Vietnam’s HCM City to cut logistics costs to 11-14% of regional GDP

Vietnam’s Ho Chin Minh (HCM) City is rolling out a logistics development strategy to reduce logistics costs to 11-14 per cent of its gross regional domestic product by 2030—lower than the national target of 15-16 per cent.Logistics costs in the country account for 17-18 per cent of its gross domestic product (GDP), considerably higher than in neighbouring countries, according to the Ministry of Industry and Trade’s 2025 report.

Vietnam’s HCM City is rolling out a logistics development strategy to reduce costs to 11-14 per cent of its regional GDP by 2030—lower than the national target of 15-16 per cent.
The aim is to position the city as a modern logistics hub and strengthen its role in global supply chains.
Ring roads, new expressways, dedicated railway lines and upgraded waterways, are being planned.

The target is to position HCM City as a modern logistics hub and strengthen its role in global supply chains.

High logistics costs increase production expenses, reduce corporate profitability and weaken the competitiveness of Vietnamese goods in international markets.

HCM City has designated logistics as one of its five key economic sectors and identified it as a spearhead industry in the City Party Congress Resolution for the 2025-30 term.

Major infrastructure projects, including ring roads, new expressways and the widening of the HCM City-Long Thanh–Dau Giay Expressway, are expected to improve regional connectivity and shorten freight transport times.

The city is also planning dedicated railway lines linking industrial parks with seaports, particularly the Cai Map-Thi Vai Port, enabling greater use of cost-effective, high-volume rail freight while reducing pressure on road transport, according to a domestic media outlet.

For inland waterways, the city has proposed that the government decentralise the management of major navigation channels, allowing it to dredge and upgrade waterways.

To achieve these, the city has adopted an action plan comprising nine groups of solutions, with priority given to developing integrated transport and logistics infrastructure through a multimodal transport network.

In the longer term, the city plans to develop a modern port system centred around the Cai Mep Ha Port and the proposed Can Gio International Transshipment Port.

The city has also identified digital transformation, green transition and human resource development as three key pillars for enhancing the competitiveness of its logistics sector.

Fibre2Fashion News Desk (DS)