Hanoi (VNA)🦹 – As an essential service facilitating the flow of goods from production to end consumers, Vietnam’s logistics sector has achieved an annual growth rate of 14-16%, playing a vital role in bolstering the country’s import and export activities.

However, the country still faces high logistics costs and challenges in connecting various service sectors. These issues require comprehensive solutions to eliminate bottlenecks and enhance the competitiveness of Vietnam's import-export industry. According to the Vietnam Logistics Business Association (VLA), the logistics sector has grown by 14-16% annually in recent years, with an annual market value of 40-42 billion USD. With double-digit growth, it remains one of Vietnam's fastest-growing and most stable service industries. Data from the General Department of Customs shows that in 2023, Vietnam's total import-export turnover reached 681 billion USD, equivalent to 158% of the country’s GDP. In the first 10 months of 2024, this figure stood at 648 billion USD, a 15.9% increase compared to the same period last year. A recent forecast by Standard Chartered predicts Vietnam will become a key contributor to global trade growth, with export turnover expected to reach 618 billion USD by 2030, growing at an annual rate of 7%. Import turnover is projected to hit 578 billion USD by 2030, with an average annual growth of 6.9%. Nguyen Xuan Hung, head of Logistics for E-commerce at VLA, noted that logistics companies in Vietnam have undergone a significant transformation over the past three years, focusing on collaboration, connection, and resource sharing. This has led to increased participation by Vietnamese companies in the export-import supply chain and a stronger presence in the domestic logistics market.

Infrastructure challenges remain

Despite improvements in infrastructure, significant challenges persist in enabling businesses to efficiently provide logistics services and facilitate the flow of goods, VLA representatives pointed out. Experts emphasize Vietnam's vast potential to integrate more deeply into the global logistics value chain. The country boasts an extensive transportation system, including railways, roads, air routes, inland waterways, and maritime networks, which extend across all regions. Additionally, logistics infrastructure, such as warehouses and logistics centres, has expanded significantly, with services rapidly adapting to meet the growing demands of the market. From 2022 to 2024, the government has invested hundreds of trillions of VND from its economic recovery and development programme into key projects, particularly in transportation infrastructure. These investments are seen as vital arteries for both the economy and the logistics sector.

Strategy for long-term development

Nguyen Thi Mai Linh, head of Trade Facilitation at the Import-Export Department under the Ministry of Industry and Trade, revealed that the ministry plans to submit the Vietnam Logistics Development Strategy to the government for approval by Q4 2024. The strategy outlines goals through 2030, with a vision extending to 2050. Once approved, an action plan will be implemented to ensure its success. “With the collective effort of the political system, businesses, and associations, we hope that the development of the logistics sector will further facilitate trade and boost import-export activities in the coming years,” Linh said./.