Vietnam’s Logistics Infrastructure Poised for Transformation Under New Telecommunications and Transportation Plan

Vietnam has unveiled a comprehensive master plan for its telecommunications and transportation (TT&TT) infrastructure, charting a course for a modern, efficient, and sustainable network designed to catalyze national digital transformation and economic growth. This ambitious blueprint aims to create a robust, equitable, and balanced infrastructure system across the country, fostering a new era of development and paving the way for advancements in governance, economy, and society. The strategic implementation of this TT&TT infrastructure plan is recognized as a pivotal element in Vietnam’s ongoing national development.

This article is part of a series by VietNamNet, delving into the multifaceted landscape of TT&TT infrastructure under the new master plan.

Article 1: TT&TT Infrastructure Plan to Drive National Digital Transformation
Article 2: Vietnam Aims to Be Among Asia’s Top 10 in Domain Name Leadership
Article 3: TT&TT Infrastructure Plan Prioritizes Digital Infrastructure Development

Opening the Door to Enhanced Logistics Services

Telecommunications and transportation infrastructure, encompassing the broader postal network, plays a critical role in Vietnam’s socio-economic development strategy. Advances in technology are driving significant changes in TT&TT infrastructure, with the postal sector increasingly integrating into the burgeoning field of modern logistics.

While Vietnam has established a nationwide postal service network, boasting over 21,600 service points as of 2020, with a service coverage radius exceeding global averages, a significant challenge remains: the postal network’s current limitations in effectively serving the evolving logistics sector. Postal enterprises are actively developing their own infrastructure, but this development is often confined to the specific needs of the postal service itself, rather than addressing the broader demands of comprehensive logistics operations.

The postal landscape leading up to 2020 revealed a lack of strong interconnections and coordination between the postal sector and the wider business community, including other logistics providers. For Vietnam’s logistics sector, these connections are still nascent, primarily revolving around business cooperation agreements and linkages with foreign transportation companies to reduce costs. A clear strategic direction for integrated network connectivity remains underdeveloped.

The new master plan addresses these existing challenges in Vietnam’s postal development. The postal sector in the new phase is set to play a crucial role in ensuring stable and interconnected supply chains for goods. It is designed with a vision to expand services to cover modern logistics, transforming into a vital pillar of the national economy.

A New Era for Postal Services: Integrated and Efficient

The postal sector is not only intrinsically linked to other components of the TT&TT infrastructure but also maintains the efficiency of the flow of goods and information, connecting closely with the logistics infrastructure.

The TT&TT infrastructure master plan, aligned with the National Digital Transformation Strategy and the National Strategy on Industry 4.0, prioritizes the development of a modern, robust, and comprehensive TT&TT infrastructure system. This system aims to create new development spaces for the country, facilitating favorable conditions for the development of the government, economy, and society.

The postal network, as part of the national infrastructure plan, is recognized for its significant role in Vietnam’s socio-economic development. Its expansion and modernization are central to achieving national digital transformation goals. The plan emphasizes the postal network’s contribution to ensuring supply chain stability and its crucial role in the national economy. It is envisioned to become a crucial infrastructure of national significance and a cornerstone of the digital economy.

According to the drafting unit for the TT&TT Infrastructure Master Plan, the core objective is to develop the postal network in a sustainable and modern manner, connecting Vietnam to the global digital space and establishing it as an essential element for the nation and the digital economy. The postal network plan is designed to ensure a stable supply chain, preventing bottlenecks in the face of resource scarcity.

A representative from Vietnam Post stated in an interview with VietNamNet that the TT&TT Infrastructure Master Plan for the period 2021-2030, recently approved, includes specific planning for the postal network, marking a significant step forward. This initiative not only provides direction for upgrading and enhancing the efficiency of the public postal network but also offers favorable conditions for postal enterprises to adapt to the era of new technologies. Furthermore, it reinforces the indispensable role of the postal network within the TT&TT infrastructure, ensuring the smooth flow of goods and determining the final outcomes of the digital economy in building a prosperous, civilized, and strong nation.

Postal Services to Offer High-Quality, Affordable Services

Beyond its connection to other components of the TT&TT infrastructure, the postal network in the new phase will maintain the efficiency of the flow of goods and information, closely linking with the logistics infrastructure.

In line with the Postal Development Strategy until 2025, with a vision towards 2030, the TT&TT infrastructure plan sets ambitious goals for postal network development, encompassing both public postal networks and express delivery services.

The plan calls for detailed research and analysis of the current state of the postal network, both domestically and internationally. Representatives from the Institute of Telecommunications and Information (Ministry of Information and Communications) emphasize that the development goals and requirements for the postal network are geared towards creating an open, efficient service environment and expanding operational space. Notably, it aims to ensure that all citizens nationwide have equitable access to stable, quality postal services at reasonable prices.

Recognizing the profound impact of the plan on daily life, the content related to the postal network has been meticulously drafted, ensuring close collaboration with Central Party departments and major postal enterprises such as VietNamPost and Viettel Post. "The draft content of the plan includes ambitious targets and development orientations that need to be carefully considered and coordinated," stated a representative from the Institute of Telecommunications and Information.

In addition to the contributions of Vietnam Post, other entities are tasked with investing in postal infrastructure and developing national postal data platforms. Furthermore, the plan emphasizes the development and application of advanced technologies in the postal network, such as IoT, to optimize resources and reduce costs.

The development requirements for the postal network by 2025 include increasing processing capacity to 93,000 mail items per day. Inter-provincial delivery times will be within 5 days (between major centers), and inter-regional delivery times will be within 2 days. Additionally, there will be 3 regional postal centers with an average processing capacity of over 11,000 mail items per day, covering a radius of 350 km. Fourteen regional postal centers will have a processing capacity of over 4,500 mail items per day, covering a radius of 115 km.

Article 5: Building a ‘Make in Vietnam’ Digital Ecosystem