Developing Vietnam's logistics infrastructure and legislating logistics real estate (Part 2)

By PROF. Dang Dinh Dao -PHD Nguyen Phuong Lan|30/11/2022 10:47

The legalization of logistics real estate and the logistics real estate market, including these issues in the revised Land Law this time, is more important than ever and is an important factor for fast and sustaianable economic development.

Necessary to have logistics real estate legislated
It is necessary to focus on developing both hardware and sorfware of logistics infrastructure (logistics industrial parks, hi-tech logistics industrial parks, logistic centers, logistics clusters...) in the direction of synchronocity and modernization. At the same time, it is also necessary to build Vietnam’s logistics real estate market to attract domestical and foreign investments in logistics. In addition, priority should be given to build connecting transport network in the direction of multi-modal transport for efficient deployment of Vietnam’s existing logistics infrastructure for logistics cost reductions; speeding up constructions of logistics industrial parks, hi- tech logistics industrial parks, logistics centers, and warehouse systems in the direction of modernization for transport modal linkages, economic linkage, promotion of productions and value increases for local and enterprises’ products; speeding up constructions of logistics real estate- logistics industrial parks and logistics centers, reducing loads on roads and airways, reducing congestions and accidents and especially reducing logistics costs for enterprises in the time of fierce competitions today; building logistics industrial parks, hi-tech logistics industrial parks, logistics and warehouse system in the direction of synchronocity and modernization as basis for green- economy development, circular economy, civilized traffic and trade, and digital economic realization; not allowing the National Road 1A, HCM Road and coastal expressway and other expressway to go into “old tracks” of the existing urban areas: lacks of schools and play grounds, industrial parks without logistics industry, no logsistcs points or rest places on the whole HCM Road... which resulted in many inadequacies on roads, like those in Ha Noi- Lao Cai Expressway.

A newly- constructed infrastructure soon turned to be a downgraded one after a short time and the Government has to do another site clearance and compensation works to solve problems (Dang Dinh Dao 2018, 2021).


Logistics real estate and logistics real estate market should be legislated, forming promptly development policies which is expected to bring socio-economic benefits for both the economy and enterprises from the perspective of the national economy on the basis.

Developing logistics real estate and logistics real estate market are premises for Vietnam to attract logistics investors and foreign logistics groups to promote product consuming and import- export, especially increasing values for Vietnam’s agricultural products and increasing profits for the Government’s and localities’ budgets.

  • Through operation of logistics industrial parks, logistics centers, and warehouse systems, economic regions and localities realize economic linkages effectively and in essence, eliminating the type of administrative economy linkage and forms as today...
  • The central government and localities have conditions for managing revenue sources for the budget from logistics activities in markets. Revenue of domestic and foreign logistics enterprises include revenue from informal logistics real estate transactions on the market today.
  • Legislation of logistics real estate (logistics industrial parks, logistics centers) and logistics real estate market, in the one hand, attracts domestical and foreign logistics investors, in the other hands, offers job opportunitiesin cities and localities, and helps increase laborers’income and the Government’s budget.
  • Developing logistics reale state help ssolve traffic congestions in big cities as HCMC, BR-VT, Hanoi and Hai Phong by limiting traffic conflicts and vehicles going through cities. Means of transport, small warehouses and ICDs are mostly located in logistics industrial parks or logistics centers, which helps reduce environment pollution in cities and localities.
  • Legislating logistics real estate and logistics real esta market is to speed up building Vietnam’s green economy and circular economy, to build modern and smart transport system and trade, to gather logistics activities and logistics providers scattering in places in cities and localities to do business in logistics industrial parks and logistics center which have been planned and well constructed with long-term vision.
  • To enterprises: Legislating logistics real esatate and having suitable development policies will create a favoriable logistics business environment for logistics activities for logistics providers locating somewhere in localities which are hard to be managed.
  • »  Domestic logistics providers will have opportunities to expand their business and
    expand their market in the field of logistics, having tighter linkage to manufacturers, thus increasing business efficiency and contributing more to State’s budget revenues at localities.
  •  It will help Vietnam’s logistics enter prises to learn experience of operation and managements, to learn about modern technologies of preservation, deep freezing, forwading and post harversting from foreign logistics grousp doing business in logistics industrial parks and logistics centers. They have had branches or representative offices in Vietnam only.

With logistics business being carried out in logistics industrial parks, logistics centers, and “logistics villages”, Vietnam’s logistics providers have conditions to connect with foreign logistics providers, and thus they can be leading logistics enterprises to dominant Vietnam’s logistics market. But currently, Vietnam’s logistics providers have been outsourcing in stages for foreign logistics groups (through offices, brances or FDI enterprises). For example, 90% of Vietnam’s export goods has been transported by sea way, however, Vietnam’s logistics providers are in charge of 10-12% of them only.

  • » Foreign and domestic logistics providers have a modern logistics “playground” being operated in accordance to market regulations, facilitating logistics providers to create sustainable economic relationship in providing services, competing and realizing economic connections among logistics providers and among logistics providers and regional manufacturers...
  • » It will helps domestic logistics providers speed up high- quality logistics human resource training and digital human resource thanks to connection among logistics providers to universities, research institutes, regional logistics industrial parks and logstics centers, which helps to realize the Decision no.200- TTg and the Decision no.221-TTg by Prime Minister on improving competition abilities and developing logistics services to 2025, in which there are important tasks on logistics human resource training.

Therefore, it is necessary and urgent building and developing logistics infrastructure- in the first place, logistics industrial parks, hi-tech logistics industrial parks, logistics clusters and logistics centers- and legislating logistics real estate. Logistics real estate legislation and putting it into the revised Land Law is of importance and it is also premises for development of Vietnam’s logistics sector in the coming time. It will help to built suitable mechanisms and policies for developments of logistics real estate and logistics real estate market, contributing to the economic growth and sustainable developments in current conditions.

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Developing Vietnam's logistics infrastructure and legislating logistics real estate (Part 2)