Investments

Prime Minister: Logistics Growth Must Outpace GDP by 1.5 Times, Drastically Cutting Costs

Logistics, hailed as the lifeblood of the economy, has been thrust into the spotlight by Prime Minister Phạm Minh Chính. He has set ambitious targets for the sector, demanding annual growth of 15-16%, a contribution of 6-7% to GDP, and a reduction in logistics costs below the current 16%.

Administrator

29 November, 2025

Speaking at the Vietnam Logistics Forum 2025, themed “Vietnam Logistics – Rising into the New Era,” held on November 29th in Da Nang City, Prime Minister Pham Minh Chinh emphasized the logistics sector’s vital role in storing, preserving, and transporting goods. He highlighted its position as a key pillar driving national growth and competitiveness.

Stable Growth, Leading ASEAN

The Prime Minister acknowledged the encouraging achievements of Vietnam’s logistics industry. The sector has consistently grown at 14-16% annually, contributing 4.5-5% to GDP. According to the World Bank’s 2023 rankings, Vietnam is among the top 5 ASEAN countries in logistics performance.

Furthermore, logistics costs have decreased to approximately 16% of GDP (down from over 20% in 2014), saving businesses billions of USD annually in import-export activities.

Infrastructure development continues to be prioritized, particularly in seaports, airports, highways, and logistics centers in key economic zones like Ho Chi Minh City, Da Nang, and Quang Ninh.

Vietnam boasts over 34,000 logistics companies, many of which have expanded into international supply chains and actively adopted technology in their operations.

Prime Minister addressing the forum.

Despite these achievements, the Prime Minister pointed out challenges. Vietnam’s logistics costs (16%) remain significantly higher than regional peers (Singapore: 8%, Malaysia: 12%, global average: 11%). Regional connectivity and infrastructure integration are still inadequate, making the sector vulnerable to natural disasters.

Most logistics companies are small and medium-sized, lacking large enterprises capable of leading the market. Digital and green infrastructure fall short of the requirements for dual transformation. Vietnam also lacks a sufficiently large data center to support AI development and digital transformation within the industry.

The Prime Minister emphasized that green and digital transformation are strategic priorities for sustainable and rapid growth.

Logistics Growth Must Outpace GDP by 1.5 Times

The Prime Minister stated that the industry’s achievements do not yet match Vietnam’s geopolitical and economic advantages, leaving room for significant growth. To achieve the target of 10% average GDP growth over the next five years, all sectors and localities must achieve double-digit growth.

Specifically, the logistics sector must grow at 1.5 times the GDP growth rate, with the value-added share of logistics services reaching 6-7% of GDP, an average annual growth rate of 15-16%, and a reduction in logistics costs relative to GDP.

To address these challenges, the Prime Minister called for:

Improving logistics policies and regulations to ensure stability, consistency, transparency, and feasibility, while reducing administrative procedures and barriers to lower costs for citizens and businesses.
Developing green, digital, and smart logistics infrastructure, integrating data with the National Single Window mechanism, and promoting international cooperation on low-carbon logistics.
Developing a high-quality workforce and encouraging the formation of large, internationally competitive logistics enterprises.
Effectively mobilizing and coordinating resources, particularly through PPP models.
Enhancing logistics governance and connectivity between businesses, customs, banks, and insurance providers.
Developing supporting services like finance, insurance, healthcare, and education to strengthen the logistics ecosystem.
Strengthening regional and international linkages, leveraging collaborative power.
Promoting science, technology, innovation, and digital transformation as key drivers of competitiveness.

Prime Minister Pham Minh Chinh visiting exhibition booths at the forum.

According to the task allocation, the Ministry of Industry and Trade will coordinate and guide the implementation of the Vietnam Logistics Development Strategy for 2025-2035, with a vision to 2050. The Ministry of Finance will refine the organization and operation of the National Steering Committee for ASEAN Single Window, National Single Window, and Trade Facilitation, implementing smart customs. The Ministry of Construction will lead the planning of interconnected logistics infrastructure, adapting to climate change and efficiently utilizing underground, ground, and airspace.

Localities like Hai Phong and Da Nang are urged to leverage their potential, advantages, and existing policies. Da Nang, in particular, must maximize the benefits of the country’s first Free Trade Zone, perfecting infrastructure and promoting logistics services to position itself and Vietnam at the forefront of regional and global trends.

The Prime Minister reaffirmed the government’s commitment to the “5 Clears” principle: Clear Institutions, Clear Infrastructure, Clear Governance, Clear Practices, and Clear Cooperation. This approach aims to establish logistics as a key economic sector, significantly contributing to national development.

He expressed confidence that with the collective effort of the entire political system, the business community, and international partners, Vietnam will successfully build a national logistics ecosystem, becoming a leading logistics hub in Southeast Asia, Asia, and the world.

Ho Giap

– 16:26 29/11/2025