Vietnam Government to Support the Logistics Industry

Updated on Thursday 30th August 2018

Logistics is one of the important economic sectors of Vietnam, as the growing population is buying more and more goods which need to be brought into the country. With these new developments, the costs associated to the transport of goods have increased significantly, given the fact that most of the products are transported by road, which is the most expensive way of carrying goods from one place to another. This is why the Vietnam government decided to reduce the costs associated with the transport of goods for logistics companies. If you are interested in setting up a business in Vietnam, our local consultants can help you.
 

New measures to be taken by the Vietnam Ministry of Transport


Vietnam is one of the countries in which logistics costs represent close to 21% of the Gross Domestic Product (GDP), which is a very high rate compared to other neighboring states. These costs are so high because the transport of capital goods is made by road, instead of railway or water. This is why the Ministry of Transport has decided to improve transportation by waterway and railway.

Until now, most of the investments went to the road infrastructure, which is why the ministry has decided to improve the other two important transportation ways by implementing the following measures:
 
  •           in terms of waterways, the ports will need to be enlarged and more space for parking and storage must be created;
  •           in terms of railways, the speed of loading and unloading trains must be increased.

In order to achieve that, the Ministry for Transport has started working together with the municipalities in order to draw up master plans which will improve the infrastructure.
 

The Vietnam logistics sector to become more competitive


At the moment, Vietnam companies in the logistics sector do not have too many alternatives for transporting their goods, however once the master plans are completed and the work on railway stations and seaports begin, this industry is expected to become more competitive.

Once the infrastructure is improved, the Vietnam government also hopes for logistics to become one of the most important sectors of the economy.

Foreign investors who want to open businesses in the logistics industry are invited to contact our Vietnam company formation agents for guidance.

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