Department of Logistics ServicesVietnam is becoming one of the important pillars of the economy, playing a role in connecting and supporting socio-economic development. With its rapid growth rate and deepening international integration, logistics is not only a supporting industry, but also a driving force for national competitiveness.

Development Situation of Logistics Services Industry

According to the Vietnam Association of Logistics Service Enterprises (VLA), logistics services industryVietnam achieves a growth rate of 14% - 16% per year, with a market size of about $40 - 42 billion USD per year. The World Bank ranks Vietnam 43/155 countries in terms of logistics efficiency, in the top five leading ASEAN countries, behind Singapore, Malaysia, Thailand and on a par with the Philippines.

In 2024, the import and export turnover reached $786.29 billion, up 15.4% from the previous year, in which exports increased 14.3% and imports increased 16.7%. Standard Chartered forecasts show that, by 2030, Vietnam's exports could reach $618 billion (7% growth per year) and imports reach $578 billion (growth 6.9% per year), providing a major impetus for the development of logistics services industry.

The Role of Logistics in the National Economy

Department of Logistics Servicesnot only supports transportation, but also contributes to:

• Increase the added value for the goods.
• Connecting production, import-export and domestic trade.
• Development of transport infrastructure and application of information technology.

With its strategic geographical location and the boom of e-commerce, Vietnam has many advantages to develop this industry.

The Boom of E-Commerce and the Impact on the Logistics Service Industry

E-commerce is an important factor in driving logistics services industrygrow. In 2023, Vietnam's e-commerce market reached US$20.5 billion, an increase of 25% compared to 2022. It is forecast that by 2024, this figure will exceed $25 billion, accounting for 9% of the country's total retail sales of goods and consumer services revenue.

Cross-Border E-Commerce

Cross-border e-commerce is leverage for online exports. According to Statista, Vietnam is among the top 10 countries with the highest e-commerce growth rate in the world. This requires logistics services industrymust constantly improve to meet the increasingly diverse needs of the market.

The Role of the Ministry of Industry and Trade in the Development of Logistics Services

The Ministry of Industry and Trade plays an important role in directing and promoting the development of logistics services industryin Vietnam through specific policies and activities.

Specific Solutions and Activities

In 2024, the Bureau of Import and Export (Ministry of Industry and Trade) has:

• Regularly talk to associations and businesses to grasp difficulties and entanglements.
• Staff report on the logistics situation, such as Report No. 423/TTR-XNK (19/3/2024) on the impact of the Red Sea situation on import and export.
• Issued Vietnam Logistics Report 2024 with the theme “Free Trade Zone”.
• Organized trade and logistics interconnection delegations in Taiwan, China (April 2025, November 2024), Panama (September 2024) and Thailand (October 2024).
• Chaired the Vietnam Logistics Forum 2024 in Ba Ria - Vung Tau with the theme “Free Trade Zone - Breakthrough Solutions to Promote Logistics Growth”.

Review from the Prime Minister

At the Vietnam Logistics Forum 2024, Prime Minister Pham Minh Chin noted the efforts of the Ministry of Industry and Trade and related agencies in developing logistics services industry. The Prime Minister highlighted seven solutions, including:

• Build modern logistics infrastructure to reduce costs and increase competitiveness.
• Promoting international integration and modernizing the domestic logistics industry.

‍

Potential and Challenges of the Logistics Service Industry

Development Potential

Vietnam has many advantages to develop. logistics services industry, including:

• Strategic Geographical Location: Located in the most dynamic trading area in the world.
• International Integration: Participates in 17 free trade agreements with more than 60 economies.
• Large Consumption Market: Is the eighth emerging market in terms of global consumption.
• New production center: Becoming the manufacturing hub of Asia-Pacific.

Challenges to overcome

• High logistics costs: It currently accounts for 17-18% of GDP, higher than many countries in the region.
• Transport infrastructure: Strong investment is needed to increase efficiency and reduce costs.
• Quality of service: Must meet increasingly stringent international standards.

Logistics Industry Development Goal by 2025

The Prime Minister has set three major goals for logistics services industry:

1. Reduce logistics costs from 18% of GDP to 15%.
2. Increase the share of the logistics sector's contribution in GDP from 10% to 15%, striving to reach 20%.
3. Bring the industry growth rate from 14-15% to 20% /year.

Conclusion

Department of Logistics ServicesVietnam is facing great development opportunities thanks to the cooperation of the Ministry of Industry and Trade, its strategic geographical location and the boom of e-commerce. However, in order to achieve the stated objectives, the industry needs to focus on investments in infrastructure, technology and improving the quality of services. With the advantages available, Vietnam has the full potential to become an important logistics hub of the region, contributing to sustainable economic development.

‍