Vietnam Road Freight Transport Market - Size, Share, COVID-19 Impact & Forecasts up to 2028

Vietnam Road Freight Transport Market - Size, Share, COVID-19 Impact & Forecasts up to 2028

The Vietnam Road Freight Transport Market is projected to register a CAGR of 6.53%

Key Highlights

• Largest Segment by Distance - Long Haul : Long-haul trucking accounts for the highest market share in Vietnam's road freight transport market owing to the initiatives taken by the government to increase infrastructure developments that facilitated the growth of cross-border trades.
• Largest Segment by Product Type - Solid Goods : The solid goods segment dominates the liquid goods trucking services as it is easier to carry cargo in a solid form and most industries that use this service also make up a significant portion of Vietnam's gross value output.
• Largest Segment by End User - Manufacturing : The manufacturing segment is the largest end user, accounting for more than 16% of the country's GDP. The government also set a target for Vietnamese companies to satisfy 45% of the essential needs of domestic production and consumption by 2025.
• Fastest Growing Segment by TruckLoad Specification - Less than Truckload : Owing to Vietnam's increased production over the past decade and the continuous rise in freight traffic, LTL services are expanding rapidly in Vietnam.

Vietnam Road Freight Transport Market TrendsManufacturing is the largest segment by End User.

• Due to the pandemic, according to a report published by the Vietnam Automobile Manufacturers’ Association (VAMA), in April 2020, the industry registered only 11,761 units of sales, consisting of 7,796 passenger cars, 3,652 commercial vehicles, and 313 special-purpose vehicles. The sales of passenger cars decreased by 40%, commercial vehicles by 26%, and specialized vehicles by 16% compared to the previous month. The whole automobile market declined by 36% over the first four months of 2020.
• Crude oil prices crashed by over 30% in March 2020 because of disagreements between OPEC and Russia about cuts in production. Meanwhile, Vietnam's net spending on offshore crude oil in 2019 amounted to nearly USD 1.8 billion. Vietnam was the net crude importer. According to the Ministry of Industry and Trade, it is expected that in the next five years, the demand for electricity will grow by 8.5%-9.5%. The need to reduce dependence on coal-fired power plants has led Vietnam to explore alternative energy sources.
• The pharmaceutical production and business system is expanding with about 250 manufacturing plants, 200 import-export facilities, 43,000 wholesale agents, and more than 62,000 retail agents. Major pharmaceutical companies in Vietnam are clustered in and around the capital city, Hanoi, the Hai Duong province, Ho Chi Minh City, and some Southwest provinces, including Can Tho City and Dong Thap provinces.

Vietnam Road Freight Transport Market Competitive Analysis

The Vietnam Road Freight Transport Market is fragmented, with the top five companies occupying 8.02%. The major players in this market are Bee Logistics Corporation, Expeditors International, Indo Trans Logistics Corporation, Transimex Corporation and Viettel Logistics Co. Ltd (sorted alphabetically).

Additional Benefits:

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

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