HCMC plans logistics hub network across 10 locations

The 10 locations planned are 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 plan is part of a resolution on free trade zones and integrated logistics zones approved by the municipal People's Council on Oct. 30.

The network will 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.

Warehouses at Tan Binh Industrial Park near Tan Son Nhat International Airport in HCMC are used by logistics companies for storage, sorting, and distribution in May 2026. Photo by VnExpress/Le Binh

Following its merger with Binh Duong and Ba Ria-Vung Tau provinces, HCMC is home to an estimated 60-70% 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 centers and integrated logistics hubs remain limited.

Freight transport relies heavily on roads, with inadequate connections among road, inland waterway, rail, seaport and air networks.

Logistics costs account for an estimated 16-17% of Vietnam's GDP, while transportation makes up 50-70% of total logistics expenses, depending on the industry and transport mode. For seafood and agricultural products, logistics can represent 20-25% of total costs, affecting competitiveness.

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.

Major facilities, including the Cai Mep-Thi Vai port complex, the planned Can Gio International Transshipment Port, Tan Son Nhat International Airport and Long Thanh International Airport, are also expected to increase cargo volumes and demand for domestic and international freight services.

The proposed hubs will integrate logistics functions, improve the use of transport infrastructure and reduce heavy freight traffic through urban areas. The city also plans to promote digital management, automation and environmentally sustainable logistics practices.

Investment incentives for integrated logistics zones

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 centers and non-tariff areas.

The municipal administration said the free trade zone and integrated logistics zones would serve complementary roles. The former is intended to attract investment in manufacturing, trade, import-export activities and value-added services, while the latter will provide facilities for storing, processing, distributing and transferring goods across the city's transport network.