Prime Minister: Logistics Development is an Objective Requirement and a Strategic Choice

The event was also attended by Minister of Industry and Trade Nguyen Hong Dien; Minister of Planning and Investment Nguyen Chi Dung; Minister of Transport Tran Hong Minh; Secretary of the Ba Ria – Vung Tau Provincial Party Committee Pham Viet Thanh; leaders of ministries, sectors, localities, organizations, and enterprises domestically and internationally, with over 2,000 participants attending both in person and online.

Initial Foundation for Vietnam’s Logistics Development

Logistics is an essential service sector that supports, connects, and drives socio-economic development, enhancing the competitiveness of the economy. Developing logistics services is closely linked with the production of goods, import-export activities, trade, transportation infrastructure, and information technology, creating high added value.

Vietnam is considered to have significant opportunities to promote the development of its logistics services sector with continually expanding infrastructure such as roads, airports, seaports, warehouses, trade centers, and logistics hubs. Supporting services are increasingly meeting the diverse demands of the market.

In recent years, Vietnam’s logistics industry has grown at a rate of 14–16%, with an annual scale of around $40–42 billion. According to the World Bank, Vietnam currently ranks 43rd out of 155 countries in logistics performance and is among the top five ASEAN countries.

In 2023, the country saw 7,919 new logistics businesses established, bringing the total number of logistics companies to over 5,000. Some companies have demonstrated their competitiveness regionally and internationally, with Vietnam leading ASEAN in the number of enterprises licensed for sea transport to and from the United States.

In the first nine months of 2024, nearly 6,500 new logistics enterprises were registered nationwide, with a total registered capital of VND 36.55 trillion and nearly 28,900 registered workers. Compared to the same period in 2023, there was a 13.5% increase in the number of businesses, an 18.3% increase in labor, but an 11.3% decrease in registered capital.

Overall, while some logistics companies achieved stable and impressive growth, many small and medium-sized enterprises recorded declines in business results, losses, and even market exits.

Recently, Vietnam has actively studied free trade zones worldwide, a type of economic zone that can bring substantial benefits to Vietnam and promote logistics services. Currently, Vietnam does not have any free trade zones.

The Vietnam Logistics Forum has been organized annually by the Ministry of Industry and Trade since 2013. This year’s forum aims to encourage logistics companies to apply advanced technology in supply chain operations; find solutions to improve the competitiveness of Ba Ria – Vung Tau Province and the Southeastern region; and create an environment for collaboration among enterprises, investors, and management agencies to advance Vietnam’s logistics sector.

With the theme “Free Trade Zones: A Breakthrough Solution for Promoting Logistics Growth,” the forum aims to communicate Vietnam’s encouragement of developing free trade zones, striving to become a logistics powerhouse, contributing to the country’s industrialization and modernization, especially in the era of national rise.

During the plenary session, participants discussed the state of logistics development; its potential and strengths; mechanisms, policies, and orientations for Vietnam’s logistics development. Delegates also presented numerous proposals for guiding Vietnam’s logistics sector to enter a new era; the challenges and opportunities for Vietnamese logistics companies; and experiences and trends in logistics and free trade zones.

Delegates proposed solutions to promote the establishment of free trade zones, international transshipment ports, the construction of container fleets, and specialized freight aircraft fleets. They also emphasized enhancing international cooperation, building strong Vietnamese logistics companies, developing transportation infrastructure and warehousing, adopting technological innovation, training a skilled workforce, and promoting public-private partnerships in logistics. Additionally, they called for improved legal frameworks and policies to attract foreign investment in Vietnam’s logistics sector, such as tax and visa incentives.

Acknowledging the role and development potential of logistics, the Prime Minister emphasized that awareness of logistics development in Vietnam has been raised, with the legal framework, mechanisms, and policies continuously improved. Logistics infrastructure has rapidly developed with numerous large, modern projects, fostering reasonable structures and harmonious connections among transportation modes, including road systems, airports, seaports, electrical grids, and internet networks. The country is leveraging its maritime, space, and underground resources for further development.

The Prime Minister highlighted that limitations in institutional frameworks restrict sectors such as infrastructure and public-private partnership models. However, the number of logistics businesses continues to grow, reflecting a positive trend in logistics development. Vietnam has diversified its transportation methods, gradually reducing dependence on road transport, while emphasizing workforce development and improving its international logistics rankings.

3 Goals, 7 Tasks for Vietnam’s Logistics Development

Analyzing the global situation, with the perspective of “create to fly high, innovate to reach far, integrate to develop” and identifying logistics development as an objective requirement and strategic choice, priority for national development, the Prime Minister clearly outlined 3 goals and 7 tasks for logistics development. To contribute to the country’s double-digit GDP growth next year, logistics costs must be reduced from 18% to 15% by 2025; increase logistics’ share in GDP from 10% to 15%, striving to reach 20%; increase Vietnam’s logistics scale in global logistics from 0.4% to 0.5%, striving to reach 0.6%; increase the industry’s growth rate from 14-15% to 20%.

The Prime Minister emphasized the need to raise awareness about the position, role, and importance of logistics in national development, especially with Vietnam as a center of the Asia-Pacific region to maximize unique potential, outstanding opportunities, and competitive advantages of the country. Break through institutions, improve the institutional framework for the logistics industry to develop according to 3 goals, contributing to bringing the country to double-digit growth, leading the country into a new era, an era of national advancement, developing a rich and prosperous country. Develop modern, smooth logistics infrastructure, reduce input costs, increase product competitiveness including promoting aviation, maritime, high-speed rail development. Build smart governance, high-quality human resources; promote logistics diplomacy while promoting and modernizing domestic logistics. Build and develop free trade nation; closely connect between aviation, maritime, rail, inland waterway, and highway transport modes to connect world’s free trade zones, connect international transport systems.

Based on this, Prime Minister Pham Minh Chinh requested ministries, sectors, and localities, within their respective functions and duties, to urgently focus on building a free trade nation; finalizing the Strategy for Vietnam’s Logistics Service Development; and establishing international free trade zones.

Emphasizing the government’s role as an enabler, the Prime Minister highlighted the importance of institutional development, strategy formulation, planning, and creating mechanisms to mobilize resources, foster development, and design monitoring and inspection tools. He called on localities to enhance their proactiveness, self-reliance, resilience, and autonomy in logistics development, following the spirit of “local decisions, local implementation, local accountability.” Enterprises were urged to boost their autonomy and actively contribute to institutional building, adhering to the principle of “harmonizing the interests of the state, the people, and businesses; effectively managing the relationship between the market, the state, and society; ensuring shared benefits and shared risks.”

Outlining Vietnam’s foreign policy of independence, self-reliance, diversification, and multilateralization, being a friend, a reliable partner, and a responsible member of the international community for peace, stability, cooperation, and development, the Prime Minister emphasized the nation’s efforts to advance three strategic breakthroughs. He called on foreign organizations and businesses to cooperate and invest in Vietnam under the ethos of “listening and understanding together; sharing visions and actions; working together, benefiting together, winning together, and growing together.”

Prime Minister Pham Minh Chinh expressed confidence that, with solid initial steps and foundations, Vietnam’s logistics sector will align with the nation’s collective momentum, entering a new era of growth and prosperity. He highlighted Ba Ria – Vung Tau as one of the leading localities in logistics and energy development nationwide.