Viet Nam Logistics Industry Report 2021 (VIRAC).pdf

VIETNAM LOGISTICS MARKET REPORT 2021
1
2. Overview
2.1 Logistics industrial status
2.1.1 Value chain of logistics in Vietnam
VIET NAM
LOGISTICS
INDUSTRY
REPORT
2021

2
TABLE OF CONTENTS
2
14 - 98
2. Overview
99 -115
3. Entry landscape
14 - 19 2.1 Logistics industrial status
14 2.1.1 Value chain of logistics in Vietnam
15 - 19 2.1.2 Overview of Vietnam’s logistics industry
20 – 47 2.2 Transportation
22 – 24 2.2.1 Road freight
25 – 26 2.2.2 Rail freight
27 – 43 2.2.3 Sea freight
44 – 45 2.2.4 Inland waterway freight
46 - 47 2.2.5 Airfreight
48 – 54 2.3 Warehousing and other supporting activities
55 – 56 2.4 Forwarding
57 – 98 2.5 Business environment
57 – 70 2.5.1 Regulations of Logistics conditions and activities
71 – 73 2.5.2 Analysis of stand-out logistics infrastructure in Vietnam
74 - 98 2.5.3 Analysis of stand-out industrial complex for logistics
99 – 108 3.1 Entry barriers
99 3.1.1 SWOT analysis
100 – 108 3.1.2 Key attractive points of Vietnam’s logistics industry
109 – 115
3.2 Collaboration landscape for Korean logistics
providers
109 – 110
3.2.1 Key factors enable collaboration in Vietnamese
logistics industry
111
3.2.2 SWOT analysis of Vietnamese enterprises for
collaboration
112 – 114 3.2.3 Investment tendency of Korean Enterprises
115
3.2.4 Proposals of entry strategy for Korean logistics
companies
116 – 127 4.1 Analysis of top logistics services providers in Vietnam
128 – 130 4.2 Analysis of Korean logistics companies in Vietnam
131 - 135 4.3 Analysis of top 20 domestic enterprises
116 -135
4. Appendix
4 - 13
1. Executive summary

3
LIST OF ABBREVIATIONS
3
1 CICT Cai Lan International Container Terminal 7 HICT Hai Phong International Container Terminal
2 CIF Cost, Insurance, Freight 8 ICD Inland Container Depot
3 CMIT Cai Mep International Terminal 9 SSIT SP-SSA International Terminal
4 DWT Deadweight tonnage 10 TCTT Tan Cang – Cai Mep Thi Vai Terminal
5 FMCG Fast-moving consumer goods 11 TICT Tan Cang – Cai Mep International Terminal
6 FOB Free on board 12 VICT Vietnam International Container Terminals
* Exchange rate: 1 USD = 22,800 VND

4 2021년 베트남 물류 산업 보고서
1. 핵심요약
1. 베트남 물류 산업 – 성장 잠재력
운송 부문
도로 화물
철도 화물
해상 화물
내륙 수로 화물
항공 화물
창고 및 기타 운송 지원
활동 부문
입고(보관)
화물 상하차
기타 지원 활동
포워딩 부문
‘15~’18년간 연평균 14.42% 성장한 베트남 물류
산업은 코로나로 인한 ‘19, ‘20년의 하락에도
불구하고 향후 강한 성장세를 보일 것으로 예상됨.
2020년 베트남의 GDP 대비 물류비용 비중은
여전히 20% 이상으로 역내 및 전세계 평균 대비
높은 수준입니다.
2021년 첫 9개월간의 물동량은 코로나 여파로 인해
작년 동기 대비 5.61% 감소했습니다.
도로 화물은 다른 운송수단 대비 높은 비용과
위험에도 불구하고 항상 최우선 운송 수단 이었음.
철도 화물은 자체의 낙후함으로 인해 다른 운송
수단에 비해 시장 점유율을 점차 잃어가고 있음.
1
2
3
4
5
2020년 물류 산업 내
베트남 기업의 총 매출
232억 9천만 달러(미화)

1. 핵심요약
포워딩
5억 1,233만 달러(미화)
74.70%
19.84%
5.10%
0.34% 0.015%
Road Inland waterways Sea Rail Air
1. 베트남 물류 산업 – 기회 요인
해상 화물 수요는 여전히 높으며, 베트남의 긴 해안선과
전략적〮지리적 입지로 인해 계속 증가할 것으로 예상됨.
베트남의 내륙 수로 운송은 2030년에 7억 1,500만 톤으로
증가할 것으로 예상됩니다.
콜드 체인 부문은 기업 수에서 수요처가 공급처의 8배에
달하는 수요 초과 상태 입니다.
전자상거래는 글로벌 기업들의 진출 이후 물류 산업, 특히
해외 해운 산업의 성장을 견인하는 중요한 요소입니다.
최근 몇년간 Samsung SDS, Pantos, CJ GLS 등 다수의 한국
기업들이 베트남 물류 시장에 진출하여 상대적으로 높은
수익을 얻었습니다.
1
2
3
4
총: 11억 9천만 톤
운송 수단별 물동량 비율, 9M/2021
운송
물류 산업 내 베트남 기업의 총 매출, 2020년
입고 및 기타 지원 활동
출처: VIRAC, GSO
5

1. 핵심요약
2. 베트남 물류 사업 – SWOT
매출 기준으로 베트남의 주요 물류 기업은 대부분
정부소유 국영 기업(SOE)입니다.
1
강점: 높은 수요에 힘입어 강한 성장 중(국내부문)이며,
지리적인 이점을 보유하고 있습니다.
2
약점: 운송수단간의 연결성 부족, 노하우 및 기술 적용의
한계, 낙후된 창고 시스템 등
3
기회: 자유무역협정 체결, 미〮중 무역전쟁관련 이전 수요
多
4
위협: 높은 경쟁, 낙후된 인프라로 초래되는 지체에 대한
부정적 평판, 동기화된 가이드라인 적용 관리 부족 등
5

1. 핵심요약
2. 베트남 물류 사업 – 도전과제
기반시설과 입지 우위의 산업단지가 많음에도
불구하고 대부분의 산업단지는 교통 혼잡, 높은
물류비, 양질의 노동력 부족에 직면해 있습니다.
비동기식 개발은 전체적으로 물류 산업과 특히
산업 단지에 일반적인 어려움으로 작용합니다.
베트남 정부는 물류 센터 및 ICD 항만 개발을 장려
하고 있습니다.
베트남 대부분의 산업단지는 해상 운송 및 지원
서비스에서 강점을 보유하고 있습니다.
1
2
3
4

1. 핵심요약
3. 외국 물류 업체의 협업 환경 – 진출 전략
베트남의 물류 산업은 지리적 이점, 정부의 지원, 국내
기업의 낮은 경쟁력 등 외국기업 진출에 매력적입니다.
1
베트남 물류 산업의 세 부문 모두 수요 증가와 최근 체결된
무역 협정 덕분에 높은 잠재력을 보유하고 있습니다.
2
강한 콜드 체인 수요와 전자상거래의 성장은 긍정적으로
고려해야 할 중요한 요소일 것 입니다.
3
물류 산업이 조건부 비즈니스 투자 목록에서 제외되고
베트남 기업의 재정 ·기술 부족은 협업 가능 기회를 제공할
것 입니다.
4
M&A 프로젝트가 신규 진출 기회보다 약 4배 가까이
많기에 그린필드 투자보다 M&A 기회를 선호하는 경향이
있습니다.
5
한국의 잘 발달된 물류 산업, 친환경 물류 경험과 문화적
이점은 베트남 물류 산업 진출 시 이점으로 활용될 수
있습니다.
6

9
1 – Vietnam logistics industry – Growth Potential
Transportation sector
Road freight
Rail freight
Sea freight
Inland waterway
freight
Air freight
Warehousing and other
transportation supporting
activities sector
Warehousing
Loading/Unloading
Other support
activities
Forwarding sector
With the CAGR of 14.42% from 2015 to 2018, Vietnam logistics
industry is expected to strongly grow in the upcoming years,
despite a drop in 2019 and 2020 due to Covid-19.
In 2020, Vietnam's logistics cost/GDP was still more than
20%, which is high compared to countries in the region as well as
the average level of the whole world.
In 9 months of 2021, the total volume of goods transported
was down 5.61% over the same period last year due to the
most recent severe wave of Covid-19.
Road freight has always been the prioritized transportation
mode despite the higher cost and risk compared to other
methods.
Rail freight is gradually losing market share to other modes of
transport because of its out-datedness.
1
2
3
4
5
Total revenue of Vietnamese
enterprises in logistics industry in
2020
23.29 billion USD

10
Forwarding
512.33 million USD
74.70%
19.84%
5.10%
0.34% 0.015%
Road Inland waterways Sea Rail Air
1 – Vietnam logistics industry - Opportunities
Demand for ocean freight remains high and is expected to continue
to rise due to Vietnam’s long coastline and strategic geographical
location.
Vietnam’s inland waterway transport is forecasted to grow with the
target to reach 715 million tons in 2030.
Demand exceeds supply in cold chain sector with the number of
enterprises using in production is 8 times the suppliers.
E-commerce is a major factor in the growth of the logistics industry
and especially international shipping sector after the entries of large
global firms.
In the recent years, many Korean enterprises have entered Vietnam's
logistics market and gained relatively high profit such as Samsung SDS,
Pantos, CJ GLS and etc.
1
2
3
4
Total: 1.19 billion tons
Proportion of goods in volume transported by Vietnamese
enterprises by different modes of transport, 9M/2021
Transportation
11.07 billion USD
Total revenue of Vietnamese enterprises in logistics sector, 2020
Warehousing and other support activities
11.71 billion USD
Source: VIRAC, GSO
5

11
2 – Vietnam logistics companies - SWOT
Leading logistics enterprises in Vietnam by revenue are mostly State
Owned Enterprises (SOE).
1
Strengths: Strong domestic growth with high demand; Geographical
advantage
2
Weaknesses: Lack of connectivity between modes of transport;
Limitations in skills and technology application; Degraded warehouse
system
3
Opportunities: Signed free trade agreements; Relocation after the US-
China trade war
4
Threats: High competitiveness; Negative reputation due to delay
created by infrastructure; Lack of synchronized management in
applying guidelines
5

12
2 – Vietnam logistics companies - Challenges
Despite having many industrial parks with advantages of
infrastructure and location, most industrial zones are facing
traffic congestion, high logistics costs and lack of high-quality
labor.
Unsynchronized development is a common difficulty to the
logistics industry in general and industrial parks in particular.
Vietnam government is encouraging the development of
logistics center and ICD port.
Most of industrial parks in Vietnam hold strengths in sea
transportation and supporting services.
1
2
3
4

13
3 – Collaboration landscape for Korean logistics providers – Entry Strategies
Vietnam’s logistics industry has attractive points such as geographical
advantages; Government support in the industry; low competitiveness of
domestic enterprises and etc.
1
All three sectors in Vietnam logistics industry own high potential
thanks to growing demand and recently signed trade agreements.
2
Demand in cold chain and e-commerce drivers would be favorable
factors to consider.
3
Logistics getting removed from the conditional business investment
list and Vietnamese enterprises’ lack in finance and technology would
enable collaboration in this field.
4
Korean companies prefer M&A to Greenfield investment as the
number of M&A project is approximated 4 times higher than the other
5
Korean well-developed logistics industry, experience in eco-logistics
and cultural advantages can be utilized when entering Vietnam logistics
industry.
6

14
2. Overview
2.1.1 Value chain of logistics in Vietnam
Value chain of Vietnam logistics
Freight forwarding Domestic transport Seaport/Airport International transport
Some forwarding businesses:
Full Container Load (FCL) such as
Southern Logistics JSC, TMS Group
JSC, Vinalink Logistics JSC,
Vinafreight JSC, Gemadept JSC.
Less than Container Load (LCL)
such as SAFI Transport and Agent
Joint Stock Company, TMS Group
JSC, Vinafreight JSC.
Freight forwarders such as
Gemadept Joint Stock Company, Hai
Minh Joint Stock Company, SAFI
Agency and Transport Joint Stock
Company, Vinafreight Joint Stock
Company.
In the import direction, the
enterprise receives the
merchandises, then categorizes the
goods and transports them to each
recipient.
Enterprises own means of
transport such as truckers, barges
operating on rivers, container
ships for coastal inland transport,
domestic transport aircraft:
Gemadept Joint Stock Company,
TMS Group Joint Stock Company,
Hai An Transport and Loading Joint
Stock Company, Vinafco Joint Stock
Company, Saigon Newport Joint
Stock Company, Vietnam Airlines,
VietJet Air...
Some major seaports in the
country such as Cat Lai, Dinh Vu,
Tan Vu,... The major airports are
Noi Bai and Tan Son Nhat
international ports.
Enterprises owning shipping fleets:
Container transport (Gemadept JSC,
Vinafco JSC, Vietnam Shipping Joint
Stock Company)
Bulk transport (Vietnam Shipping
JSC, Vietnam Shipping and Chartering
JSC)
Oil transport (Vitaco Petroleum
Transport JSC).
Businesses that own aircraft fleets:
Vietnam Airlines, VietJet Air.
Warehousing, storage and merchandise management
Enterprises owning warehouse system, ICD, distribution center: Sotrans,
Transimex, Gemadept, Hai Minh,...
Gross profit margin: 35% - 37%

15
2. Overview
2.1.2 Overview of Vietnam’s logistics industry
Source: VIRAC, GSO, Bloomberg, Mirae Asset Securities 2021
5.48
5.15
7.45
6.79
3.68
4.7
5.78
6.28
6.73
6.71
0.39
6.6
6.56
7.46
6.88
7.31
2.69
6.68
7.65
7.31
6.79
4.48
0
1
2
3
4
5
6
7
8
9
2016 2017 2018 2019 2020 2021
% Vietnam GDP growth by quarter, 2016 - Q2/2021
QI QII QIII QIV
Structure of gross domestic product by kinds of economic activity, 2019 - 1H2021
• After hitting bottom in 2Q20, Vietnam's economy in
4Q20 and 1H21 has shown a V-shaped recovery.
Although Vietnam has experienced a third and fourth
wave of the COVID-19 pandemic (at end-January and
April 2021, respectively), Vietnam's economy in 1H21
continued to rebound, up 5.6% YoY from the lowest
in 1H20 (+1.8% YoY in 1H20). Vietnam's GDP
expanded by 4.7% YoY in 1Q21 and increased by an
estimated 6.6% YoY in 2Q21.
• In 2020 and 1H21, Transportation and warehousing
sector has slowed down with a reduction from 9%
increase in 2019 to 1.9% decrease in 2020. In
1H/2021, Vietnam has both maintained production
activities and combated the pandemic that lead the
market rise up. The logistics market also have the
recover, however in 1H2021, the Transportation
and warehousing still decrease 0.6%.
-20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0%
1H21
2020
2019
Wholesale and retail, repair of motor vehicles
Construction
Informarion and communication
Fishery
Real estate business
Forestry
Services
Agriculture
Transportation, warehousing
Accommodations and restaurant
Administrative and support services
Arts, entertainment and recreation
Mineral
Source: VIRAC, GSO

16
2. Overview
Total revenue of Vietnamese enterprises in logistics industry,
2015 – 2020
Source: VIRAC, GSO
• In 2020, the revenue of Vietnam's logistics industry is estimated at 23.29
billion USD, down 12.2% compared to 2019 due to the impact of the Covid-19
pandemic, causing a sharp decrease in the demand for transportation services. In
which, the airfreight recorded the strongest decrease in both transport and rotation
volume. Because many factories had to suspend operations, the number of goods
that needed to be moved was reduced, leading to a decrease in the transportation
and delivery of goods in the supply chain, greatly affecting the operation of
transportation service businesses.
• Profit before tax of Vietnam's logistics industry had a positive growth rate in the
period 2015 - 2018. But in 2019 and 2020, the profit of the industry decreased
sharply, even reaching negative levels due to the negative impact of Covid-19.
Source: VIRAC, GSO
Revenue structure of Vietnamese enterprises in the logistics industry, 2020
Source: VIRAC, GSO
Profit before tax of Vietnamese enterprises in logistics industry,
2015 – 2020
5
47.52%
50.28%
2.20%
Transportation
Warehouse and other transportation
supporting srevices
Postage and delivery
691.45
1,184.71
630.38 906.16
(7,361.46)
(8,244.84)
(10,000)
(8,000)
(6,000)
(4,000)
(2,000)
-
2,000
2015 2016 2017 2018 2019 2020
Million USD
18,745.94
21,664.39
23,781.26
28,080.04
26,523.36
23,287.51
15.57%
9.77%
18.08%
-5.54%
-12.20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
-
5,000
10,000
15,000
20,000
25,000
30,000
2015 2016 2017 2018 2019 2020
Million USD
Revenue Growth

17
2. Overview
Source: VIRAC, GSO
66.03%
31.69%
2.28%
Transportation
Warehouse and other
transportation
supporting services
Postage and delivery
Source: VIRAC, GSO
• Number of logistics enterprises tend to increase over the years of 2010 - 2020. By the end of 2020, an estimated 35,744 enterprises were operating in the
logistics industry, an increase of 5.5% compared to 2019.
• Currently, Vietnamese logistics enterprises are providing about 17 different services, focusing on forwarding, transportation, warehousing, express delivery, and
customs declaration. The overall growth rate of Vietnam's logistics industry in recent years is about 14 - 16%/year, with a value scale of over 40 billion USD/year.
According to the Report on Strengthening the Road Transport Industry in Vietnam, road freight is the predominant mode of transport in Vietnam.
Number of enterprises in the logistics industry in Vietnam, 2015 – 2020 Structure of logistics industry by number of enterprises in Vietnam,
2020
Enterprises
22,239
26,107
30,229
30,917
33,881
35,744
17.40%
15.80%
2.80%
9.60%
5.50%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2015 2016 2017 2018 2019 2020
Enterprises Growth rate

18
2. Overview
No. Industry Logistics cost/Product price
1 Fishery 12.20%
2 Rice 29.80%
3 Coffee 9.50%
4 Fruit and Vegetables 29.50%
5 Drinks 19.80%
6 Textile and Apparel 9.30%
7 Shoes 11.70%
8 Pharmacy 0.30%
9 Electronics 1.20%
10 Electronic spares 3.50%
11 Transportation vehicles 2%
12 Furniture 22.80%
13 Logistics costs/GDP 20.90%
Source: VIRAC, Transport and Logistics statistical Yearbook
Logistics costs/Revenue of enterprises nationwide 2018
Production Wholesale Average Ratio
Transportation and
handling costs/revenue
4.8 4.75 4.78 51%
Warehousing
cost/revenue
1.97 2.54 2.26 24.10%
Inventory cost/revenue 1.41 1.59 1.5 16%
Logistics management
costs/revenue
0.78 0.89 0.84 8.90%
Total logistics
cost/revenue
8.96 9.77 9.37 100%
Logistics costs/Revenue of enterprises nationwide 2018
Source: VIRAC, Transport and Logistics statistical Yearbook
• It can be seen that for manufacturing and distribution enterprises, the proportion of transportation and handling costs in total logistics costs is
51%, warehousing costs was 24.1%, inventory costs was 16%, and logistics management costs was 8.9%. Transportation and handling costs still
account for the highest proportion due to the lack of synchronization in Vietnam's transport infrastructure, the connectivity among road freight, rail freight,
and sea freight and the lack of national and international logistics centers as a focal point for goods distribution in key economic areas. Multimodal
transport to combine the advantages of each mode of transport has also not developed effectively in Vietnam.
• The rice product group has the highest ratio of logistics costs to revenue, accounting for 29.8% of the product price. Second is the fruit and vegetable
group with logistics costs accounting for 29.5%. This high cost has reduced the competitiveness of Vietnamese agricultural products. Currently,
logistics is preventing the consumption of agricultural products in Vietnam.

19
2. Overview
Source: VIRAC, Armstrong & Associate
Source: VIRAC, Armstrong & Asociate
• In 2020, Vietnam's logistics cost/GDP was 20%, quite high
compared to countries in the region such as Singapore,
Thailand, Malaysia, China as well as the average level of the
whole world (10.8%). The ratio of logistics costs to GDP
represents the level of development and the role of logistics in
the economy. Developed countries such as North America and
Singapore have a lower rate, only about 8.4 - 8.5%.
• Factors that raise logistics costs in Vietnam include
transportation costs, warehousing costs, administrative costs,
and the capacity of logistics service providers. In which,
transportation cost is still the component that accounts for the
highest proportion. In the transport sector, according to data
from enterprises, in road transport costs, gasoline accounts for
about 30-35%, tolls (BOT) account for 10-15% on average, and
out-of-traffic fees account for approximately 5%.
• According to the report on the Emerging Market Logistics Index
2021 released by logistics service provider Agility in April 2021,
Vietnam increased by 3 places compared to 2020, ranked 8th in
the top 10 countries. However, logistics costs in Vietnam are still
high, accounting for more than 20% of GDP (the world average
is 11%).
Components of logistics costs in Vietnam, 2018 - 2019
Logistics costs to GDP of some countries, 2020
59%
21%
11%
8%
1%
Transportation
Handling
Warehousing
Packaging
Port fees
12.90%
14.50%
8.50%
13.00%
15.00%
20.00%
8.60%
14.30%
13.50%
8.40%
12.10%
10.80%
0%
5%
10%
15%
20%
25%

20
2. Overview
2.2 Transportation
4.3%
95.7%
Light weight Heavy weight
Source: VIRAC, GSO
Source: VIRAC, GSO
Total revenue of Vietnamese enterprises in transportation sectors,
2015 - 2020
Even though transportation revenue was significantly impacted by Covid-19
with a decrease in both 2019 and 2020, transportation sector overall is a
promising and active market as its number of enterprises and employed
population both tend to increase in the recent years.
In logistics, heavy and bulky goods often account for a large proportion
(95.7%). Meanwhile, goods with light weight only take a small proportion
(4.3%) and are mainly personal goods.
Proportion of freight transport by weight in logistics industry, 2020
Source: VIRAC
13,655
15,054
17,689
18,519
20,084
23,602
213,567
225,165
229,441
219,797
206,418
212,927
190,000
200,000
210,000
220,000
230,000
240,000
-
5,000
10,000
15,000
20,000
25,000
2015 2016 2017 2018 2019 2020
Employees
Enterprises
Number of enterprises and employed population in
transportation sector in Vietnam, 2015 - 2020
Enterprises Employees
8,229.71
9,157.38
10,239.54
11,332.16
11,216.47
11,066.22
11.27% 11.82%
10.67%
-1.02%
-1.34%
-5%
0%
5%
10%
15%
-
2,000
4,000
6,000
8,000
10,000
12,000
2015 2016 2017 2018 2019 2020
Million USD
Revenue Growth

21
2. Overview
2.2 Transportation
1,151.90
1,255.46
1,383.21
1,539.27
1,670.62
1,627.71
1,194.97
8.99%
10.18%
11.28%
8.53%
-2.57%
-4%
0%
4%
8%
12%
0
400
800
1,200
1,600
2,000
2015 2016 2017 2018 2019 2020 9M/2021
Million tons
Total volume of goods transported by Vietnamese enterprises,
2015 – 2021
Volume Growth
98.33%
1.67%
Proportion of goods in volume transported by Vietnamese
enterprises by location, 9M/2021
Domestic Foreign
Source: VIRAC, GSO
According to GSO, in 9 months of 2021, total volume of goods
transport was 1,195 million tons, down 5.61% over the same period
last year and 242.82 billion tons.km, slightly down 0.30%. Among that,
domestic transport was 1,175 million tons, down 5.34% and 143.87
billion tons.km, increasing 12.78%; foreign transport was 19.95 million
tons, down 18.94% and 98.95 billion tons.km, down 14.69%.
Source: VIRAC, GSO
Source: VIRAC, GSO
76.22%
18.83%
4.64%
0.29% 0.016%
74.70%
19.84%
5.10%
0.34% 0.015%
Proportion of goods in volume transport by Vietnamese
enterprises by different modes of transport,
9M/2020 – 9M/2021
Road
Inland
waterways
Sea
Rail
Air

22
2. Overview
2.2 Transportation
2.2.1 Road freight
By the end of 2020, Vietnam has a total of 570,448 km length of roads in operation while the national highway network reached 24,136 km. Particularly in 2020,
the Ministry of Transport has completed and put into operation 21 projects, completed procedures and implemented 19 new projects.
• In 2020 and 2021, there is a slight decrease in the amount of goods transported by road due to Covid-19’s social distancing and quarantine.
• According to Global Competitiveness report issued by World Economic Forum (WEF), Vietnam's road infrastructure quality ranks 103 over 141 countries.
Source: VIRAC, Directorate for Road of Vietnam
Urban roads: 26,953 km
4.72%
Commune roads: 144,670 km
25.36%
Village roads: 181,188 km
31.76%
Rural roads: 108,597 km
19.04%
National roads: 24,136 km
4.23%
Freeway: 816 km
0.14%
Provincial roads: 25,741 km
4.51%
District roads: 58,347 km
10.23%
Length and proportion of road types in Vietnam
01
02
03
05
04
06
07
08

23
2. Overview
2.2 Transportation
2.2.1 Road freight
Area
Number of
truck/ Company
Number of trucks
with over 1 ton
weight
Number of companies
operating trucks with over
1 ton weight
North West 1.9 1,834 957
North East 2.6 14,117 5,368
Red river delta 3.4 58,636 17,325
North Central Coast 5.8 14,607 2,534
South Central Coast 4.4 21,793 4,958
Tay Nguyen 12.8 10,610 826
South East 9.8 68,479 6,976
Mekong Delta 16.3 26,127 1,604
National
average/total
5.3 432,406 81,096
Development status and activities of transportation enterprises by region, 2020
Source: VIRAC, World Bank
Source: VIRAC, World Bank
Road freight operations are concentrated in the Red River Delta and the Southeast, including Hanoi and Ho Chi Minh City. These two
regions have the highest number of trucking businesses and registered trucks.
68%
11%
14%
7%
Number of trucks in Vietnam in 2020
Small (<5 tons) Light (5 – 10 tons)
Middle (10 – 20 tons) Heavy (>20 tons)

24
2. Overview
2.2 Transportation
2.2.1 Road freight
Source: VIRAC, GSO
882.63
969.72
1,074.45
1,207.68
1,319.85
1,307.88
892.59
9.87%
10.80%
12.40%
9.29%
-0.91%
-5%
0%
5%
10%
15%
0
200
400
600
800
1,000
1,200
1,400
2015 2016 2017 2018 2019 2020 9M/2021
Million tons
Volume Growth
33.95%
11.36%
28.49%
4.69%
17.88%
3.63%
Volume of freight carried by Vietnamese enterprises by road by
area, 2020
Red River Delta Northern midlands and mountain areas
North Central and Central coastal areas Central Highlands
South East Mekong River Delta
Volume of goods transported by Vietnamese enterprises by road,
2015 - 2021
Source: VIRAC, GSO
Currently, road freight is still the most popular form of transport and accounts for a large proportion in the structure of all modes in
Vietnam. It is a flexible form of freight that can operate in all different weather conditions and can meet the requirements of goods market.
Even if the road freight charges are high, it still plays an important role in transportation sector.
Due to the convenience and low cost of other forms of transport, road freight is facing a fierce competition.

25
2. Overview
2.2 Transportation
2.2.2 Rail freight
Railway infrastructure
Connection
Railway transport currently lacks synchronization on infrastructure to serve some specialized goods such as
agricultural products. It also lacks connection with other transportation modes such as river ports, seaports, where
agricultural products are mainly gathered.
01
Length
Currently, Vietnam's railway network includes 7 main routes with a total length of 3,162.9 km.
Among that, there are 2,703.2 km of main lines, 459.7 km of branch roads and station roads. Vietnam's
railway network is still lacking a connection with different modes of transport
02
Speed
The average speed of Vietnam's railway is only about 50-60 km/h for freight trains and 80-90 km/h
for passenger trains, while in developed countries, the average speed for passenger transport is around
150-200 km/h, high-speed rail above 300 km/h and super-high-speed can reach up to more than 500 km/h.
03
Technology
Up to now, Vietnam's railways are still applying the second technology platform, which is diesel
technology (the first is steam locomotive). Meanwhile, developed countries are mainly using the third
technology - electrification technology and the fourth technology - electromagnetism.
04

26
2. Overview
2.2 Transportation
2.2.2 Rail freight
6.71
5.21
5.61
5.72
5.20
5.22
4.10
-22.3%
7.7%
1.9%
-9.0%
0.2%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
0
1
2
3
4
5
6
7
8
2015 2016 2017 2018 2019 2020 9M/2021
Million tons
Volume of goods transported by Vietnamese enterprises
by rail, 2015 – 9M/2021
Volume Growth
Source: VIRAC, GSO
Currently, Vietnam only has four international transport stations transporting
agricultural products, which are Lao Cai, Yen Vien, Dong Dang and Hai
Phong. All of these are located in the North, therefore, Central and the
South are at a disadvantage in railway transportation.
To prevent the spread of the virus, on July 10, 2020, Vietnam Railways
Corporation decided to run only a pair of trains on the North-South railway.
However, the newest pandemic wave in 2021 has forced the railway industry
to halt all passenger train operations from August 2021, which was the main
cause of the slight decrease in 2020 and 2021.
Vietnam's railway industry has 140 years of development, but it is now facing
the risk of falling behind by gradually losing market share to other modes of
transport. In 1995, the railway industry accounted for nearly 8% of the
total freight transport of the whole logistics industry, while this figure is
only approximately 1% now.
Signals Information Railways Station Yard and Warehouse
• The system is asynchronous in terms of
technology.
• Switchboards and information
equipment are mostly outdated.
• The railway connecting to the seaport is
limited
• There are a total of 297 stations, most of
which are small and have old infrastructure.
• Most of the stations have low technical
standards and are poorly furnished.
• There are 35 stations having only 2 train lines
• Currently, there are about 38,533.94 m2 of warehouse.
• Existing yard area is about 661,923.80 m2
• In 2020, Vietnam started building a container cargo rail
yard at Kim Lien with Phase-1 scale being 3,000 m2; Phase
2 being 16,000 m2

27
2. Overview
2.2 Transportation
2.2.3 Sea freight
Vietnam’s ports
Northern Vietnam
Accounts 32.99% of goods volume through
Vietnamese seaports in 2020
Group 1*
Hai Phong seaports Others
Central Vietnam
Accounts 10.72% of total goods
volume through Vietnamese
seaports in 2020
Group 2 Group 3 Group 4
Southern Vietnam
Accounts 56.29% of total goods volume through Vietnamese
seaports in 2020
Group 5 (Southest Vietnam)
Ho Chi Minh City and
Dong Nai area
Ho Chi
Minh City
seaports
Others
Ba Ria –Vung Tau area
Cai Mep –
Thi Vai
seaports
Others
Group 6
(Mekong
Delta area)
Vietnam has over 1.0 million square km of sea, three times the land area. Part of South China Sea is Vietnam’s territorial waters. This
area is located on the arterial traffic route connecting the Pacific - Indian Ocean, Europe - Asia, and the Middle East – Asia and is
considered the second busiest international transport route of the world. More than 90% of the world's trade is by sea and 45% of
those passes South China Sea.
*Seaport Groups according to Decision No. 1037/QD-TTg
With a total of 286 seaports divided into 6 groups (according to Decision No. 1037/QD-TTg), Vietnam now has about 82.6 km of port
wharves and bridges and total throughput capacity being about 600 - 650 million tons.
Vietnam’s seaports structure

28
2. Overview
2.2 Transportation
2.2.3 Sea freight
70.66%
17.83%
6.04%
3.64% 1.82%
Proportion of shipping fleets by types in Vietnam, 2021
General cargo ship
Oil and Chemical Tankers
Passenger ship
Container ship
Liquefied Gas Tankers
National flag vessels
• As of June 20, 2021, the total number of Vietnamese shipping fleets is 1,576 ships together with 150 foreign or international flag vessels. The country
had one of the highest numbers of national flag vessels in the Asia Pacific region that year and was the 35th largest ship-owners worldwide.
• Vessels with Vietnamese flags are still able to handle nearly 100% of domestic freight by sea, except for some specialized ships such as liquefied fuels,
bulk cement... Regarding international sea transport, currently, Vietnam's shipping fleet is handling about 10% of the market share and mainly through
transports routes such as China, Japan, Korea and Southeast Asia.
• Domestic goods transported by sea are mainly household goods, food, coal, construction materials, equipment and machinery, containers, petroleum, general
goods...
Source: VIRAC, United Nations Conference on Trade and Development (UNCTAD)
574,181
435,512
344,818
480,930
555,081
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2015 2016 2017 2018 2019
Gross tonnage
Capacity of ships built in Vietnam, 2015 - 2019
Source: VIRAC, United Nations Conference on Trade and Development (UNCTAD)

29
2. Overview
2.2 Transportation
2.2.3 Sea freight
Source: VIRAC, GSO
60.80
64.47
70.02
73.56
77.09
69.64
60.96
6.04%
8.60%
5.06%
4.79%
-9.66%
-15%
-10%
-5%
0%
5%
10%
0
10
20
30
40
50
60
70
80
90
2015 2016 2017 2018 2019 2020 9M/2021
Million tons
Volume of goods transported by Vietnamese enterprises by
sea, 2015 – 9M/2021
• In 2021, seaway transport is gradually rehabilitating after waves of Covid-19, especially after many nations have found preventive
measures to re-open the economy.
• In developed countries, when exporting goods, sellers often find ways to deliver goods with CIF contracts. When importing goods, buyers
often negotiate to buy goods according to the terms of delivery on board, which means buying goods at FOB prices.
• In Vietnam, however, it is in the opposite way. When exporting, Vietnamese enterprises would often export at FOB price and import at
CIF price.
Demand for seaway transport remains high.
• Volume of goods through seaports nationwide from 2013 to
2020 has grown steadily over the years.
• The area with a high volume of cargo transported are Quang
Tri (the increase is mainly in dry and domestic goods because
the area just exports of wood chips to China and sand,
gypsum to Ninh Binh), Quang Ngai (in which the volume of
dry in 2020 increased 432.1% compared with 2019), Can Tho,
My Tho, Nam Dinh, Thanh Hoa, and Thai Binh.

30
2. Overview
2.2 Transportation
2.2.3 Sea freight
233.55
241.25
271.75
293.61
333.89
397.48
-
100
200
300
400
500
2015 2016 2017 2018 2019 2020
Million tons
Volume of goods through Vietnamese seaports,
2015 - 2020
11.090
11.086
11.966
13.008
15.608
16.997
-0.03%
7.93% 8.72%
19.98%
8.90%
-5%
0%
5%
10%
15%
20%
25%
0
4
8
12
16
20
2015 2016 2017 2018 2019 2020
Million TEUs
Volume of containers through Vietnamese seaports,
2015 - 2020
Volume Growth
Source: VIRAC, Vietnam Seaports Association
Many ports are small, operating inefficiently,
lack of modern cargo handling equipment, and
having low exploitation productivity.
Vietnam seaports also lacks connection with
other transportation modes, which constantly
causes congestion to roads leading to ports
The current international shipping fees in
Vietnam are still high due to:
• High and unreasonable fees charged by foreign
container ship owners
• Gate congestion because of the limitations on
port infrastructure such as Cat Lai
• Seaport infrastructure fees are high.
On the North-South route, the freight rate from
warehouse to warehouse is 40-50% of the road
freight rate, but the transit time is 3 to 5 times
higher.

31
2. Overview
2.2 Transportation
2.2.3 Sea freight
Seaports in this area mainly concentrated in Quang
Ninh such as Cam Pha, Cua Ong, Hon Gai, etc; in Hai
Phong such as Hai Phong, Thuong Ly, etc; in Thai
Binh like Diem Dien. The total length of the wharf
in this area is more than 8,000m.
Listed seaport corporation are mainly from Hai
Phong area such as: MVN (Vinalines), PHP (Hai Phong
Port), GMD (Gemadept), etc.
This area accounts for about 25-35% of
container volume transported in Vietnam’s
total. Goods through these ports are mainly
cement, clinker, coal.
Northern seaports do show an uptrend and
growth, however, the development is uneven
and only happened in a few areas.
Northern seaports (from Quang Ninh to Ninh Binh)
3
4
2
1
Northern seaports overview

32
2. Overview
2.2 Transportation
2.2.3 Sea freight
Source: VIRAC, Vietnam Maritime Administration, Vietnam Seaports Association
No. Area/Port
Designed
throughput
capacity
(tons/year)
Ship Volume (tons)
Northern Vietnam 10,270 131,125,683
1 Cam Pha 100,000,000 2889 43,196,745
2 Hai Phong 10,000,000 1,141 27,823,047
3 HICT N/A 404 9,915,915
4 Dinh Vu 14,500,000 505 8,381,482
5 B12 Oil Terminal 5,602,386 2,619 8,135,842
6 Quang Ninh 10,986,440 413 8,120,073
7 Nam Hai Dinh Vu 10,000,000 453 7,990,950
8 PTSC Dinh Vu 4,000,000 280 5,122,725
9 CICT N/A 269 4,228,084
10 Nam Dinh Vu N/A 228 4,056,645
11 Vat Cach 2,600,000 495 1,655,628
12 Doan Xa 2,000,000 220 1,144,764
13 Tan Cang 128 – Hai Phong 500,000 125 1,004,940
14 Transvina 2,500,000 126 279,300
15 Cua Cam 500,000 103 69,543
Volume of goods through Northern seaports, 2020
67.74
52.86
73.54
74.08
81.33
131.13
-22.0%
39.1%
0.7%
9.8%
61.2%
-40%
-20%
0%
20%
40%
60%
80%
-
20
40
60
80
100
120
140
2015 2016 2017 2018 2019 2020
Million tons
Volume of goods through Northern seaports, 2015 - 2020
Volume Growth
This area has a total wharf length of more than 8,000m. In this area, there
are 44 general cargo berths, 24 specialized wharfs, 8 other service wharfs
and 15 pontoon berths. This area accounts for about 25-35% of whole
nation’s container cargo volume through ports. Goods through ports are
mainly cement, clinker, coal.
The expected volume of goods through this area in 2030 is 178.5
million tons. In early 2021, the Deputy Prime Minister had signed an
approval for an investment project in Hai Phong seaport with total
investment capital of 282 million USD, invested by HATECO Group Joint
Stock Company.

33
2. Overview
2.2 Transportation
2.2.3 Sea freight
34.49%
17.57%
14.84%
14.16%
9.08%
7.19%
1.78%
0.56%
0.00%
0.08%
0.07%
Dinh Vu
Nam Hai Dinh Vu
Tan Cang 128 – Hai
Phong
CICT
Doan Xa
Transvina
Quang Ninh
HICT
2.90
2.66
2.77
2.82
3.54
3.76
-8.18%
4.05%
1.80%
25.48%
6.25%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
-
1
1
2
2
3
3
4
4
2015 2016 2017 2018 2019 2020
Million TEUs
Volume of containers through Northern seaports, 2015 - 2020
Volume Growth
Shares of Northern seaports by container volume, 2020
Hai Phong and Quang Ninh are two provinces which are most active in container port operations in the North. Hai Phong port system is located along the Cam
River and concentrates some large sea ports such as: Dinh Vu, Nam Hai - Dinh Vu, Green Port, Hai An, Doan Xa, Chua Ve, etc. In addition, There is also located
Lach Huyen deep-water port project, the handling capacity is 1.1 million TEUs/year and can receive ships with a tonnage of up to 100,000 DWT. In Quang Ninh, Cai
Lan port is currently the largest port, able to receive ships with a tonnage of 40,000-50,000 DWT.

34
2. Overview
2.2 Transportation
2.2.3 Sea freight
1,020
1,087
1,110
1,154
1,271
1,298
0
200
400
600
800
1,000
1,200
1,400
2015 2016 2017 2018 2019 2020
Thousand TEUs
Volume of containers through Hai Phong seaports,
2015 - 2020
5.86
6.06
6.16
6.83
7.71
8.93
12.28
12.93
11.77
10.36
11.35
10.62
5.61
6.33
5.94
6.81
7.85
8.27
0
2
4
6
8
10
12
14
2015 2016 2017 2018 2019 2020
Export Import Domestic
Hai Phong Seaports
• Hai Phong seaport area is the largest national general seaport cluster in
the North and the second largest in Vietnam. Currently, Hai Phong
seaport area has 98 berths for loading/unloading goods with a total
length of nearly 14,200m.
• Before 1945, Hai Phong seaport was small in size with a cargo capacity
of just over 50 tons/year. At present, Hai Phong has nearly 40 seaports
with not only development in size but also in technology, cargo handling
capacity and accompanying services.
• Owning modern equipment and complete infrastructure, Hai Phong
Port is suitable for international transport and trade modes. The
port's warehouse system is built following high quality standards and
divided into specialized areas to every demand for storage, handling and
transportation of various types of cargo. Source: VIRAC, Maritime Administration of Hai Phong
Source: VIRAC, Maritime Administration of Hai Phong
Source: VIRAC, Maritime Administration of Hai Phong
Proportion of goods through Hai Phong seaports, 2020
Container
74.8%
Iron and steel
17.8%
Clinker and gypsum
1.5%
Wood 2.0%
Food and
animal feed 0.3%
Fertilizer
2.0%
Equipment
1.1%
Others 0.5%
Volume of goods transported through Hai Phong seaports, 2015 - 2020
Million Tons

35
2. Overview
2.2 Transportation
2.2.3 Sea freight
The Central region has about 1,200 km of
seaway with a seaport every 30-40 km of
seaway. According to the nation’s plan, the Central
region has 14 groups of seaports.
8 out of 14 groups of seaports are class I ports
belonging to the national general port: Nghi
Son (Thanh Hoa), Nghe An, Ha Tinh, Thua Thien -
Hue, Da Nang, Dung Quat (Quang Ngai), Quy
Nhon (Binh Dinh) and Khanh Hoa port.
In particular, the seaport cluster, including Chan
May, Da Nang, Chu Lai, Dung Quat and Quy Nhon
is considered to be the backbone of the region.
From 2014 to now, many seaports in the Central
region are operating at full capacity. The reason
is that this area has been attracting hundreds of
projects such as the industrial park from Da Nang
to Dung Quat, the integration between Hue and
Da Nang, forming the largest cultural center in the
Central region, etc.
The Central region has advantage of owning a
deep-water port, which is an attractive point to
investors in heavy industry, including energy
industry, petrochemical industry, steel rolling,
construction materials, etc.
Central seaports (from Thanh Hoa to Binh Thuan)
Central seaports overview

36
2. Overview
2.2 Transportation
2.2.3 Sea freight
28.81
28.12
29.83
35.29
39.46
42.62
-2.40%
6.07%
18.30%
11.83%
8.02%
-5%
0%
5%
10%
15%
20%
-
5
10
15
20
25
30
35
40
45
2015 2016 2017 2018 2019 2020
Million tons
Volume of goods through Central seaports, 2015 - 2020
Volume Growth
No. Area/Port
Designed
throughput
capacity
(tons/year)
Ship Volume (tons)
Central Vietnam 7,652 42,623,798
1 Da Nang 8,000,000 1,948 11,416,949
2 Quy Nhon 7,500,000 1,314 11,037,118
3 Nghe Tinh 3,300,000 1183 4,286,987
4 Lao-Viet International 1,570,000 314 3,466,000
5 Chan May 2,400,000 258 2,408,118
6 Cam Ranh 3,000,000 245 2,088,971
7 Gemadept Dung Quat 1,200,000 73 1,950,000
8 PTSC Quang Ngai 1,400,000 101 1,656,867
9 Thi Nai 1,000,000 447 1,204,929
10 Vinh Tan 76,348 416 867,606
11 Cua Viet 1,140,000 523 681,114
12 Hon Khoi 400,000 241 385,963
13 Ky Ha - Chu Lai 550,000 197 358,375
14 Hao Hung Quang Ngai 2,000,000 40 345,397
15 Vung Ro 250,000 127 204,836
16 Thuan An 500,000 127 120,640
17 South Van Phong N/A 29 73,796
18 Quang Binh 177,131 50 70,131
Volume of goods through Central seaports, 2020

37
2. Overview
2.2 Transportation
2.2.3 Sea freight
66.90%
21.81%
11.23%
0.05%
Shares of Central seaports by container volume, 2020
Da Nang Quy Nhon Nghe Tinh Cam Ranh
408.30
476.75
524.68
575.73
703.48
829.56
-
100
200
300
400
500
600
700
800
900
2015 2016 2017 2018 2019 2020
Thousand TEUs
Volume of containers through Central seaports,
2015 - 2020
In 2020, Da Nang port’s revenue reached more than
40 million USD and income reached around 11
million USD, increased by 15% compared with 2019.
The upgrade to the second phase of Tien Sa port was completed in
2018 with a total length of Da Nang wharf reaching 1,700m and
capable of receiving general cargo ships of up to 70,000 DWT,
container ships of up to 4,000 TEUs, passenger ships of up to 150
thousand GT.

38
2. Overview
2.2 Transportation
2.2.3 Sea freight
With high capacity, several seaports in the
Southern are among the most dynamic ports in
Vietnam. The South also has a highest proportion
of trade volume in Vietnam.
This area has opened international gateway
ports and successfully received ships of up to 214
thousand DWT at Cai Mep wharf (Ba Ria - Vung
Tau). It has established 16 long-distance
shipping routes to North America and Europe.
This area is owning some of the largest
container ports such as Cai Mep –Thi Vai, Cat Lai,
etc. Volume of containers through this area
accounts for about 90% Vietnam’s total
volume.
Southern seaports (from Ba Ria - Vung Tau to Ca Mau)
Despite having many large ports, the South is
lacking connection in modes of transport.
This has caused port congestion while the
nearby one may not be operating in full
capacity.
02
03
04 01
Southern seaports overview

39
2. Overview
2.2 Transportation
2.2.3 Sea freight
Area/Port Ship
Volume (tons)
Total Import Export Domestic
Southern Vietnam 17,419 223,735,381 102,450,126 80,273,145 40,708,051
HCMC and Dong Nai 9,528 135,528,587 62,850,968 43,679,539 28,945,814
Ba Ria – Vung Tau 6,231 81,806,696 39,351,356 35,829,599 6,373,948
Mekong Delta 1,660 6,400,098 247,802 764,007 5,388,289
136.99
160.27
168.38
184.24
213.10
223.74
-
50
100
150
200
250
2015 2016 2017 2018 2019 2020
Million tons
Volume of goods through Southern seaports, 2015 - 2020
Volume of goods through Southern seaports, 2020
7.78
7.94
8.67
9.61
11.36
12.40
-
2
4
6
8
10
12
14
2015 2016 2017 2018 2019 2020
Million TEUs
Volume of containers through Southern seaports,
2015 - 2020
* For Port’s full name, please refer to List of Abbreviations
45.03%
16.85%
8.28%
5.96%
4.63%
4.47%
3.14%
2.71%
8.94%
Shares of Southern seaports
by container volume, 2020 Tan Cang Cat Lai
TCIT+TCCT
CMIT
TCTT
VICT
SSIT
Dong Nai
Binh Duong
Others

40
2. Overview
2.2 Transportation
2.2.3 Sea freight
Seaports in Group 5 (the Southeast region)
Two biggest ports area here are Ho Chi Minh City and Dong Nai and Cai Mep – Thi Vai area. These two both belong to Group 5 and relatively located in Ho Chi
Minh City and Ba Ria –Vung Tau.
Ho Chi Minh City Area
• Saigon Newport Corporation currently accounts for
96% market share in this area.
• In the first 9 months of 2021, the total volume of goods
through is estimated to be more than 127 million tons,
up more than 5% compared to the same period in
2020.
Cai Mep – Thi Vai Area
• Currently, Cai Mep - Thi Vai’s total capacity is
about 93 million tons/year.
• Cai Mep - Thi Vai is the gateway of its area as well
as the whole Southeast region.
• In the first 6 months of 2021, there is a total of 2.6
million TEUs through Cai Mep – Thi Vai, up 39%
compared to the same period in 2020.
Southeast seaports’s strengths:
• General and container ports in this area are
large-scale and equipped with modern
specialized machine.
• Electronic management system is in operation
• Many large logistics enterprises in the world
had included this region, therefore, exports
from the seaport can be transported directly to
the US and Europe.
• Rapid developments in industrial parks and
processing zones have increased
transportation demand in this area.

41
2. Overview
2.2 Transportation
2.2.3 Sea freight
1.81
1.99
2.44
2.95
3.74
4.41
-
1
2
3
4
5
2015 2016 2017 2018 2019 2020
Million TEUs
Volume of containers through Ba Ria - Vung Tau area
seaports, 2015 - 2020
• CM-TV is the largest port cluster with deep-water and container port in
Vietnam. It is in the list of port cluster with the fastest growth in the
world, with an annual increase of about 22%.
• TCIT-TCCT, CMIT, TCTT account for most of the container volume due to
their convenient location and modern equipment, which is suitable for
receiving large vessels.
According to Customs Department of Ba Ria – Vung Tau Province, Cai Mep -
Thi Vai mainly handle goods with large total import and export value including
wheat, corn, wood, iron and steel, fertilizer, etc., which all require specialized
examination. However, having no Centralized Examination Center forces
businesses to send samples to Ho Chi Minh City for inspection, which would
normally take 10-30 days for results. This process is very time-consuming to
both customers and port operators.
Source: VIRAC, Maritime Administration of Vung Tau
47.38%
23.28%
16.77%
12.56%
Shares of Ba Ria – Vung Tau area by container volume, 2020
TCIT+TCCT CMIT TCTT SSIT
Ba Ria – Vung Tau area
39.11
47.79
54.29
63.90
73.26
81.81
-
20
40
60
80
100
2015 2016 2017 2018 2019 2020
Million tons
Volume of goods through Ba Ria - Vung Tau area seaports,
2015 - 2020
* For Port’s full name, please refer to List of Abbreviations

42
2. Overview
2.2 Transportation
2.2.3 Sea freight
61.81%
7.34%
6.52%
6.36%
4.42%
3.72%
3.51%
6.32%
Shares of HCMC and Dong Nai area by container volume,
2020
Tan Cang Cat Lai
Dong Nai
Sai Gon
VICT
Ben Nghe
Binh Duong
ITC- Phu Huu
Others
Source: VIRAC, Vietnam Seaports Association Source: VIRAC, Vietnam Seaports Association
Ho Chi Minh City and Dong Nai area
5.88
5.89
6.16
6.59
7.53
7.91
-
1
2
3
4
5
6
7
8
9
2015 2016 2017 2018 2019 2020
Million TEUs
Volume of containers through Ho Chi Minh City and Dong
Nai area seaports, 2015 - 2020
89.85
105.64
107.63
114.11
132.46
135.53
-
50
100
150
2015 2016 2017 2018 2019 2020
Million tons
Volume of goods through Ho Chi Minh City and Dong Nai
area seaports, 2015 - 2020
In 2020, volume of goods through HCMC and Dong Nai reached
135.53 million tons, container volume reached 7.91 million TEUs.
Tan Cang Cat Lai is currently recording the highest volume of goods in
HCMC and Dong Nai area. Cat Lai port cluster is currently receiving and
handling over 1 million containers per year due to its convenient location
near the city center of HCMC and industrial parks, warehouses of
manufacturing enterprises in Dong Nai and Binh Duong

43
2. Overview
2.2 Transportation
2.2.3 Sea freight
• Seaports in Mekong Delta area only handle 20-25% of the total goods
volume that needs to be transported via seaway in the whole region,
the remaining 80% is transported through Southeast area ports.
• Equipment for loading/unloading and managing exploitation is outdated
and not synchronized. Goods through these ports are mainly bulk cargoes
such as agricultural products, fertilizers, cement, coal for thermal power
plants in the region. Goods after leaving these ports will be transported by
barges or river ships via inland waterways to other demanding areas in the
country or to national seaports for export. The container volume through
this port accounts for a low proportion, which is about 0.8% - 0.9% of
Vietnam’s total container volume.
• Ministry of Industry and Trade forecasted that total volume of goods
through seaports in this area will reach 66.5 to 71.5 billion tons each
year; of which 21 to 26 billion tons would be break bulk and container.
18.23%
5.10%
19.51%
30.67%
22.41%
4.08%
Shares of Mekong Delta area by container volume, 2020
Dong Thap (Tan Cang Sa
Dec Terminal)
Vinh Long
Can Tho
Tra Noc Can Tho
An Giang
Vinalines Hau Giang
Mekong Delta
8.03
6.85
6.45
6.23
7.39
6.40
-14.74%
-5.72%
-3.54%
18.65%
-13.35%
-20%
-10%
0%
10%
20%
30%
-
1
2
3
4
5
6
7
8
9
2015 2016 2017 2018 2019 2020
Million tons
Volume of goods through Mekong Delta area seaports,
2015 - 2020
Volume Growth
89.76
68.73
73.80
73.10
88.65
87.75
-23.43%
7.38%
-0.95%
21.28%
-1.02%
-30%
-20%
-10%
0%
10%
20%
30%
-
20
40
60
80
100
2015 2016 2017 2018 2019 2020
Thousand TEUs
Volume of containers through Mekong Delta area seaports,
2015 - 2020
Volume Growth

44
2. Overview
2.2 Transportation
2.2.4 Inland waterway freight
• The World Bank warned that the interference of many ministries in the domestic waterway
transport management hinders the development of this type of transport. The Vietnam Inland
Waterways Association reported that there are 13 checkpoints for every 100 km of river.
• About 97% are dry cargo barges with an average tonnage of 90 DWT
• In 2020, there are total of 253,797 vessels, most of which are small ships
Vietnam currently has about 42,000 km of river ways or canals that can be used for transport, of
which the local authority manages 19,579 km, the central government manages 45 main
waterway routes with a total length of more than 7,071.8 km (17 routes in the North, 18 routes in
the South and 10 routes in the Central region).
• Inland ports: There are 285 ports nationwide, including 210 cargo ports, 12 passenger ports
and 63 specialized ports.
• Landing stages: Currently, there are 8,217 landing stages, of which 6,769 have been licensed
to operate, 1,448 have no permits, accounting for 17%.
Route
Inland ports and landing stages
Vessels
Inland waterway infrastructure

45
2. Overview
2.2 Transportation
2.2.4 Inland waterway freight
201.53
215.77
232.81
251.90
268.03
244.71
237.13
7.06%
7.90% 8.20%
6.40%
-8.70%
-10%
-5%
0%
5%
10%
0
50
100
150
200
250
300
2015 2016 2017 2018 2019 2020 9M/2021
Million tons
Volume of goods transported by Vietnamese enterprises by inland
waterway, 2015 – 9M/2021
Volume Growth
Source: VIRAC, GSO
There are two main waterways in the two most densely populated and economically developed regions. Also, these two are directly connected to large seaports:
• Inland waterway system in the North is located in the Red River Delta, focusing on Hanoi - the economic growth center and connecting to the international
gateway port of Hai Phong.
• Inland waterway system in the South is located in the Mekong Delta, connecting with Ho Chi Minh City - the economic growth center and major seaports in
the Southeast region.
According to the World Bank's assessment in 2019, Vietnam's inland waterway transport has a higher rate of inland freight than China, the United States and the
EU (except the Netherlands). World Bank also assesses that Vietnam's inland waterway transport is performing well with a sign of growth and
transformation.
The inland waterway network plays an important role in connecting agricultural, industrial, and urban areas. It handles about 19% of total cargo in the nation.
According to Ministry of Transport, the volume of goods transported through inland waterway in 2030 is planned to reach around 715 million tons and 150
billion.km.
Being hit by social distancing and supply chain
disruption during Covid-19, inland waterway
freight witnessed a slight decrease in volume of
goods. However, in the first 9 months of 2021,
this transportation method is showing a recovery.

46
2. Overview
2.2 Transportation
2.2.5 Airfreight
Con Dao – Ba Ria Vung Tau
Source: VIRAC, Ministry of Transport
12 international airports
10 domestic airports
Plans in 2030
Sapa – Lao Cai
Dien
Bien
Na San – Son La
Noi Bai – Ha Noi
Van Don – Quang Ninh
Cat Bi – Hai Phong
Vinh – Nghe An
Dong Hoi – Quang Binh
Phu Bai – Hue
Da Nang
Chu Lai – Quang Nam
Long Thanh – Dong Nai
Can Tho
Rach Gia – Kien Giang
Phu Quoc – Kien Giang
Tan Son Nhat - HCMC
Buon Ma Thuot –Dak Lak
Lien Khuong – Lam Dong
Pleiku – Gia Lai
Quang Tri
Tho Xuan –Thanh
Hoa
Tuy Hoa – Phu Yen
Phu Cat – Binh Dinh
Cam Ranh – Khanh Hoa
Phan Thiet – Binh Thuan
Ca Mau
Airports in Vietnam, 2020 • There are commercial domestic airlines in Vietnam such as
Vietnam Airlines, Vietjet Air, Jetstar Pacific, Vasco,
Bamboo Airways... and about 70 commercial international
airlines flying to and from Vietnam. Some other legal entities
have registered and are carrying out procedures for licensing
aviation operations such as Thien Minh.
• According to the Civil Aviation Authority of Vietnam, as of
February 2020, Vietnam has 235 civil aircraft and 32
helicopters registered as Vietnamese. Notably, airlines in
Vietnam haven't owned any freight aircraft fleet.
Infrastructure is currently a challenge for air transport
even though there is only 0.015% of goods volume
transported is by air in the first 9 months of 2021. In June
2019, Can Tho - the center of the country's largest agricultural
production area - was planned to be the construction site of a
new aviation logistics center with an expected area of about 30
hectares and an estimated total investment capital of. about
82.9 million USD.
According to the Ministry of Transport, the needed
investment capital for the development of Vietnam's
airports infrastructure from 2021 to 2030 is about 12
billion USD.

47
2. Overview
2.2 Transportation
2.2.5 Airfreight
66.34%
33.66%
Proportion of volume goods transported by Vietnamese
enterprises by air by location, 9M/2021
Domestic Foreign
Source: VIRAC, GSO
0.23
0.29
0.32
0.40
0.45
0.27
0.18
24.3%
11.2%
27.0%
10.4%
-39.0%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
-
0.1
0.1
0.2
0.2
0.3
0.3
0.4
0.4
0.5
0.5
2015 2016 2017 2018 2019 2020 9M/2021
Volume Growth
Volume of goods transported by Vietnamese enterprises by air,
2015 - 2021
Millions tons
Source: VIRAC, GSO
Realizing the potential of the air freight industry, many major airlines are gradually showing attention to this market, especially
after Covid-19 pandemic, which has caused passenger revenue to sharply decline and cargo revenue on the other hand to
increase. Vietnam Airlines recently had announced that it will soon establish a cargo airline with a separated operating team after 4
years of research. Bamboo is also planning to develop Bamboo Airways Cargo. Small enterprises such as IPPG had also proposed the
establishment of IPP Air Cargo with total investment of 105 million USD with the ambition of being Vietnam's first specialized cargo
airline.
According to Logistics Report 2020 issued by Ministry of Industry and Trade, although air transport only accounts for a very small
part in the total volume of goods transported in Vietnam, it accounts for 25% of the total export value of the country.
Vietnam till now only has two international airports having international cargo warehouse centers which is Tan Son Nhat and Noi Bai.

48
2. Overview
2.3 Warehousing and other supporting activities
16.11%
11.28%
72.62%
Structure of Warehousing, Loading/Unloading and Other
supporting activities by Vietnamese enterprises’ revenue, 2020
Warehousing Loading/Unloading Support activities
Source: VIRAC, GSO
Source: VIRAC, GSO
Total revenue of Vietnamese enterprises in Warehouse and
other transportation supporting activities, 2015 - 2020
Source: VIRAC, GSO
Warehouse
Loading/unloading
Other supporting activities
7,981
10,299
11,729
11,580
12,870
11,327
175,124
197,496 201,054 208,998 212,209
229,780
-
50,000
100,000
150,000
200,000
250,000
-
4,000
8,000
12,000
16,000
2015 2016 2017 2018 2019 2020
Employees
Enterprises
Warehouse and other transportation supporting activities
sector in Vietnam, 2015 - 2020
9,988.00
11,772.09
12,727.44
15,878.30
14,663.39
11,708.96
17.9%
8.1%
24.8%
-7.7%
-20.1%
-30%
-20%
-10%
0%
10%
20%
30%
-
5,000
10,000
15,000
20,000
2015 2016 2017 2018 2019 2020
Million USD
Revenue Growth

49
2. Overview
726.80
992.90
1,079.62
1,464.49
2,633.25
2,250.51
36.6%
8.7%
35.6%
79.8%
-14.5%
-20%
0%
20%
40%
60%
80%
100%
-
500
1,000
1,500
2,000
2,500
3,000
2015 2016 2017 2018 2019 2020
Million USD
Revenue Growth
Warehousing sector in Vietnam can
be divided into two main segments
including dry goods storage and
cold storage.
According to Vietnam Logistics
Report 2019 issued by Ministry of
industry and trade, more than
70% of warehouse area is in the
South.
Total revenue of Vietnamese enterprises in Warehousing sectors,
2015 - 2020
Source: VIRAC, GSO
Source: VIRAC, GSO
421
538
650
705
950
954
16,226
19,072 19,178
21,115
29,934
37,008
-
10,000
20,000
30,000
40,000
-
200
400
600
800
1,000
1,200
2015 2016 2017 2018 2019 2020
Employees
Enterprises
Number of enterprises and employed population in Warehousisng
sector in Vietnam, 2015 - 2020

50
2. Overview
Cold chain
Cold storage
Cold transportation
602,144 pallets
700 refrigerated trucks
169 million USD
Vietnam’s cold chain market size, 2019
According to the Vietnam Logistics Report 2020 issued by Ministry of Industry and Trade, at the end of 2019, Vietnam has 48 cold storages with capacity of
more than 600,000 pallets; more than 700 refrigerated trucks and 450 train carriages transporting refrigerated containers. Vietnam's cold chain market is just
about 20 years old, with the first commercial cold storages built around the mid-1990s.
Cold storage can be divided into 2 types: owned and rented.
Characteristics
Purposes
Major companies
• Usually used by food processing
companies, FMCG, dairy companies,
seafood processing companies, food
distributors
• Located near processing plants or
commercial centers in major cities
Hung Vuong, Vinh Hoan, Quoc Viet,
Westfood
Mainly serve domestic needs
• Usually operated by a professional
organization
• Serving a large variety of customers
• Usually located near major seaports
Mainly for rental or commercial purposes
Emergent Cold, Preferred Freezer Services,
ABA Cooltrans, Hoang Lai, Phan Duy
Owned cold storage Rented cold storage

51
2. Overview
Source: VIRAC
• In 2019, the South has 36 cold storages with a capacity of 526,364 pallets, the Central has 1 cold storage with a capacity of 21,000 pallets and the North
has 11 cold storages with a capacity of 54,780 pallets. About 80% of cold storage are filled.
• Most of cold chain service providers are currently from the South due to the high demand here, with 4 groups by ownership: 48% are domestic manufacturing
companies, 24% are foreign companies, 14% are logistics companies and other business types are 14%. Some members of the VLA Association had developed
cold storage systems throughout the country named Transimex, Gemadept, and Saigon Newport.
• In June 2020, HVG had put into a cold storage with designed capacity of 60,000 pallets. According to the company, this is the second largest cold storage by
designed capacity in the world and only after a storage in Spain with designed capacity of 65,800 pallets. Besides, in 2020, there are many cold storages being
under construction such as AJ Total Long Hau with 32,000 pallets, AJ Total Hung Yen with 25,000 pallets etc, however, they have not been put into operation yet.
• A research by CEL shows that 66.7% of exporting companies apply cold chain in production, 8 times the number of enterprises supplying the domestic
market (8.2%).
More than 20%
of businesses can
provide 9-11 cold
storage services
Very small
number of
businesses can
provide up to 16
services
20% offer less
than 5 cold
storage services
More than 50%
of businesses can
provide 6-7 cold
storage services.
Assessment of cold storage services’ capacity in Vietnam, 2019
Source: VIRAC, Emergent Cold_2019
438,461
542,307
575,000
600,234
602,144
662,144
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2015 2016 2017 2018 2019 2020
Pallets
Total designed capacity of cold storage warehouse for lease
in Vietnam, 2015 - 2020

52
2. Overview
Source: VIRAC, GSO
Source: VIRAC, GSO
• Loading and Unloading
Currently, there are about 15 ports performing
container handling. At most container
terminals, container handling accounts for
80% of the port's total revenue.
Loading and unloading volume in container ports
tends to increase over the years. There are some
leading ports in terms of volume of goods
throughput, including: Saigon Newport, Chua Ve
Port (Hai Phong) and Khanh Hoi (Saigon), VICT
Port.
Price of loading and unloading, especially
deep-water ports of Vietnam, is currently
much lower than other countries in the region
such as Singapore, Malaysia, Hong Kong
(China),..., and even lower than Cambodia.
Total revenue of Vietnamese enterprises in Loading/unloading sectors,
2015 – 2020
604
689
806
811
856
845
48,784 50,232 52,271
46,482
23,928 25,909
-
10,000
20,000
30,000
40,000
50,000
60,000
-
200
400
600
800
1,000
2015 2016 2017 2018 2019 2020
Employees
Enterprises
Loading/unloading sector in Vietnam, 2015 - 2020
1,229.25
1,334.81
1,418.77
1,415.16
633.09
505.54
8.6% 6.3%
-0.3%
-55.3%
-20.1%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
-
200
400
600
800
1,000
1,200
1,400
1,600
2015 2016 2017 2018 2019 2020
Million USD
Revenue Growth

53
2. Overview
• Other support services
Source: VIRAC, GSO
Source: VIRAC, GSO
Total revenue of Vietnamese enterprises in Other supporting activities sectors,
2015 - 2020
• Other support activities
Other transportation supporting services
providers are mainly located in major cities
such as Ho Chi Minh City, Hanoi, Hai Phong,
Ba Ria – Vung Tau, Quang Ninh. These are
also cities with dominating logistics services
providers as well as large logistics centers
with high value of trading. Number of
providers in the aforementioned 5 cities
accounts for around 60% of total other
supporting services providers in Vietnam.
Cities with the least number of services
providers area are mainly from Northern and
Central Highlands. This can be explained by
their mountainous and inconvenient
geographical location.
604
689
806
811
856
845
110,114
128,192 129,605
141,401
158,347
166,863
-
40,000
80,000
120,000
160,000
200,000
-
200
400
600
800
1,000
2015 2016 2017 2018 2019 2020
Employees
Enterprises
Number of enterprises and employed population in Other
support activities sector in Vietnam, 2015 - 2020
8,031.95
9,444.39
10,229.05
12,998.66
11,397.05
8,952.91
17.6%
8.3%
27.1%
-12.3%
-21.4%
-30%
-20%
-10%
0%
10%
20%
30%
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2015 2016 2017 2018 2019 2020
Million USD
Revenue Growth

54
2. Overview
675,000
400,000
220,000
100,000
73,000 54,167 40,000
1,458
0
200,000
400,000
600,000
800,000
Tân Cảng Sài
Gòn
Transimex TBS Logistics GMD Damco ITL Logistics DKHS DHL
Total area of warehouse by enterprises with large distribution centers in
Vietnam, 2018
Source: VIRAC
m²
Distribution Center (DC) is a popular trend in global
logistics and especially large companies in Vietnam
thanks to its advantage of fast and accurate
information retrieval. Enterprises follow
distribution centers model are mainly leading
manufacturers of consumer goods and
electronics such as Samsung, Unilever, P&G,
Vinamilk, Masan...
Distribution Center (DC)

55
2. Overview
2.4 Forwarding
• According to Statistical Yearbook, the international shipping market in Vietnam is expected to grow from 15 to 16% per year in the period of 2019 - 2021.
• In the second half of 2019, Vietnam’s forwarding market has recorded the appearance of large global names such as Best Inc (USA), InExpress (UK), ZTO
Express (China).
Source: VIRAC, GSO
• The growth of domestic production, wages, consumption and the explosion of e-commerce are factors promoting the development of Vietnam's
logistics market. This is also an opportunity for international 3PLs to provide added value of logistics and door-to-door delivery services.
• Currently, about 80.3% of logistics enterprises in Vietnam provide international and domestic freight forwarding services.
Source: VIRAC, GSO
Total revenue of Vietnamese enterprises in Forwarding sectors,
2015 - 2020
603
754
811
818
927
815
18,103
24,854
27,562
42,113
40,040 40,229
-
10,000
20,000
30,000
40,000
50,000
-
200
400
600
800
1,000
2015 2016 2017 2018 2019 2020
Employees
Enterprises
forwarding sector in Vietnam, 2015 - 2020
528.23
734.92
814.28
869.58
643.50
512.33
39.1%
10.8%
6.8%
-26.0%
-20.4%
-40%
-20%
0%
20%
40%
60%
-
200
400
600
800
1,000
2015 2016 2017 2018 2019 2020
Million USD
Revenue Growth

56
2. Overview
2.4 Forwarding
Source: VIRAC, WB
• Customs clearance service is one of the basic services of
forwarding - logistics companies. Vietnam Logistics Business
Association (VLA)'s survey shows that 87.8% of logistics
companies provide customs clearance services.
• According to data from World Bank, the quality of customs
procedures in Vietnam has improved from 2016 to 2018
when it reached 2.95 points in 2018 and ranked 41st out of 160
countries.
• According to the survey result about satisfaction with the
implementation of import-export administrative procedures in
2020 by Vietnam Chamber of Commerce and Industry (VCCI),
about 85% of enterprises agree or completely agree that the
support of the customs authority is timely and efficient.
37 53 63 61 64 41
2.89
2.68
2.65
2.81
2.75
2.95
0
10
20
30
40
50
60
70
2.5
2.6
2.7
2.8
2.9
3
2007 2010 2012 2014 2016 2018
Vietnam’s customs procedures quality following Logistics
performance index (LPI), 2007 - 2018
Ranks Points
53 53 53 48 64 39
2.89
2.96
3.00
3.15
2.98
3.27
0
10
20
30
40
50
60
70
2.7
2.8
2.9
3.0
3.1
3.2
3.3
2007 2010 2012 2014 2016 2018
Vietnam’s Logistics performance index (LPI), 2007 - 2018
Ranks Points
Source: VIRAC, WB
Ranks
Points
Ranks
Points

57
2. Overview
2.5 Business environment
2.5.1 Regulations of Logistics conditions and activities
Relevant legal documents
Sector Law Decree Decisions, Circulars and other documents
Multimodal
transport
service
Decree 87/2009/ND-CP dated October 29, 2009 on
multimodal transport.
Decree No. 89/2011/ND-CP amending, supplementing some
articles of the decree No. 87/2009/ND-CP dated October 19,
2009 of the government on multimodal transport.
Decree No. 144/2018/ND-CP dated October 16, 2018
amending and supplementing certain Decrees on multimodal
transport.
Marine
transport
service
2005 Vietnam Maritime
Code
The new Vietnam
Maritime Code 2015
takes effect from January
1, 2017
Law on Vietnamese sea
2013
Decree No. 160/2016/ND-CP on conditions for sea
transportation business, shipping agency services, and
towage services.
Decision No. 1037/QD-TTg dated June 24, 2014, approval of
revised Vietnam port system planning to 2020, a vision to
2030.
Circular 66/2014/TT-BGTVT dated November 12, 2014 of
the Minister of Transport providing for the passenger,
luggage and consignment transport by passenger high
speed craft between ports, landing stages and waters of
Vietnam internal waters and across the border.
Inland
waterway
transport
service
Law on inland waterway
navigation 2004
Law on inland waterway
navigation 2014
Decree No. 110/2014/ND-CP dated November 20, 2014, on
conditions for inland waterway transportation business.
Document No. 13/VBHN-BGTVT dated December 28, 2015
Consolidating Circulars on passenger, luggage and
consignment transport on inland waterways.
Air freight
service
Law on Civil Aviation of
Vietnam 2006
Law amending the Law
on Civil Aviation of
Vietnam 2014
Decree 30/2013/ND-CP on air transportation business and
general aviation activities.
Circular No. 81/2014/TT-BGTVT dated December 30, 2014,
on air transport and general aviation.
Decision 43/2017/QD-TTg on responsibility for completion
of procedures for departure, arrival and transit of aircraft
through national single-window system.
Rail
transport
service
Railway Law 2017
(effective from July 1,
2018)
Decree No. 14/2015/ND-CP dated February 13, 2015 of the
Government detailing and guiding the implementation of a
number of article of the Railway Law.
Circular 78/2014/TT-BGTVT stipulating the transport of
passengers, luggage and bags on national railways.

58
2. Overview
Road transport
service
Law on Road Traffic 2008
Decree No. 86/2014/ND-CP
dated September 10, 2014,
on business and conditions
for transportation business
by auto.
Circular 63/2014/TT-BGTVT providing for operation and management of
automobile transport and supporting services to road transport.
Circular 60/2015/TT-BGTVT amending and supplementing a number of articles
of Circular No. 63/2014/TT-BGTVT on organization and management of
transport business by car and transport support services.
Warehouse
management
Decree 68/2016/ND-CP
dated July 1, 2016 regulating
on conditions for duty-free
business, warehouses, sites
for customs clearance,
customs inspection and
supervision.
Decision No. 1012/QD-TTg approving for nationwide logistics center system
development planning by 2020 and orientation towards 2030.
Circular 84/2017/TT-BTC guiding the implementation of Decree No.
68/2016/ND-CP.
Decision 2061/QD-BTC on the pilot application of automatic customs
management and supervision for imported, exported and transited goods at
Noi Bai international airport (Noi Bai airport).
Warehouse system
at the border
Decision 229/QD-BCT dated January 23, 2017 approving the project "Planning
on development of goods warehouse system at border gates of Vietnam - Laos
and Vietnam - Cambodia border until 2025, vision to 2035”.
Decision 1093/QD-BCT dated February 3, 2015 approving the master plan on
development of goods warehouses at border gates of Vietnam - China to 2025
with a vision to 2035.
ICD
Decision 2223/QD-TTG dated December 13, 2011 of the Prime Minister on
approval of inland container depot system development planning in Vietnam
by 2020 with an orientation to 2030.

59
2. Overview
Postage and
Delivery
17/6/2010 Law on post
(provides for postal
activities; the rights and
obligations of
organizations and
individuals involved in
postal activities and the
state management of
postal activities).
Decree 2/8/2007 Issuing the
system of economic branches
of Vietnam
Decision No. 10/2007/QD-TTg issuing the system of economic branches of
Vietnam.
Directive 16/09/2005 promoting the application of information technology to
post and delivery services.
Decision 30/11/2010 on the level of value of imports sent via the express
delivery service which is exempt from duty and tax.

60
2. Overview
Sector Decree Decisions, Circulars and other documents
Road transport service
Circular 37/2020/TT-BCT dated November 30, 2020 prescribing list of dangerous goods requiring
packaging during transport and transport of dangerous goods by road, rail and inland waterway
Decision 2218/QD-BGTVT in 2020 announcing revised administrative procedures in the road
sector under the management function of the Ministry of Transport
Warehouse
management
Decree 111/2020/ND-CP on
preferential export tariff schedule
and special preferential import tariff
schedule of Vietnam under EU-
Vietnam free trade agreement in
the 2020 - 2022 period
Decree No. 128/2020/ND-CP dated
October 19, 2020 on penalties for
administrative customs offences.
Official Dispatch 6487/BYT-ATTP 2020 control of foods imported from countries affected by
Covid-19.
Circular 100/2020/TT-BTC: annulment of certain legislative documents promulgated by the
minister of finance and jointly promulgated by ministries in sectors: customs, import and export
tax; fees and charges, and guidance on the financial regime and customs procedures applicable
to economic zones, commercial and industrial parks within border gate economic zones
Warehouse system at
the border
Decision 27/2020/QD-TTg List of imports banned from storage in bonded warehouses.
ICD
Official Dispatch 6712/TCHQ-GSQL 2020 on ensuring conditions for customs inspection and
supervision at ports, airports, ICDs and international railway stations
Newly issued legal documents in 2020

61
2. Overview
Time Policies Content Impact
1996
Foreign investment law
52-L/CTN
Regulations on foreign direct
investment in Viet Nam
Create the fundamental of foreign direct investment in Viet Nam which
include: Investment forms, rights and obligations of foreign investors,
state management mechanism for foreign investors,…
2014
Law of investment
67/2014/QH13
This Law deals with business
investments in Vietnam and outward
business investments.
Create regulations of investment activity in Vietnam
2014
Circular No.
103/2014/TT-BTC
Regulations on tax obligations
applicable to foreign organizations and
individuals doing business in Vietnam
or earning income in Vietnam
Impose stricter import tax on foreign enterprises
2015 Law 80/2015/QH13
This law prescribes the responsibilities
of state agencies, organizations and
individuals in the elaboration of legal
documents.
Requires all Legislative Documents, including those on foreign investment,
to be made public by publishing them in the relevant official gazettes
and/or local media channels.
2015
Decree 118/2015/NĐ-
CP
Vietnam’s investment promotion
strategy, applicable to both domestic
and foreign Investors
Create the promotion of investment in Viet Nam
2016 03/2016/QH14
List of industries and trades with
conditional business investment
Foreign investors may invest in all sectors not prohibited by the law of
investment. However some sectors have conditional which include
logistics.
2019 Resolution 50/2019
Orientation to improve quality and
effectiveness in attracting and using FDI
by 2030
Provides strategic direction for FDI for 10 years. There is no high-level
committee tasked with the responsibility of driving foreign investment
reforms in the country
Legal documents related to foreign investment

62
2. Overview
Time Policies Content Impact
2017
2021
Decision No. 200/QD-
TTg-2017
Additional
modification by
Decision 221/QD-TTg
- 2021
Approving the action plan,
improving competitiveness and
developing logistics services in
Vietnam by 2025
Set the target and consider the development of logistics services becomes a
spearhead economic sector
2018 Directive 21/CT-TTg
Promote the implementation of
solutions to reduce logistics costs
and effectively connect the
transport infrastructure system.
Require ministries, branches and localities, according to their assigned
functions and tasks, to have specific programs to implement action plans to
improve competitiveness and develop logistics services.
2019
Draft Law on
Investment
(amended)
Remove barrier for 12 industries
and trades with conditional
business investment
Logistics is one of 12 industries which are considered to remove barriers in
investment and business.
2021
Circular No.
47/2021/TT-BTC
Road toll adjustment
30% reduction of road use fee for passenger transport business vehicles and
10% reduction of road use fee for transport business vehicles from 6/2021
Development policies to support logistics services in Vietnam

63
2. Overview
Decree 140/2007/ND-CP detailing the implementation of the Commercial Law on conditions for logistics services business and limitation of liability for
traders providing logistics services.
 Provide basic logistics definition
• Article 4. Classification of logistics services
1. Major logistics services, including:
a) Loading and unloading services, including container handling;
b) Warehousing and storage services, including container yard business and warehouse for handling raw materials and equipment;
c) Transport agency services, including customs clearance agency activities and cargo loading and unloading planning;
d) Other ancillary services, including receiving, storing and managing information related to the transportation and storage of goods throughout the logistics chain.
2. Logistics services related to transportation, including:
a) Maritime transport services;
b) Inland waterway transport services;
c) Air transport services;
d) Rail transport services;
e) Road transport services;
f) Pipeline transportation services.
3. Other related logistics services, including:
a) Technical analysis and testing services;
b) Postal services;
c) Wholesale trade services;
d) Commercial and retail services, including inventory management, collection, classification, redistribution and delivery of goods;
e) Other transport support services.
Analyze important logistics legal documents

64
2. Overview
Decree No. 163/2017/ND-CP create favorable conditions for foreign enterprises to conduct logistics activities in Vietnam
 Support logistics service business
• On December 30, 2017, the Government issued Decree No. 163/2017/ND-CP Regulations on logistics service business, effective from February 20, 2018,
replacing Decree No. 140/2007/ND-CP dated September 5, 2007 detailing the Commercial Law on conditions for logistics services business and
limitation of liability for traders providing logistics services.
• Article 4, Section 1, Decree 163 stipulates that “Traders dealing in specific logistics services specified in Article 3 of this Decree must satisfy the investment and
business conditions prescribed by law. for that service”.
• Article 4, Section 2 stipulates that "Traders conducting part or all of logistics business activities by electronic means connected to the Internet, mobile
telecommunications networks or other open networks", must also comply with the following provisions: regulations on e-commerce in addition to meeting the
provisions of law for specific services specified in Article 3 of this Decree.
• According to Vietnam Logistics Association (VLA), this decree has "comprehensively covered logistics services, internalized international commitments
on logistics" as set out in the Action Plan to improve competitiveness and develop logistics services by 2025. This is a new step of the Government in
institutional reform related to the logistics service industry when entering 2018, including specific regulations on investment and development of logistics
services in Vietnam.
• However, Decree No. 163/2017/ND-CP just names in a general way about traders providing Logistics services. Therefore, many people are confused about
the concept and nature of logistics, thereby misjudging the position and role of this activity, which makes this activity many inadequacies.

65
2. Overview
Decree No. 163/2017/ND-CP create favorable conditions for foreign enterprises to conduct logistics activities in Vietnam
 Limitation of liability of traders providing logistics services
• Limit of liability is the maximum limit that a logistics service trader is responsible for indemnifying customers for losses incurred in the process of
organizing the performance of logistics services as prescribed in Clause 1 of this article.
• In cases where relevant laws provide for the limitation of liability of traders providing logistics services, the provisions of relevant laws shall apply.
• If the relevant law does not provide for limitation of liability, the responsibility of the trader providing logistics services shall be agreed upon by the parties. If the
parties do not reach an agreement, the following shall be done:
 In case the customer does not have prior notice of the value of the goods, the maximum liability limit is 500 million VND (equivalent to 21.93 thousand USD) for
each claim.
 Where the customer has been notified in advance of the value of the goods and is confirmed by the trader providing logistics services, the limit of liability will not
exceed the value of such goods.
• Limitation of liability for cases where a trader providing logistics services organizes the performance of many stages with different regulations on liability limitation,
which is the limit of liability of the stage with the highest limit of liability.
Decree No. 87/2009/ND-CP on multimodal transport and Decree No. 144/2018/ND-CP amending the Decree on multimodal transport, the Ministry of
Transport is responsible for licensing multimodal transport business
 Law complex which raises relating fees and charges
• According to the provisions of Commercial Law 2005, the Ministry of Industry and Trade is the state management agency in logistics, the business registration is
done by the Department of Planning and Investment. On the other hand, according to the provisions of Article 8 of the Law on Electronic Transactions 2005, if
Logistics activities are carried out through electronic means, they are still under the management of the Ministry of Information and Communications and the
People's Committee of Province/City where the electronic transaction takes place. Thus, to perform a logistics service, enterprises must go through many
administrative procedures with specialized management of many competent state agencies. This makes it difficult for people to set up businesses and perform
their operations in logistics. Besides, this raises relating fees and charges higher. In addition, although there are many agencies involved in managing logistics
activities, there is no specific body regulating logistics.

66
2. Overview
Investment Law 2020 applies from 2021
 Tighten investment condition
• Clause 1, Article 16 adds a number of industries and professions eligible for investment incentives compared to the present, including:
 Producing products formed from scientific and technological results in accordance with the law on science and technology;
 Producing products on the list of supporting industry products prioritized for the development ; University education;
 Preservation of drugs; manufacture of medical equipment;
 Producing goods, providing services to create or participate in value chains, industry clusters.
• Article 43: Investors must deposit or have a bank guarantee on the escrow obligation (1% - 3% investment capital of investment project) to secure the
implementation of an investment project that requires the State to allocate or lease land or permit the change of land use purpose, except for the following
cases:
 The investor is the successful bidder for the right to use a land area that is allocated by the State for land levy or leased out by the State for a lump-sum
rent;
 The investor wins bidding for execution of an investment project using land;
 The State allocates or leases out land to the investor on the basis of receipt of an investment project for which a deposit has already been paid or for which
the capital has been fully contributed or raised following the schedule specified in the written approval for investment guidelines or the investment
registration certificate;
 The State allocates or leases out land to the investor for execution of an investment project on the basis of receipt of the land use right and assets on land
from another land user.

67
2. Overview
Decision No: 221/QD-TTg: Amending and supplementing Decision No. 200/QD-TTg dated February 14, 2017 approving the Action Plan to improve
competitiveness and develop logistics services in Vietnam to 2025
 Create an implementation schedule for Vietnam logistics
• Year 2020 - 2021: Reviewing the implementation situation and continuing to implement tasks to improve competitiveness and develop logistics services in
Vietnam.
• In 2022: Continue to implement tasks to improve competitiveness and develop logistics services in Vietnam.
• 2023: Preliminary review and assessment of the results of the implementation of the Action Plan, prepare theoretical and practical basis to research and
develop a strategy for developing Vietnam logistics services in the period of 2025 - 2035, with a vision to 2045.
• 2024: Continue to implement tasks to improve competitiveness and develop logistics services in Vietnam. Developing a strategy for the development of
logistics services in Vietnam in the period of 2025 - 2035, with a vision to 2045.
• 2025: Summarize and evaluate the results of the implementation of the Action Plan. Implement the Strategy for the development of logistics services in
Vietnam in the period of 2025 - 2035, with a vision to 2045.“
 Set goals to 2025
• By 2025, the contribution of logistics services to GDP will reach 5%-6%, the growth rate of logistics services will reach 15%-20%, the proportion of
outsourcing logistics services will reach 50%-60% , logistics costs decreased to equivalent to 16%-20% of GDP, ranked by the LPI index in the world reaching
50th or higher.

68
2. Overview
• On November 15, 2020, the Regional Comprehensive Economic Partnership (RCEP) between 10 ASEAN members and 5 countries including China,
Korea, Japan, Australia and New Zealand have signed. This Agreement officially came into force within 60 days from the date of ratification by at least 6
ASEAN member countries and 3 non-ASEAN member countries. Thus, by the end of 2020, Vietnam has signed 15 Free Trade Agreements and is
negotiating 2 Free Trade Agreements.
• Joining international trade agreements brings opportunities and challenges to domestic enterprises.
The economic integration progress of Vietnam, 1995 - 2020
1995 2000 2006 2008 2011 2017 2019
1998 2002 2007 2009 2015 2018 2020
ASEAN
APEC
The U.S - Vietnam
Bilateral Trade
Agreement (BTA)
AKFTA AJFTA
ACFTA
WTO
AIFTA
AANZFTA
VJEPA
VKFTA
VN-EAEU
VCFTA
AHKFTA
CPTPP
EVFTA
RCEP
Analyze important trade agreement
68

69
2. Overview
Regarding logistics infrastructure, Vietnam has made a lot of breakthrough progress,
especially in the investment and development of seaports. Information and communication
technology infrastructure has also been invested and developed quite quickly to serve the
process of connecting logistics activities, thereby reducing transportation time, especially
bringing added values for the supply chain of Vietnamese goods.
After more than two years of coming into force, the CPTPP had an impact on Vietnam's trade
and import and export activities. In 2019, with export results of over 260 billion USD, the trade
surplus was nearly 10 billion USD. In particular, exports to CPTPP member countries such as
Canada reached 3.86 billion USD, up 28.2% over the previous year; to Mexico reached 2.84
billion USD, up 26.8%; exports to Chile increased by 20.5%, reaching nearly 1 billion USD; to
Peru increased by 40%, reaching 350 million USD.
The EVFTA helps eliminate or significantly reduce tariff barriers, increasing the amount of
import and export goods between Vietnam and the European Union. When Vietnam
implements its institutional commitments to facilitate trade, shorten the time for goods import
and export procedures, and improve the quality of infrastructure, business costs will decrease.
Logistics enterprises in Vietnam will have the opportunity to attract investment from Europe,
taking advantage of the experience, management skills, capital, and available network of
partners when entering into joint ventures with EU partners.
After some years of participation, the accession to AEC just entered the early stage, so the
impact is not clear, logistics businesses are still less interested in this integration process and
have not made any clear moves in accelerating integration
WTO
AEC
CPTPP
EVFTA
Impacts of Trade agreements related to logistics

70
2. Overview
Sector
Legal
Framework
Form of investment
Maximum capital
contribution ratio of
foreign investors
Freight services of sea freight services
(except domestic transport)
140/2007 ND-CP,
WTO, FTAs
Established companies operating fleets with Vietnamese flags or contributing capital,
buying shares and contributed capital in Vietnamese capital enterprises
49% ;
70% with ASEAN member
Container handling services (sea
freight support)
147/2018/ND-CP
Establishment of joint venture enterprises with Vietnamese investors or capital
contribution, purchase of shares, or contributed capital in Vietnamese capital enterprises
50%
Container handling services are
supporting all forms of transportation,
except those provided at airports
163/2017/ND-CP
50%
Customs transportation services under
the shipping support service
163/2017/ND-CP,
WTO
No rate restrictions
Services of inspection of bill of lading,
goods transport brokerage services,
an inspection of goods and services of
sampling and weight determination;
services of receiving and accepting
goods; transportation documents
preparation service
140/2007 ND-CP,
WTO, FTAs
No rate restrictions
Freight services (inland waterways) 163/2017/ND-CP
49%
Freight services (rail) 163/2017/ND-CP
49%
Freight services (road) 163/2017/ND-CP
51%
Warehousing services WTO, FTAs
Establishment of 100% foreign-owned enterprises or joint venture or capital contribution,
purchase of shares or contributed capital in Vietnamese capital enterprises
100%
Freight agent services WTO, FTAs
Establishment of 100% foreign capital or joint venture or capital contribution, purchase of
shares or contributed capital in Vietnamese capital enterprises
100%
Delivery services 121/2008/ND-CP
Establishment of 100% foreign capital or joint venture or capital contribution, purchase of
shares or contributed capital in Vietnamese capital enterprises
100%
Maximum capital contribution of FDI in Vietnam logistics market

71
2. Overview
2.5.2 Analysis of stand-out logistics infrastructure Viet Nam
Group1: Port group in the North from
Quang Ninh to Ninh Binh
Group 2: Port group in the North Central
Coast from Thanh Hoa to Ha Tinh
Group 3: Port group in the Central Coast
from Quang Binh to Quang Ngai
Group 4: Port group in the South Central
Coast from Binh Dinh to Binh Thuan
Group 5: Port group in the southeast
Group 6: Port group in the Mekong Delta (including Phu
Quoc Island and islands in the Southwest)
Vietnam Sea Port
Sea port
ICD Port
Harbors
286
35.3
Thousand ship
visits/Year
16%
Commodity
growth/Year by Volume
397 Million tons of goods
throughput in 2020
*Sea port Group According to Decision No.1037/QD-TTg
Airport
Vietnam Port Infrastructure*
Vietnam Air Port
Airports
22
Airfreight market
share owned by
foreign airlines
80%
Vietnam ICD Port
ICD Ports are
Officially granted
permission
9 16
Customs clearance
points
Source: VIRAC, GSO
Source: VIRAC, CAND
Source: VIRAC, MOIT

Viet Nam Logistics Industry Report 2021 (VIRAC).pdf

Viet Nam Logistics Industry Report 2021 (VIRAC).pdf

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