The policy, which is expected to support transport enterprises in the Southeast Asian country, will also reduce logistics costs, in addition to stimulating economic activity during the implementation period.

“In addition, inland waterway vessels operating between domestic ports and terminals will also benefit from fee exemptions. These include vessel tonnage fees, port and terminal entry and exit charges, and inland waterway reporting fees, costs that account for a significant share of waterway transport expenses,” the Circular noted.

The new policy is expected to provide a solid boost to Vietnam’s pursuit of becoming a major logistics hub in Asia and beyond. In 2025, Prime Minister Pham Minh Chinh signed a decision approving the National Strategy for the Development of Vietnam’s Logistics Services for 2025-2035.

This became a historic occasion, as the Southeast Asian country adopted, for the first time, a comprehensive, long-term framework to build a globally competitive logistics sector, while accommodating elements such as digital transformation and green and sustainable growth within the roadmap.

Since then, Vietnam has upgraded its approach toward the logistics sector, recognising it as a key economic sector with high added value and strategic importance to the Southeast Asian nation’s economic competitiveness.

Under its national strategy, between 2025 and 2035, Vietnam wants to ensure that the value added by the logistics sector reaches 5%-7% of its national GDP, growing at an average of 12%-15% annually. By 2050, logistics services are expected to contribute 7%-9% of GDP, maintaining a yearly growth rate of 10%-12%.

While 70%-80% of domestic enterprises are expected to use outsourced logistics services by 2035, the ration, by 2050, will increase to 90%. Vietnam also eyes bringing down its logistics costs to 12%-15% of GDP by 2035, and 10%-12% by 2050.

Apart from breaking into the top 40 countries in the World Bank’s Logistics Performance Index (LPI) by 2035 and the top 30 by 2050, the roadmap also envisions digital transformation playing a central role in Vietnam’s makeover as a global logistics hub, with 80% of businesses expected to adopt digital solutions by 2025, a ratio that will become 100% by 2050.

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The COVID-19 pandemic has helped the Southeast Asian economy recover, but it has recently faced several difficulties, including declining global demand and a rising dollar.

This year, the central bank increased its policy rates by 200 basis points while allowing the dong to depreciate versus the dollar.

Over the previous three months, the dong currency has lost 6% versus the dollar, while Vietnam’s stock market (VNI) has dropped by more than 20%.

The macroeconomy is becoming harder to manage, according to PM Pham Minh Chinh. So we must be on the lookout for threats, but we won’t panic.

Vietnam’s gross domestic product is predicted to increase by 8% this year, faster than the 2.58% growth seen in 2017. This year, the nation wants to keep inflation at a 4% maximum.

According to PM Pham Minh Chinh, the country would “pursue an active, prudent, flexible and sturdy monetary policy in harmony coordination with fiscal policy and other policies, without abrupt changes.” He also noted that the real estate market is experiencing liquidity issues.

“The bond and stock markets now bear risks after a period of strong growth, with businesses having a high demand for capital for production while banks’ credit is tight,” PM Pham Minh Chinh told the legislature.

With commercial banks under pressure from tightening loan conditions and rising interest rates, the central bank of Vietnam conducted impromptu meetings with them this week to discuss liquidity in the system.

PM Pham Minh Chinh said that the government would ensure that the financial and real estate sectors work better and are more open.

“The government will propose amendments to securities and enterprise laws and related regulations,” PM Pham Minh Chinh added.

He added that hundreds of gas stations have had to close or reduce sales in response to a fuel shortage in recent weeks, claiming financial hardships and limited domestic supplies.

PM Pham Minh Chinh declared that Vietnam would consider increasing its national fuel production and storage capacity to prevent future gasoline shortages.

Photo Credit: Viet Nam Government Portal

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