Vietnam is taking bold steps toward establishing itself as Southeast Asia’s leading logistics hub, driven by the recently approved National Logistics Development Strategy for 2025 – 2035, with a vision to 2050. The strategy outlines the government’s ambition to turn logistics into a high-value, technology-driven, and sustainable economic sector – one that will play a pivotal role in regional supply chains and global trade connectivity.

Building a logistics powerhouse

Under this long-term vision, Vietnam aims to develop 5 to 10 world-class logistics centers that will anchor regional supply networks and facilitate smoother cross-border trade. By 2050, the country expects to reduce logistics costs to just 10 – 12% of GDP, bringing it on par with developed economies, and to rank among the world’s top 30 countries in the World Bank’s Logistics Performance Index (LPI).

These targets are not only about cost reduction but also about efficiency, competitiveness, and value creation within the Vietnam logistics ecosystem.

Infrastructure as the backbone

The government emphasizes synchronized investment across multiple transport modes – roads, railways, seaports, inland waterways, and air cargo – supported by the development of smart warehouses, bonded logistics zones, and free trade areas.

Key logistics regions such as the Red River Delta, Central Vietnam, and the Southeast region (including Ho Chi Minh City, Hanoi, Hai Phong, and Da Nang) will serve as national logistics hubs, connecting industrial zones with international trade gateways.

Strategically located along major economic corridors, these hubs will form the backbone of Vietnam’s logistics infrastructure, enabling efficient goods movement across ASEAN and beyond.

Fostering 4PL and 5PL services

One of the most notable aspects of the strategy is the promotion of integrated logistics services, particularly 4PL (Fourth-Party Logistics) and 5PL (Fifth-Party Logistics) models.

Vietnam seeks to nurture domestic enterprises capable of offering end-to-end supply chain solutions, combining transportation, warehousing, inventory management, and technology-driven analytics under one ecosystem.

The plan also encourages the establishment of international offices and representative branches for Vietnamese logistics companies to enhance their global presence and competitiveness.

Digital transformation and innovation

Digitalization stands at the core of Vietnam’s logistics transformation. The government plans to build a national logistics data platform and integrate emerging technologies such as artificial intelligence (AI), Internet of Things (IoT), and automation into supply chain management.

These efforts aim to optimize transport routes, reduce energy consumption, and enhance real-time visibility across the logistics network.

Moreover, the creation of R&D and innovation centers will foster collaboration between logistics firms, universities, and tech startups – accelerating the adoption of smart logistics solutions.

A growing logistics market with global potential

Lach Huyen Port Cluster, early 2025. Photo by Le Tan

According to the Vietnam Ministry of Industry and Trade, the country recorded over 6,500 new logistics enterprises in 2024, employing nearly 30,000 workers.

Vietnam currently boasts over 4 million square meters of warehouse space and ranks third in ASEAN in port capacity.

A report by IMARC Group estimated Vietnam’s logistics market value at USD 30 billion in 2024, with forecasts reaching USD 40 billion by 2025 – driven by strong export manufacturing, e-commerce expansion, and improved digital infrastructure.

In global rankings, Vietnam already sits among the top 10 emerging logistics markets, with particularly strong scores in international logistics opportunities and infrastructure development.

The distribution heart of Southeast Asia

With its strategic location at the crossroads of major trade routes, Vietnam is perfectly positioned to become the “distribution heart” of Southeast Asia. The government’s open investment policies, combined with ongoing infrastructure upgrades and digital transformation initiatives, are reshaping the nation’s logistics landscape.

As foreign investors and multinational logistics corporations increase their footprint in Vietnam, the country is set to play an even greater role in regional supply chains – offering efficiency, connectivity, and sustainability.

In short, Vietnam is not just catching up – it is racing ahead to redefine logistics in Southeast Asia.

Source: Vnexpress
24/10/2025