Transportation costs in Vietnam rose by 0.95 percent in January, contributing 0.09 percentage points to the Vietnam’s Consumer Price Index. The rise was largely driven by airfare prices, which surged 11.08 percent due to increased demand for Lunar New Year travel.
Other transport-related expenses also saw increases, with road and water transport fares rising by 1.73 percent, rail fares by 1.71 percent, and bus fares by 0.24 percent. Fuel prices were also higher, with gasoline up 2.02 percent and diesel up 4.99 percent. Vehicle-related costs, including auto spare parts, motorcycle tires and tubes, and car and self-driving motorcycle rentals, all recorded moderate increases.
New car prices, however, declined by 0.26 percent due to manufacturer promotions.
Vietnam’s transportation industry plays a crucial role in supporting the country’s economic growth and development. As the second-largest economy in Southeast Asia, Vietnam has been investing heavily in transportation infrastructure to facilitate both domestic and international trade, as well as enhance the mobility of people. The industry encompasses various modes of transport, including road, rail, air, and maritime, each of which has seen significant development in recent years.
Road transport in Vietnam is extensive, comprising highways, local roads, and rural routes. With rapid urbanisation and a growing population, road transport is the dominant mode for both passengers and freight. The Vietnamese government has made substantial investments in expanding and modernising the national road system, particularly through projects like the North-South Expressway, which aims to improve connectivity between major cities. However, challenges such as traffic congestion, outdated infrastructure in some areas, and road safety concerns remain.
Rail transport in Vietnam has traditionally been an important means of moving goods and passengers. The national railway network is managed by Vietnam Railways, and it connects major cities and ports. However, the sector faces difficulties, including aging infrastructure and competition from road transport, which has led to a decline in rail’s share of the freight and passenger markets. Despite this, there have been efforts to modernise the rail system, including plans for high-speed rail projects that aim to improve speed and efficiency.
Vietnam’s aviation industry has been growing rapidly, spurred by an expanding middle class and increasing international travel. The country is served by several international airports, with Tan Son Nhat International Airport in Ho Chi Minh City and Noi Bai International Airport in Hanoi being the busiest. Vietnam Airlines, VietJet Air, and Bamboo Airways are among the key domestic carriers, and the country has seen increasing numbers of low-cost carriers entering the market. Air transport has been vital for tourism, business, and trade, and the Vietnamese government continues to invest in airport infrastructure to accommodate growing demand.
Vietnam’s maritime transport sector is vital for the country’s economy, particularly for trade. The country has a long coastline with several major ports, including Hai Phong, Da Nang, and Ho Chi Minh City. Vietnam’s ports handle a large portion of the country’s exports, including textiles, electronics, and agricultural products. The government has been improving port facilities and developing logistics hubs to streamline cargo handling and enhance the efficiency of shipping operations. Vietnam’s strategic location along international shipping routes also positions it as an important hub for Southeast Asia’s maritime trade.
Overall, Vietnam’s transportation industry is evolving to meet the demands of a growing economy. While there are challenges, including infrastructure limitations and environmental concerns, the government continues to invest in upgrading transportation networks, expanding connectivity, and improving safety. With ongoing developments and future projects, the transportation sector is poised to play a central role in Vietnam’s continued economic progress.
See also: Logistics in Vietnam