Vietnam’s rapidly expanding logistics industry faces a shortage of skilled personnel with digital and practical supply chain expertise

Vietnam’s logistics industry currently makes a significant contribution to the economy, with a market size of approximately US$40-42 billion and annual growth of 14-16%, among the highest rates in Southeast Asia. Against the backdrop of globalization, digital transformation, climate change and growing demand for sustainable supply chains, logistics is playing an increasingly important role, requiring personnel with professional expertise, practical skills and a global mindset suited to the development of green logistics. By 2030, Vietnam is projected to need more than 200,000 highly qualified logistics professionals with degrees, professional certifications, solid expertise and foreign-language skills. However, the green logistics workforce still falls short in both quantity and quality, with most businesses having to provide additional training after recruitment.

Strong on Theory, Weak on Practice

According to assessments from many businesses, although training institutions have developed relevant curricula and directly operate enterprise software such as SAP ERP, SAP S/4HANA, SAP Transportation Management and Arena, as well as simulations of distribution centers, transportation and warehouses and supply chain simulation games that closely reflect real business operations, a gap remains between training and practical needs. According to Vu Thi Thu Huyen, Director of the Northern Branch of Smartlog Supply Chain Solutions Corporation, most students have a solid theoretical foundation but lack experience operating real-world management systems and data analysis skills. Businesses are currently seeking three groups of skills: professional foundation, including strong knowledge of logistics processes (transportation, warehousing, customs, etc.), supply chain management, professional English and basic financial knowledge; digital and technology mindset, including the ability to operate TMS, WMS and ERP systems, data analysis skills (Excel, Power BI), and an understanding of emerging technology trends such as AI, IoT and automation; and problem-solving mindset, including systems thinking, data-driven decision-making, cross-departmental communication and a willingness to learn.

In addition, according to Ha Thu Hoa, Executive Director of Vietnam International Maritime Transport Joint Stock Company (VIMT), the gap between FDI and domestic businesses is becoming increasingly apparent. While many international corporations have digitized their entire operations and adopted AI, real-time data and automation, most small and medium-sized domestic businesses still manage operations through Excel, Zalo, paper documents or rely on one employee to handle several positions. Only 0.4% of domestic businesses have achieved end-to-end automation, according to current data. This requires training programs to undergo more substantial changes to keep pace with the times. If the issue is not addressed, the shortage of workers with appropriate skills will persist, directly affecting the operational efficiency of Vietnam’s logistics industry as a whole.

Logistics is increasingly recognized as playing a direct role in strengthening Vietnam’s national competitiveness

Revamping Training and Strengthening Business Links

According to Tran Chi Dung, Secretary General of the Vietnam Logistics Business Association (VLA), resources for logistics development extend beyond capital to include alignment among stakeholders in both commitment and implementation. Although many resources are available for participation, the lack of specific projects with clear outcomes remains a bottleneck that needs to be addressed soon. Therefore, strengthening connections between logistics and industry associations and strengthening links among educational institutions, associations and businesses, particularly through meaningful business participation in training and research, will be important for improving workforce quality and meeting development requirements in the coming period.

According to many experts, universities and training institutions need to rapidly renew training programs, teaching methods and the use of technology in classrooms, while developing appropriate mechanisms to guide students in using artificial intelligence (AI) and digital tools effectively.

In particular, businesses need to become more deeply involved throughout the training process. According to Vu Thi Thu Huyen, four areas of cooperation could be developed: inviting business representatives and experts to teach real-world cases; developing structured internship programs; supporting students in completing theses using real data; and organizing technology training programs for lecturers.

According to Ha Thu Hoa, training institutions need to incorporate real-world software such as TMS, WMS and ERP and real data into teaching; provide students with internships at major logistics businesses with specific evaluation indicators; and regard professional English, data analysis and digital skills as mandatory competencies. Students also need to be able to connect business operations departments with information technology departments, possess strategic thinking to assess risks and investment efficiency, and continuously update their technology knowledge.

For logistics to truly become a breakthrough pillar of the economy, addressing the workforce bottleneck cannot stop at isolated efforts by schools or businesses. Only through shared commitment, close collaboration among schools, associations and businesses, and proactive adaptation to green and digital transformation can Vietnam’s logistics industry build a lean workforce with strong professional expertise and readiness for global integration.