by supplychainreport
Vietnam is accelerating efforts to develop a greener and more resilient logistics sector as trade volumes and e-commerce activity continue to expand at double-digit rates. Industry experts say strengthening logistics infrastructure is critical to boosting the country’s competitiveness in global supply chains and reducing vulnerability to economic and climate-related disruptions.
According to economic data, Vietnam’s total trade turnover reached USD 762.4 billion through October 2025, posting a trade surplus of USD 19.56 billion. The country’s growth continues to outpace several regional peers, reinforcing its position as an emerging logistics and manufacturing hub in Southeast Asia.
Strategic Location Fuels Logistics Growth
Vietnam’s strategic geographical location, expanding manufacturing base, and network of deep-water ports are key factors supporting its rise as a regional logistics center. The government has set an ambitious target to rank among the world’s top 30 countries in the Global Logistics Performance Index (LPI) by 2035. Currently, Vietnam ranks 43rd out of 139 economies, placing it among the top five logistics performers in ASEAN.
The logistics market is estimated at USD 40–42 billion and is growing at an annual rate of 14–16%. This expansion is driven by rising trade volumes and a rapidly growing e-commerce sector, which reached an estimated USD 25 billion in 2024.
High Costs Drive Push for Green Logistics
Despite strong growth, logistics costs remain a challenge, accounting for approximately 16–18% of Vietnam’s GDP. Road transportation, which dominates domestic freight movement, is also a significant contributor to carbon emissions. As Vietnam works toward its net-zero emissions target by 2050, green logistics has become a national priority.
Experts highlight that developing a low-carbon, digitally managed, and decentralized logistics network will help improve efficiency, reduce costs, and enhance supply chain resilience. Provincial and regional logistics hubs are expected to play a central role by integrating road, rail, inland waterways, and maritime transport to support lower-emission operations.
Investment and Green Financing Expand
Transitioning to sustainable logistics requires substantial investment in clean transport systems, energy-efficient warehouses, smart containers, and digital platforms for tracking emissions. Vietnam’s national Green Taxonomy provides a framework for identifying green-eligible projects, supporting investment in sustainable transport and infrastructure.
Green financing is also expanding. The banking sector has increased lending for renewable energy, sustainable transport, and green infrastructure. In 2024, green credit exceeded VND 80 trillion, although it still accounted for only about 4.5% of total bank lending. Industry observers note that scaling up financing, broadening eligible projects, and strengthening ESG reporting and risk management will be essential to support long-term transformation.
Strengthening Global Supply Chain Integration
Vietnam’s focus on green and resilient logistics is expected to enhance its integration into global supply chains, improve delivery efficiency, and reduce environmental impact. By modernizing infrastructure and adopting sustainable practices, the country aims to future-proof its logistics sector against economic volatility and climate risks while reinforcing its position as a key trade gateway in Southeast Asia.
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