Demand for infrastructure and logistics in Vietnam is reaching critical levels. The increasing number of manufacturing firms continuing to enter and establishing in the burgeoning Southeast Asia region has given rise to huge inflows of foreign direct investment, which in turn is creating jobs, an ever-expanding Vietnamese middle-class, and all-time highs in consumer spending. But moving goods around Vietnam can sometimes be tricky. As an emerging economy, Vietnam’s road and rail are not always of the highest quality, while airports and seaports often reach or overrun their capacity quickly after being completed. To address this, there are extensive plans for all three key components of the country’s logistics networks, namely: air, sea, and land. For Vietnam to realize this vision, significant amounts of capital and investment are required. To tackle this, the government is planning numerous incentives for foreign investors. It is also eagerly pursuing public-private partnerships in all three sectors, to increase the speed at which infrastructure projects are completed and to ease the burden on Vietnam’s taxpayers. Vietnam’s logistics sector challenges also indicate many subsector opportunities. Across the board growth is expected to continue well into the foreseeable future in the country, and the logistics sector and its linkage industries are likely to continue opening to foreign firms as pressure mounts to improve the way goods move in and around Vietnam. In this issue of Vietnam Briefing magazine, we look at Vietnam’s air freight sector alongside its plans to expand its network of airports, its domestic sea shipping enterprises and the challenges it faces up against international competitors, and road and rail development designed to reduce Vietnam’s emissions and speed up the transportation of goods around Vietnam. This guide outlines what Vietnam currently has in terms of infrastructure, the plans it has in place to extend its infrastructure network, and all of the key details foreign investors should know when considering investing in Vietnam’s logistics sector. | 