Chinese products are putting increasing pressure on Vietnam. E-commerce giants like Temu, Shein, and Taobao are pushing their goods into the Vietnamese market. This competitive environment highlights the urgency for Vietnam to upgrade its logistics infrastructure. Improvements will help domestic products compete more effectively. At the Vietnam Logistics Summit 2024, experts and government officials discussed key strategies to enhance logistics efficiency. They focused on reducing costs. They aimed to improve Vietnam’s overall competitiveness in the global market.
Challenges and Solutions for Vietnam’s Logistics Infrastructure
| Key Challenge | Details | Proposed Solution |
|---|---|---|
| Competitive Pressure | Chinese e-commerce companies offer low-cost products, capturing a share of Vietnam’s market. | Strengthen local logistics to reduce costs and support competitive pricing for Vietnamese goods. |
| High Logistics Costs | Vietnam’s logistics costs are high, raising retail prices for local goods. | Invest in large-scale logistics hubs and free trade zones to lower transportation and storage costs. |
| Fragmented Logistics System | Vietnam’s logistics are fragmented, driving up storage, transport, and distribution costs. | Develop centralized logistics hubs to streamline storage and distribution. |
| Learning from China | China’s success is due to extensive government-backed logistics networks. | Increase government investment in logistics infrastructure, mirroring China’s logistics model. |
| Need for Smart Logistics Zones | Border inefficiencies with China cause delays in customs clearance and transportation. | Transform border crossings into smart logistics zones with 24/7 customs clearance to reduce time and costs. |
| Government Initiatives | Multiple ministries are working to improve logistics infrastructure but need coordinated action. | Encourage collaboration between ministries, local authorities, and businesses for focused logistics improvements. |
| Focus on International Connectivity | Limited integration with global networks affects Vietnam’s competitiveness. | Enhance integration of local logistics hubs into international transport systems to streamline global trade. |
Key Recommendations from the Vietnam Logistics Summit 2024
- Large-Scale Logistics Hubs: Establish large logistics hubs in major economic centers. Creating free trade zones in these areas is recommended. This approach supports storage, packaging, and distribution at lower costs.
- Smart Border Crossings: Transforming border crossings with China into smart logistics zones will enable faster, 24/7 customs clearance. This transformation will reduce both time and costs for import-export activities.
- Enhanced Government Support: Experts suggest a need for more coordinated investments. They draw from China’s model. The focus should be on transportation and logistics infrastructure. These efforts should involve government ministries and local authorities.
- Global Integration: By connecting local logistics hubs to international networks, Vietnam can enhance its global competitiveness. This connection makes it easier for Vietnamese goods to reach international markets efficiently.
By implementing these strategies, Vietnam aims to modernize its logistics. It seeks to reduce operational costs. This approach will strengthen its market position against low-cost Chinese imports.
Glottis Limited 
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