Integrating Logistics into Industrial Parks A Path Toward Sustainable Development

Thanks to its strategic geographic location, increasingly modern infrastructure, and a surge in foreign direct investment (FDI), the integration of logistics into IPs not only optimizes supply chains and promotes sustainable development but also strengthens Vietnam’s competitiveness.

Rising logistics demand in IPs

Fueled by the booming e-commerce sector and a series of free trade agreements (FTAs) such as CPTPP, EVFTA, and RCEP, Vietnam is fast becoming a prime destination for global investors, especially in manufacturing and logistics. According to Expert Market Research, Vietnam’s logistics market reached a value of US$80.65 billion in 2024 and is forecast to grow at a compound annual growth rate (CAGR) of 6.4%, reaching US$149.98 billion by 2034.

Vietnam is becoming a prime destination for global investors - especially in manufacturing and logistics

Data from Savills shows that Vietnam currently boasts over 38,200 hectares of industrial land across 203 active IPs, with average occupancy rates reaching 80% in the North and 89% in the South as of 2024. These IPs are strategically located near major transport arteries, offering direct access to seaports, highways, and international airports, creating ideal conditions for streamlined cargo movement. This growth has been further fueled by global giants such as Samsung, LG, and Foxconn relocating their manufacturing operations to Vietnam to diversify their supply chains.

However, the Vietnamese logistics industry still faces numerous challenges. According to the Vietnam Logistics Business Association (VLA), logistics costs are expected to account for 15–16% of the country’s GDP by 2025, which is on par with the Asia-Pacific average but still higher than the global benchmark. Domestic enterprises currently hold only about 20% of the logistics market share and face growing pressure from international heavyweights like DHL and Maersk. Additionally, a shortage of high-quality human resources and slow progress in digital transformation continue to hinder the sector’s full potential.

The logistics-IP integration trend

The integration of logistics into IPs is reshaping Vietnam’s industrial landscape, with modern IPs being developed as comprehensive ecosystems that merge manufacturing zones with seaports, warehouses, and logistics services. A standout example is DEEP C Industrial Zones in Hai Phong, which saw a 27% FDI surge in 2024, mainly in high-tech and logistics.

According to Mr. Dao Trong Khoa, Chairman of VLA: “Integrating logistics into IPs not only reduces operational costs but also enables businesses to respond swiftly to market fluctuations, thereby enhancing their competitive edge.”

Emerging trends in this space include the application of digital technologies such as AI, blockchain, and the Internet of Things (IoT) to optimize supply chain management. Green logistics is also gaining traction, with many IPs adopting environmentally friendly transport options and solar-powered warehouses, aligning with the National Green Growth Strategy 2021–2030. The surge in last-mile delivery driven by e-commerce, growing at a rate of 29% annually, is spurring the development of large-scale logistics hubs in Hai Phong and Ho Chi Minh City. As noted by Melissa Cyrill, an expert at Dezan Shira & Associates, “Vietnam is emerging as a regional logistics hub, bolstered by reform-oriented policies and robust infrastructure investments.”

The benefits of integrating logistics into IPs are increasingly evident. Businesses can significantly cut costs related to warehousing, transportation, and labor, while minimizing risks of supply chain disruptions. A synchronized logistics system allows companies to concentrate on core manufacturing activities, boosting productivity and operational efficiency. Moreover, the strategic locations of these IPs, often close to export-import gateways, help reduce transit times, especially critical as electronics and textile exports surge.

This integration also strengthens Vietnam’s global competitiveness. DEEP C Industrial Zones, for example, feature a 50,000 DWT port and Smartport technologies, streamlining cargo handling and cutting shipping costs to help firms like Samsung optimize global supply chains.

Another notable case is VSIP Bac Ninh, strategically located near Hai Phong Port and Noi Bai International Airport. It has attracted electronics and automotive manufacturers while developing AI-powered smart warehouses for efficient inventory management. Meanwhile, IPs such as Long Hau (previously under Long An province, now within Tay Ninh) and Amata (Dong Nai) are stepping up investments in multimodal logistics hubs, directly linked to Cat Lai and Cai Mep–Thi Vai ports. These initiatives are not only reducing transportation costs but also expanding access to global markets, especially for key export industries like textiles, electronics, and agricultural products.

Solutions to accelerate logistics integration

The integration of logistics into IPs is a strategic move for Vietnam to solidify its role as Southeast Asia’s manufacturing and logistics hub. To fully unlock this potential, Vietnam must implement a series of coordinated measures to drive logistics integration within IPs.

First and foremost, it is essential to strengthen supply chain connectivity through close cooperation among logistics providers, manufacturers, and industry associations. Public-private partnership (PPP) models for logistics infrastructure development should be widely adopted to attract investment and improve efficiency.

Infrastructure investment in transportation and logistics remains a top priority. In 2025, the government is advancing 14 key infrastructure projects, including major sections of the North–South Expressway and the Long Thanh International Airport. However, additional focus is needed on constructing modern cold storage facilities and multimodal logistics centers to serve sectors such as seafood and agriculture.

Encouraging the outsourcing of logistics services, which currently accounts for 60-70% of usage, can help businesses streamline operations and concentrate on their core competencies. To build trust and increase adoption, it is critical to enhance the professionalism and capacity of logistics service providers.

A particularly crucial factor in integrating logistics with IPs is the development of a high-quality workforce. Training programs in collaboration between universities and businesses should be expanded, with a focus on green logistics and digital supply chain management.

Finally, embracing digital technology and green logistics is key to reducing costs and meeting international standards. Innovative solutions such as electric transport vehicles, digital supply chain management systems, and blockchain applications are already being deployed in major IPs, improving transparency and operational efficiency.