Vietnam’s Logistics Sector Continues Strong Growth in 2024
From the beginning of 2024, the total cargo throughput at Vietnamese seaports exceeded 570 million tons, marking a 14% increase compared to the previous year. Notably, dry bulk cargo and container volumes accounted for a significant portion, handling over 321 million tons and 191 million tons, respectively.
This growth surge has been fueled by a robust recovery in exports, effective government support policies, and significant improvements in global supply chains.
Industrial Expansion Fuels Logistics Demand
The rapid expansion of industrial zones, which serve as critical hubs in Vietnam’s export supply chain, has significantly driven demand for logistics services. At the same time, the logistics sector has been undergoing a major transformation, supported by comprehensive government initiatives.
The Vietnamese government has prioritized administrative reforms, particularly in customs clearance and specialized inspections, helping businesses reduce time and costs. Additionally, strategic seaports such as Lach Huyen (Hai Phong) and Cai Mep – Thi Vai (Ba Ria – Vung Tau) continue to receive upgrades and capacity enhancements, strengthening Vietnam’s position in global maritime trade.
Technological advancements are another key highlight. Innovations such as Artificial Intelligence (AI), Blockchain, and Supply Chain Management (SCM) systems are being actively promoted, significantly improving operational efficiency and industry-wide productivity.
Furthermore, foreign direct investment (FDI) incentives and favorable trade agreements (such as next-generation Free Trade Agreements (FTAs)) have created an enabling environment for logistics growth and expansion.
Developing a High-Tech Logistics Network
With strong government support and strategic investments, Vietnam is developing high-tech logistics centers and modernized supply chains, adding greater value to both domestic and international logistics services.
The role of industry associations and leading logistics firms has also become more prominent, fostering greater supply chain integration and sustainable logistics solutions. Close public-private collaboration has helped streamline business operations, encouraging innovation and enhanced competitiveness.
Looking ahead, the partnership between the government and businesses is expected to not only help the logistics sector navigate current challenges but also position Vietnam as a regional logistics powerhouse.
Expectations for 2025: Key Challenges and Opportunities
To maintain momentum in 2025, logistics enterprises—including Vàng Transport & Logistics JSC—are calling for increased government support in key areas such as:
- Infrastructure investment in transportation, telecommunications, and IT.
- New policies to boost logistics sector development.
- Streamlined administrative and customs procedures.
- Reduced fees and infrastructure usage costs.
- Enhanced capacity for key airports, seaports, and border gates.
Stronger government-business collaboration will be essential in resolving bottlenecks and ensuring long-term growth for Vietnam’s logistics industry.
Vietnam’s Logistics Industry Shows Strong Recovery in 2024
According to Vietnam Report JSC, a comprehensive industry survey conducted between October 2023 and November 2024 highlights clear signs of recovery in Vietnam’s logistics sector.
While 2023 saw 33.3% of logistics companies suffer major revenue declines, 2024 presented a more positive outlook, with 52.9% of businesses reporting significant revenue growth. Meanwhile, the proportion of companies experiencing revenue declines dropped to just 11.8%, reflecting a broad-based recovery across the industry.
At the same time, cost pressures on logistics businesses have eased. In 2024, only 17.6% of companies reported a substantial increase in costs, while more than half (52.9%) achieved strong revenue growth. This improvement has helped businesses manage costs more effectively, enhancing overall profitability.
As a result, 82.3% of logistics firms in Vietnam expect increased profitability in 2024, citing strong export recovery, technological advancements, and effective government support policies.
Optimistic Outlook for 2025
Vietnam Report’s survey highlights growing optimism among logistics enterprises for 2025:
- 29.4% of businesses expect the industry to perform slightly better.
- 11.8% anticipate a highly favorable business environment.
- Among independent firms, 64.7% predict moderate growth, while 17.6% foresee strong expansion.
- Only 5.9% anticipate major difficulties, indicating widespread confidence in the industry’s long-term stability.
The logistics sector’s strong recovery is being driven by internal business improvements, supportive government policies, and global trade growth. With 2025 marking the final year of Vietnam’s 2021-2025 Economic and Social Development Plan, the logistics industry is leveraging global supply chain shifts, strategic investments, and advanced technologies to solidify its role as a backbone of Vietnam’s economy.
Key Challenges Moving Forward
Despite strong growth prospects, the logistics industry still faces significant challenges, according to Vietnam Report CEO Vu Dang Vinh. These include:
- Global economic and political uncertainties.
- Slow global economic growth.
- Intensifying competition among logistics firms.
- Regulatory and administrative barriers.
- Shortages in skilled labor.
Government Strategy & Long-Term Vision
2024 is considered a pivotal year for Vietnam’s logistics development strategy, as outlined in Prime Minister’s Decision No. 221/QĐ-TTg. This marks a critical phase in achieving strategic goals and laying the groundwork for Vietnam’s 2025-2035 Logistics Development Plan, with a vision toward 2050.
According to Vu Dang Vinh, this strategy aims to position logistics as a key service sector, strengthening Vietnam’s national competitiveness. It also presents an opportunity to accelerate major transportation projects, focusing on integrated logistics infrastructure. These improvements are expected to significantly enhance both domestic and international transportation efficiency, further elevating Vietnam’s role in global supply chains.
With sustained government backing, strategic investments, and technological innovation, Vietnam’s logistics industry is well-positioned for long-term growth, paving the way for its emergence as a key logistics hub in Asia.