Why Vietnam's logistics story is just getting started

Vietnam's rise as a manufacturing powerhouse is creating new opportunities across global supply chains, and logistics is increasingly at the centre of that transformation. The International Institute of Logistics and Supply Chain (IILS) is a Vietnam-based research and international cooperation institute focused on logistics, supply chain management, training, policy advisory and industry collaboration, with a mission to strengthen the country's integration into regional and global supply chains. IILS recently signed an MoU with the Hong Kong Association of Freight Forwarding and Logistics (HAFFA) at the inaugural Global Event Logistics Summit in Bangkok in May 2026 to strengthen logistics cooperation, knowledge exchange, and professional development between Vietnam and Hong Kong.

What is the main objective behind signing the MoU with HAFFA, and how will IILS contribute to the collaboration?
The main objective of the MoU with HAFFA is to establish a substantive channel of cooperation between Vietnam and Hong Kong in logistics and supply chain management. This cooperation is not limited to institutional connectivity; it also extends to knowledge exchange, professional standards, human resource development, and business networking. Hong Kong is an experienced international logistics hub, while Vietnam is emerging as a new manufacturing, export, and transhipment base in the region. The partnership therefore has a clear and meaningful complementarity.

In its role, IILS will contribute in three key areas: research and policy advisory; training and capacity building; and connecting business ecosystems, academic institutions, and experts both in Vietnam and abroad. We expect this MoU to become an open platform that helps translate international experience into practical capabilities for Vietnamese logistics enterprises.

What areas of cooperation will the two organisations focus on in the initial stage, and what are the priorities?
In the initial stage, I believe cooperation should focus on four highly feasible areas: expert and market information exchange; the organisation of specialised seminars and industry dialogues; joint training and capacity-building programmes on modern logistics; and business matching between the two sides in areas such as international freight forwarding, multimodal transport, air cargo, e-commerce, and green supply chains.

The immediate priority is not to do too many things at once, but to select the right activities that can generate early value. For IILS, the priority is to develop knowledge-sharing programmes, update international professional standards, and promote cooperation models that help Vietnamese enterprises enhance their competitiveness, especially as logistics is moving strongly toward digitalisation, greening, and supply chain risk management.

“The logistics future of Vietnam and Asia will be determined by four forms of connectivity: infrastructure connectivity, data connectivity, standards connectivity, and human connectivity.”
Dr. Le Van Hy, Vietnam IILS

How will this partnership benefit logistics companies and the logistics ecosystem in Vietnam and Hong Kong?
The greatest benefit is the creation of an additional professional and commercial bridge between two highly complementary logistics ecosystems. Hong Kong has strengths in international freight forwarding, air cargo, financial and trade services, and global operating standards. Vietnam has advantages in manufacturing, exports, and a growing market, as well as strong demand for upgrades to logistics infrastructure, human resources, and technology.

When the two sides are well connected, companies will gain not only more business cooperation opportunities but also opportunities to learn about service management, quality control, standard setting, human resource development, and access to international markets. At a broader level, this partnership helps position logistics not merely as a supporting service for trade, but as a strategic driver of economic competitiveness.

What message would you like to send to logistics companies and young professionals as a result of this partnership?
My message is this: logistics today is no longer simply about warehouses, transport, or freight forwarding. Logistics has become the science of connectivity, speed, data, trust, and adaptability. Enterprises that learn faster, connect better, and standardise their services more effectively will gain greater advantages in global supply chains.

For young professionals, this is a very good time to enter the logistics industry. However, the younger generation should not only learn operational skills. They also need to develop proficiency in foreign languages, technological capability, supply chain thinking, knowledge of trade law, risk management, and sustainable development. Vietnam’s logistics sector needs a new generation of human resources: more professional, more international, and better equipped to lead change.

Vietnam has emerged as a major manufacturing and export hub in recent years. From a logistics perspective, what is driving this growth?
From a logistics perspective, Vietnam’s growth is driven by three key factors. The first is the shift and diversification of global supply chains, in which Vietnam has become an attractive destination thanks to its geo-economic position, network of free trade agreements, and increasingly strong manufacturing capability. The second is the rapid development of seaports, airports, expressways, logistics centres, and industrial zones. The third is the growing demand from export sectors such as electronics, textiles and garments, footwear, agricultural products, seafood, e-commerce, and consumer goods.

In 2025, Vietnam’s total import and export turnover reached approximately USD 930 billion, an increase of more than 18 per cent compared with the previous year; this is a very important foundation for strong demand in logistics. The issue now is not only to increase cargo volume, but also to improve the quality of logistics: faster, greener, more transparent, and more deeply integrated into regional value chains.

How is Vietnam’s air cargo market evolving alongside the country’s export growth, and how can logistics companies leverage this trend?
Vietnam’s air cargo market still has significant room for growth, especially as the export structure is gradually shifting towards high-value goods requiring fast delivery and high safety standards, such as electronics, components, fashion, pharmaceuticals, cold-chain products, and cross-border e-commerce. At the global level, IATA has also emphasised the increasingly important role of air cargo in sustaining international trade and transporting high-tech and AI-related goods over the past year, 2025, and in the years ahead.

Vietnamese logistics companies can take advantage of this trend by investing in specialised air freight services, cold chain solutions, e-commerce fulfilment, digital declaration and documentation capabilities, delivery time management, and partnerships with airlines, airports, and international forwarders. Air cargo is not merely a fast mode of transport; it is a segment that requires precise management, high service standards, and the ability to integrate data across the entire supply chain.

What are the biggest challenges currently facing Vietnam’s logistics industry, and how will IILS help address them?
The biggest challenges facing Vietnam’s logistics industry today include relatively high costs, insufficiently synchronised multimodal connectivity, human resource quality that has not yet kept pace with new requirements, uneven levels of digitalisation among enterprises, and limited capacity to meet green and sustainable standards. In addition, the industry faces risks from global trade volatility, tariff policy changes, supply chain disruptions, and increasingly stringent requirements for traceability, emissions, and compliance.

IILS does not replace the role of regulators or businesses. Still, it can contribute as a knowledge-based institution: conducting research, providing policy feedback, advising on models, organising forums, training human resources, and promoting international cooperation. Vietnam’s logistics development strategy for 2025-2035, with a vision to 2050, aims to turn Vietnam into a competitive regional logistics, transhipment, and distribution centre. This is also the direction in which IILS can accompany the sector through research, training, and practical connectivity.

What are IILS’s immediate priorities, and how do they align with the logistics future of Vietnam and Asia?
In the immediate future, IILS prioritises building its operational foundation around three pillars: research, training, and international cooperation. Specifically, this means developing applied research programmes on logistics, supply chains, circular economy, and green transformation; organising training and capacity-building programmes for businesses and young professionals; and expanding cooperation with associations, research institutes, universities, and enterprises in the region.

I believe the logistics future of Vietnam and Asia will be determined by four forms of connectivity: infrastructure connectivity, data connectivity, standards connectivity, and human connectivity. If IILS fulfils its role well as a research and international cooperation institute, we can make a modest but practical contribution to this process: bringing international knowledge closer to Vietnamese enterprises, and enabling Vietnamese capabilities to participate more deeply in regional logistics networks.

The interview was originally published in the June 2026 issue of The STAT Trade Times.