Optimizing logistics costs to boost exports.

There is still significant room for reducing logistics costs.

In 2025, the total value of goods exports and imports reached US$930.1 billion. In the first eight months of 2026, this figure reached US$770.14 billion, an increase of 28.7% compared to the same period. Also in the past eight months, the processed and manufactured industrial goods group accounted for 90.17% of export value; the production materials group accounted for 94.11% of import value. If logistics do not keep pace, the costs of transportation, warehousing, and capital of input materials will be passed on to the cost of exported goods.

Meanwhile, the foreign direct investment (FDI) sector accounts for 80.1% of export turnover, while the domestic economic sector has a trade deficit of approximately US$30.60 billion. Therefore, optimizing logistics costs needs to be linked to enhancing the capacity of domestic enterprises to participate in the supply chain.

Vietnam's logistics capabilities have improved. According to the World Bank, Vietnam's Logistics Performance Index (LPI) in 2023 reached 3.3 points, ranking 43rd out of 139 economies and 5th in ASEAN. However, the Vietnam Logistics Report 2025 estimates logistics costs to be equivalent to approximately 16-17% of GDP. This is an estimate at the economic level and indicates the need for an official, stable dataset and baseline.

Decision No. 2229/QD-TTg dated October 9, 2025, sets the goal of reducing logistics costs to the equivalent of 12-15% of GDP by 2035 and placing Vietnam among the top 40 countries and territories in terms of Logistics Performance Index (LPI). Achieving this goal requires not only building more infrastructure but also simultaneously reorganizing cargo flows, connecting different modes of transport, reducing waiting times, reforming procedures, and managing operations using data.

The transportation structure shows significant potential for growth. According to the Vietnam Logistics Report 2025, road transport accounts for approximately 74.7% of the volume of goods transported, while inland waterways account for 20.1%, sea transport 5.06%, and rail transport 0.19%. Road transport costs also arise from empty vehicle runs, congestion, and waiting times. Switching to waterways or rail transport is only effective when there are stable schedules, end-to-end connections, and comprehensive services.

At ports, warehouses, and border crossings, goods have to wait for inspection, container pickup, or delivery, while shipping, trucking, and warehousing schedules are not well coordinated. A 2025 survey showed that 87.3% of respondents chose infrastructure as the factor needing improvement; 70.9% chose customs procedures, and 67.3% chose logistics costs. Procedures, specialized inspections, and the instability of shipping schedules also increase inventory and working capital. Re-declaring data, using both electronic and paper documents simultaneously, repeated checks, or delays in sharing results all increase costs and waiting times.

Reducing logistics costs must be viewed across the entire chain, not just at one stage while increasing costs at another. Therefore, specific measurements are needed for each industry and each corridor, establishing a baseline before intervention and reassessing afterward. The potential for cost reduction lies in every empty kilometer run, every hour spent waiting at ports and border crossings, every document that needs to be re-declared, every day of inventory, and every opaque surcharge.

A national logistics cost measurement system needs to be established.

First, a national logistics cost measurement system needs to be established, tracking costs by industry, corridor, and type of business. The minimum set of indicators should include cost per ton, container, or shipment; total transit time and waiting time; on-time delivery rate; inventory days; empty run rate; container demurrage and storage costs; and the number of data re-declarations.

On high-traffic corridors, it is necessary to increase multimodal connectivity, develop barges, coastal vessels, and scheduled cargo ships when sufficient cargo is available; and simultaneously consolidate cargo, organize two-way shipping, and share empty containers. Efficiency must be measured by the total cost and reliability of the entire corridor.

At ports, airports, border crossings, and warehouses, scheduling, vehicle coordination, and data exchange should be implemented before goods arrive, along with public disclosure of processing status. Prices, fees, and surcharges must be transparent regarding the amount charged, the basis for application, the time of application, and the corresponding services.

In addition, it is necessary to map the procedures for key export product groups, identify duplicate documents and cost-generating steps; implement one-time data provision, pre-processing before arrival, risk management, post-inspection when conditions are met, and share results. Each reform needs to be piloted and measured by cargo release time, number of inspections, number of documents, and actual costs. Digitalization is only meaningful when paper and repetitive data entry are eliminated.

A shared logistics coordination platform needs to be developed, connecting existing systems without requiring businesses to report back. Data would be used to monitor cargo flow, port and warehouse capacity, schedule shipments, warn of congestion, and resolve inter-sectoral issues. The government should focus on data standards, connectivity, access rights, and security; artificial intelligence (AI) can support forecasting, route optimization, and record checking, but management decisions must have a clear legal basis and accountability.

Import and export businesses need to manage based on total cost to market, standardize order data, control inventory, and select alternative delivery terms and routes. Domestic logistics businesses need to collaborate to provide integrated services, invest in transportation and warehouse management systems, and enhance multimodal and cold logistics capabilities.

In the fourth quarter of 2026, focus should be placed on five key areas: selecting several high-volume corridors and supply chains for baseline measurement; compiling a list of bottlenecks and identifying responsible agencies and deadlines; reviewing fees, surcharges, and service conditions for transparency; selecting specialized procedures and inspections for pilot implementation, risk management, and data sharing; and preparing for data connectivity between government agencies, ports, warehouses, transport companies, and businesses on the principle of no re-declaration.

In 2027, each pilot model will need pre- and post-intervention reports focusing on four outcomes: total shipment cost, total transit time, on-time delivery rate, and costs incurred due to waiting. Scaling up will only occur when the model proves effective, has operational resources, and does not create additional bureaucratic hurdles.

To implement these solutions, it is necessary to clearly identify the focal points and responsibilities for addressing each bottleneck, while strengthening coordination among ministries, localities, associations, and businesses. Accordingly, the Ministry of Industry and Trade could play a leading role in monitoring the National Logistics Service Development Strategy, market and data; the Ministry of Finance in matters of customs, taxes, fees within its jurisdiction, and the National Single Window Mechanism; and the Ministry of Construction in the areas of transportation, infrastructure, and multimodal connectivity.

Specialized management ministries are responsible for standards and specialized inspections; local authorities handle traffic organization, terminal connections, land use, and procedures within their jurisdiction. Associations and businesses provide substantiated data, participate in pilot programs, and are responsible for business solutions.

The goal of reducing logistics costs will only become a tangible result when each bottleneck has someone responsible, each solution has a baseline, and each outcome is quantifiable.