Cargo Transportation Cost in Vietnam

Discussion Papers

No.744

by Masami Ishida

March 2019

ABSTRACT

This paper analyzes the cargo transportation costs as well as associated time required for transport in both domestic and international sections of the country. Results are based on questionnaire and interview surveys with 19 freight forwarders. Respondents answered that the cost and time required for cargo transportation vary according to mode of transportation, by container or truck type, and whether it is one-way or a round trip. The number of cargo transportation cost samples included in the analysis was 268 and that of the time required for transportation was 125. This paper also analyzes the relationship of the cargo transportation cost with income level of the origin and destination, the effects of different modes of transport of the whole dataset as well as of the coastal section of the country between Hanoi and Ho Chi Minh City, the effects by country, and the relationship of the time required for transportation by mode of transportation. Together the analyses showed that cross-border transportation costs, especially with Cambodia and Laos, were very much higher; it also showed that the transportation cost of using a 40-foot container is the same as for road transport, but it differs for sea transport. These findings are all verified by econometric analysis.

Keywords: Logistics, Transportation Cost, Cargo, Vietnam, Container, Mode of Transport

JEL classification: L91, O53, R40

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