Province Mergers in Vietnam: A New Era for Logistics Networks

Vietnam is entering a new phase of infrastructure restructuring with its national province merger plan. For logistics businesses, this policy marks a significant shift that could reshape transportation, warehousing, and cross-border flows.

From HCMC to the Mekong Delta, upcoming administrative changes will affect route planning, tax codes, and regional coverage. As early as mid-2025, logistics companies must adapt fast—or risk disruption.

Vietnam’s Province Merger Plan: What’s Changing?

From 63 to 34: The Government's Plan and Timeline

Vietnam's National Assembly recently approved a plan to reduce its total number of provinces from 63 to 34. This change will take effect in phases, starting as early as June 2025, with full implementation targeted by 2030.

The goal is to improve administrative efficiency, reduce overlapping management, and modernize public service delivery. For logistics, this shift opens new possibilities for planning regional operations at a larger scale.

Key regions impacted early include the consolidation of Ho Chi Minh City with Binh Duong and Ba Ria–Vung Tau, which forms a powerful logistics corridor connecting inland factories with deep-sea ports.

How Province Mergers Impact Local Governance and Licensing

One of the biggest changes for logistics firms will be dealing with fewer, but more centralized, provincial authorities. Business licenses, customs approvals, and tax administration will all be adjusted under the new structure.

This may cause short-term confusion, especially for transport companies operating across multiple merging provinces. Each region will need to standardize processes such as delivery permits, cross-province fleet registration, and compliance checks.

Firms that rely heavily on local permissions or fragmented permits will need to reassess their operating model to avoid bottlenecks during the transition phase.

Early Signals in HCMC and Neighboring Provinces

Initial signals from southern Vietnam show positive momentum. In areas like Thu Duc City, where administrative regions were merged earlier, public-private coordination for logistics zoning has improved.

Reports suggest that the merger of HCMC with nearby industrial hubs may lead to unified traffic regulations and land planning—a win for businesses managing first-mile and last-mile logistics.

Still, uncertainty remains about how fast smaller provinces can harmonize their systems. Transport companies should track local legislation and prepare flexible roadmaps for adaptation.

A Shift in Logistics Infrastructure and Regional Distribution

Opportunity for Regional Fulfillment Hubs

The province mergers unlock a rare opportunity for businesses to rethink where they place warehouses and fulfillment hubs. Instead of relying on scattered small facilities, logistics firms can now design larger, regional hubs that serve multiple former provinces.

For example, after HCMC merges with Binh Duong and Ba Ria–Vung Tau, a single fulfillment center in Long Thanh could serve the entire new area more efficiently than three separate sites.

This consolidation supports better inventory rotation, simplified route planning, and faster delivery times—especially for fast-moving consumer goods (FMCG) and e-commerce logistics.

Cross-province Route Optimization and Last Mile Delivery

Merging provinces means merging road maps, too. Inter-provincial roads could be upgraded and reclassified under unified traffic control, allowing businesses to optimize shipping routes across larger zones.

With fewer border checkpoints or licensing overlaps, delivery time and cost per unit are expected to drop—especially in the last-mile stage. Couriers and 3PLs can reduce the number of transfers, hubs, and route handovers.

Smart route planning, powered by real-time traffic and merged zoning maps, will become a major differentiator. Businesses using AI-driven TMS can adapt faster to these updates.

Sea & Inland Port Realignment: BRVT, Mekong Delta, North Ports

Ports will see big changes as merged provinces begin regionalizing cargo flows. In the South, BRVT ports like Cai Mep–Thi Vai may benefit from unified inland links via HCMC–Dong Nai–Binh Duong.

In the Mekong Delta, where multiple small provinces may merge, consolidated port infrastructure could lead to shared depots and customs, improving bulk shipping and inland waterway logistics.

Meanwhile in the North, mergers near Hai Phong and Quang Ninh could enable joint investment in port modernization. Companies dealing in sea freight must monitor how these changes affect slot access, port fees, and turnaround time.

Preparing for the New Logistics Map: What Businesses Should Do

Update Your Tax Codes, Licenses, and Legal Entities

When provinces merge, new tax jurisdictions will follow. Each logistics business must update their tax identification numbers, contracts, and licenses to align with the new administrative codes.

Even if your warehouse stays in the same location, it may now fall under a new governing province. Failing to update legal documents could lead to delayed shipments, fines, or denied permits.

Companies should engage legal advisors to audit their documents, and work with local tax offices to avoid disruption in Q3–Q4/2025.

Rethink Warehouse Placement and TMS/WMS Integration

This is a strategic moment to review your entire warehouse network. Larger merged provinces will support regional mega-hubs that serve broader areas with lower unit costs.

Your TMS and WMS systems must reflect the new province logic. This includes updating service zones, pricing structures, and fulfillment capacity across merged territories.

Use this opportunity to test multi-node systems, dynamic picking routes, and hybrid first/last-mile models across previously split provinces.

Collaboration and Data: Building a Scalable, Merger-Ready Network

The future of logistics in Vietnam will depend on how well firms can collaborate—especially with 3PLs, port operators, and provincial authorities.

Shared logistics zones, cross-docking centers, and real-time data exchange will grow in importance. Business owners should invest in scalable systems and smart dashboards that track multi-region KPIs.

A merger-ready mindset means planning not only for your fleet or warehouse—but for the broader ecosystem you operate in.

Vietnam’s province consolidation is not just a political event—it is a transformation of the country’s logistics foundation. Roads, ports, warehouses, and administrative zones are being redrawn, offering a rare window for strategic upgrades.

Business owners should not wait for full implementation. The time to prepare is now: audit legal paperwork, restructure delivery zones, and align systems with the new map. This shift rewards those who act early and scale smart.

The landscape is changing—but with the right roadmap, logistics companies can turn these changes into growth.