Rail logistics poised for growth

As Vietnam's economy expands and demand for freight and passenger transport continues to rise, developing the railway sector has become a key priority in a bid to build a more modern, greener and sustainable national transport system.

Trang Bom Railway Station serves as an important link in Vietnam's rail logistics supply chain.

Compared with other transport modes, rail logistics still has significant untapped potential, particularly as Vietnam accelerates investment in regional transport infrastructure and deepens its integration into global supply chains.

Strong growth potential

One of the biggest advantages of rail logistics lies in its ability to connect industrial parks, seaports, inland container depots (ICDs) and distribution centers. As railway lines are upgraded and better integrated with seaports, ICDs and logistics hubs, rail transport is expected to become a vital component of Vietnam's multimodal transport network.

Compared with road transport, rail offers significant advantages in moving large volumes of cargo safely, reliably and efficiently while being less vulnerable to traffic congestion. It is particularly well suited to transporting export-import containers, industrial products, manufacturing materials, agricultural products and other long-haul cargo.

Since 2024, PetroVietnam Gas Joint Stock Corporation (PV GAS) has transported liquefied natural gas (LNG) from Southern to Northern Vietnam by rail. According to Nguyen Phuc Tue, Deputy General Director of PV GAS, the company adopted the multimodal solution to meet rising demand in northern economic hubs, combining rail and road transport to deliver LNG to areas beyond the reach of existing energy infrastructure.

As Vietnam moves forward with a series of strategic transport infrastructure projects, rail is expected to play a far greater role than passenger transport alone. It is set to become one of the pillars of the national logistics system, helping lower logistics costs for businesses, strengthen the economy's competitiveness and support the transition toward more sustainable freight transport.

Beyond serving domestic demand, rail is also expected to play a growing role in Vietnam's international transport. In early June 2026, the first dedicated international freight train from Qinghai province, China, arrived at Trang Bom Railway Station in Dong Nai, establishing a direct freight connection with Southern Vietnam's major industrial centers. The railway sector is planning to introduce additional dedicated freight trains to further strengthen rail connectivity between Vietnam and China.

According to Tran Thanh Hai, Deputy Director General of the Agency of Foreign Trade under the Ministry of Industry and Trade, rail transport holds enormous potential for logistics development and both domestic and cross-border freight transport. However, he noted that Vietnam's North-South railway still relies largely on infrastructure built decades ago. Low operating speeds, aging infrastructure and outdated facilities remain major bottlenecks. This underscores the need for a more efficient transport mode, particularly as rail is expected to become a key link in the supply chain connecting manufacturing centers, industrial parks, seaports and border gates.

Boosting investment and integrated connectivity

Vietnam has been stepping up investment in both domestic railway projects and rail links with neighboring countries. Construction of the country's first high-speed railway connecting Ha Noi, Bac Ninh, Hai Phong and Quang Ninh began in April 2026. The project is regarded as a strategic piece of national infrastructure that will modernize the transport network, and strengthen regional connectivity particularly across the Northern Key Economic Region and the Red River Delta.

Meanwhile, preparations are also underway for the North-South high-speed railway, Vietnam's largest-ever transport infrastructure project. Once completed, the railway is expected to ease pressure on the road network, reduce traffic congestion, promote multimodal transport services and improve the flexibility of the country's logistics system.

For industrial centers such as Dong Nai, demand for rail freight services continues to grow. With one of Vietnam's largest industrial park networks, a high volume of import-export cargo, and a strategic location within the Southern Key Economic Region, Dong Nai has growing demand for rail freight services. Efficient transport links are needed to move raw materials, industrial components and containerized cargo to seaports and logistics centers. Expanding freight terminals and rail-connected logistics centers would provide businesses with additional cost-effective transport options.

Dong Nai has already incorporated railway development into plans for the Eastern Region Transshipment Logistics Center in Trang Bom. Ho Nai Railway Station and Trang Bom Railway Station have long served as key freight handling and cargo distribution points along the existing railway network.

According to Dang Quy Nhan, General Director of Nam Mekong Agricultural Products JSC in Ho Chi Minh City, the company purchases agricultural products from the Central Highlands, Dong Nai and other localities for domestic distribution and export. So far, export shipments bound for China have still had to be consolidated first in Ho Chi Minh City, adding both time and cost. Businesses are hoping for better integrated connectivity and dedicated areas in Dong Nai to connect directly with rail transport, avoiding additional costs.

The recent launch of a direct rail freight service from China to Dong Nai in June has been welcomed by enterprises, who hope the service will become a regular rail connection between China and Dong Nai.

By V The – Translated by M.Nguyet, Thu Ha