Navigating New Rules: Vietnam's Transport Sector Faces Challenges

Transport and logistics businesses in Vietnam are experiencing operational disruptions and increased costs due to stricter traffic regulations implemented earlier this year. A new survey highlights that 80% of businesses are affected, particularly in long-haul transport, as they adjust to mandated rest periods for drivers to align with international standards.

Vietnam's transport and logistics sector is grappling with disruptions and mounting costs linked to tougher traffic regulations put in place at the start of the year, a recent survey released on Tuesday reveals.

The updated road safety laws have significantly raised fines for major infractions, including the disregard of traffic lights, and impose new rest requirements for truck drivers. Businesses, especially in the logistics and distribution industry, report that about 80% are facing moderate to severe disruptions due to the mandated breaks, which require drivers to rest every four hours for at least 15 minutes.

The changes, which are in step with global standards like those in the European Union, are forcing companies to expand their workforce, increasing operational costs by as much as 20%. The Vietnamese government maintains that these measures are essential for reducing road accidents, though they come at a time when transport expenses typically rise ahead of the Lunar New Year celebrations.

(With inputs from agencies.)