Logistics - expansion and movement

Expanding the logistics warehouse network not only serves domestic e-commerce but also serves as a foundation to boost exports. Photo: Quang Vinh.

Help reduce shipping costs, improve service quality

Shopee statistics show that in the first quarter of 2025, warehouses located in Hanoi and Ho Chi Minh City accounted for 81% of total sales from all domestic warehouses, showing that the two economic hubs still play a central role in e-commerce operations. Notably, compared to the same period in 2024, in the first quarter of 2025, provinces such as Binh Duong, Da Nang and Nam Dinh had warehouse sales growth rates increasing from 20% to nearly 40%. This signal shows a trend of expanding the logistics network.

Accordingly, Binh Duong, with its geographical advantage of being close to Ho Chi Minh City, as well as its developed industrial infrastructure, is increasingly attracting many e-commerce enterprises to set up warehouses and distribution centers. Meanwhile, Da Nang has become an important transit point in the Central region, while Nam Dinh has unexpectedly risen with a high warehouse sales growth rate compared to the general level.

According to the Department of E-commerce and Digital Economy (Ministry of Industry and Trade), the logistics network in Hanoi and Ho Chi Minh City is an important core for the development of e-commerce but also puts great pressure on infrastructure and order processing speed. Statistics from the Ministry of Industry and Trade in 2024 show that more than 72% of e-commerce orders nationwide are processed from warehouses in Hanoi and Ho Chi Minh City, leading to congestion of goods during peak periods and prolonging delivery times. During peak periods such as holidays, Tet or big promotional seasons, the logistics system is often overloaded, affecting delivery speed and e-commerce consumer experience. Thus, reallocating the logistics network is an inevitable requirement to reduce pressure on large cities, while shortening delivery times in provinces and cities.

According to a report by the World Bank , Vietnam’s logistics costs are still high, accounting for about 16.8% of GDP, while in Thailand this figure is only about 12%. This greatly affects product prices and the competitiveness of e-commerce enterprises. Therefore, expanding the warehouse system can help enterprises reduce transportation costs, while improving service quality… which is very necessary.

Logistics licensing in potential provinces

Faced with the current situation of dispersion and expansion of the logistics network beyond the two major economic bridges that are taking place strongly, many economic experts believe that the expansion of logistics not only serves domestic e-commerce but also is the foundation for boosting exports through digital channels, especially when free trade agreements continue to open up large markets. In addition to the two major centers, provinces and cities, if focused on investing in infrastructure and logistics technology, will create conditions for e-commerce enterprises to expand their scale, especially in rural and mountainous areas.

According to economic experts, in reality, with tens of millions of orders per month, the redistribution of the logistics network is not only a trend but also an urgent requirement to ensure sustainability. Recent e-commerce market share figures show that this market is rapidly changing in the competitive landscape between platforms. In this context, businesses continue to race to invest in logistics warehouse networks. This is considered an important factor affecting competitive advantage. Recently, a goods classification center with a total investment value of 30 million USD was built in Binh Duong. This center is capable of processing up to 4 million orders per day.

Sharing the same view, Mr. Nguyen Ngoc Dung, Chairman of the Vietnam E-commerce Association (VECOM) said: The logistics network will be the decisive factor in the competitiveness of e-commerce in the coming period. To reduce logistics costs, which are currently at 16-20% of GDP, it is impossible to concentrate them all on two large cities. Regional infrastructure, domestic customs clearance procedures and local business linkages need to be resolved. Meanwhile, according to a representative of the Department of E-commerce and Digital Economy (Ministry of Industry and Trade), this agency is coordinating with e-commerce platforms and localities to encourage businesses to expand their distribution networks, while supporting the licensing of logistics in potential provinces.

MINH QUAN