Vietnam’s logistics industry is viewed as possessing great potential for development but solutions are needed for it to improve in the future, especially post-pandemic.

In research conducted this year by the Ministry of Industry and Trade (MoIT), the operational capacity index of the country’s logistics industry increased to 3.34 points from 3.27 points in 2018. Vietnam also ranked in the Top 10 in the Emerging Market Logistics Index, with a high growth rate of 14-16 per cent in a year. This is an encouraging result in the context of global and domestic trade facing a host of difficulties from the pandemic, according to Minister of Industry and Trade Nguyen Hong Dien.

However, along with the encouraging results, the logistics industry still faces certain limitations and effects from Covid-19, such as interrupted supply chains and high and rising costs, among others. In order to help logistics businesses overcome the problems and develop further, the Vietnam Logistics Business Association (VLA) has made a number of recommendations for the government to consider, including strengthening the financial support package and continuing to reduce taxes and costs for logistics businesses.

Logistics infrastructure also needs investment, and additional adjustments to the Commercial Law 2005 are required, to include new regulations that are suitable to the current situation facing logistics activities. It is also necessary to have support policies from the government to promote digital transformation at logistics enterprises while increasing efficiency in the management and development of logistics services.

Ms. Bui Thi Le Hang, Deputy General Director of the ALS, said the government is moving towards a digital economy so logistic businesses must take strategic steps in their own digitalization.