Vietnam Freight And Logistics Market Size & Share Analysis - Growth Trends & Forecasts upto 2029

Vietnam Freight And Logistics Market Size & Share Analysis - Growth Trends & Forecasts upto 2029

The Vietnam Freight And Logistics Market is projected to register a CAGR of 6.34%

Key Highlights

• Sea and Inland Waterways is the Fastest-growing Mode Of Transport: Sea and inland waterways is the fastest-growing segment by mode of transport in Vietnam. With a coastline of 3,260 kilometers, Vietnam holds a lot of potential for maritime freight transport.
• Domestic is the Largest Destination Type: The domestic segment is the largest segment by destination type in Vietnam, supported by the wholesale and retail trade end-user segment, which held a share of 63.3% in 2022.
• Wholesale and Retail Trade is the Largest End User: The e-commerce market in Vietnam boosts wholesale and retail trade. Vietnam is one of the largest markets for e-commerce in ASEAN, with a revenue of USD 11.36 billion in 2022.
• Non-Temperature Controlled is the Largest Temperature Control: The non-temperature-controlled segment recorded a higher revenue contribution during the review period. However, its percentage share decreased from 89.58% in 2017 to 88.80% in 2021.
• Temperature Controlled is the Fastest-growing Temperature Control: The temperature-controlled segment is the fastest-growing segment in Vietnam. The cold storage category looks set to generate potential investments in Vietnam.

Vietnam Freight And Logistics Market Trends

Rising GDP Contribution, Along with Trade Flows, Leading Market Demand

• The Vietnamese transportation and storage industry emerged as an attractive investment opportunity in the ASEAN region in 2022, with a notable contribution of 2.2% to the country's overall GDP. Vietnam's GDP for that year reached a substantial value of USD 350 billion. The transportation and storage industry experienced a surge in new businesses, with around 6,000 enterprises established alone in 2021. This figure was part of the 116.8 thousand new enterprises established nationwide during the same year.
• Vietnam boasts of a burgeoning population of 98.9 million, with approximately 70% under the age of 35, providing a valuable labor force. The country's GDP per capita stands at around USD 2,500, highlighting its economic potential. The industrial sector in Vietnam is witnessing significant growth. In the 2021 Logistics Performance Index (LPI) by the World Bank, Vietnam climbed 20 places to secure the 39th position out of 160 countries, surpassing Malaysia and Indonesia and closely trailing Singapore and Thailand. This improvement showcases Vietnam's commendable progress in logistics performance and industry development.
• Vietnam, with its extensive coastline stretching 3,260 km and numerous rivers coursing through the country, holds significant opportunities for maritime freight transportation. The Government of Vietnam has set ambitious goals to establish the nation as a prominent maritime power by 2030. The plans entail increasing the maritime industry's contribution to the country's GDP to 10%. Additionally, the government aims to enhance the economic significance of the 28 coastal cities and provinces, aspiring for their contribution to reach 65% to 70% of the overall Vietnamese GDP.

Vietnam Freight And Logistics Industry Overview

The Vietnam Freight And Logistics Market is fragmented, with the top five companies occupying 6.17%. The major players in this market are Bee Logistics Corporation, Deutsche Post DHL Group, PetroVietnam Transport Corporation, Vietnam Maritime Corporation and Viettel Logistics Co. Ltd (sorted alphabetically).

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support