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Vietnam continues to stand out in ASEAN as one of the region’s most dynamic logistics markets.

Vietnam sharpens logistics edge to anchor global trade links

Amid global trade uncertainties, the Vietnamese government has positioned the country as one of ASEAN’s most attractive logistics markets through a robust diversification strategy and enhanced regional connectivity.

Although businesses may experience slower growth in the short term, the logistics sector must step up efforts to improve efficiency and resilience, particularly through stronger collaboration between competent agencies and private enterprises. This will be crucial to maintaining and strengthening the country’s leadership in the region.

Vietnam has demonstrated a strong commitment to improving trade infrastructure, investing roughly 6% of its GDP annually, far above the regional average. These investments have delivered notable results. For example, the Mekong Delta region has seen a significant transformation, thereby attracting foreign investment thanks to better transportation systems.

The country currently operates 44 seaports with a combined capacity of about 500 million tonnes per year, alongside 22 airports, including 12 international ones. These major ports and airports play an essential role in facilitating trade flows.

However, logistics operations remain heavily reliant on road transport, which accounts for around 75% of goods and 90% of passengers. This overreliance, combined with underdeveloped rail and waterway networks, creates inefficiencies, increases costs, and undermines competitiveness.

To deal with these issues, on January 16, 2025, the Prime Minister approved Decision No. 140, outlining the detailed master plan for seaport groups, wharves, berths, buoys, water zones, and maritime areas for the 2021–2030 period, with a vision to 2050.

The plan aims to modernize port infrastructure, expand deep-water and inland ports, and improve multimodal transport connectivity, with the goal of raising port capacity to 1.25-1.5 billion tonnes annually by 2030, cited VOV.

Vietnam is also actively pursuing an open trade policy. Notably, the country is a member of both the ASEAN–China Free Trade Area (ACFTA) and the Regional Comprehensive Economic Partnership (RCEP). According to a 2022 report on RCEP’s potential impacts, the World Bank noted that Vietnam, along with other middle-income countries, stands to benefit the most from the agreement.

Between now and 2035, the average tariff imposed by Vietnam is expected to drop from 0.8% to 0.2%, while tariffs applied to Vietnamese goods will fall from 0.6% to 0.1%.

Four scenarios were modeled to assess RCEP’s impact: basic tariff reductions, removal of non-tariff barriers, reduced trade costs through simplified rules of origin, and productivity gains from trade liberalization.

In the most optimistic scenario, Vietnam’s income could increase by 4.9%, more than any other RCEP member. Exports are projected to grow by 11.4%, and imports by 9.2%, underscoring the country’s rising importance in regional trade flows.

Vietnam has strengthened its reputation as a rising global manufacturing hub, with many major producers shifting part of their operations there. However, rising US tariffs may introduce new uncertainties, raising concerns about Vietnam’s sustained competitiveness in global supply chains.

Despite robust growth and growing regional importance, Vietnam’s logistics sector still faces structural and environmental challenges. While major cities have benefited from strong infrastructure investments, logistics performance in less urbanized areas continues to lag.

Rural and remote areas still lack reliable road networks, leading to frequent congestion and delivery delays. Many port systems are outdated and poorly equipped, causing shipment bottlenecks and high operating costs. Despite the nation’s extensive river systems, both inland waterways and rail transport remain underutilized, thereby further deepening the country’s reliance on roads.

In addition, the lack of multimodal integration and seamless connections between road, rail, and seaport systems continues to limit the effectiveness of logistics chains and hinders the development of end-to-end transport solutions.

Vietnam’s competitive advantages, including its strategic location, open trade environment, developed infrastructure and low labor costs, have made it one of the biggest beneficiaries of the “China plus one” strategy. However, its future role in the global supply chain remains vulnerable to geopolitical shifts and tariff policies. This presents a challenge for the country’s long term competitiveness in both manufacturing and logistics.

Vietnamese culture shines at Asian festival in Bulgaria

The Vietnamese Embassy in Bulgaria has promoted national cultural values at a recent Asian festival held in the capital city of Sofia.

Themed “United in Diversity”, this year's festival featured 53 booths, including 11 ones run by representative agencies of Asian countries in Bulgaria. Held after a three-year hiatus, this event attracted nearly 20,000 visitors.

During the June 14 event, the Vietnamese embassy introduced to the public typical Vietnamese dishes, sophisticated handicrafts and bamboo instruments. The Vietnamese booth stood out with the red color of the national flag.

Coming to the Vietnamese booth, visitors had the chance to take part in a bamboo dance, a workshop on painting woven bamboo or rattan, or quizzes about Vietnam.

Staff at the embassy, Vietnamese people in Bulgaria and Bulgarians joined performances that impressed the international audience, according to VNA.

Representatives from countries prepare to release doves at the opening ceremony of the Asian Festival in Sofia, Bulgaria. (Photo: VNA)

Speaking at the opening ceremony, Bulgarian Vice President Iliyana Yotova emphasized that cultural exchange is the key to peaceful coexistence between peoples. She and representatives of other countries together released doves which are considered a symbol of peace, to convey a message of friendship and solidarity from the capital Sofia to the world.

Before the festival, on June 13 afternoon (local time), the Vietnamese delegation joined representatives of other countries in a colorful parade on Vitosha pedestrian street, the busiest street in Sofia. In traditional costumes, the Vietnamese community and international friends warmed up the festival atmosphere, while widely promoting the image of Vietnam to local residents.

Ties between Vietnamese and Australian localities highlighted in ASEAN meeting

Chief Minister of the Australian Capital Territory (ACT) Andrew Barr on June 16 held a working session with the Committee of the Association of Southeast Asian Nations (ASEAN) in Canberra, joined by heads of ASEAN diplomatic missions in Australia.

At the working session, Chief Minister Barr emphasized the importance of stepping up cooperation between Canberra and ASEAN member states, and shared the ACT’s key priorities in its international integration strategy.

Representatives of ASEAN member states exchanged views on cooperation in areas such as aviation, international education, tourism, healthcare, and trade, reported VOV.

Vietnamese Ambassador to Australia Pham Hung Tam (third from right) at the meeting with Australian Capital Territory Chief Minister Andrew Barr. Photo: VNA

Vietnamese Ambassador Pham Hung Tam applauded Chief Minister Barr’s support for Australia–Vietnam ties, especially between Vietnamese localities and the ACT. He also highlighted the positive contributions of the Vietnamese community and students to the local economy, and expressed hope that the ACT administration would continue to welcome Vietnamese delegations visiting and working in Canberra, thereby strengthening cooperation and exchanges between the two sides.

Chief Minister Barr thanked Ambassador Tam for his proposals and reaffirmed his personal commitment to boosting ties between Canberra and ASEAN cities in general, and Vietnamese localities in particular. He also expressed his willingness to attend the annual ASEAN Multicultural Festival scheduled for February 2026 in Canberra, when the Vietnamese Ambassador will serve as Chair of the ASEAN Committee in Canberra.

Vietnamese hospital seeks stronger ties with British partners

A delegation from 108 Military Central Hospital led by its Director - Major General, Professor, Dr Le Huu Song - concluded a productive working visit to the UK from June 10 to 13, advancing strategic medical partnerships with top UK institutions.

The delegation had discussions with the Royal College of Surgeons of England (RCS), the University of Cambridge School of Clinical Medicine, and the Vietnam–UK Business Association (VBUK), and met with medical experts from the University of Oxford.

At the RCS, a leading authority in surgical and dental training and accreditation, the delegation introduced 108 Military Central Hospital (Hospital 108) as one of Vietnam’s top-tier medical institutions, with the capacity to receive and implement advanced medical technologies from abroad. They explored opportunities in the RCS’s international surgical training programs and its professional accreditation system.

Both sides discussed a proposal to establish a surgical training center at the Vietnamese hospital based on the RCS model and agreed to set up a working group to move the project forward. Hospital 108 is already an official member of the RCS, meaning it meets the college’s standards for surgical training.

During the meeting, the RCS also awarded its membership certificate to Associate Professor, Dr Vu Ngoc Lam, Deputy Director of Hospital 108. This certification is granted only to candidates who successfully pass the RCS’s professional assessment.

At the University of Cambridge School of Clinical Medicine, both parties discussed collaborative opportunities in undergraduate and postgraduate education and medical research, including student exchange programs. Hospital 108 expressed its intention to send young doctors to short- and long-term training courses at Cambridge and also welcomed Cambridge medical students to undertake clinical placements in Vietnam, according to VNA.

Director of the 108 Military Central Hospital Major General, Professor, Dr Le Huu Song (second, left), presents a souvenir to a representative of University of Cambridge School of Clinical Medicine (Photo: VNA)

In a separate meeting with the VBUK, Major General Song and VBUK Chairman Hoang Viet Phuong signed a memorandum of understanding to strengthen cooperation in technology transfer, healthcare services, hospital management, medical tourism, aesthetic services, and internship and research opportunities at Hospital 108 for Vietnamese expatriate students pursuing medical studies.

Speaking to the Vietnam News Agency (VNA) correspondents in the UK, Song described the visit as a success, yielding encouraging outcomes and opening up promising prospects for collaboration with the UK’s prestigious medical education and training institutions.

He noted that as part of its strategic vision, Hospital 108 aims to become a center for technological transfer, adopting at least three to five new medical techniques from abroad each year. In this regard, partnerships with UK medical organizations are of critical importance and provide significant benefits, not just to Hospital 108 but to Vietnam’s broader healthcare system.

He added that the establishment of a surgical training center modelled on the RCS at Hospital 108 will help standardise the qualifications of Vietnamese surgeons, ensuring their training and certification aligns with international standards. Meanwhile, cooperation with the University of Cambridge will allow young Vietnamese doctors to train at one of the world’s most prestigious medical institutions, while enhancing joint scientific research and student exchange initiatives.

He also expressed his hope that the partnership with the VBUK will open a new channel for connecting with British healthcare partners and offer the Vietnamese community more options for high-quality medical and aesthetic services in their home country through the hospital’s “Healthy and Beautiful Homeland” program. Hospital 108 is both a leading national healthcare institution and a top aesthetic center in Vietnam.

Vietnam, U.S. conclude third round of bilateral trade talks

Vietnamese Minister of Industry and Trade Nguyen Hong Dien engaged in high-level discussions on tariffs and broader trade cooperation with U.S. Secretary of Commerce Howard Lutnick and U.S. Trade Representative Jamieson Greer.

On the final day of technical talks, Minister Nguyen held a direct meeting with both Secretary Lutnick and Trade Representative Greer. This marked the first time the U.S. side had initiated ministerial-level negotiations.

Throughout the four days of discussions, Minister Dien put forward several proposals aimed at accelerating the negotiation process and achieving concrete outcomes, VGP reported.

Vietnamese Minister of Industry and Trade Nguyen Hong Dien (2nd from left) and U.S. Secretary of Commerce Howard Lutnick and U.S. Trade Representative Jamieson Greer.

Both Secretary Lutnick and Trade Representative Greer acknowledged Viet Nam's constructive approach. They welcomed the Vietnamese side's proposals, viewing them as a solid basis for continued technical engagement and progress toward a final agreement.

To maintain momentum, both sides agreed to hold an online working-level meeting in the coming days. This will pave the way for a virtual ministerial dialogue between Secretary Lutnick and Minister Nguyen.

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