WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Trade - Service
Vietnam logistics market likely to hit US$87 billion in 2022
Linh Pham 14:34, 2019/07/10
The development will be backed by increasing industrial activities, growing e-commerce, and stronger investment in logistics infrastructure.
Vietnam logistics and warehousing market is likely to reach US$86.7 billion by 2022 thanks to expanding industrial activities, growing e-commerce industry, continuous investment in infrastructure and logistics facilities, and consistent economic growth.
 
A port
A port
The logistics and warehousing market is expected to register a positive compound annual growth rate (CAGR) of 13.3% in the 2018-2022 period, according to Ken Research – a market research and consulting company based in India and the US.

Vietnam’s logistics sector is expected to escalate its way thanks to the following reasons. 

First of all, a good connection amongst the urban cities where a huge share of traffic is coming from the tier 2 and tier 3 cities. 

Modern technologies like enterprise resource planning, electronic data interchange, customs and accounting software, GPS, bar code system, radio frequency identification (RFID), automatic retrieval system, robotics, drones, among others are anticipated to improve the logistics services in near future. 

Macroeconomics has supported the sector’s growth with various free trade agreements (FTAs) signed between Vietnam and single economies or economic blocs which will boost the country’s trade relations in the long term.

Additionally, foreign investments are estimated to rise strongly in Vietnam as many logistics enterprises in ASEAN countries are keen to invest and have a better understanding of the laws, customs and culture of Vietnam. 

The country will focus on attracting investment in logistics infrastructure development, constructing regional and international logistics service centers, improving the efficiency of connection between Vietnam and other countries, thereby becoming a modern logistics hub in upcoming years, Ken Research said.

An overview on Vietnam’s logistics sector

Vietnam’s logistics and warehousing sector provides mix services including freight forwarding, warehousing, cold chain, express delivery, e-commerce logistics, and third party logistics for end users like foods and beverages, engineering equipment, retail, electronic devices, textile and footwear, wooden products and others in Red River Delta, Da Nang, Ho Chi Minh City, and other regions.

Vietnam’s freight forwarding market covers both normal and express delivery with freight movement like sea freight, road freight, air freight, and rail freight participated by international and domestic freight forwarding in flow corridors namely Asian Countries, European Countries, America and African Countries. 

Vietnam’s express market is formed by international and domestic express by air and ground express, and by market structure like B2C, B2B and B2C.

Meanwhile, Vietnam e-commerce market is formed by speed of delivery with two-day delivery, one-day delivery, same day delivery, within 2 hours, and others; by area of delivery such as intercity, and same region; and by payment method like cash on delivery and others.

Major players include DHL Express Vietnam, FedEx Vietnam, GHN, Damco Vietnam, Sotrans Vietnam, Vinafco, Kerry Logistics Vietnam, Bac Ky Logistics Vietnam, Nippon Express Vietnam, Vietnam Airlines, Transimex Saigon Corporation, Sea and Air Freight International, Vinalink Logistics, PetroVietnam Transport Corporation, Noi Bai Cargo Terminal Services, and others.
Other news
14:06, 2024/11/20
Hanoi strengthens export competitiveness and trade protection measures
Hanoi will work with the Ministry of Industry and Trade to ensure that businesses and manufacturers are ready for new challenges.
10:49, 2024/11/16
US reiterates Vietnam is not manipulating currency
The US Treasury Department’s positive evaluation underscores Vietnam’s progress in balancing its economic and monetary policies while fostering strong bilateral relations with the US.
21:14, 2024/10/31
Vietnam, Brazil: Building bridges through shared history and new partnerships
Vietnam and Brazil are forging a future of mutual development, bridging continents through their shared history and new partnerships.
16:54, 2024/10/29
Hanoi to attract tourists by showcasing local specialties at wholesale markets
Hanoi aims to enhance supervision of food safety and traceability, along with promoting cashless transactions.
16:28, 2024/10/27
National E-commerce Week, Vietnam Online Shopping Day 2024 set to kick off
This year's event will focus on celebrating and raising the status of Vietnamese products, according to the Ministry of Industry and Trade.
18:39, 2024/10/21
Vietnamese goods in rising demand among Hanoi residents
The domestic market, estimated to be worth US$180 billion and projected to grow to US$350 billion by 2025, presents an opportunity for Vietnamese goods to gain a foothold domestically.