Vietnam exporters face pressure from high logistics costs

High logistics costs in Vietnam, currently estimated at 16-17% of GDP, are significantly impacting the competitiveness of domestic goods and the profit margins of exporters. In the textile and garment industry, costs to transport goods from factories to ports account for approximately 9-10% of product value, which can be two to three times higher than the industry's typical profit margin of 3-5%.

To address these challenges, businesses are being urged to adopt green and digital transformations to maintain international standing amidst global trade restructuring. Industry representatives and associations have proposed several solutions, including improving port infrastructure, streamlining customs procedures, and enhancing connectivity between waterway, road, and rail transport to reduce reliance on road freight.

Authorities and industry leaders are also focusing on developing international logistics centers and synchronized infrastructure to mitigate supply chain disruptions and lower overall costs.