Why is the logistics cost in Vietnam so high?

1, Insufficient infrastructure
Vietnam's infrastructure construction is relatively lagging behind, especially in areas such as transportation, warehousing, and information technology. Firstly, Vietnam's road and railway networks are not yet complete, with low transportation efficiency and high costs. In addition, Vietnam's ports and airport facilities also face similar problems, with limited processing capacity, making it difficult to meet the growing demand for cargo transportation. The lack of infrastructure not only increases the time and cost of logistics processes, but also limits Vietnam's competitiveness in international trade.
2, Low logistics efficiency
The logistics industry in Vietnam has not yet formed an efficient and professional service system. On the one hand, logistics enterprises in Vietnam are generally small in scale, lacking funding and technical support, making it difficult to provide high-quality logistics services. On the other hand, Vietnam's logistics industry lacks unified standards and norms, leading to information barriers and coordination difficulties in the logistics process, further reducing logistics efficiency. In addition, the shortage of logistics talents in Vietnam has also constrained the development of the logistics industry.
3, Relying on foreign shipping companies
Vietnam's maritime logistics are highly dependent on foreign shipping companies, which puts Vietnam at a disadvantage in logistics price negotiations. Foreign shipping companies usually have stronger bargaining power and a more complete logistics network, while logistics companies in Vietnam find it difficult to compete with them. In addition, foreign shipping companies may further push up logistics costs in Vietnam through monopolistic pricing and other means.
4, Policy and regulatory restrictions
Vietnam's policies and regulations have also had an impact on logistics costs. On the one hand, Vietnam's tax policies are relatively strict, and logistics companies need to pay higher taxes and fees during their operations, which increases logistics costs. On the other hand, Vietnam's customs and inspection procedures are cumbersome, with long clearance times, which also increases the time and cost of logistics processes. In addition, policy changes in Vietnam are relatively frequent, and logistics companies need to constantly adjust their business strategies to adapt to policy changes, which also increases logistics costs.
5, Intense market competition
The logistics market in Vietnam is fiercely competitive, and logistics companies have to lower prices to attract customers in order to compete for market share. However, this price war often leads to the compression of profit margins for logistics companies, and even leads to losses. In order to maintain operations, logistics companies have to reduce costs by improving service quality and expanding scale, but this further increases logistics costs.
To address the issue of high logistics costs in Vietnam, we can start from the following aspects: firstly, strengthening infrastructure construction and improving logistics efficiency; Secondly, cultivate and develop local logistics enterprises to enhance the overall competitiveness of the logistics industry; Thirdly, strengthen cooperation and negotiations with international shipping companies to reduce logistics prices; Fourthly, optimize the policy and regulatory environment to reduce the operating costs of logistics enterprises; The fifth is to strengthen the training and introduction of logistics talents, and improve the overall quality of the logistics industry.