OPTIMIZING LOGISTICS COSTS – AN OPPORTUNITY FOR VIETNAMESE PACKAGING TO ENHANCE THE VALUE OF EXPORT GOODS

On September 22, at the headquarters of the Ministry of Industry and Trade, the Import-Export Department held a conference to discuss solutions for reducing logistics costs and promoting exports, with the participation of various ministries, agencies, associations, and businesses in the import-export and logistics sectors. In his opening remarks, Mr. Tran Thanh Hai, Deputy Director General of the Import-Export Department under the Ministry of Industry and Trade, noted that although import-export activities remain an important driver of economic growth, significant cost-related bottlenecks still need to be addressed.

Pressure from Rising Imports of Raw Materials

According to Dr. Bui Ba Nghiem, Senior Expert at the Import-Export Department, Vietnam's total import-export turnover reached USD 770.14 billion in the first eight months of 2026, up 28.7%. Imports increased by 35.3%, resulting in a trade deficit of approximately USD 20.46 billion. Much of this growth was driven by machinery and raw materials for production, highlighting the country's significant dependence on imported inputs.

Mr. Nghiem warned that if logistics infrastructure and services fail to keep pace, transportation, warehousing, and working-capital costs associated with imported inputs will be directly reflected in the cost of exported goods.

2035 Target: Reduce Logistics Costs to 12–15% of GDP

According to the Vietnam Logistics Report 2025, logistics costs in Vietnam remain equivalent to approximately 16–17% of GDP, despite improvements in the country's Logistics Performance Index (LPI), where Vietnam ranks 43rd out of 139 economies and 5th in ASEAN.

Decision No. 2229/QD-TTg sets a target of reducing logistics costs to 12–15% of GDP by 2035 and placing Vietnam among the world's top 40 countries in terms of LPI.

At the conference, many participants agreed that the focus should shift from simply “cutting costs” at individual stages to “optimizing the entire supply chain”. This approach aims to avoid situations where cost reductions in one area lead to additional expenses elsewhere, such as delays, product damage, or excess inventory.

Imbalanced Transport Structure and Weak Infrastructure in Raw Material Regions

Road transportation currently accounts for up to 74.7% of total freight volume, while rail accounts for only 0.19%, indicating that lower-cost transportation modes remain underutilized.

Vietnam's container fleet is also relatively small, with only around 40–50 vessels. As a result, domestic shipping lines handle just 5–8% of Vietnam's import-export container transport market.

Meanwhile, agricultural and seafood associations have highlighted the shortage of cold storage facilities, deep-water ports, and testing centers in the Mekong Delta. As a result, businesses often have to transport goods to Ho Chi Minh City, increasing logistics costs and reducing the available shelf life of products.

Accelerating Digitalization and Customs Reform

A survey showed that 70.9% of businesses consider customs procedures the area most in need of improvement.

The Customs Department stated that it is digitizing 44 types of customs documents and expanding the Authorized Economic Operator (AEO) program. The Ministry of Construction has also introduced regulations on exemptions and reductions in procedures for inland waterway transportation and is currently developing a draft of a new Maritime Law.

A Perspective from the Woven Packaging Industry

For industries handling large-volume goods and requiring long-distance transportation, such as fertilizers, agricultural products, and animal feed, high-quality PP woven packaging plays an important role in minimizing product loss and damage during storage and transportation.

Durable packaging with good moisture resistance can help reduce additional costs beyond freight charges, including losses caused by damaged products, moisture exposure, and inefficient storage. This is one of the areas that packaging manufacturers, including Dam Phu My Packaging JSC, are focusing on to support Vietnamese exporters.

Conclusion

The Government's target of reducing logistics costs to 12–15% of GDP by 2035 is a long-term effort that requires collaboration across the entire supply chain — from government agencies and transport providers to ports, packaging manufacturers, and other supporting industries.

As one link in this supply chain, PMP remains committed to supporting Vietnamese importers and exporters with quality packaging solutions, contributing to greater efficiency and competitiveness for Vietnamese goods in international markets.

Source: Cong Thuong Newspaper