A different perspective on Vietnam’s economy and doing business in Vietnam. Make sure to  subscribe.

Vietnam transportation prices fall in December 2024

Transportation prices in Vietnam declined by 0.89 percent in December 2024 compared to December 2023, according to Vietnam’s Consumer Price Index. Month-on-month, prices increased by 0.57 percent from November 2024.

However, for the entire year, transportation costs edged up slightly by 0.76 percent compared to 2023, indicating a marginal year-on-year increase despite the recent month-on-month declines.

The Consumer Price Index (CPI) for transportation in Vietnam tracks the changes in prices related to various transportation services, including fuel, public transit, private vehicle ownership, and freight costs. This category is a significant component of the overall CPI, as transportation costs directly affect household expenditures and the cost of goods and services across the economy.

In recent years, the CPI for transportation in Vietnam has been influenced by several factors. Fuel prices, particularly for gasoline and diesel, are a major driver of the transportation CPI, as they directly impact the cost of both private and public transportation. Global oil price fluctuations, along with local taxes and subsidies, often cause volatility in transportation costs. The introduction of electric vehicles and a growing shift toward cleaner energy sources may help mitigate some of the cost pressures in the long term.

Public transport costs, such as fares for buses, taxis, and, more recently, metro systems, have also impacted the CPI, although these costs are generally subsidised by the government to ensure affordability for the population. In urban areas like Ho Chi Minh City and Hanoi, the rising cost of private vehicles, including motorcycles and cars, alongside road maintenance fees, has been contributing to the transportation CPI.

Freight and logistics costs have also increased in line with economic growth and greater demand for goods, especially in export-driven industries. The development of new infrastructure, such as highways and ports, has aimed to ease transportation bottlenecks, but there are still challenges, particularly in rural areas and with the expanding urban sprawl.

As Vietnam continues to modernise its transportation infrastructure and embrace sustainable mobility options, the transportation CPI is likely to remain an important indicator of economic trends and consumer behaviour in the country.

See also: Logistics in Vietnam

Get Vietnam transport news sent straight to your inbox