Boasting huge potential, Vietnam’s logistics sector is expected to develop strongly despite facing many challenges, according to analysts.

The sector posts an annual growth rate of 14-16 per cent and has a scale of $40-42 billion.

Speaking at the Logistics Summit 2023, held in Hanoi on October 5, Deputy Minister of Planning and Investment Tran Duy Dong said the government has actively completed mechanisms and policies and developed infrastructure for the logistics industry. Its capacity and ranking have continuously improved as a result.

The country’s logistics sector has been among the fastest-growing around the world. According to the Agility Emerging Markets Logistics Index, Vietnam rose to the Top 10 last year for emerging markets, demonstrating the country’s success in growing its supply chains and its readiness to adapt to shifts by major multinational manufacturing companies worldwide.

According to World Bank rankings, Vietnam currently stands in 64th place out of 160 countries and territories in terms of logistics development and is fourth in ASEAN, after Singapore, Malaysia, and Thailand.

The number of logistics providers in the country has been increasing rapidly. As of the end of September, there were more than 3,000 Vietnamese domestic transport and logistics companies, along with 25 leading global freight forwarding operators around the country, providing all types of logistics services.