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[BUSINESS] · Vietnam · 3 sources

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Vietnam logistics costs impact export competitiveness

High logistics costs remain a significant bottleneck for Vietnam's expanding import-export activities. According to the Vietnam Logistics Report 2025, logistics costs are estimated at 16-17% of GDP, which is considerably higher than in many developed economies. This burden directly impacts profit margins, particularly in the textile and garment sector. For instance, logistics costs from factories to ports account for 9-10% of export product costs, while profit margins for these businesses are only approximately 3-5%.

The agricultural sector, specifically rice, also faces challenges. In the Mekong Delta, a lack of suitable deep-water ports forces goods to be transported to Ho Chi Minh City, increasing time and expenses. Currently, road transport dominates the domestic landscape, accounting for 74.7% of cargo volume, while rail transport accounts for only 0.19%.

In response to the need for speed and real-time control, Viettel Logistics is focusing on digitalizing the supply chain. The company is implementing technologies such as Smart-TMS to digitize processes from order generation to final delivery, and a Data Hub to unify information across various systems. This approach aims to move from optimizing individual stages to coordinating the entire chain through data-driven decision-making.

Entities

Vietnam Textile and Apparel Association · Viettel Post