According to the Ministry of Industry and Trade, the logistics activities in Vietnam have made great progress in recent times, the import and export turnover has increased rapidly.
According to the Agility 2022 ranking, the Vietnamese logistics market ranks 11th in the group of 50 emerging logistics markets worldwide due to the strong transformation of enterprises providing and using logistics services.
The annual growth rate from 2022 – 2030 of the Vietnam logistics market is expected to reach 5.5%. Foreign investors also assessed that Vietnam has many opportunities to develop logistics services.
The logistics market of Vietnam is visited by more than 5,000 companies. Of which 89% are Vietnamese small and medium scale enterprises; 10% are joint ventures. Although they represent only 1%, companies with 100% foreign capital provide cross-border logistics services, with many of the biggest names in the global logistics industry.
According to Mr. Le Duy Hiep, President of the Vietnam Logistics Business Association (VLA), the Industrial Revolution 4.0 has created many special services. The logistics services market of Vietnam and the world is fiercely competitive when e-commerce has grown tremendously with advanced forms of logistics services such as e-logistics, green logistics, … so that the service costs of logistics enterprises in Vietnam are still relatively high.
The report published by Agility in 2021 shows that Vietnam’s logistics costs account for more than 20% of GDP. While the average logistics cost in the world is only about 11% of the GDP.
According to Ms. Le Thi Ngoc Diep, Commercial Director, SLP Vietnam Company, the current bottleneck in the infrastructure of airports, seaports, warehouses, … is not standardized and distributed. In particular, the planned warehouse system has a difference between the north and the south, which leads to restrictions in the transportation of goods throughout the country.
Le Trong Hieu, Senior Director of CBRE Vietnam, said that in order to catch the wave of logistics, it is necessary to pay attention to the development and use of warehouses effectively, speed up order processing and reduce costs.
Mr. Hieu noted that the penetration of e-commerce in Vietnam is still quite low, in the next 3 years, the growth of e-commerce in Vietnam is expected to increase by 15-20%, even 50%. Therefore, the location of the warehouses is also a factor that helps to optimize the delivery of goods to customers.