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CEL RELEASES REPORT ON THE IMPACT OF VIETNAM'S NEW 2025 TRAFFIC LAW ON LOGISTICS AND SUPPLY CHAINS
- Quyen Nguyen
- Mar 31
- 3 min read
Ho Chi Minh City, February 4, 2025 – CEL, a leading consulting firm specializing in supply chain and logistics, has released its report titled Evaluating the Impact of Vietnam’s New 2025 Traffic Law on Supply Chains after one month of enforcement. The report was conducted with the participation of 460 experts from various industries, with the logistics and supply chain sector accounting for 60.9%, alongside fast-moving consumer goods, food and beverage, retail, and manufacturing industries. The report focuses on analyzing the impact of the new traffic law, which came into effect on January 1, 2025, covering regulations on road safety, emission standards, and driving hour restrictions affecting transport and logistics businesses in Vietnam.
Key Findings
Survey results indicate that only 37% of businesses were adequately prepared for the new regulations, while 63% had not updated or made necessary preparations. This highlights the urgent need for enhanced education and information dissemination in the industry. Businesses are expected to face an operational cost increase of 10-20%, mainly due to the need for an expanded driver workforce to comply with regulations, as well as adjustments in logistics operations to adapt to new driving hour limitations. To mitigate these challenges, many companies have started optimizing their routing and scheduling strategies to maintain delivery efficiency and compliance with the new rules. However, 37.5% of businesses have yet to fully adapt, raising concerns about potential disruptions if timely adjustments are not made.
Approximately 80% of businesses reported moderate to severe disruptions, particularly in long-haul transport. Additionally, 70% of companies stated that their operational costs have been significantly affected due to reduced driving hours and increased penalties. These changes have placed considerable pressure on logistics companies and supply chain-dependent businesses.
Solutions for Businesses
One of the key strategies is adopting advanced route optimization technologies to reduce transit times and mitigate the effects of driving hour restrictions. Upgrading vehicle fleets to meet new emission standards not only ensures compliance but also lowers fuel costs and prevents penalties. Moreover, businesses are encouraged to actively engage with regulatory bodies and industry associations to propose realistic adjustments to the regulations that align with operational realities, ensuring a more sustainable and efficient transition.
Future Recommendations
Stricter enforcement of driving hour limits and penalties is expected to significantly reduce traffic accidents, promoting safer transportation and lowering related costs for businesses and the healthcare system. New emission standards will contribute to reduced pollution levels, improving public health and aligning with global sustainability goals. In particular, the upcoming zero-emission vehicle standards set for 2026 will further accelerate the adoption of electric vehicles, reducing reliance on fossil fuels.
The need to comply with stringent regulations will also drive the adoption of advanced logistics technologies, such as automated route planning systems and real-time tracking, enhancing delivery efficiency. Additionally, businesses can leverage this transition to restructure their business models, such as adopting shared logistics platforms to optimize resource utilization and compliance with new regulations. The introduction of flexible work models and shift schedules in response to driving hour restrictions can further improve productivity and ease pressure on drivers.
Read the full report here
Conclusion
CEL’s report highlights that the new 2025 Traffic Law poses significant challenges for Vietnam’s logistics and supply chain industry, from rising operational costs to transportation disruptions. However, by proactively adopting technology, improving awareness, and collaborating with regulatory bodies, businesses can mitigate negative impacts. By aligning with new standards, Vietnamese businesses can strengthen their global market position, attract interest from international partners, and expand business opportunities as sustainability becomes an increasing priority worldwide.
CEL remains committed to supporting businesses in analyzing, strategizing, and enhancing their competitive edge in light of these new regulations. For more information on the report, please contact:
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