Vietnam’s rapid emergence as a global manufacturing powerhouse is increasingly reshaping international supply chains, placing logistics at the centre of the country’s long-term economic transformation.At the heart of this evolution is the International Institute of Logistics and Supply Chain (IILS), a Vietnam-based research and cooperation institution focused on logistics development, supply chain management, training, policy advisory and international collaboration. Its mission is to strengthen Vietnam’s integration into regional and global trade networks.Recently, IILS signed a Memorandum of Understanding (MoU) with the Hong Kong Association of Freight Forwarding and Logistics (HAFFA) during the inaugural Global Event Logistics Summit in Bangkok in May 2026. The agreement aims to deepen logistics cooperation, professional exchange and capacity development between Vietnam and Hong Kong.Building a bridge between two complementary logistics hubsFor Dr Le Van Hy, President of IILS, the objective of the MoU is to create a structured and practical cooperation channel between two logistics ecosystems that are highly complementary in nature.Hong Kong brings strong expertise in international freight forwarding, air cargo, financial and trade services, and globally established operating standards. Vietnam, meanwhile, is rapidly emerging as a key manufacturing, export and transshipment hub, with growing demand for logistics infrastructure, technology and workforce development.According to Dr Hy, IILS will contribute to this partnership through three main pillars: research and policy advisory, training and capacity building, and the creation of connections between business ecosystems, academic institutions and international experts.The goal is to translate global best practices into practical capabilities that can directly support Vietnamese logistics enterprises.Focus on practical cooperation and early impactIn the initial phase of collaboration, both organisations plan to concentrate on a limited number of high-impact initiatives.These include expert and market information exchange, specialised seminars and industry dialogues, joint training programmes in modern logistics, and business matching across key sectors such as air cargo, multimodal transport, e-commerce, international freight forwarding and green supply chains.Dr Hy stressed that the priority is not to expand activities too quickly, but to ensure that early cooperation generates tangible value for both sides.For IILS, this includes strengthening knowledge-sharing platforms, aligning with international professional standards and supporting Vietnamese companies as they adapt to logistics trends driven by digitalisation, sustainability and supply chain risk management.He summarised Vietnam and Asia’s logistics future around four key dimensions: infrastructure connectivity, data connectivity, standards connectivity and human connectivity.Logistics as a driver of competitiveness, not just a support functionBeyond institutional cooperation, the partnership reflects a broader shift in how logistics is viewed within national economies.For Dr Hy, logistics is no longer simply a support function for trade, but a strategic driver of competitiveness and integration into global value chains.He highlighted that Vietnam’s logistics sector is evolving at the same pace as its industrial base, with growing opportunities for companies that can improve service quality, operational standards and international connectivity.The collaboration between Vietnam and Hong Kong is therefore expected to create both commercial opportunities and knowledge transfer in areas such as service management, quality control, human resource development and global market access.A rapidly expanding manufacturing and export baseVietnam’s logistics growth is being driven by a combination of structural and economic factors.The first is the ongoing shift in global supply chains, with companies diversifying production bases. Vietnam has become an increasingly attractive destination due to its geographic position, extensive free trade agreements and strengthening industrial capabilities.The second is continued investment in infrastructure, including seaports, airports, expressways, logistics centres and industrial zones.The third is strong demand from export-oriented industries such as electronics, textiles, footwear, agriculture, seafood, e-commerce and consumer goods.In 2025, Vietnam’s total import and export turnover reached approximately USD 930 billion, representing an increase of more than 18% year on year. According to Dr Hy, this provides a strong foundation for continued logistics expansion, but also raises expectations for higher efficiency and service quality.The focus, he explained, is no longer only on increasing cargo volumes, but on improving logistics performance: faster, greener, more transparent and more integrated into regional supply chains.Air cargo emerges as a key growth engineVietnam’s air cargo market is also evolving in line with its export structure, particularly as high-value and time-sensitive goods become more prominent.Products such as electronics, components, fashion items, pharmaceuticals, cold-chain goods and cross-border e-commerce shipments are increasingly relying on air transport.At the global level, IATA has highlighted the growing importance of air cargo in supporting international trade, particularly for high-tech and AI-related goods.Dr Hy believes Vietnamese logistics companies can capitalise on this trend by investing in specialised air freight services, cold chain logistics, e-commerce fulfilment systems, digital documentation processes and stronger partnerships with airlines and global freight forwarders.Air cargo, he noted, is no longer just about speed. It is a highly specialised segment requiring precision, data integration and high operational standards across the entire supply chain.Key challenges still shaping the sectorDespite its rapid progress, Vietnam’s logistics industry continues to face several structural challenges.These include relatively high logistics costs, limited multimodal integration, uneven digitalisation across companies, skills gaps in the workforce and insufficient alignment with green and sustainability standards.The sector is also exposed to external pressures, including global trade volatility, shifting tariff policies, supply chain disruptions and increasingly strict requirements related to traceability, emissions and compliance.According to Dr Hy, IILS does not replace the role of government or private sector actors, but instead contributes as a knowledge-based institution through research, policy feedback, training programmes and international cooperation initiatives.Preparing the next generation of logistics professionalsLooking ahead, Dr Hy emphasized that logistics education and skills development will be central to Vietnam’s long-term competitiveness.He noted that the industry now requires a new generation of professionals who combine operational knowledge with foreign language skills, digital capabilities, supply chain thinking, legal understanding, risk management expertise and sustainability awareness.For young professionals, he described logistics as one of the most promising sectors globally, but also one that demands continuous learning and adaptation.A shared logistics future for Vietnam and AsiaIILS has outlined three immediate priorities: strengthening research capabilities, expanding training programmes and deepening international cooperation with regional partners, universities, industry associations and enterprises.These efforts align with Vietnam’s broader logistics strategy for 2025–2035, which aims to position the country as a competitive regional logistics, transshipment and distribution hub by 2050.For Dr Hy, the future of logistics in Vietnam and Asia will ultimately depend on four interconnected pillars: infrastructure, data, standards and human capital.If IILS succeeds in its role as a bridge between international knowledge and local capability, he believes it can make a meaningful contribution to this transformation—helping Vietnam’s logistics sector integrate more deeply into global supply chains while strengthening its position within the regional economy.
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