Vietnam Logistics Market Report and Forecast 2024-2032

Vietnam Logistics Market Outlook

The Vietnam logistics market size was valued at USD 80.65 billion in 2023. The market is further projected to grow at a CAGR of 6.4% between 2024 and 2032, reaching a value of USD 141.48 billion by 2032.

Key Takeaways

• The Vietnam logistics market share is expected to show an increasing trend from 2024 to 2032, driven by factors such as rising economy, integration of automation and robotics in warehousing operations, shift towards e-commerce, the "China plus one" strategy, and green logistics initiatives by the government.

• As per industry reports, the logistics industry in Vietnam is among the fastest-expanding sectors in the country, accounting for around 4.5% of the total GDP, and is expected to experience a yearly growth rate of 20% within the next two years.

• Manufacturers are diversifying from China to Vietnam, leading to a significant growth in manufacturing and assembling units in Vietnam due to factors like cheap labour and locational advantages, such as a strong maritime sector with over 3,000 km of coastline.

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). Moreover, in 2021, Vietnam's revenue from export-import reached almost USD 390 billion, and the government is aiming for a yearly logistics growth rate of 20% within the next two years.

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. Additionally, the country's booming healthcare and pharmaceutical market has pushed up the demand for specialised logistics services, such as cold logistics and freight forwarding. Also, as per the industry reports, the manufacturing and assembling units in Vietnam have grown significantly due to the cheap labour and locational advantages, such as a strong maritime sector with over 3,000 km of coastline and numerous ports.

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.

As Vietnamese businesses play a more integral role in FIE supply chains, there will be a growing demand for efficient and reliable logistics services to support these partnerships and ensure smooth operations. This shift can drive the need for enhanced logistics infrastructure, improved transportation networks, and streamlined supply chain management processes.

Market 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 

Competitive Landscape

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 

• Others

Key Highlights of the Report