At the seminar “Logistics Solutions for Import-Export Enterprises Facing US Tariff Policies: Challenges and Opportunities” on June 19, 2025, Mr. Bui Quang Hung, Deputy Director of the Trade Promotion Department, Ministry of Industry and Trade, stated that the United States has long been one of the top export markets for Vietnam, with export turnover reaching over $100 billion in 2024, accounting for a large proportion of the country’s total export turnover.

5 CHALLENGES FOR THE LOGISTICS SERVICE INDUSTRY

However, new tariff policies from the United States, including anti-dumping duties and countervailing duties, are presenting significant challenges for Vietnamese exporters.

These changes not only increase costs but also require businesses to optimize their supply chains and logistics operations to maintain their competitive advantage in global trade.

Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department, Ministry of Industry and Trade, pointed out five challenges for the logistics service industry in the face of potential US countervailing duties.

First, a decline in exports directly impacts the demand for logistics services. According to Mr. Hai, the logistics industry is closely linked to import and export activities, and when there is a disruption in the flow of goods, the demand for logistics services also decreases.

The imposition of countervailing duties of up to 46% by the United States, one of Vietnam’s largest export markets, will force many manufacturing companies to scale back orders or shift markets. This will significantly reduce the volume of goods requiring transportation, warehousing, and customs procedures, especially services related to international transportation and cross-border e-commerce logistics.

For small and medium-sized logistics enterprises that rely on a few large export partners, this could be a shocking event, leading to a decrease in revenue or even cessation of operations if they fail to restructure in time.

Second, reduced FDI attraction and its impact on the formation of high-value supply chains. When trade risks increase, especially regarding origin fraud or countervailing duties, multinational corporations may reconsider their investment plans. This will not only affect FDI inflows but also directly impact associated logistics activities such as the establishment of distribution centers and the development of warehousing and e-commerce logistics systems.

If Vietnam’s role in high-value supply chains is diminished, the logistics industry will miss out on opportunities to engage in value-added services such as integrated logistics, smart logistics, and digital supply chain management.

Third, the logistics industry requires substantial and long-term investments in warehouses, transportation infrastructure, management software systems, and human resource training. However, in a highly volatile trading environment, formulating investment strategies becomes riskier. Businesses find it challenging to accurately predict market demand, cargo volume, or the timeline for investment projects, leading to resource waste and operational inefficiencies.

Fourth, increased pressure to prevent origin fraud. One of the main reasons for the US to impose high countervailing duties is the suspicion that some companies are using Vietnam as a transshipment hub and evading taxes by misdeclaring the origin of goods. In this context, the role of logistics enterprises, especially customs declaration and international transportation companies, becomes crucial.

However, the responsibility for checking and verifying the origin of goods does not solely rest with the government but also depends on the serious and proactive attitude of the enterprises themselves. If businesses turn a blind eye or lack the capacity to control risks, it could lead to serious legal consequences for the company and damage the reputation of the entire Vietnamese logistics industry on the international stage.

Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department, Ministry of Industry and Trade, shared his insights at the seminar.

Fifth, challenges from countries with similar production models. Apart from internal factors, the Vietnamese logistics industry also faces intense competition from regional countries such as Thailand, Malaysia, Indonesia, and India, which are gradually becoming alternative destinations in the supply chains of many international corporations.

Losing competitiveness in logistics means that Vietnam becomes less attractive to trading partners, making it harder for domestic goods to access the global market.

ENHANCING COLLABORATION WITHIN THE SUPPLY CHAIN

In this context, Mr. Hung suggested that applying advanced technologies such as artificial intelligence (AI) and blockchain in logistics management, along with leveraging new-generation free trade agreements that Vietnam has joined, will help businesses reduce costs, increase transparency, and meet the stringent standards of the US market.

Connecting logistics service enterprises with domestic and foreign manufacturing and import-export companies is crucial to ensuring smooth and efficient logistics operations in the import-export sector, in compliance with legal regulations.

Mr. Hai advised businesses to abandon short-term coping mentalities and instead adopt long-term business strategies that consider various scenarios, including risks related to trade policies, exchange rates, supply chain disruptions, and geopolitical fluctuations.

“Using data analysis tools, market forecasting, and monitoring international policy developments will enable businesses to proactively adjust their production, investment, and export plans in line with practical situations, avoiding passivity when sudden market changes occur,” emphasized Mr. Hai.

Additionally, one of the critical factors in enhancing resilience is to foster horizontal and vertical linkages within the supply chain. Instead of operating in isolation, enterprises should actively collaborate with raw material suppliers, logistics providers, customs agents, and international distribution channels to optimize transportation costs and time; share data and transparentize production and export processes; strengthen negotiating power; and maintain orders.

Building industry clusters or supply chain alliances will enable Vietnamese enterprises to develop integrated production and logistics capabilities, keeping up with the global trend of value chain globalization.

Diversifying markets and expanding the customer base is also essential, along with training personnel in import-export, logistics, technology, and international law compliance. The application of digital technology in warehouse management, order tracking, and international payments enhances productivity and transparency. Investing in clean and energy-efficient transportation and adopting environmentally friendly materials align with the ESG standards that are increasingly valued by customers and investors. Most importantly, businesses must operate with transparency and refrain from commercial fraud.

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