Hanoi, Vietnam
By Maria Kalamatas | The Logistic News
May 26, 2025 – Section: World
Vietnam is moving fast to reposition itself as a logistics powerhouse in Southeast Asia. With manufacturing orders surging and global brands shifting operations out of China, the country has launched a national upgrade of its freight and distribution systems to meet escalating international demand.
The Vietnamese government this week confirmed a $1.1 billion public-private partnership to expand and digitize key inland logistics hubs, particularly in the northern provinces and the Mekong Delta. The plan focuses on improving last-mile delivery, rail-road connectivity, and customs processing across eight industrial zones.
“Our infrastructure must catch up with our opportunity,” said Nguyen Van Khoa, Vice Minister of Industry and Trade. “Vietnam can no longer afford to be a low-cost alternative — it has to become a logistics leader.”
At the heart of the strategy is the modernization of the inland container depot (ICD) network. New intermodal hubs will connect factories directly to seaports such as Hai Phong and Cai Mep via express rail lines, reducing both cost and time.
The upgrades are timed with growing investment from electronics and textile giants relocating their supply chains. Between January and April 2025, foreign direct investment in Vietnam’s logistics sector rose by 27%, according to data from the General Statistics Office.
“Vietnam is at a turning point,” said Sophia Tan, an Asia-Pacific supply chain consultant. “The key now is how fast it can convert infrastructure into competitive advantage.”
Alongside physical upgrades, Vietnam is also pushing digital integration. New platforms will allow cargo visibility from factory to ship, while port authorities test blockchain-based clearance protocols to reduce paperwork and delays.
The government has committed to carbon reduction goals as part of the logistics overhaul. Fleet electrification, solar-powered warehouses, and stricter emissions benchmarks are being introduced through 2026.
As production shifts east and global buyers demand faster, greener deliveries, Vietnam’s logistics transformation is positioning it not just as a low-cost hub — but as a high-performance one.
✎ Maria Kalamatas
Senior Correspondent – Global Trade & Infrastructure
The Logistic News
