Knowledge Note

"Roads form the backbone of freight transportation in Vietnam"

In 2016, roads accounted for 77 percent of the freight volume transported in the country. Logistics costs in Vietnam account for nearly 21 percent of the Vietnam’s GDP, higher than most of its peers in the Association of Southeast Asian Nations (ASEAN), which affects the competitiveness of exports and adds to the cost of goods for producers and consumers. Further, the Government of Vietnam (GoV) has signed multiple climate treaties and has been focusing on reducing the greenhouse gas (GHG) emissions in the country. The trucking sector contributes to nearly 4 percent of the country’s emissions, while the transport sector contributes about 10 percent. Yet, the Vietnam trucking sector is understudied.

This study takes a first-ever comprehensive look at the trucking sector to define policies aimed at: (a) reducing logistics costs, greenhouse gas emissions, and the emission of local pollutants in truck-based supply chains; (b) improving the functioning and attractiveness of the trucking sector as an industry to attract quality private sector investments; and (c) improving the regulatory, planning, and oversight practices by the public institutions responsible for the trucking industry at the national and sub-national levels.