Vietnam

According to Decision No. 1093/QĐ-BCT issued in 2015 by the Ministry of Industry and Trade, Vietnam has planned to develop 53 warehouses at border gates with China, spanning six provinces: Quang Ninh, Lang Son, Cao Bang, Ha Giang, Lao Cai, and Lai Chau, with a total area exceeding 1.2 million square meters. The goal for Vietnam’s warehouse system development by 2025 is primarily on storage and transshipment, serving as intermediate nodes in logistics processes. In terms of facilities, focusing on strengthening and upgrading existing warehouses (expansion, relocation, or functional adjustments) to meet ongoing storage needs and maintaining stable import-export activities is the priority until 2025. By 2035, Vietnam aims to develop a fully synchronized warehouse system meeting 100% of import-export storage needs, integrating comprehensive logistics services to sustainably enhance trade activities at Vietnam-China border gates.

From the government’s objectives, Vietnam prioritizes developing warehouse infrastructure primarily to meet the demand for trade and goods exchange. However, internal warehouse services and operational management services have yet to receive significant development focus. As a result, the undeveloped warehouse network leads to the increasing of logistics cost in Vietnam. Logistics costs in Vietnam account for approximately 16-20% of GDP, significantly higher than the global average of 10-12%. High logistics costs increase the prices of both export and domestic products, reducing the competitiveness of Vietnamese goods compared to those from other countries. These costs also inflate the prices of Vietnamese goods when they reach international consumers, decreasing their attractiveness to trade partners.

Recognizing the shortcomings in the warehousing system in terms of infrastructure and services, the Government has issued policies to encourage investment in the logistics sector, particularly in developing modern and integrated warehousing systems. Both domestic and international enterprises have actively participated in building and upgrading infrastructure, applying advanced technologies to optimize warehouse management and supply chains. The establishment of the Viettel Logistics Park is the clearest evidence of these efforts.

Viettel Logistics Park

The Viettel Logistics Park, inaugurated in December 2024, marks a significant step forward in Vietnam’s logistics infrastructure, particularly in enhancing domestic logistics and facilitating Vietnam-China cross-border trade. Spanning 143.7 hectares with an investment of nearly VND 3,300 billion (approximately USD 130 million), the park doubles the current capacity at Lang Son’s border gate, handling up to 1,500 vehicles daily. As Vietnam’s first fully integrated logistics center, it offers end-to-end services for import-export operations, including customs clearance, quarantine, inspections, transshipment, warehousing, and cross-border transportation. The park incorporates advanced technologies such as IoT, 5G, AI, Big Data, and Digital Twins, along with automation solutions like Smart Lockers, drones, and autonomous vehicles. These innovations optimize operations, reducing logistics costs by up to 40%. The standardized data system connects directly with customs systems in both Vietnam and China, streamlining procedures and reducing customs clearance time from 4-5 days to less than 24 hours. This efficiency enhances the competitiveness of Vietnamese goods in international markets.

Strategically located near the Dong Dang Border Gate Economic Zone in Lang Son Province, the park serves as a pivotal trade bridge between ASEAN and China. By alleviating bottlenecks at northern border gates and providing a comprehensive logistics solution, it facilitates smoother and more efficient trade flows, thereby strengthening economic ties between Vietnam and China. Viettel Logistics Park is expected to contribute to enhancing Vietnam’s logistics infrastructure, reducing costs, and improving the efficiency of cross-border trade with China, positioning Vietnam as a strategic logistics center in Southeast Asia.

Conclusion

In conclusion, the rapid growth of Vietnam’s logistics sector and its strategic border trade with China highlight the crucial need for further development in warehousing infrastructure. The expansion of both Vietnam and China’s warehouse networks has already contributed to improving trade efficiency and reducing logistics costs. However, to fully capitalize on the potential of the Vietnam-China trade corridor, it is essential to continue upgrading warehouse facilities. To compete with cheap Chinese goods in the domestic market, Vietnam needs to make significant investments in infrastructure and warehouse networks. This will not only help reduce logistics costs and facilitate smoother exports to China but also enhance Vietnam’s competitiveness in the global market, ensuring the sustainable development of its logistics industry in the future.

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