Will logistics costs increase due to driving hour restrictions?
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Will logistics costs increase due to driving hour restrictions?

Many transport businesses are concerned that the new driving hour restrictions may affect service capacity, leading to higher logistics costs and transportation fees.

According to the 2024 Road Traffic Safety and Order Law, effective from January 1, 2025, drivers will be limited to a maximum of 48 hours per week, 10 hours per day, and no more than 4 consecutive hours of driving. Additionally, Decree 168/2024/NĐ-CP specifies penalties for violations, including point deductions and reinstatement on driving licenses. While these policies aim to improve traffic safety and protect drivers' health, many argue that some regulations are not well-suited to the realities of the road transport industry.

In response to these concerns, the Vietnam Automobile Transport Association has submitted a petition to the Prime Minister and relevant authorities, highlighting difficulties in compliance due to inadequate infrastructure, prolonged congestion in major cities, and key national highways. Notably, the lack of rest stops on highways makes it difficult for drivers to adhere to mandatory break times.

Driving hour restrictions may also impact delivery schedules, reducing operational efficiency for transport companies and negatively affecting supply chains. The Vietnam Automobile Transport Association proposes increasing the driving limit to 60 hours per week and making the continuous driving regulations more flexible to align with industry needs. Additionally, they recommend expanding highways, adding rest stops, and leveraging digital technology in transport management to support drivers and businesses.

The Hanoi Logistics Association (HNLA) has also submitted an official document outlining concerns about the new regulations. According to HNLA, the 48-hour weekly limit is lower than in many developed countries, while in Vietnam, short-haul drivers typically work 60-65 hours per week, and long-haul drivers often exceed 65 hours. If the new rules take effect, drivers' working hours could be reduced by 20-30%, leading to a corresponding drop in income, as well as a decline in transport service capacity. This could drive transportation fees up by 20-25% and increase national logistics costs by 10-11%, affecting Vietnam’s economic competitiveness.

To address these challenges, HNLA suggests raising the weekly working hour limit to 65 hours, aligning it with developed economies. The association also proposes penalizing only severe violations (exceeding the limit by more than 10%), adjusting driving time calculations to exclude traffic congestion delays, and implementing a trial period before fully enforcing the regulations.

HNLA further expresses concern that the penalties under Decree 168/2024/NĐ-CP are too high relative to drivers' incomes, which could push many out of the profession, leading to a labor shortage in the transport sector. Additionally, penalizing transport companies for driver violations has sparked controversy, as it fails to clearly separate corporate and individual responsibilities.

In summary, the transport business community fully supports the government’s efforts to enhance road safety. However, they urge adjustments to the regulations to better align with industry realities, ensuring the sustainable development of Vietnam's logistics sector.

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