Investment Opportunities in Vietnam’s Transport Sector – Strategic Insights from SPN and Japanese Enterprises

As Vietnam accelerates its economic integration and continues to improve its logistics infrastructure, the transportation sector has emerged as one of the key pillars driving trade and sustainable development. With its strategic geographic location in Southeast Asia, Vietnam has become an attractive destination for international investors, particularly Japanese enterprises – well known for their lean management practices, advanced technologies, and high-quality standards.

Recently, SPN accompanied a delegation of Japanese businesses in conducting a series of field surveys and in-depth consulting sessions on investment opportunities in Vietnam’s transport and logistics sector. Through this collaboration, we provided our partners with sharp analysis, accurate data, and a strategic perspective, enabling them to clearly identify both the opportunities and challenges of the Vietnamese market.

Vietnam’s Transport Landscape: Potentials and Challenges

By the end of 2024, Vietnam’s national road network had reached more than 570,448 km, playing a central role by accounting for 77.48% of the country’s freight transport market share.

• Road transport: The strength lies in its flexibility and direct access to production and consumption hubs, particularly suitable for short- and medium-distance freight. However, fluctuating fuel costs, congestion at key traffic nodes, challenges in fleet management, road accidents, and emissions remain major concerns.

• Inland waterways: Responsible for around 17.08% of market share, with strong potential due to Vietnam’s dense river system, but limited by port handling infrastructure and multimodal connectivity.

• Rail transport: Currently modest with 0.20% of the share, requiring significant investment in modern infrastructure and containerized freight to fully leverage its advantages.

• Air freight: Accounting for just 0.01%, but highly valuable for industries such as electronics and high-tech exports.

• Maritime transport: With over 3,200 km of coastline and several international seaports, Vietnam holds a distinct advantage in global trade connectivity, particularly with Japan and other CPTPP markets.

Digital Transformation and Green Logistics Trends

According to the National Digital Transformation Program to 2025, with vision to 2030, logistics is listed among the top 8 priority sectors for early digital adoption. This creates a strong impetus for enterprises to implement:

• Smart management systems: covering fleet management, warehousing, and route optimization.

• Traceability and supply chain transparency: enhancing trust and risk management.

• Smart contracts: improving transparency while reducing transaction costs.

At the same time, green logistics has become an inevitable trend. Businesses are paying increasing attention to:

• Green buildings and energy-efficient warehouses,

• Use of renewable energy,

• Eco-friendly and reusable packaging,

• Energy transition and transport efficiency improvements.

These are precisely the areas where Japanese enterprises – with their expertise in clean technologies and sustainable management – can leverage their strengths in the Vietnamese market.

Opportunities for Japanese Enterprises in Vietnam

From SPN’s surveys and consulting sessions with Japanese investors, several strategic opportunities can be identified:

• Shortage of skilled logistics workforce and limited international expertise in Vietnam: This gap opens doors for Japanese enterprises to contribute through technology transfer, advanced management practices, and professional workforce training.

• Rapid expansion of infrastructure: New expressways, seaports, and large-scale logistics hubs are being developed, creating favorable conditions for FDI inflows.

• Government policies supporting digital transformation and green logistics: Providing a strong regulatory framework and promoting international cooperation.

SPN’s Role: A Strategic Bridge Between Japan and Vietnam

As an independent and professional consulting partner, SPN is proud to act as a strategic bridge between Japanese businesses and the Vietnamese market.

We not only deliver in-depth analysis and practical solutions but also serve as a long-term partner, helping Japanese investors minimize risks, optimize costs, and unlock sustainable growth opportunities.

Moving forward, SPN will continue to implement key projects that open up sustainable cooperation opportunities in Vietnam’s transport and logistics sector. This is not only a chance for Japanese enterprises but also a driving force for Vietnam’s overall economic development.

✍️ SPN – Your trusted strategic consulting partner for Japanese enterprises in Vietnam.