Vietnam Logistics Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2024-2032)

Vietnam Logistics Market Growth

Vietnam's logistics market is a significant player in the Asian landscape due to country's strategic location, with over 3,200 km of coastline and major international ports in the North (Haiphong), centre (Da Nang), and south (Ho Chi Minh City, Vung Tau).

The logistics sector involves air, sea, road, and rail freight along with complementary services like storage, freight forwarding, warehousing, and customs brokerage for FMCG, e-commerce, automotive, and construction end users. Moreover, the rapid expansion of the healthcare and pharmaceutical sectors in the country has increased the need for specialized logistics services, such as cold chain logistics and freight forwarding, thereby fuelling the growth of the Vietnam logistics industry.

Vietnam Logistics Market Analysis

The Vietnam logistics market dynamics and trends are expanding as Vietnamese companies become key players in foreign-invested enterprise (FIE) supply chains. This rise in importance is increasing the demand for efficient and reliable logistics services, driving improvements in infrastructure, transportation networks, and supply chain management.

Furthermore, the increasing importance of Vietnamese businesses to foreign-invested enterprises (FIEs) supply chains, as evidenced by 63% of FIEs purchasing intermediate goods and services from Vietnamese firms in 2022, will have significant implications for the Vietnam logistics market development. This trend suggests a strengthening of local supply chain capabilities and a move towards self-sufficiency within the domestic sector.

Vietnam Logistics Industry Outlook

As of 2022, Vietnam's logistics costs constitute up to 18% of GDP. The Vietnam Logistics Service Association (VLA) reports that the logistics sector has grown at a rate of around 14-16% recently, with an annual industry value ranging from USD 40 billion to USD 42 billion. This growth drives the Vietnam logistics market revenue, as VLA aids in improving logistics infrastructure, adopting advanced technologies, and boosting overall sector efficiency.

The nation’s transportation infrastructure has undergone considerable expansion. The total length of Vietnam’s Road network is approximately 595,201 kilometres, of which national roads (inclusive of national highways and expressways) account for 25,560 kilometres which is a 7.3% increase from 2017.

In the railway sector, substantial measures have been implemented to maintain infrastructure conditions, enhance safety, and reduce transit times. The railway density is approximately 9.5 kilometres per 1,000 square kilometres, comparable to the average levels in ASEAN and globally.

Vietnam's maritime infrastructure is equally notable, comprising 286 ports segmented into five groups, with a cumulative wharf length exceeding 96 kilometres. In 2022, the volume of goods passing through seaports reached over 733 million tons, representing a 4% increase compared to 2021. The country has developed 32 shipping routes, comprising 25 international and seven domestic routes, boosting the Vietnam logistics industry revenue as this network supports Vietnam's role as a key player in global trade, enhancing its export and import capabilities.

Vietnam's transportation sector is poised for extensive growth, with major investments and projects planned across various modes of transport. The road network is set to expand from 1,163 kilometres of expressways to over 5,000 kilometres by 2025, with investments exceeding USD 15 billion. Rail initiatives include upgrading existing lines and developing the North-South high-speed railway, a project estimated at USD 58.7 billion. Air transport infrastructure will see substantial enhancements, targeting an annual capacity of 280 million passengers by 2030, with over USD 10 billion in investments by 2025. Maritime plans focus on developing deep-water ports and boosting seaport capacity from 664.6 million tons to 1.4-1.8 billion tons by 2030, with more than USD 15 billion allocated for improvements.

Vietnam's position in Southeast Asia provides a crucial hub for trade between China and other regional markets.

• Investments in logistics infrastructure, including ports and highways, enhance operational efficiency and capacity.
• Policies and incentives from the Vietnamese government promote Vietnam logistics industry growth and foreign investment.

Despite improvements, some areas still face infrastructure limitations, impacting logistics efficiency.

• Complex regulations and customs procedures can create barriers for smooth logistics operations.
• A shortage of trained professionals in logistics and supply chain management affects service quality.

The growth of the e-commerce sector is driving the demand for efficient logistics and last-mile delivery solutions, presenting significant opportunities for the Vietnam logistics market.

• Rising foreign direct investment (FDI) boosts logistics requirements and infrastructure development.
• Adoption of advanced technologies like IoT and AI can improve logistics operations and efficiency.

Economic instability or trade conflicts could impact logistics demand and operations.

• Intense competition among logistics providers could pressure margins and profitability.
• Increasing environmental regulations may raise operational costs and require adjustments to practices.

Key Players in the Vietnam Logistics Market and Their Strategic Initiatives

Viettel Post Joint Stock Corporation

• Launched digital transformation initiatives to optimize delivery processes. 
• Expanded network coverage to remote areas, enhancing accessibility.

Bee Logistics Corporation

• Formed strategic partnerships to expand international reach to meet the growing demand of the Vietnam logistics market. 
• Upgraded warehousing facilities with state-of-the-art technology.

Indo Trans Logistics Corporation

• Invested in multimodal transportation systems to streamline logistics. 
• Established new regional hubs to boost operational efficiency to capture the Vietnam logistics market opportunities.

FedEx Corporation

• Introduced advanced logistics software for better inventory management. 
• Expanded last-mile delivery services to rural regions.

Vietnam Logistics Industry Segmentation

“Vietnam Logistics Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Model Type

• 1 PL
• 2 PL
• 3 PL
• Others

Market Breakup by Transportation Mode

• Roadways
• Seaways
• Railways
• Airways

Market Breakup by End User

• Manufacturing
• Consumer Goods and Retail
• Food and Beverages
• IT Hardware and Telecom
• Healthcare
• Chemicals
• Construction
• Automotive
• Oil and Gas
• Others

Market Breakup by Region

• Southeast
• Red River Delta
• Mekong River Delta
• South Central Coast
• Others 

Vietnam Logistics Market Share

The growth of the Vietnam logistics market provides key advantages for the automotive and oil & gas sectors. For automotive, enhanced infrastructure ensures efficient distribution, cost savings from improved transport networks, and optimised inventory management with just-in-time delivery.

In the oil and gas industry, robust logistics networks guarantee reliable supply chains, specialised services facilitate safe product handling, and advanced infrastructure helps meet regulatory standards for hazardous materials. These benefits lead to more streamlined operations, cost efficiency, and regulatory compliance across both sector driving the Vietnam logistics demand growth.

Leading Companies in the Vietnam Logistics Market

Market players are utilising advancements in technology and data analytics to streamline processes, manage inventory levels, optimise routes, and ensure timely delivery of goods.

• Viettel Post Joint Stock Corporation  
• Bee Logistics Corporation 
• Indo Trans Logistics Corporation 
• FedEx Corporation  
• United Parcel Service, Inc. 
• Schenker AG 
• C.H. Robinson Worldwide Inc. 
• Deutsche Post AG 
• DSV A/S 
• CMA CGM Group (CEVA Logistics SA) 
• Kuehne + Nagel International AG   
• Nippon Express Co., Ltd.  
• Expeditors International of Washington, Inc.  
• Kintetsu World Express Inc. 
• A.P. Møller – Mærsk A/S