Cutting logistics costs to global average could save $45 bln a year for Vietnam: PM

Prime Minister Pham Minh Chinh said Vietnam could save $45 billion annually if it lowers logistics costs by around 16% to match the global average.

Speaking at the Vietnam Logistics Forum 2025 held in Danang on Saturday, the cabinet leader noted that logistics is a critical pillar for boosting national competitiveness and supporting high, sustainable economic growth.

He said logistics infrastructure has improved, especially ports, airports, and expressways, forming logistics centers in key economic regions such as Ho Chi Minh City, Hai Phong, Danang, and Can Tho. Logistics companies, about 34,000 in number, are increasingly stronger, including many active in global supply chains and applying high technologies.

"But significant shortcomings persist: logistics costs remain higher than regional peers, regional connectivity is fragile, most logistics firms are small and lack competitiveness, international transshipment hubs are yet to take shape, support policies and incentives remain weak, and digital and green logistics have yet to fully develop," the cabinet leader told the forum.

“These limitations require a shift from a mindset of ‘administrative management’ to ‘enabling and serving development',” he stated.

The Prime Minister stressed that to support the country's goal of achieving double-digit economic growth, the logistics sector must expand even faster. “The logistics sector must grow 15% and reduce costs by around 16% to the global average - this would save Vietnam $45 billion each year.”

The government leader called for strengthened policy frameworks, stable logistics planning, streamlined procedures, and deeper decentralization to reduce costs. He urged the development of green, digital and smart logistics infrastructure, improved data connectivity, and stronger international cooperation.

Chinh also stressed the need to develop skilled human resources aligned with business and market demand and deepen regional and international logistics integration to lower costs and raise efficiency.

"The country aims to build a modern, digital and green logistics ecosystem and become one of Asia’s and the world's leading logistics service centers,” he added.

Vietnam’s logistics services sector has grown 14-16% per year, more than twice the global rate. The domestic logistics market is estimated at $45-50 billion, equal to about 10% of GDP and 5% of total trade value, according to Minister of Industry and Trade Nguyen Hong Dien.

Vietnam is ranked among the world’s top 10 emerging logistics markets and holds the top 4 position in the region in logistics opportunity and top 5 position in ASEAN and top 40 globally in performance indexes, he told the forum.

Danang positions itself as a logistics hub

Le Ngoc Quang, Party chief of Danang, said Danang considers logistics a priority sector that underpins industry, trade, tourism, and investment.

The central Vietnam hub has invested heavily in infrastructure, including Tien Sa Port, Lien Chieu Port, Ky Ha Port, Danang International Airport, Chu Lai Airport, regional road and rail links, industrial parks and cluster, and inter-regional logistics facilities.

Danang is developing Vietnam’s first Free Trade Zone, which it expects will be a new growth pole, attracting global logistics groups, cross-border e-commerce operations, goods distribution centers, and high-value services, he added.

The country is preparing to build an international financial center, located in both HCMC and Danang.