Abstract
While the relationship between logistics and Vietnam’s exports has been documented in the literature, the impact on the imports only gets limited attention. This study aims to empirically measure the effect of logistics performance on Vietnam’s imports based on the trade gravity model. Using panel data of bilateral trade between Vietnam and 116 trading partners during the period 2007-2018, we find a significantly positive effect of logistics on Vietnam’s imports. The finding is robust to heteroscedasticity, the choice of specification and estimator.Therefore, we recommend the government to further develop Vietnam’s logistics capability to support the imports and economic growth.