Vietnam’s logistics sector is undergoing significant transformations, marked by substantial infrastructure projects and strategic initiatives aimed at enhancing efficiency and global competitiveness.
High-Speed Railway Developments
The Vietnamese government has approved a $67 billion high-speed railway project connecting Hanoi and Ho Chi Minh City. This 1,541-kilometer line, expected to begin construction in 2027 and become operational by 2035, will feature trains traveling up to 350 km/h, reducing travel time between the two cities from 30 hours to just five. The railway will traverse 20 provinces and cities, incorporating 23 passenger and five freight stations, thereby enhancing both passenger and cargo transport efficiency. (AP NEWS)
Additionally, Vietnam plans to construct a 427-kilometer railway linking Lao Cai province to Ha Long City, passing through Hanoi and Haiphong, to strengthen connectivity with China’s Yunnan province. This project, estimated at $7.2 billion, aims to modernize Vietnam’s aging railway infrastructure and is slated to commence in 2030. (REUTERS)
Inauguration of Viettel Logistics Park
In December 2024, Viettel inaugurated the Viettel Logistics Park in Lang Son province, Vietnam’s first facility of its kind. Spanning over 143 hectares with an investment of nearly 3.3 trillion VND (approximately $130 million), the park is equipped with modern infrastructure and renewable energy systems. It offers comprehensive logistics services, including customs clearance, quarantine, inspection, warehousing, and cross-border transportation. Utilizing smart transportation management technology and AI, the park aims to optimize processes and reduce logistics costs by 40%, with a capacity to handle up to 1,500 trucks per day. (VIETNAMNET)
Government Initiatives to Reduce Logistics Costs
The Vietnamese government is actively working to reduce logistics costs from 18% to 15% of GDP by 2025. Prime Minister Pham Minh Chinh emphasized the importance of developing logistics infrastructure to achieve double-digit growth in the sector, aiming to increase its contribution to the national GDP from 10% to 15-20%. The strategy includes building smart governance, promoting logistics diplomacy, and integrating various modes of transport to connect free trade zones with international systems. (VOV WORLD)
E-commerce and Logistics Real Estate Demand
The explosive growth of e-commerce in Vietnam is driving up demand for warehouse real estate and infrastructure investment. The supply of ready-built factories and warehouses has reached 15.1 million square meters, a 31% year-on-year increase, with an overall occupancy rate of 80%. The government’s continued investment in infrastructure and skilled labor development aligns with the national objective of moving up the global value chain, positioning Vietnam as a key player in high-tech manufacturing and logistics. (VIETNAM PLUS)
These developments reflect Vietnam’s commitment to becoming a significant logistics hub in the Asia-Pacific region, enhancing its competitiveness in the global supply chain and fostering economic growth.
Source: Internet