According to thuonghieucongluan.com.vn, soaring logistics costs are severely compressing profit margins for Vietnamese exporters — with one major agribusiness reporting logistics expenses totaling 22 billion VND ($940,000 USD) in a single month, equivalent to 55% of its gross profit.
Logistics Cost Surge Threatens Export Competitiveness
Vietnam’s logistics costs now consume 17–18% of GDP, per the Ministry of Industry and Trade’s 2025 report — significantly higher than regional peers such as Singapore (8%) and Malaysia (11%). This cost burden no longer functions as a supporting expense but directly erodes export pricing power, product cost structures, and international competitiveness. The pressure stems from sharp increases across the entire supply chain: ocean freight rates, port charges, warehousing, transshipment, customs procedures, phytosanitary inspections, irradiation services, and inland transport.
Phúc Sinh’s 130% Monthly Freight Spike
Phan Minh Thông, Chairman of the Board of Directors at Phúc Sinh Corporation, stated that logistics expenditures surged dramatically in June 2026. While the company averaged 7–8 billion VND ($295,000–$335,000) monthly on ocean freight in 2025, its June 2026 freight bill alone reached 17 billion VND ($715,000). Adding 5 billion VND ($210,000) in port fees and ancillary charges brought total logistics outlays to 22 billion VND ($940,000) — against a gross profit of 41 billion VND ($1.72 million).
“Logistics costs have already accounted for 55% of the company’s gross profit. This is an unimaginable figure.” — Phan Minh Thông, Chairman of the Board of Directors, Phúc Sinh Corporation
Despite strong top-line growth — with revenue rising over 25% year-on-year to an estimated $460 million in 2026 — Phúc Sinh’s retained profitability has narrowed substantially due to this cost escalation.
Systemic Bottlenecks Across the Supply Chain
The strain extends far beyond ocean freight. Nguyễn Đình Tùng, CEO of Vina T&T, explained that exporting fruit to the U.S. or EU involves sequential handoffs: raw produce moves from growing zones to processing plants, then to irradiation and quarantine facilities, followed by customs clearance — before finally reaching port terminals. Each node adds cost and delay.
A critical pain point is refrigerated container leasing: rates jumped from $2,800 early in May 2026 to $7,800 by month-end — nearly tripling in under four weeks. Securing cold containers now requires booking months in advance. Meanwhile, transit time from Vietnam to New York has stretched from over 20 days to approximately 40 days due to rerouted shipping lanes.
Hanoi and Ho Chi Minh City Pursue Structural Fixes
In response, Ho Chi Minh City has set formal targets to reduce logistics costs through multimodal infrastructure development, digital transformation, green logistics initiatives, and integrated logistics hub construction. Both national and municipal authorities recognize that fragmented connectivity — between agricultural zones, industrial parks, inspection centers, and seaports — remains a primary driver of inefficiency and cost inflation.
Phúc Sinh advocates shifting away from road-dominant transport. It recommends prioritizing rail links connecting industrial clusters to ports, expanding inland waterway use, and establishing a national container vessel fleet. The company also notes that 80% of its export containers over the past two decades have been shipped under CNF/CIF terms — meaning it arranges freight and insurance itself rather than delegating to foreign buyers. This strategy preserves logistics value capture, improves cash flow control, and reduces dependence on global carriers.
Source: thuonghieucongluan.com.vn
Compiled from international media by the SCI.AI editorial team.
