HCMC approves 10-site logistics hub network to cut freight costs
Ho Chi Minh City's People's Council has approved a plan to develop a network of integrated logistics zones across 10 locations, including Cat Lai, Long Binh and the area around Tan Son Nhat airport. The hubs aim to cut transport costs, reduce heavy truck traffic in urban areas and connect industrial
Ho Chi Minh City's People's Council on Oct. 30 approved a resolution to develop a network of integrated logistics zones across 10 locations: Cat Lai, Long Binh, Linh Trung, Saigon Hi-Tech Park, Tan Kien, Hiep Phuoc, Cu Chi, Hoc Mon, Binh Khanh and the area around Tan Son Nhat International Airport.
The network is designed to connect industrial parks and production areas with ports, airports and markets. Goods will be consolidated, sorted, stored, processed and transferred at the hubs before reaching their destinations. The city expects the system to reduce unnecessary freight movements, lower transport costs and limit heavy truck traffic in densely populated areas.
Following its merger with Binh Duong and Ba Ria-Vung Tau provinces, HCMC is home to an estimated 60 to 70 per cent of Vietnam's logistics companies, according to the municipal administration. More than 15,300 businesses operate in logistics, transport, warehousing, bonded storage, seaport services and related sectors across the expanded city. However, the sector faces challenges involving operating costs, land use and infrastructure connectivity. Warehouses are scattered and often small, while large distribution centres and integrated logistics hubs remain limited.
Logistics costs account for an estimated 16 to 17 per cent of Vietnam's GDP, while transportation makes up 50 to 70 per cent of total logistics expenses, depending on the industry and transport mode. For seafood and agricultural products, logistics can represent 20 to 25 per cent of total costs. Demand for freight services is expected to rise as HCMC expands its industrial and transport infrastructure. The city's master plan provides for 105 export processing and industrial zones covering about 50,288 hectares.
Under the resolution, HCMC will develop two types of integrated logistics zones: facilities within free trade zones and independent facilities outside them. The approval process, from consultation with relevant authorities to licensing, must not exceed 30 days. Investors developing infrastructure for these zones will be eligible for land rental exemptions and interest rate support from the municipal budget for up to seven years.
Separately, HCMC plans to establish a free trade zone covering more than 4,165 hectares near Cai Mep Ha port. The zone will include logistics, industrial production, trade and services, education and training, research and development, digital technology facilities, data centres and non-tariff areas. The municipal administration said the free trade zone and integrated logistics zones would serve complementary roles.
