Vietnam just made its logistics sector a government priority. In October 2025, Prime Minister Pham Minh Chinh approved Decision No. 2229/QD-TTg, marking the first time Vietnam has issued a comprehensive, long-term logistics strategy. For European companies evaluating Southeast Asian supply chain investments, this changes the calculus. The strategy sets concrete targets, identifies priority corridors, and signals where government resources will flow over the next decade. Understanding these specifics is essential for anyone considering Vietnam as a logistics hub.
What the Strategy Actually Says
Vietnam aims to expand its logistics services sector by 12-15% annually over the next decade, while cutting logistics costs to 12-15% of GDP and building 5-10 international-standard logistics hubs. The plan seeks to establish Vietnam as a logistics hub in Southeast Asia by 2035.
The numbers matter because they represent a shift in how Vietnam views logistics. This is the first logistics strategy ever issued by the Government, demonstrating that the sector is now regarded as a key economic one and reflecting strong State commitment to developing logistics services in the new period.
Targets for the 2025-2035 period are clearly quantified, with logistics contributing 5-7% of GDP, the sector growing by 12-15%, and logistics costs reduced to 12-15% of GDP. The strategy also looks to see the country's logistics performance index (LPI) ranking among the world's top 40, the establishment of five international-level logistics centers, and 70% of the workforce with specialized training.
The longer-term vision is equally ambitious. By 2050, Vietnam's logistics sector is projected to contribute 7-9% of GDP, with logistics costs lowered to 10-12% of GDP and the LPI ranking entering the world's top 30, backed by 10 state-of-the-art hubs.
Nine Strategic Task Groups
To realize this goal, the Ministry of Industry and Trade has identified nine key task groups, encompassing everything from perfecting the legal framework and developing infrastructure to improving quality. Priority development regions include the Red River Delta, southeast and central regions, with major growth poles such as Hanoi, Hai Phong, Ho Chi Minh City and Da Nang.
The strategy explicitly calls out digital transformation. Digital transformation with clear milestones requires 80% of enterprises adopting by 2035, 100% by 2050. Green transition aligned with the Net Zero goal promotes clean energy use and environmental protection.
The Cost Problem Vietnam Is Trying to Solve
Here's why this strategy exists: Vietnam's logistics costs remain among the highest in the region. A key goal is trimming logistics costs to 12-15% of GDP from the current 18-20% to bolster competitiveness.
For context, Vietnam's accelerated infrastructure build-out is transforming the dynamics of logistics, optimizing costs that currently account for around 16% of GDP, significantly higher than that of Singapore (8%), Malaysia (12%), and the global average (around 11%).
Vietnam's logistics costs remain high, despite significant improvements. The ratio of logistics costs to Vietnam's GDP in 2025 will remain at 15-16%. This figure is equivalent to the average of the Asia-Pacific region but still higher than the global average, thus reducing the competitiveness of Vietnamese goods.
The infrastructure gap explains much of this cost burden. Infrastructure is not synchronized. The connection among modes of transport (road, sea, and rail) is still limited, causing pressure on the supply chain.
This creates the investment thesis. European companies with experience in integrated multimodal logistics can bring exactly what Vietnam needs: systems and expertise that reduce friction points between ports, warehouses, and final delivery. For a deeper dive, see our analysis of how to design an operationally viable Vietnam supply chain.
Infrastructure Projects Creating Investment Windows
Vietnam is spending heavily to close the infrastructure gap. The Vietnamese Government's newly approved plan to increase infrastructure investment by nearly 40% this year to $36 billion should help offset economic pressures. The Government last week increased its 2025 infrastructure spending target from 6% to 7% of GDP.
More than 80% of planned infrastructure spending this year is earmarked for boosting Vietnam's electricity generation and distribution capacity, and for improving Vietnam's transportation network. By 2030, Vietnam aims to double the total length of its highway network, to double airport passenger capacity and to increase the country's seaport capacity by 50%.
Long Thanh International Airport
The flagship project is Long Thanh International Airport, now entering operation. Long Thanh International Airport is an international airport under construction in Long Thành commune, Đồng Nai province, Vietnam, approximately 40 km east of Ho Chi Minh City. Construction of the passenger terminal and connecting transport infrastructure is currently in its final stages, with the airport expected to be ready for commercial operations in the first half of 2026.
The airport has a maximum designed capacity to serve over 100 million passengers and five million tonnes of cargo annually, which would make it the largest airport in Vietnam, Southeast Asia and one of the largest in the world.
Port Capacity Expansion
Once completed, the Ho Chi Minh City region will form a "port triangle" comprising Cai Mep - Thi Vai, Cat Lai and, in the future, Can Gio. When operational, total container throughput capacity of the region is expected to reach 32.7 million TEU per year, approaching Singapore's current output as the world's second busiest port.
In January 2025, APM Terminals completed a USD 200 million capacity expansion at Cai Mep International Terminal, adding 400,000 TEU and automated cranes that cut vessel turnaround by 25%.
High-Speed Rail
The North-South high-speed railway, stretching 1,541 kilometers with a design speed of 350 kilometers per hour, is the largest infrastructure project ever undertaken in Vietnam, with a total investment exceeding VND1.7 quadrillion, equivalent to US$67.3 billion. The line will include 23 passenger stations and five freight terminals, serving as the backbone linking the country's three regions.
Priority Investment Zones for European Operators
The strategy identifies specific corridors where investment will concentrate.
Cai Mep Ha Free Trade Zone
Vietnam's first port-linked free trade zone is taking shape near Ho Chi Minh City. Southern Ba Ria-Vung Tau province and global logistics leader DP World signed a memorandum of understanding on February 18 to discuss cooperation in establishing Vietnam's first free trade zone in the vicinity of Cai Mep Ha seaport.
Vietnam for the first time introduces the Cai Mep Ha Free Trade Zone, a port-based free trade zone equipped with extensive incentives on taxation, land, labour and foreign exchange, aiming to develop a regional logistics, industrial, and commercial hub for Southern Vietnam.
The project covers nearly 3,800 hectares and connects closely with the Cai Mep – Thi Vai deep-water port system. The zone includes existing seaports, the Cai Mep Ha container terminal, the inland waterway port system, and the Cai Mep Ha station on the Bien Hoa - Vung Tau railway line. The logistics and industrial zone covers over 1,178 hectares, oriented towards developing logistics and industrial warehouses.
Regional Logistics Corridors
Regional connectivity is given special importance through the formation of logistics hubs in key economic regions such as the Red River Delta, the Southeast, Central Vietnam, and the Mekong Delta. Connecting production and consumption areas will significantly reduce circulation costs.
For companies evaluating manufacturing locations alongside logistics investments, our overview of Vietnam manufacturing opportunities for European industrial companies explains where these corridors create maximum value.
The EVFTA Advantage for European Investors
European companies hold a structural advantage in Vietnam's logistics market. The agreement deepens the Vietnam-European Union relations and was adopted by Council Decision (EU) 2020/753 of 30 March 2020 on the conclusion of the free trade agreement between the EU and Vietnam. The agreement was passed in Vietnam on June 8, 2020, and entered into force on August 1 of that year.
According to the European Chamber of Commerce (EuroCham), the EVFTA has significantly contributed to making the EU the sixth-largest source of foreign direct investment (FDI) in Vietnam. EU members have invested €28 billion (US$30.6 billion) in 2,450 projects in Vietnam, many of which are high-quality investments in high-tech manufacturing and services.
Investment flows from the EU into Vietnam continue to maintain a positive trend. Total registered EU capital in Vietnam has reached over US$35 billion, focusing on high technology, renewable energy, pharmaceuticals, and logistics.
The great potential in EU-Vietnam trade also means growing investment opportunities in the Vietnamese logistics sector. The FTA and the pending EU-Vietnam Investment Protection Agreement enable the EU to participate in the provision of various maritime transportation services, including shipping agent services, cargo/container handling, storage, and warehousing.
European Logistics Players Already in Market
CMA CGM has invested in Vietnam's seaports since 1994, and holds major stakes in Gemalink Container Terminal at Cai Mep deepwater port, in the south, as well as at Lach Huyen port, in the northern city of Hai Phong.
At APM Terminals, we have seen two proven examples in our Cai Mep and Haiphong partnerships in the last two decades. Projects like the Lien Chieu Port in Danang and the expansion of Lach Huyen terminals in Haiphong and Cai Mep terminals in Ho Chi Minh are designed to handle ultra-large vessels and integrate with global shipping routes.
In November 2024, Maersk inaugurated its first own-licensed bonded warehouse in Hai Phong, enabling integrated customs, storage, and distribution for northern manufacturers.
Cold Chain: The Underserved Opportunity
Cold chain logistics represents a particularly attractive segment for European investment. Vietnam's cold storage logistics industry is forecast to reach USD 295 million by 2025, with an impressive annual growth rate of 12%.
Vietnam Cold Chain Logistics Market size was valued at USD 230 million in 2025 and is set to reach USD 627.63 million by 2034, growing at a 11.8% CAGR from 2026-2034.
The demand drivers are clear. Vietnam exported more than USD 9 billion worth of seafood in 2024, according to trade authorities, and these products require reliable temperature-controlled storage and transportation to maintain freshness during international shipment.
The cold chain market has experienced a remarkable resurgence, marked by a 29.6% jump in designed cold storage capacity and the rapid expansion of cold logistics fleets between 2021 and 2024. This momentum is driven by strong investment activity from both local and international players.
In 2025, Lotte Global Logistics broke ground on a new cold-chain logistics hub in Nhon Trach Industrial Park, Dong Nai, with an investment of approximately USD 34 million.
Vietnam's increasing consumption and trade in perishable goods, including fresh and processed foodstuffs, seafood, and pharmaceuticals, has driven robust demand for cold storage facilities, refrigerated transportation, and integrated cold-chain solutions.
Practical Challenges European Companies Will Face
Vietnam's logistics opportunity comes with genuine difficulties. Acknowledging them upfront leads to better planning.
Funding Gaps
Funding shortages have stalled several flagship projects. "Some Government-assigned projects lack adequate resources to start", according to the deputy head of the strategy drafting committee, calling for proper budget support to launch the strategy.
To implement the strategy, a large amount of capital must be mobilized for infrastructure development. However, attracting FDI into the logistics sector has always been challenging, as this is a conditional business field.
Market Fragmentation
According to the Vietnam Logistics Business Association (VLA) in 2024, there are currently more than 30,000 enterprises engaged in providing logistics services, of which around 70% are headquartered in Ho Chi Minh City. Approximately 89% are fully domestic-owned enterprises, while the remainder are foreign-invested companies.
While most logistics companies are domestic, foreign and joint-venture companies already dominate high-value international logistics and modern warehouse rentals, highlighting the sector's openness to foreign investment.
Workforce Constraints
Vietnam's logistics industry is facing a severe shortage of human resources. In just the past year, labor demand has increased sharply, with four new ports coming into operation in 2024, each port needs from 100 to 150 operational technical personnel. However, the labor supply is insufficient, leading to fierce competition among businesses in attracting and retaining personnel.
Infrastructure Connectivity Gaps
Prolonged administrative procedures, inconsistent infrastructure, and the lack of modern connectivity among warehouses, seaports, and road systems increase costs and reduce operational efficiency, thereby raising concerns among investors in this service industry.
Understanding Vietnam's regulatory and partner environment is critical before committing capital. Our guide to identifying and evaluating distributors in Vietnam covers what good local partners look like.
How to Position for Entry
European companies considering Vietnam logistics investments should focus on segments where their expertise creates clear value.
High-Value Segments
The most promising opportunities for foreign investors include modern logistics parks and warehousing, e-commerce fulfillment and last-mile services, cold-chain infrastructure for high-value goods, and digital logistics solutions that assist local operators in enhancing efficiency.
M&A capital is increasingly directed towards segments that can fully leverage the new physical backbone, particularly warehousing, cold storage, multimodal transport, and third-party logistics (3PL) services. Warehousing and cold storage are expanding rapidly, benefiting significantly from new infrastructure developments including deep-sea ports, international airports, and inter-regional expressways.
Partnership Structures
For infrastructure development, PPPs are considered the optimal model to attract investments from both domestic and foreign investors. This approach has proven successful in enhancing the investment and operational management of dry ports, logistics parks, and related platforms.
The European Chamber of Commerce in Vietnam is providing solutions to implement effective PPP projects, including developing a pipeline of viable and visible projects, improving capacity and coordination among government agencies, and rationalizing detailed implementing regulations.
Market Entry Considerations
FDI in the logistics sector is limited to 100% ownership in only a few areas. Therefore, FDI primarily focuses on projects for warehousing services and freight agency services.
As of October 2025, Vietnam recorded 9,343 new transport and warehousing companies, up 27.7% year-on-year. Notably, their total registered capital reached nearly VND 92 trillion, surging by 115.7%, indicating a significantly higher average investment per company.
Conclusion
Vietnam's National Logistics Strategy 2025-2035 creates a clear framework for investment. The targets are ambitious but grounded in recent sector performance. The infrastructure spending is real and accelerating. The cost reduction imperative is urgent enough that government resources will follow.
For European companies, the EVFTA provides structural advantages that competitors from other regions don't have. The cold chain segment offers particularly strong returns given current supply-demand imbalances. Port-adjacent logistics real estate near Cai Mep and Long Thanh Airport will appreciate as infrastructure connectivity improves.
The challenges are real: fragmented markets, workforce constraints, regulatory complexity. But the direction of travel is clear, and early positioning matters.
APAC Advantage helps European companies navigate Vietnam market entry through supplier sourcing, distributor search, and 3PL setup. If you're evaluating Vietnam for supply chain investment, contact us to discuss how the logistics strategy affects your specific sector and entry timeline.
