Following the COVID-19 epidemic’s ups and downs in recent years, Vietnam’s logistics sector is now dealing with its constraints on the national transportation infrastructure, which results in delays in the movement of products and higher costs. One of the factors driving up transportation expenses is rising gas prices.

Even when the annual growth rate rises from 14 to 16 percent, the infrastructure for roads, railroads, and waterways is slowly built and not perfectly coordinated. Additionally, the bus routes are mostly one-way highways, and the delivery, as well as the receipt organization still has a lot of bottlenecks, which all contribute to the transportation cost remaining high.

The quality of warehouse services is poor while the delivery organization and administrative processes are burdensome. Besides, it doesn’t seem possible to reduce the amount of time to collect and return items. Due to the aforementioned factors, logistics costs have increased significantly, which has an impact on the economy’s overall growth.

According to Ms. Phuong Minh Nguyen, President of Ho Chi Minh City Logistics Association, the lack of adequate infrastructure is the major problem of the  logistics industry. Compared to other nations in the region, high logistical costs make it harder for governments to draw in foreign investment.

Ho Chi Minh City is not only the nationally largest consumer market but also the southern major distribution and supply hub despite its alarming obstacles. It has significant ports of the southern region, namely Cat Lai, Ben Nghe, Tan Thuan and so on, and the majority of products have been traded between provinces and cities for import and export transit through Ho Chi Minh City.

“Ho Chi Minh City is a nationally crucial connection from which FDI continues to allocate money to Vietnam, and it’s also a chance that logistics firms must know how to seize at the moment,” said Mr. Linh Nguyen Truong, the Deputy General Director of FLDC.