Vietnam’s Logistics Industry: Why are costs high and what are the solutions for businesses?

Logistics costs in Vietnam are higher than the regional average, causing difficulties for businesses. Let’s explore the reasons and solutions to help optimize transportation and warehousing costs effectively.

📦 Vietnam’s Logistics Costs Are Higher Than the Regional Average – Causes and Optimization Solutions
Logistics costs in Vietnam remain a major challenge for many businesses, especially those involved in import-export and e-commerce. According to statistics, Vietnam’s logistics costs account for around 16–20% of GDP, significantly higher than neighboring countries such as Thailand, Malaysia, and Singapore (only about 10–12%).

🔍 Why Are Logistics Costs in Vietnam So High?
1. Uncoordinated transportation infrastructure: Road, rail, and waterway networks are not effectively connected, causing delays, traffic congestion, and longer delivery times.

2. Cumbersome customs procedures: Lengthy and complicated customs clearance processes increase time and cost for businesses.

3. High warehousing and documentation costs: Warehouse rental fees, labor costs, and the handling of import-export documents remain expensive, reducing overall business efficiency.

🚧 Logistics Infrastructure in Vietnam Still Faces Major Bottlenecks
Vietnam’s system of seaports, roads, and warehouses is expanding, but it remains fragmented and lacks effective integration. In many major industrial zones, businesses face additional domestic transportation costs due to the absence of direct connections to ports or logistics hubs.

Severe traffic congestion at key import-export gateways such as Cát Lái (HCMC), Hải Phòng, and Lạng Sơn often leads to delays in cargo delivery, disrupting production schedules and impacting credibility with international partners.

💡 Practical Solutions to Optimize Logistics Costs
To reduce logistics costs and improve operational efficiency, businesses should consider the following strategies:

✅ Partner with a professional logistics provider that offers a comprehensive and integrated service ecosystem, from customs clearance to last-mile delivery.

✅ Optimize transportation planning by selecting suitable ports and efficient routes to minimize transit time and costs.

✅ Leverage digital technologies for real-time management of transportation, warehousing, and inventory tracking, enabling smarter decision-making and resource allocation.

🚚 Minh Vân Logistics – Your Trusted Partner in Import & Export Operations
With over 10 years of experience in international logistics, Minh Vân Logistics delivers comprehensive and reliable solutions for exporting goods to the U.S., importing from China, and handling shipments across key global markets.

Why Choose Minh Vân Logistics?
✅ Optimize logistics costs – Maximize your business efficiency
✅ On-time delivery – Strictly aligned with production and vessel schedules
✅ Full-service customs support – Including FSC certification, quarantine, and fumigation procedures
✅ Safe and secure transportation – Preventing scratches, damage, and product deformation

📞 Contact us today for a free logistics consultation tailored to your business needs!

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