New Traffic Law 2025: Challenges and Opportunities for Vietnam's Logistics Industry
The new traffic law, effective from January 1, 2025, is posing significant challenges for Vietnam’s logistics and supply chain sectors. While it is expected to enhance traffic safety standards and environmental protection, many businesses have yet to fully prepare for compliance with the new regulations. According to a report from CEL Consulting, only 37% of businesses are ready, while 63% have not yet updated or adjusted their operations accordingly.
Uneven Awareness and Limited Preparation
A survey of 460 experts from various industries, including 60.9% from logistics and supply chain sectors, revealed that 44.7% of businesses were entirely unaware of the law before its enforcement. Among those that were informed, only 38.3% proactively made adjustments in advance, while 17% were aware of the regulations but had taken no action to comply.
Delays in accessing information and assessing the impact may lead to difficulties for many businesses in the early stages of implementation. Companies with complex operational systems or those heavily reliant on long-haul transportation are particularly vulnerable if they fail to prepare in time.
Rising Costs and Declining Delivery Performance
The new law's impact has quickly been reflected in operational metrics. In the first month of enforcement, 52.5% of businesses reported cost increases of up to 10%, while 67.5% faced delivery delays exceeding 10%. Notably, only 44.7% of companies maintained an on-time delivery rate of 70-89%.
Rising operating costs stem from several factors, including the need to hire additional drivers to comply with driving time limits. Additionally, higher penalties have forced businesses to invest in vehicles and monitoring systems to avoid violations, further increasing financial burdens.
Approximately 80% of businesses reported significant disruptions, particularly in long-haul transportation, which is most affected by driving time restrictions. Furthermore, driver shortages have worsened due to stricter legal requirements, impacting supply chain operations and delivery timelines.
To address these challenges, around 30% of businesses are expanding their fleets or setting up driver change stations to maintain continuous operations. Another 10% are adjusting delivery schedules or booking transportation services in advance, while 12.5% have opted to increase shipping fees to offset rising costs. Only 10% are optimizing routes to comply with the new regulations, and 15% are focusing on employee training to enhance compliance without making significant changes to their operational models.
Positive Signals and Long-Term Opportunities
Despite short-term difficulties, the new traffic law also presents substantial long-term benefits. Limiting driving hours and increasing penalties for violations may help reduce traffic accidents, improve labor safety, and lower costs associated with transportation risks.
Additionally, new emission standards are expected to contribute to environmental protection, encouraging businesses to transition to eco-friendly transportation solutions aligned with sustainable development trends.
Moreover, these regulations are accelerating the adoption of technology in the logistics sector. Solutions such as automated route planning, real-time tracking, and intelligent data management can help businesses optimize operations, improve delivery efficiency, and reduce long-term costs.
Need for a Roadmap to Support Businesses
While the new traffic law has great potential for improvement, its sudden enforcement has left 37.5% of businesses still in the planning stage or without clear adaptation strategies, increasing the risk of operational disruptions.
As a result, many experts suggest that regulatory authorities should implement supportive measures, such as pilot programs before full enforcement, financial assistance for small businesses to upgrade vehicles, and clearer compliance guidelines.
Collaboration between businesses and the government in adjusting regulations to match real-world operations is also crucial. A flexible approach to certain requirements in the initial phase could provide companies with more time to adapt while still ensuring safety and sustainable development objectives.
Conclusion
The 2025 traffic law is creating significant challenges for the logistics and supply chain industries, particularly in terms of operating costs and delivery efficiency. However, if implemented effectively, the law has the potential to bring substantial benefits, including improved traffic safety, reduced environmental pollution, and modernization of the logistics sector.
To ensure a smooth transition, close coordination between businesses and regulatory bodies is essential in developing practical solutions. This will help the logistics industry not only meet legal requirements but also enhance its competitiveness in the global market.
