businesses, especially small businesses, lack the resources to implement it.

These limitations necessitate a shift in development thinking, a strong transformation from a state of "supporting small-scale logistics" to "developing modern, intelligent logistics"; promoting regional, inter-regional, and international linkages; and considering logistics as a driving force for socio-economic development…

Quang Ninh Port - where T&T Group took its first steps on its logistics journey.

How private businesses can solve the bottleneck problem.

From the six bottlenecks mentioned above, it is clear that Vietnam's logistics problem does not lie in a single link, but in the entire system's structure. In this context, the strong participation of the private sector, especially corporations with strong financial capabilities and development experience, is creating positive changes. Among these, T&T Group is a prime example.

Entering the logistics market not too early, T&T Group quickly established its position with a differentiated strategy. Instead of investing in small components, the Group, led by Mr. Do Quang Hien (Founder and Executive Chairman of T&T Group), aimed to create a complete ecosystem with a long-term vision.

The first step was taken in 2015, when T&T became a strategic shareholder of Quang Ninh Port – a national-scale deep-water port, a crucial hub on the key economic corridor of Quang Ninh-Hai Phong-Hanoi. At that time, the majority of goods from the North were concentrated in Hai Phong, putting significant pressure on the port system.

T&T Group's involvement has brought about a transformation: In just one year, cargo throughput at Quang Ninh Port increased by 30%; cargo handling volume increased by 33%. Revenue indicators increased by 31%. Notably, profits increased by as much as 280%.

For T&T, this is the first step in preparing for a longer-term strategy in the next decade, when strategic investors will become more deeply involved in the larger market, playing a leading role in shaping national-level supply chains.

Three years later, T&T Group continued to surprise observers by partnering with logistics giant YCH (Singapore) with a strategic memorandum of understanding at the end of 2018. At this time, YCH put forward the idea of ​​forming a smart logistics connection chain on a regional scale – an idea that perfectly matched the vision that T&T Group was pursuing.

The result of this collaboration is the establishment of Vietnam SuperPort ^™ – Vietnam's largest multimodal logistics center, the first component of the ASEAN Smart Logistics Network. The ICD superport in Phu Tho has directly addressed two major bottlenecks: high logistics costs and the lack of a national logistics center.

Vietnam SuperPort™ is a multimodal logistics superport, tasked with connecting and integrating Vietnam's freight transport network into the global supply chain.

Robotic sorting systems, AI-optimized operations, AGVs (Automated Guided Vehicles), and extended-range air warehousing not only increase productivity and reduce errors but also standardize the entire chain according to international standards. More importantly, SuperPort's connection of rail, road, seaport, and air creates a rare multimodal connectivity platform, a component that Vietnam has lacked for many years.

In the long term, the mega-port aims to contribute to reducing domestic logistics costs from 21% to 14% of the gross domestic product by 2025 and to approximately Singapore's level of 8-10% by 2035.

The Bao Loc-Lien Khuong expressway will create a fast connection with southern logistics centers, helping to increase the competitiveness of agricultural products.

The underside of the iceberg

However, Vietnam SuperPort ^™ is only the visible tip of the iceberg. At a deeper level, logistics is not just about warehouses and trucks. Aware of this, T&T Group has continuously expanded its investment in transportation infrastructure. This is also how T&T contributes to resolving the bottleneck in connectivity .

In the north, the Quang Ninh Port and the Nam Phuc Tho Industrial Zone (Hanoi) combine to help distribute goods more efficiently, instead of concentrating them in a single area. In the Central Highlands, the Bao Loc-Lien Khuong expressway, invested in by T&T Group, is a particularly significant route. This is one of the largest agricultural export regions in the country, but current transportation costs remain high. Once completed, the journey connecting to southern logistics centers will be significantly shortened, reducing delivery times and thereby increasing the competitiveness of agricultural products – the group of goods currently bearing the highest logistics costs in the value chain.

Perspective view of Quang Tri Airport

In Central Vietnam, Quang Tri Airport is entering its final stages of preparation for operation by the middle of next year. Not only will it "open up the skies" for the North Central region, but the airport will also serve as a multimodal transportation hub, connecting air, road, rail, and seaports via the East-West economic corridor.

From a mindset focused on developing individual transportation infrastructure projects, T&T Group's vision has evolved to one of creating new development spaces. In this vision, the airport is an integral part of a large-scale aviation, logistics, service, commercial, and airport city complex. With this approach, experts expect Quang Tri Airport to become one of the largest "logistics hubs" in the region.

With a solid foundation on the ground, Mr. Do Quang Hien's logistics strategy continues to be refined with a major move into aviation. Shortly after the airport's groundbreaking ceremony, T&T Group became a strategic shareholder of Vietravel Airlines, ushering the young airline into a new phase of development.

This is even more significant as air cargo is becoming an increasingly important component for export-oriented countries. Air cargo transport capacity will be key for Vietnam to raise its logistics standards, reduce dependence, and become more proactive in international supply chains.

T&T Group is completing its logistics picture with major strategies in aviation.

Regarding the bottlenecks in technology and logistics human resources, T&T Group has also been quietly seeking solutions through well-structured and specific plans.

In terms of digital transformation and green transformation, Vietnam SuperPort ^™ is a pioneer in applying robotic systems and AI-powered customs clearance solutions in its operations; while also creating a logistics connectivity platform for domestic small and medium-sized enterprises.

Regarding the training of high-quality human resources, T&T Group also collaborates with major partners, such as YCH, to train young Vietnamese experts, aiming to manage advanced supply chains and apply high technology.

T&T Group's founder and CEO, Do Quang Hien, once stated: "Logistics is the lifeblood of the economy, and if Vietnam wants to break through, it must become a regional distribution hub." The ecosystem that the Group is creating demonstrates how a private enterprise model can contribute to solving key bottlenecks in this specialized field.

Minh Ngoc

Source: https://baochinhphu.vn/khi-doanh-nghiep-tu-nhan-giai-bai-toan-diem-nghen-logistics-102251212112826222.htm