Vietnam’s Logistics Industry: How Vietnam’s Expanding Economy is Boosting Growth

Vietnam’s logistics industry has been boosted by the country’s booming GDP, rising manufacturing, and e-commerce sectors. In addition, the rapid adoption of e-commerce by the country’s young demographic has increased the demand for expansion in logistic services. 

Vietnam aims to develop itself as an export-driven economy. By establishing economic zones and industrial parks, the government is proactively taking steps to foster manufacturing investments, which is another reason why Vietnam’s logistics industry has strong potential.  

Logistics on fast-growing trajectory

Logistics is one of the fastest expanding sectors of Vietnam’s economy, whose growth may outpace GDP. The country’s import-export revenues reached close to US$390 billion in the first three quarters of 2020. This is a 1.8 percent growth compared to the same period last year as per the General Statistics Office (GSO). The Vietnamese government aims to achieve an annual logistics growth rate close to 20 percent by 2025.

Aviation, maritime, road transport contribute to logistics growth

As per World Bank rankings in 2018, Vietnam demonstrated a significant improvement in its Logistics Performance Index (LPI). It ranked 39 out of the 160 countries, rising 25 places above its position in 2016. Data from the Ministry of Industry and Trade showed that Vietnam’s logistics sector grew by over 12 percent in 2018.