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Vietnam

Supporting Vietnam’s economic success through greener, cheaper, and more efficient trucking

Yin Yin Lam's picture


Vietnam has become one of the world’s fastest-growing economies, with annual GDP growth averaging 5 to 8% over the last few decades. These impressive numbers are largely related to the country’s success in manufacturing and trading, which has lifted millions of people out of poverty.

The trucking industry has played a crucial role in the country’s economic transformation, and currently moves 77% of the total freight-ton volume. Although in 2018, Vietnam jumped from 64th to rank 39th in the World Bank’s Logistics Performance Index—many challenges persist.

At 21% of GDP, logistics costs are a serious pain point that has been stifling the competitiveness of Vietnam’s exports.

The environmental impact of the sector represents another important concern. The Vietnamese fleet comprises mostly small and older trucks, with a significant impact on greenhouse gas (GHG) emissions and traffic congestion. Overall, the transport sector accounts for about 10% of GHG emissions in the country.

To address these issues, our team conducted the first-ever comprehensive study of Vietnam’s trucking sector, which drew on a nationwide survey of more than 1,400 truck drivers, interviews with 150 private and public stakeholders, and a detailed review of the key factors influencing logistics costs and emissions.
 

Empowering local women to build a more equitable future in Vietnam

Phuong Thi Minh Tran's picture


Vietnam’s economic emergence is perhaps best experienced along its rural roads: more than 175,000 kilometers of pavement, rubble and dirt track extend to two-thirds of the country’s population, including nearly all of the poorest people, who live among its productive farms, lush forests and meandering river valleys.

In recent years, road investments in Vietnam’s rural areas have improved socioeconomic development and promoted gender equity, social participation, improved school attendance, and more inclusive health services to impoverished regions. However, all but a few hundred communes remain off-grid, and infrastructural roadblocks and bureaucratic potholes have delayed the goal of a fully integrated road system.

The World Bank’s Third Rural Transport Project (RTP3) supported a win-win solution: employing ethnic minority women to sustainably manage road maintenance through an innovative participatory approach to local development. This blog entry describes the experience of improving the roads — and women’s lives — in rural Vietnam. Here are some of the lessons we’ve learned along the way:

Lesson 1: Solutions can come from unexpected sources.
The RTP3 task team’s investigation showed that up to a third of the population in Vietnam’s Northern Uplands provinces would be expected to contribute up to 10 percent of their total annual household expenditure to ensure safe passage along local roads — too much for most to afford. Furthermore, even when adequate resources are made available for maintenance, contractors have sometimes been unwilling to work in inaccessible regions for fear of mudslides during the rainy season.

Mission Diary – Tour of Rural Road Innovations in Vietnam

The Northern mountainous Vietnamese town of Lao Cai on the Chinese border is asleep at 4:45 in the morning, except for a large crowd gathering at the railway station. I am arriving, with a small World Bank rural transport mission, on the overnight sleeper train from Hanoi. It is the most effective way of travel to Lao Cai.