Infrastructure remains major bottleneck
According to the Ho Chi Minh City Logistics Association, as the economic hub of the southern key economic region and the country, Ho Chi Minh City plays a crucial role in the production and consumption of goods. Additionally, the city benefits from its strategic geographical location at the intersection of north-south and east-west transportation routes, making it a vital centre for domestic and international trade in the southern region. Ho Chi Minh City has long held an ideal position to become a leading logistics hub for both the southern region and the entire country.
Currently, Ho Chi Minh City leads in logistics development indicators, with over 70% of the country's logistics enterprises concentrated in the city and neighbouring provinces within the southern key economic region. The sector has been growing at an annual rate of 14–16%, contributing approximately 9% to the city's GRDP and showing strong development momentum. Over the next decade, the logistics sector is expected to drive the city’s transformation into a major hub for goods production and essential services within the region and beyond.
Despite these advantages, Ho Chi Minh City’s logistics operations have not yet met expectations and remain underdeveloped relative to their potential. Urban planning expert Ngo Viet Nam Son highlighted that infrastructure bottlenecks are a major barrier to the industry's growth. For example, the road network leading to Cat Lai Port — which handles over 55% of the country’s import-export container traffic — is severely congested, frequently causing transportation delays. Additionally, two-way trade between Ho Chi Minh City and other provinces still faces challenges, primarily due to an incomplete and poorly connected infrastructure system. Currently, logistics activities are mainly focused on port transportation, while the city lacks large-scale logistics centres.
Sharing the same perspective, Pham Thanh Son, General Director of Tan Cang - Hiep Phuoc Port Joint Stock Company, noted that although seaports such as Cat Lai and Hiep Phuoc - Nha Be can handle a large volume of goods, they are still constrained by incomplete connectivity with key economic areas like Long An and Tay Ninh. Logistics activities remain concentrated in port transportation, while the city lacks large-scale logistics centres. Moreover, the transportation infrastructure has not kept pace with demand, leading to increased shipping costs and reduced competitiveness for goods.
On the other hand, another significant challenge highlighted by Le Huynh Minh Tu, Deputy Director of the City Department of Industry and Trade, is the shortage of skilled labour. According to Tu, Ho Chi Minh City's logistics sector requires approximately 8,400 to 10,000 new workers annually. However, training institutions currently supply only about 2,500 graduates per year, meeting less than 30% of the industry’s workforce demand. This reflects a severe shortage of high-quality human resources in the logistics sector.
Furthermore, the adoption of digital transformation in logistics remains inconsistent. The application of information technology in managing and operating logistics centres has been slow, resulting in suboptimal efficiency levels. Additionally, despite Ho Chi Minh City accounting for nearly 37% of the country’s logistics enterprises, most of these companies only operate within the domestic market.
Addressing the logistics infrastructure challenge
From the perspective of businesses that rely heavily on logistics services, Nguyen Anh Duc, General Director of Saigon Coop, emphasised that strengthening the integration of different transportation modes with logistics centres, consolidated warehouses, and economic development zones would enhance operational efficiency and promote the sustainable growth of the logistics sector.
Regarding infrastructure development, Tran Quang Lam, Director of the Ho Chi Minh City Department of Transport, stated that 2025 will be a pivotal year, during which the city plans to complete and implement several key infrastructure projects. Specifically, during the February session, the City People’s Council reviewed a group of four BOT projects, including the expansion and upgrading of National Highways 13, 22, and 1, as well as the north-south trunk road, with the aim to expedite construction commencement.
Alongside these efforts, several regional connectivity projects are also underway. The Ho Chi Minh City – Thu Dau Mot – Chon Thanh Expressway has already begun construction, while Phase 1 of the Dau Giay – Tan Phu Expressway is expected to commence in the first quarter of this year. Meanwhile, the Ho Chi Minh City – Moc Bai Expressway and the expansion of the Ho Chi Minh City – Trung Luong – My Thuan Expressway are in the final stages of procedural approvals before construction begins.
Regarding the bottleneck at Cat Lai Port, components of the My Thuy interchange project — located on the sole access road to the port — are set to be completed by 2025, helping to ease congestion and ensure smooth cargo transportation. Additionally, the Cat Lai inter-port road will also receive investment and construction in 2025, linking the Cat Lai – Long Binh port cluster to Ring Road 3. This will enhance connectivity in the Southeastern region and boost logistics development.
Currently, Ho Chi Minh City has approximately 9,600 logistics enterprises, accounting for nearly 37% of the total logistics businesses nationwide. To enhance competitiveness in logistics operations, Dang Minh Phuong, Chairman of the Ho Chi Minh City Logistics Association, emphasised the need for policies that attract and support investment in planned logistics centres across the city, such as Long Binh, Cat Lai – Phu Huu, Linh Trung, Tan Kien, Cu Chi, Hiep Phuoc, and the high-tech park. Moreover, strengthening infrastructure connectivity is crucial through the planning of expressways, national highways, inland container depots (ICDs), port clusters, inland waterway terminals, and transportation routes linking ports to industrial zones.
In particular, the city must accelerate the transition to green logistics, aiming for more efficient and environmentally friendly freight transport. This is an essential requirement in line with the global trend towards sustainable logistics development.
Regarding workforce development, Le Huynh Minh Tu, Deputy Director of the Ho Chi Minh City Department of Industry and Trade, stressed the need to establish logistics training centres to provide a skilled labour pool. Universities, colleges, and vocational training centres should closely collaborate with businesses to design training programmes that align with the industry's practical demands. Additionally, there must be a stronger focus on training and upskilling the current workforce, especially those involved in integrated logistics services, to meet the sector’s increasing requirements.
