DO YOU KNOW: HOW WILL THE NEW 2025 TRAFFIC LAW AFFECT THE LOGISTICS INDUSTRY IN VIETNAM?

The new traffic law, effective from January 1, 2025, includes regulations on traffic safety, emission standards, and driving hour limits for transportation and logistics businesses in Vietnam.

INCREASED COSTS, SIGNIFICANT DROP IN DELIVERY EFFICIENCY

Due to road traffic restrictions, businesses will face an operational cost increase of 10%–20%, mainly to expand their delivery teams and hire more drivers to comply with the new driving hour limits.

Long-haul transportation will be particularly affected, leading to longer delivery times and a growing shortage of drivers. As a result, supply chains for raw materials and international trade will be disrupted, causing delays in import and export activities.

 

After the law takes effect:

  • 52.5% of businesses report cost increases of up to 10%.
  • 67.5% experience delivery delays exceeding 10%.
  • Only 44.7% of businesses can maintain an on-time delivery rate between 70%–89%.

We sincerely appreciate our customers' understanding regarding fluctuations in road costs, environmental expenses, and delivery scheduling. However, T&T Global remains committed to ongoing communication and updates on schedules and suitable delivery times to ensure smooth production and trade operations.

Sincerely,


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