[FAQs] Opening a logistics company in Vietnam

Vietnam's rapidly growing economy and strategic location in Southeast Asia have made it an increasingly attractive destination for foreign investment in the logistics sector. As the country continues to expand its manufacturing base, embrace e-commerce, and strengthen international trade relationships, the demand for sophisticated logistics services has never been higher. This guide provides comprehensive information for foreign investors looking to establish a logistics company in Vietnam, covering everything from initial capital requirements and legal procedures to market opportunities and operational considerations.

Opening a logistics company in Vietnam

1. Current Situation on Vietnam's Logistics Infrastructure

Road Transportation

• Major highway improvements, including the North-South Expressway.

• Last-mile delivery challenges due to urban congestion and underdeveloped rural roads.

• Many roads cannot support heavy cargo, requiring smaller trucks and multiple trips.

Ports & Maritime Infrastructure

• Significant investments in key ports (Hai Phong, Da Nang, Ho Chi Minh City).

• Deep-water ports reduce shipping costs but congestion remains an issue.

• Some ports lack modern container handling equipment, causing delays.

Aviation Infrastructure

• Expansion of international airports in Hanoi and Ho Chi Minh City.

• Tan Son Nhat Airport’s Terminal 3 set to open in April 2025, handling 20 million passengers annually.

• Long Thanh International Airport under construction near Ho Chi Minh City.

• Limited air cargo capacity at regional airports affects domestic distribution.

Railways

• Aging infrastructure with limited use for freight transport.

• Poor connectivity between industrial zones and ports.

• Upgrades planned, but progress is slow.

2. Impact on Logistics Operations

Costs & Efficiency

• Infrastructure gaps lead to higher transportation costs.

• Unreliable delivery times require larger inventories.

• Investment in specialized vehicles and warehousing may be necessary.

Delivery & Connectivity

• Unpredictable traffic and port congestion impact delivery schedules.

• Significant disparities between urban and rural logistics.

• North-South connectivity remains a challenge.

Business Strategy Considerations

• Flexible delivery schedules and multi-location warehouses improve efficiency.

• Investment in tracking and route optimization technology is crucial.

• Partnering with local operators helps navigate infrastructure challenges.

Future Outlook

• Government investments in expressways, ports, and railways.

• Increasing adoption of technology to optimize routes and reduce costs.

• Growing focus on multimodal transportation solutions.

3. Legal Procedures & Timeline

Q: What are the steps to establish a logistics company in Vietnam? 

A: Key steps include:

1. Apply for an Investment Registration Certificate (IRC) - Logistics is conditional services that require foreign investors to joint-venture with Vietnamese local partners. 

2. Obtain an Enterprise Registration Certificate (ERC)

3. Secure sub-licenses for specific logistics activities

4. Register for taxes and compliance

5. Open corporate bank accounts

6. Complete labor registration and insurance setup

Q: How long does it take? A: Typically 3-6 months:

• IRC: 15-20 days

• ERC: 3-7 days

• Sub-licenses & permits: 1-2 months

In practice, the timeline might take longer due to various factors. 

Documentation

Q: What documents are required? 

A: Key documents include:

• Investment proposal & business plan

• Company charter

• Financial statements or bank balance certificate

• Proof of office lease

• Investor IDs or passports 

Q: Are foreign documents accepted? 

A: Yes, but they must be legalized by the Vietnamese consulate, translated, and notarized locally into Vietnamese language.

4. Market Opportunities & Challenges:

Q: What are the key growth areas? 

A: E-commerce fulfillment, cold chain logistics, cross-border trade, last-mile delivery, and port services.

Q: Where are the best locations? 

A: Ho Chi Minh City, Hanoi, Da Nang, Hai Phong, and the Mekong Delta.

Q: What are the main challenges? 

A: Regulatory complexity, infrastructure limitations, strong competition, skill gaps, and language barriers.

Q: Are there foreign ownership restrictions? 

A: Yes, varies by sector, for example:

• Freight transport: Max 49%

• Warehousing & freight forwarding: Up to 100%

• Container Station and Depot Services: Up to 100%

5. Operational Considerations

Q: What are the key requirements? A: Minimum capital, compliance reporting, environmental and labor law adherence, safety, and tax obligations.

Q: What are typical costs? 

A:

• Labor: from $400–$1,500/month per employee

• Facility rental: from $5–$15/sqm/month

• Insurance, utilities, IT, and marketing

• Other expenses as per operational demand

6. Partnerships & Government Support

Q: Is a local partner required? 

A: Not mandatory but beneficial for market access and administrative support.

Q: What incentives exist for foreign investors? 

A: Tax breaks, investment incentives, land use preferences, duty exemptions, and workforce training support.

While establishing a logistics company in Vietnam presents significant opportunities, success requires careful planning, adequate capital, and a thorough understanding of the local business environment. Foreign investors face both challenges and advantages – from complex regulatory requirements and infrastructure limitations to promising growth prospects in e-commerce, cold chain logistics, and cross-border trade. The key to successful market entry lies in proper preparation, compliance with legal requirements, and potentially partnering with local entities to navigate the market effectively. With the right approach and commitment, Vietnam's logistics sector offers substantial potential for growth and long-term success in one of Southeast Asia's most dynamic economies.