Vietnam logistics: "Piece of the pie" attractive to foreign investors

Monday, 04/12/2023 10:01
(CPV) - With an annual growth rate of 14 - 16%, logistics is one of the fastest growing fields in Vietnam in recent times.
Cat Lai Port, the largest and most modern international container port in Vietnam. Photo: Vnexpress 

According to the world's leading market research organization Mordor Intelligence, the scale of Vietnam's freight transport and logistics market is estimated to reach 45.19 billion USD in 2023 and is expected to reach 65.34 billion USD in 2029, growing rapidly with a compound annual growth rate (CAGR) of 6.34% during the forecast period (2023-2029).

At the 2023 Congress of the International Federation of Freight Forwarders Associations (FIATA) held in October in Brussels, Belgium, Mr. Stéphane Graber, general director of FIATA, assessed: "Vietnam has the advantage of becoming a logistics transport hub of the region and the world. Vietnam has all modes of transport by road - air - sea - rail and waterway to develop into a logistics center of the region and the world."

Cushman & Wakefield's survey also shows that Vietnam is the top choice of global investors in the logistics industry in the Asia-Pacific region.

Ms. Trang Bui, General Director of Cushman & Wakefield, said that the development of the e-commerce industry makes Vietnam a destination for many businesses in the manufacturing and logistics sectors. This goes hand in hand with the growing demand for high-quality logistics real estate. In particular, in the last months of the year, the supply of factories and warehouses will become hotter. "The potential of logistics in Vietnam is huge, it can definitely become a golden egg for investors with strong vision and potential," said Ms. Trang Bui.

With continued investment in infrastructure and technology, Vietnam can strengthen its position to become a world leader in logistics amid disruptions in global supply chains, said Thomas Cassuto, Vice President, Asia Regional Director of Flexport, a global freight forwarding and logistics company, according to Vietnam News newspaper.

On the sidelines of Vietnam International Logistics Exhibition 2023 (VILOG) in August in Ho Chi Minh City, Mr. Thomas Cassuto said "Vietnam plays an important role for many customers looking for sourcing options in the region. We recognize Vietnam as an important element in our expansion strategy in Asia-Pacific."

Vietnam Post, a leading enterprise in the field of delivery and logistics. Photo: CPV 

According to Mordor Intelligence, Vietnam's transportation and warehousing industry emerges as an attractive investment opportunity in the ASEAN region in 2022, with a significant contribution of 6.34% to the country's total GDP. Vietnam's GDP that year reached a significant value of 357.77 billion USD. The transportation and storage industry has experienced a surge in new businesses, with around 6,000 businesses being established in 2021 alone. This number is part of the 116,800 new businesses established in the country in the same year.

Vietnam has a population approaching 100 million people, with about 70% under the age of 35, providing a valuable workforce. The country's GDP per capita stands at around 2,500 USD, highlighting its economic potential. The industrial sector in Vietnam is witnessing significant growth. In the World Bank's 2021 Logistics Performance Index (LPI), Vietnam jumped 20 places to secure the 39th position out of 160 countries, surpassing Malaysia and Indonesia and closely following Singapore and Thailand. This improvement shows Vietnam's commendable progress in logistics activities and industry development. In 2023, Vietnam will still be in the top 5 countries in ASEAN in terms of logistics efficiency index ranking.

Vietnam, with its vast coastline stretching over 3,260 km, holds significant opportunities for maritime freight transport. The Vietnamese government has set ambitious goals to make the country a prominent maritime power by 2030./.

Compiled by BTA