Vietnam, located in the eastern part of the Indochina Peninsula with a long coastline, has risen rapidly on the global economic map in recent years, becoming a hotspot for international manufacturing relocation. In particular, under the “China+1” strategy, Vietnam has become a preferred destination thanks to its cost competitiveness and active participation in free trade agreements (such as RCEP and EVFTA). According to statistics, about 37% of manufacturing relocated from China has chosen to establish operations in Vietnam.
The Magnetic Pull of Electronics and Textiles
Vietnam has become a major hub for electronics manufacturing. Samsung has added US$1.8 billion in investment, while Apple’s supply chain has also taken deep root—around 20% of iPads/Apple Watches and 65% of AirPods worldwide are produced in Vietnam. In addition, 51% of Nike’s global footwear output also comes from Vietnam. Such high-tech and large-scale manufacturing places extremely demanding requirements on logistics: precise temperature control, shock-resistant packaging, and exceptional time sensitivity.
The North–South Logistics Artery
Vietnam’s logistics system is built around two core hubs in the north and south: Haiphong Port (Haiphong) in the north primarily serves electronics manufacturing exports, while Ho Chi Minh City (HCMC) in the south is the largest export gateway for consumer goods and apparel. The two hubs are connected by road, rail, and inland waterways, forming Vietnam’s main logistics artery.
Logistics Challenges: Growing Pains
Rapid growth also brings challenges. Vietnam’s logistics costs account for a relatively high share of GDP (about 16–20%), mainly due to traffic congestion, insufficient infrastructure connectivity (bottlenecks between ports and inland depots), and industry fragmentation. In addition, international markets are imposing increasingly stringent requirements for green logistics (carbon reduction and traceability), which is another threshold Vietnam’s logistics sector must overcome.
Trade Opportunities and Future Outlook
With total trade expected to surpass the US$1 trillion mark in 2026, Vietnam’s export advantages under the RCEP framework will be further unlocked. As supply chain shifts drive increasingly complex logistics requirements, professional planning and execution are essential.
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