How Logistics Market is Positioned in Vietnam?
The logistics industry in Vietnam has seen significant growth in recent years owing to Vietnam’s expanding manufacturing sector, e-commerce sector and country’s economy. The majority of Freight is carried through road, maritime (including inland waterways) and aviation. Vietnam’s young population has helped the country with the adoption of e-commerce, resulting in increasing the demand for the expansion of logistics industry. Vietnamese government is aiming towards an export driven economy. Establishment of key economic zones and more than 300 industrial parks are some steps taken by the Vietnamese government that will strengthen the future of logistics industry in the country.
Logistics is one of the fastest growing sectors in Vietnam due to the increase in trade between countries and Vietnam. The Vietnamese government aims to achieve an annual logistics growth rate close to 20 percent by 2025. Vietnam’s cargo throughput has steadily grown between 2015 and 2019. The logistics services tend to be outsourced in Vietnam – characterized by basic and specialized services. Basic services include transport and warehousing. Specialized services include higher-order services such as the management of warehouse, inventory, and vendor; processing of orders; liaising with customs; and reverse and climate-controlled logistics.
Opportunities exist for developing warehousing infrastructure and distribution centers. There is a need to integrate existing storage infrastructure with other logistic functions, such as transportation, inventory management, cold chain, customs facilities, and warehouse management.
Vietnam Logistics Market Segmentation
By Freight Volume:
The Logistics market is segmented on the basis of Freight Volumes i.e. Volume of Freight Carried and Volume of Freight Traffic.
By Type of Transportation
The Logistics market is segmented on the basis of Type of Transportation i.e. Road, Rail, Air and Water.
By Type of Ownership
The Logistics market is segmented on the basis of Type of Ownership of the Enterprises in Logistics Industry i.e. State Owned, Non-State Owned and FDI.
By Transportation Sector
The Logistics market is segmented on the basis of Transportation Sector in Vietnam i.e. Domestic and Overseas.
Detailed Analysis on Road freight Market in Vietnam
As per recent Logistics Performance Index, Vietnam ranked 39 out of 160 countries rising 25 positions since 2016. Over three-fourths of freight tonnage in Vietnam was transported by road, growing five percent during the period of 2010-2019. The increasing movement of goods to and from Vietnam has necessitated further development in its road freight sector. Vietnam’s participation in several free trade agreements (FTAs) has further helped augment its manufacturing growth.
Vietnam Road Freight Market Segmentation
By Freight Volume
The Road Freight market is segmented on the basis of Freight Volumes i.e. Volume of Freight Carried and Volume of Freight Traffic.
The Road Freight Market in Vietnam is segmented on the basis of various regions in Vietnam i.e. Red River Delta, Northern Midland & Mountain Region, Northern Central Area & Central Coastal Area, Central Highlands & South East, Mekong River Delta.
Comparative Landscape in Vietnam Ambient Container Truck Market
Competition was observed to be highly fragmented however, within high fleet size category; the competition has become concentrated with domestic players such as SNP – Siagon New Port, MP logistics, Viettel Logistics and others. Nevertheless, the medium fleet sized players have a larger presence in the market in terms of revenue, freight volume and other parameters.
Vietnam Road Freight Future Outlook and Projections
Factors such as vehicle efficiency, shifting from traditional to alternative fuels, technological implementations, strategic collaborations will drive the Vietnamese Road Freight market in the near future both in terms of revenue and freight volume. Apart from domestic players numerous other international players might enter the market and contribute towards the growth in future in Vietnam.
Key Segments Covered:-
By Freight Volume
By Transport Sector
By Enterprise Ownership
Road Freight Market
By Freight Volume
Key Target Audience:-
Food Processing Industry
Food Packaging industry
Consumer Electronics Industry
Time Period Captured in the Report:-
Historical Period: 2015-2019P
Forecast Period: 2020F–2025F
Road Freight Industry
SNP – Saigon New Port
Indo Trans Limited
Minh Chau JSC
Procter & Gambler
For More Information on the research report, refer to below link:
Turkey Logistics and Warehousing Market Outlook to 2025 – By Domestic and International Freight Forwarding Throughput, Revenue & Flow Corridor (Road Freight and Pipelines, Sea, Air and Rail Freight), By Warehousing (Industrial / Retail, Container Freight / Inland Container Depot & Cold Storage), By 3PL, Courier Express & Parcel, Domestic and Cross Border E-commerce Logistics
Ankur Gupta, Head Marketing & Communications