Vietnam's logistics industry is on the brink of significant growth, with projections indicating a market size of approximately 48 billion USD by 2024, placing it among the top ten emerging logistics markets globally, according to a report from ModorIntelligence. The sector has been experiencing rapid expansion, boasting an average growth rate of 14 to 16 percent per year, which is more than double the global average for logistics services. This growth is not only contributing 4 to 5 percent to the national GDP but also creating jobs for over one million direct laborers.
Looking ahead, ModorIntelligence forecasts that the logistics industry in Vietnam will continue to thrive, potentially reaching a scale of 71 billion USD by 2030. Despite this optimistic outlook, the country faces challenges in logistics efficiency, as highlighted by its Logistics Performance Index (LPI), which currently stands at 3.3 out of 5. This score is comparable to the Philippines and only slightly better than Indonesia, indicating that Vietnam still has significant room for improvement.
Logistics costs in Vietnam account for about 17 percent of the GDP, which is considerably higher than in neighboring countries like Malaysia (13 percent) and Indonesia (14.3 percent), and far above the average of 8 to 10 percent seen in developed nations. Several factors contribute to this high cost, including inadequate transport infrastructure, inefficient intermodal connections, and a lack of skilled labor. Furthermore, the maturity level of digital transformation in Vietnamese logistics companies remains low, necessitating breakthrough solutions to optimize logistics operations.
One prominent example of innovation in the logistics sector is the digital transformation journey undertaken by Saigon Newport Corporation (SNP) since the early 2000s. Managing a network of 26 ports across 16 cities, including ten major ports in Vietnam, SNP commands over 90 percent of the container import-export market in the southern region and more than 55 percent nationwide. During the first week of the Lunar New Year 2025, Tan Cang - Cat Lai port handled 76 cargo ships with a throughput of 110,000 TEU, which is equivalent to over 1.5 million tons of goods, marking a 9 percent increase compared to the same period in 2024.
Remarkably, each production shift at the port operates with only about 1,100 direct workers, thanks to robust technological support. In 2008, when information technology was still relatively new to the port sector, SNP developed the TOPX software to optimize planning and port operation coordination. By 2015, they had created TOPOVN, a real-time container data management system that reduced handling time from 2-3 hours per container to just 30 minutes.
In 2016, SNP launched the e-Port application at Tan Cang - Cat Lai, which has revolutionized port operations. Users can now check delivery conditions, customs status, and register for deliveries before arriving at the port, significantly reducing vehicle check times at the port gate from 5-10 minutes to just 10-15 seconds. The introduction of online payment systems and electronic documents has made e-Port the first e-commerce model in Vietnam's port operations.
Moreover, SNP has integrated an AI-powered virtual assistant named Pi into e-Port, which is also available on platforms like Facebook and Zalo, enhancing customer service efficiency and reducing the workload on customer care centers.
In early 2024, Viettel Post emerged as the first logistics company in Vietnam to implement a large-scale smart sorting technology complex. This system includes autonomous guided vehicles (AGVs), a Wheel Sorter Matrix, and a Cross-belt Sorter, collectively increasing processing capacity by 40 percent to 1.4 million parcels per day. The total capacity of the Viettel Post system now reaches 4 million parcels daily, accounting for 50 percent of Vietnam's e-commerce volume.
Viettel Post has successfully developed its own AGV systems under the brand "Made by Viettel Post," which has proven to be 15 percent more efficient and optimized 25 percent of personnel compared to imported systems. Currently, the company operates 300 of these robots and plans to produce 1,200 more across sorting centers in major cities like Hanoi, Da Nang, Ho Chi Minh City, and Can Tho.
Despite these advancements, experts like Associate Professor Nguyen Thi Xuan Hoa from Hanoi University of Science and Technology point out that many logistics companies in Vietnam still struggle with digital transformation due to limited investment, a shortage of skilled personnel, and unclear implementation processes. Pham Thi Lan Huong, Vice President of the Hanoi Logistics Association, recommends that companies break down their digital transformation goals into smaller, manageable objectives and start with simple applications, such as cloud-based solutions.
On a macro level, the government is urged to create a national strategy for developing the logistics service sector, which should integrate digital transformation goals and technological applications. Establishing a National Logistics Committee to oversee this strategy is also recommended, along with launching non-profit projects to assist companies in implementing smart logistics solutions.
Furthermore, experts emphasize the importance of enhancing workers' capabilities to operate AI systems and technology applications in logistics as a critical factor for developing smart logistics in Vietnam. As the industry continues to evolve, the focus on innovation and efficiency will be essential for the country to maintain its competitive edge in the global logistics market.
