Logistics capacity cost efficiency and sustainable transport development in Vietnam

The logistics sector has helped Vietnam have a fast economic growth over the last two decades. Although the country has made an improvement in infrastructure and a remarkable increment in the countries position according to the Logistics Performance Index published by the World Bank, the cost of logistics is still high (around 21% of GDP), which restricts the competitiveness of exports. This paper examines the case of Vietnam and its logistics system in terms of the infrastructure capacity, regulatory framework and cost structure based on secondary data provided by the national statistics, industry reports and World Bank indicators. According to the findings, the major determining factors of high logistics expenses are road-dominant freight transport, lack of multimodal integration, fragmented infrastructure planning, and regulatory inefficiencies. The article concludes that to enhance the performance of the logistics in the country, it is necessary to focus on the specific investment in inland waterways and rail transportation, improve the institutional coordination of actions, and generalise the use of digital logistics solutions. The findings give a policy-related insight on transport and logistics reform in the emerging economies. The findings also contribute to sustainable development by supporting efficient transport systems, reduced logistics emissions, and improved infrastructure planning, aligning with Sustainable Development Goals (SDG 9: Industry, Innovation and Infrastructure and SDG 11: Sustainable Cities and Communities).