Digital transformation in logistics: Key for competition in 42-billion-USD market
Vietnam’s logistics market is worth around 40-42 billion USD a year, and digital transformation among businesses is considered key to their success in this competitive market.
Hanoi (VNA)♒ – Vietnam’s logistics market is worth around 40-42 billion USD a year, and digital transformation among businesses is considered key to their success in this competitive market.
The Saigon Newport Corporation is a pioneer of digital transformation in the logistics sector. In 2021, despite the difficulties caused by the COVID-19 pandemic, the Tan Cang Cai Mep International Port set records in terms of the volume handled by mother ships from 14,235 TEU to 15,615 TEU, and the handling capacity of 238.08 containers per hour by the ship One Columba continued to exceed the throughput of 2 million TEUs. It also handled over 55 percent of the market share of export and import container volume through seaports nationwide.
Gemadept also overcame a challenging year with double-digit throughput growth in all three regions. Its total throughput last year is estimated at 2.7 million TEUs, equivalent to impressive growth of 53 percent. That success is thanks to the corporation’s digitalisation of port operation and logistical processes, thus helping optimise time and resources and save costs for customers.
Other logistics enterprises such as DHL, FedEx, Maersk Logistics, APL Logistics, CJ Logistics and KMTC Logistics are also entering the race for digital transformation, which has key for businesses to overcome difficulties, compete with each other and develop further.
However, at present, only around 40 percent of enterprises in this sector are conducting digital transformation.
Modern machinery used in logistics industry (Photo: vneconomy)
Addressing a recent policy dialogue on the logistics sector held by the Vietnam Trade Promotion Agency (Vietrade) and the Korea Trade-Investment Promotion Agency (KOTRA) in Hanoi, Vietrade Director Vu Ba Phu said that economic growth, especially imports and exports, is posing challenges to Vietnam’s logistics industry.
With the Fourth Industrial Revolution, traditional logistics centres have been switched to new-generation centres using high technologies, he said, adding that an action plan to enhance the competitiveness and development of the Vietnamese logistics sector until 2025 has been implemented to cut costs and improve efficiency in the sector.
Dinh Huu Thanh, CEO of the Bee Logistics Corporation, asked the Government to consider logistics a supporting industry and as such issue more appropriate policies, while continuing to modernise its management in this field./.
Stronger partnership between Vietnam and the Republic of Korea (RoK) in logistics, along with measures to encourage the transfer of technologies between the two sides, will help improve Vietnam's capacity in the field and contribute to turning Vietnam into an industrialised country in modern direction, said Director of the Trade Promotion Agency (Vietrade) Vu Ba Phu.
Vietnam can become the second largest digital economy in Southeast Asia in 2025, while the country’s e-commerce market will draw more large-scale businesses, forecast experts at an online seminar in Ho Chi Minh City on April 20.
The Ministry of Transport has submitted to the Prime Minister a proposal on investment policy for a project on developing inland waterway and logistics corridors in southern Vietnam.
There has been great pressure on Vietnam's logistics industry to train, retrain and upgrade workers' knowledge as well as to keep up-to-date with international standards and measures, according to the Vietnam Logistics Business Association (VLA).
Developed with state-of-the-art infrastructure, the Da Nang FTZ is designed to become a leading regional economic centre and a strategic growth pole in Vietnam’s new development landscape.
The Binh Duong Association of Supporting Industries (BASI) is expected to promote the usage of domestically manufactured components while supporting businesses in accessing international markets, strengthening linkages, and promoting deeper integration into global supply chains.
PwC Vietnam forecasts a vibrant M&A market in Vietnam’s healthcare sector in 2025, driven by rising demand for high-quality medical services and a growing middle class. Pharmaceutical companies, private hospitals, and specialised medical facilities, particularly in ophthalmology and oncology, are predicted to be key targets for M&A.
The central province of Quang Nam is set to become a hub for the medicinal plant industry, with Ngoc Linh ginseng designated as the core crop, under the Prime Minister's decision issued earlier this year.
The North-South Expressway project is scheduled for completion by 2030, aiming to establish the groundwork for Vietnam’s modern railway industry and stimulate regional economic development, positioning the country for a significant economic leap in the era of national rise.
The probe, initiated on June 11 following a petition by the US Coalition for Fair Trade in Hardwood Plywood, targets products classified under HS Code 4412 and 9403 imported from China, Indonesia and Vietnam.
Sun PhuQuoc Airways was born as a perfect piece in Sun Group’s strategic vision to build a premium ecosystem of tourism, entertainment, real estate, and aviation. With a pioneering ambition, Sun PhuQuoc Airways is not just an airline, but a symbol of connection – bringing the world to Phu Quoc and taking Phu Quoc to the world.
A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
Illustrative image (Photo: VNA)
Modern machinery used in logistics industry (Photo: vneconomy)
