The average annual growth rate of Vietnam's logistics market ranges from 14-16%, significantly contributing to the country's trade balance for several years. However, the logistics service sector in Vietnam faces numerous challenges and limitations in terms of the capacity of logistics service providers. The digital transformation efforts of most logistics businesses are still in their early stages and have not received adequate investment attention.
Meanwhile, the Vietnam Logistics Business Association (VLA) reports that the average logistics cost in Vietnam is currently 16.8-17% of GDP, much higher than the global average of 10.6%.
Domestic logistics infrastructure still has many limitations, lacking coordination and coherence. Port planning remains inadequate, with a lack of hub ports. The capacity of waterway transport is low, accounting for only 21.6%, while road transport remains the most common method, representing 73%.
In terms of cargo transportation, sea transport accounts for only 5.2%, rail transport 0.2%, and air transport 0.01%. The logistics sector in Vietnam faces the challenge of improving its infrastructure to enhance efficiency and reduce costs.
