Weighing the Key Factors to Improve Vietnam's Logistics System

Over the past 20 years, Vietnam has signed more free trade agreements than any other country in the region, becoming one of the world's largest integrated economies. Nonetheless, Vietnam's logistics costs are still higher than the association of southeast Asian nations (ASEAN) average, which has reduced its ability to participate in the global value chain. These higher costs are also reflective of the country's inefficient logistics system, which can be confirmed by the fact that Vietnam's Logistics Index (LPI) fell from 48 in 2014 to 64 in 2016. Therefore, Vietnam is in urgent need of improving its national logistics in system. By applying the consistent fuzzy preference relations (CFPR) method for weighing main factors influencing the improvement of Vietnam's logistics system, this study indicates a direction for the Vietnam government to follow in implementing the ideal investment prioritization and the appropriate regulations for the improvement of its logistics system. The results reveal that the optimal order for the improvement of Vietnam's logistics system are logistics costs, logistics services, logistics infrastructures, connections between logistics components, institutional frameworks, and technology. The study also provides logistics stakeholders with increased insight into the status of Vietnam's logistics system and the appropriate strategies for achieving the goals of its government.