Vietnam is experiencing a period of rapid development in the logistics industry, driven by market expansion fueled by a wave of foreign investment, supply chain shifts, and the emergence of large-scale seaports. However, along with that comes significant challenges in terms of human resources, transportation costs, and connection infrastructure. In 2025, can Vietnam’s logistics industry capitalize on the opportunity to make a breakthrough, or will it face increasing pressure?
Vietnam’s logistics market 2025: A picture of rapid growth
According to Prime Minister’s Decision No. 200/QD-TTg dated February 14, 2017, which approves the Action Plan to improve the competitiveness and development of Vietnam’s logistics services by 2025, the goal is to achieve a growth rate of 15-20% in logistics services by 2025. In addition, according to the report by the General Statistics Office of Vietnam, the logistics industry is currently valued at approximately 40 billion USD. It is forecast to continue to grow strongly at a rate of 14-16% per year, in which e-commerce (e-commerce) is becoming an essential driving force.
A report from the World Bank shows that the development of e-commerce has led to a great demand for warehousing, transportation, cold chain, and fast forwarding. However, to fully capitalize on this opportunity, the logistics industry must address bottlenecks such as high transportation costs, unsynchronized infrastructure, and severe labor shortages..
Vietnam’s logistics market in 2025: Driven by infrastructure investment
Entering 2025, Vietnam is expected to remain an attractive destination for foreign direct investment (FDI) inflows, particularly in the manufacturing and import/export sectors. The expansion and development of major seaports such as Phuoc An (Dong Nai), Lach Huyen (Hai Phong), and Vung Ang (Ha Tinh) are creating significant changes in the domestic logistics chain. These ports not only help increase shipping capacity but also contribute to reducing pressure on existing ports such as Cat Lai (Ho Chi Minh City). Ho Chi Minh City) or Dinh Vu (Hai Phong).
The development of the new seaport system is a significant step forward, enabling goods to circulate more efficiently while minimizing overcrowding at existing ports. However, the investment in port infrastructure must be accompanied by improvements to the road and rail transport systems to optimize multimodal transportation.
Supply Chain Shift: A Golden Opportunity for Vietnam’s Logistics
The shift in global supply chains, particularly the “China Plus One” trend – where businesses reduce their dependence on China by expanding production to other countries – is bringing great opportunities to Vietnam. Multinational corporations are coming to Vietnam not only because of its low labor costs but also due to favorable trade policies, thanks to agreements such as the CPTPP, EVFTA, and RCEP.
However, to make the most of this opportunity, Vietnam’s logistics industry faces many challenges. One of the concerning issues is that logistics costs in Vietnam remain high. According to the Vietnam Logistics Report 2023 of the Ministry of Industry and Trade, logistics costs currently account for about 16.5% of GDP, a slight decrease compared to the previous year but still higher than the world average (11.6%). Despite the slight decline, logistics costs in Vietnam remain higher than in developed countries, where they typically account for approximately 7-9% of GDP. This highlights the urgent need for supply chain optimization and more substantial investment in technology, ranging from innovative warehousing to digital transportation.
Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade) at the Vietnam Logistics Conference 2024, said that to catch the wave of supply chain shifts, Vietnam needs to increase investment in transport infrastructure, improve customs procedures, and build more modern logistics centers. He emphasized: “Without significant improvements in infrastructure and policies, Vietnam’s competitive advantage may be overshadowed by rivals such as Thailand or Indonesia.”
Human resources: The dilemma of the logistics industry
In addition to market expansion opportunities, Vietnam’s logistics industry is facing a severe shortage of human resources. Speaking at the 25th meeting of the Logistics Industry Vocational Skills Advisory Council – LIRC, Ms. Cao Thi Quynh Giao, Vice Chairwoman of LIRC, said: “In just the past year, labor demand has increased sharply, with four new ports coming into operation in 2024, each port needs from 100 to 150 operational technical personnel. However, the labor supply is insufficient, leading to fierce competition among businesses in attracting and retaining personnel, causing continuous labor movement in the industry.” This shortage occurs on multiple levels. Businesses are struggling to recruit drivers, warehouse operators, and even logistics analysts. The main reason comes from the lack of intensive training programs and unattractive remuneration policies.
In addition, the tightening of labor regulations, according to Decree 168/2024/ND-CP, is also posing numerous challenges. According to the new regulations, drivers are not allowed to drive continuously for more than 4 hours at a time, and the total driving time during the day does not exceed 10 hours. This causes businesses to recruit more drivers to maintain operations, but the supply of human resources is insufficient to meet the demand. Moreover, drivers must now hold a specialized practice certificate to be permitted to drive in the logistics field, but the training and certification process is lengthy, making it challenging to recruit.
According to LIRC, one of the essential solutions is to strengthen cooperation between businesses and colleges. Some educational institutions have begun updating their curricula to include new subjects, such as green logistics and sustainable transport; however, the implementation is still slow compared to the industry’s growth rate.
Also, at the 25th meeting of LIRC, Ms. Vu Thi Hai Van, Chairwoman of the Council of Maritime College 1, emphasized: “We have introduced green logistics into teaching since last year and noticed that students are very interested in this topic. Not only learning theory, they also participate in research projects with businesses to apply the green logistics model in practice.”
One of the successful training models is the project to build a warehouse using solar energy implemented by students of Maritime College 1 at a logistics enterprise in Hai Phong. This project helps businesses save up to 30% of electricity costs per month while creating high economic efficiency and contributing to environmental protection.
Vietnam’s logistics industry is facing significant opportunities but also numerous challenges. The expansion of the seaport system, attracting foreign direct investment (FDI) inflows, and shifting supply chains are creating strong growth drivers. However, to make the most of this opportunity, the logistics industry needs to quickly address the problems of infrastructure, operating costs, and, especially, human resources.
The sustainable development of logistics depends not only on the investment in facilities but also on the training of high-quality human resources and the application of technology to supply chain management. Only by solving these problems can Vietnam rise to become the leading logistics center in the region in the future.
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The Logistics Skills Advisory Council – LIRC is a pilot model under the Australia and Vietnam Human Resource Development program. The three-house engagement model: state regulators – schools – businesses aims to promote the involvement of industry businesses in the field of vocational education and training (VET) and government – to develop skills and provide advice on current and future workforce needs.
Port industry skills forecast report:
https://lirc.vn/tai-lieu-tham-khao/?lang=vi