Logistics development tied to FTA, cross-border e-commerce

Permanent Deputy Prime Minister Pham Gia Tuc urged the Ministry of Industry and Trade to tie free trade agreements (FTAs) to logistics development and cross-border e-commerce. This was announced at a forum organized by the Ministry of Industry and Trade and Gia Lai Province People's Committee on November 7. Tuc highlighted that logistics is vital for managing goods movement, supply chain connectivity, and linking domestic and international markets.

He stressed that efficient logistics reduces costs, increases production, boosts international trade, and enhances overall economic competitiveness. Vietnam aims to develop logistics services through a phased strategy from 2025 to 2050, with national, regional, and local plans. The sector is expected to grow by 14% to 16.5% in 2026, contributing 4.5% to 5% to the GDP.

However, Vietnam's logistics infrastructure and services still lag behind global averages, with costs accounting for 16% to 17% of GDP. Key challenges include fragmented coordination, uncoordinated infrastructure, redundant administrative procedures, and a lack of data integration. Vietnamese logistics firms hold a small market share and struggle with high-value-added services.

At a meeting on November 2, 2026, General Secretary To Lam emphasized that logistics is a strategic "soft infrastructure" that must boost productivity, competitiveness, and national economy autonomy. Delegates were tasked with updating logistics policies, assessing regional infrastructure connectivity, modernizing border-gate management, expanding electronic customs documentation, and enhancing corporate capacity through workforce training and capital access support.

The Ministry of Industry and Trade presented awards to logistics contributors and signed cooperation deals, launching new logistics associations in several provinces.