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High logistics costs continue to pose significant barriers to economic growth. Photo: Thu Ha

Logistics infrastructure remains a major bottleneck

Vu Ngoc Long, Director of the Dong Nai provincial Department of Industry and Trade, shared the figures at the 12th Southern Regional Industry and Trade Conference, held in Ho Chi Minh City on October 22.

According to Long, logistics costs in Dong Nai and the wider southern region have declined compared with previous years but remain relatively high due to several persistent challenges.

These include localized congestion on major connecting roads, poor integration between road transport, inland waterways and railways, and a fragmented warehousing system that has yet to establish effective links with major transport hubs.

Together, these shortcomings continue to push up logistics expenses for businesses across the region.

The situation is particularly challenging in the Mekong Delta, Vietnam's major agricultural and seafood production hub, where post-harvest logistics infrastructure remains underdeveloped.

According to the Can Tho Department of Industry and Trade, plans for a regional Grade I logistics center and a wholesale agricultural market equipped with integrated cold storage facilities have yet to materialize.

As a result, most export goods from the Mekong Delta still have to be transported by road to seaports in Ho Chi Minh City and the southeastern region.

This dependence on road transport increases shipping costs, contributes to product losses and drives up the final prices of agricultural and seafood products.

Along Vietnam's western border, Tay Ninh province is also facing mounting pressure from rising cargo volumes along the Trans-Asian Economic Corridor.

Although the province recorded more than $31.4 billion in import-export turnover in 2025, its warehousing capacity, bonded storage facilities and border logistics infrastructure have struggled to keep pace with actual cargo flows.

Provincial industry and trade officials emphasized that southern Vietnam plays a central role in the country's import-export activities.

The region's total retail sales of goods and services reached VND 2.86 quadrillion, accounting for 48.2% of the national total.

Against this backdrop, addressing logistics bottlenecks is seen as essential to strengthening business competitiveness and supporting economic growth.

National logistics coordination body proposed to remove regulatory barriers

Faced with rising cost pressures and growing demands for a green transition, representatives of southern provincial industry and trade departments put forward a series of proposals aimed at addressing structural and regulatory obstacles.

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Bui Ta Hoang Vu, Director of the Ho Chi Minh City Department of Industry and Trade, speaks at the conference. Photo: Thu Ha

The Ho Chi Minh City Department of Industry and Trade called on the Government to consider establishing a unified national mechanism for managing and coordinating logistics activities.

One option would be to study the creation of a National Logistics Committee or introduce an appropriate interministerial coordination mechanism.

Such an arrangement would help clarify responsibilities among the Ministry of Industry and Trade, the Ministry of Construction and other relevant ministries and agencies.

Meanwhile, Ho Chi Minh City and Dong Nai urged the Ministry of Industry and Trade to work with relevant authorities to develop mechanisms for sharing logistics service chain data and establishing common technology platforms.

These measures would help businesses reduce the time and expenses associated with unnecessary administrative procedures.

From an infrastructure planning perspective, Dong Nai proposed accelerating the development of logistics centers covering more than 100 hectares around Long Thanh International Airport.

The proposed facilities would specialize in high-tech products, vaccine cold storage and cross-border e-commerce.

The province also called for improvements to navigation channels along the Dong Nai and Thi Vai rivers to accommodate vessels with capacities of 2,000-3,000 tonnes.

This would allow agricultural products from the Mekong Delta to be transported more efficiently to modern logistics hubs.

For border areas, Tay Ninh recommended that the central Government introduce special mechanisms to support border logistics development.

The province proposed investment assistance to upgrade the Moc Bai border-gate logistics center into a regional logistics hub, alongside the introduction of a smart border-gate model.

It also called for the development of an industrial, service and logistics corridor connecting Ho Chi Minh City, Trang Bang, Go Dau, Moc Bai and Xa Mat.

In the southwestern region, Can Tho and Vinh Long requested that the Ministry of Industry and Trade and other relevant ministries prioritize resources for developing a regional Grade I logistics center and a network of cold storage facilities linked to concentrated agricultural production areas.

The proposals are aligned with Decision No. 616/QD-TTg and are intended to prevent fragmented or overlapping investments.

Responding to the recommendations, the Agency of Foreign Trade under the Ministry of Industry and Trade said it was leading a comprehensive review of the existing legal framework.

The review includes proposals to amend or replace Decree No. 163/2017/ND-CP, which regulates logistics service businesses.

The ministry also pledged to work closely with other ministries, agencies and local authorities to explore an interministerial coordination mechanism, establish shared databases and develop common digital connectivity platforms.

These efforts are intended to gradually remove bottlenecks that increase logistics costs, improve the movement of goods across southern Vietnam and enhance the overall efficiency of regional supply chains.

Thu Ha