Stricter driving hour regulations: Risk of driver shortage and supply chain disruptions?

Article 64 of the 2024 Road Traffic Order and Safety Law, effective from January 1, 2025, sets forth regulations regarding the working hours of drivers engaged in commercial transportation and internal transport, as follows:

• The maximum driving time for a driver shall not exceed 10 hours per day and 48 hours per week; continuous driving shall not exceed 4 hours, in compliance with relevant provisions of the Labor Code.

• Transportation businesses, internal transport units, and drivers engaged in commercial transportation and internal transport are responsible for adhering to these regulations.

Compared to the 2008 Road Traffic Law, the new regulations impose a stricter 48-hour weekly driving limit for transport service drivers. Additionally, transportation businesses are now held accountable for enforcing these rules, whereas the previous law only placed responsibility on transport operators and drivers.

This regulation has sparked debate as it directly affects manufacturers, transportation companies, and drivers. Specifically, reducing the maximum working hours to 48 hours per week has led to:

• Increased domestic transport times from factories to ports, adding 2-3 hours per trip, impacting factory efficiency.

• Lower transportation efficiency per trip.

• A 20-30% drop in drivers' income, which may lead to a driver shortage and supply chain disruptions due to labor shortages.

In the context of Decree 168/2024/NĐ-CP taking effect, the increase in administrative penalties has placed greater pressure and stress on drivers and forced companies to strengthen control measures, such as driver safety training, installing driving hour monitoring devices, and GPS tracking. Any violations by drivers could result in penalties for vehicle owners and transport businesses, creating a "double burden" for drivers, as in the case of leased vehicle operations, where the transport company and vehicle owner are separate entities.

The 2024 Traffic Safety Law will require transport businesses to reconsider adjusting their service pricing structure in order to maintain operations. This presents a major challenge in an increasingly competitive market. It is projected that road transport costs may increase by 15–20% compared to pre-2025 levels.

With the growing risks and pressures on transport service drivers, combined with a decline in income, there is a potential shortage of drivers, especially container truck drivers in the road logistics sector. A reduction in transport efficiency, along with longer delivery times, increases the risk of supply chain disruptions—a problem that was already evident during the recent Lunar New Year, when a shortage of drivers and trucks, along with severe traffic congestion, directly impacted factory supply capabilities and production.

Given the negative consequences mentioned above and the potential decline in business competitiveness, which could impact the national economic growth objectives, the immediate solution for businesses is to adapt by:

• Arranging deliveries earlier to minimize risks associated with last-minute orders and port cutoffs, especially as shipment durations are increasing.

• Optimizing warehouse operations to ensure faster and more efficient loading/unloading processes, reducing truck waiting times at warehouses.

• Preparing contingency plans for scenarios involving longer transport times and increased freight costs compared to pre-2025 levels.

In the long term, it is essential to mitigate risks by diversifying transportation methods and optimizing the coordination of inland waterways, railways, and air transport. Given Vietnam’s geographical advantage with a vast network of large rivers, InterLOG leverages this potential by offering barge transportation solutions via inland waterways. On average, each barge can carry up to 140 TEU, enhancing supply chain flexibility, reducing environmental impact by cutting down the number of trucks on the road, and significantly lowering transportation costs (up to 250 million VND per 500 TEU). With 20 years of industry experience, a team of experienced professionals, modern infrastructure, and advanced technology, InterLOG is well-prepared to tackle new challenges, minimize risks, and provide solutions for businesses.

Additionally, InterLOG actively contributes insights to the Vietnam Logistics Business Association (VLA) and the Vietnam Supporting Industry Alliance (VISA), advocating for policy adjustments to help manufacturing and transport businesses address their challenges.

In this new era of national growth, strict traffic safety laws such as the 2024 Road Traffic Safety Law are crucial for ensuring traffic safety and social benefits. However, they also pose significant challenges for the market, requiring updates and adjustments for better alignment.

Faced with the risk of driver shortages, reduced road transport capacity, extended delivery times, and an expected 15–20% increase in trucking costs, businesses must develop flexible strategies, including:

• Proactively scheduling deliveries earlier to mitigate risks related to port cutoffs and avoid last-minute disruptions.

• Adapting logistics operations to accommodate longer transportation times and higher costs post-2025.

• Exploring alternative transport solutions like barge shipping to enhance supply chain resilience and cost efficiency.

Finding the right solutions tailored to production needs is key to long-term sustainable growth. Diversifying transport methods, particularly through barge shipping, is essential for risk management and maintaining competitiveness in an evolving market.