Vietnam Freight & Logistics Market Study - Market Trends, Analysis & Forecasts to 2023

  • ID: 4514808
  • Report
  • Region: Vietnam
  • 140 pages
  • Mordor Intelligence
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FEATURED COMPANIES

  • Ceva
  • DB Schenker
  • DHL
  • Gemadept
  • Sinotrans/Vietrans
  • SoTrans
  • MORE
The Vietnam freight & logistics market is expected to reach a market value of USD 113.32 billion by 2023, registering a CAGR of 16.56% during the forecast period (2018 - 2023). Vietnam is expected to witness substantial growth in trade, in the near future. The logistics industry in one of the fastest-growing industries in the country, but lack of a proper infrastructure, such as good road quality, acts as a fundamental reason for the increasing costs and decreasing efficiency of the logistics industry. The road haulage sector is expected to outperform every other means of haulage over the next several years. Road haulage is expected to benefit extensively from the ongoing development of Vietnam, as a regional manufacturing hub. Road transport currently plays an important role in Vietnam, serving about 76.52% of all freight transport. The country has huge plans to increase the freight movement through railways, the government estimates that by 2030, cargo volumes are to reach 2.09 billion metric ton, of which 65-70% will be moved by road, 1-3% by railway, 17-20% by inland waterway, 9-14% by sea, and 0.1-0.2% by air.

Insights on Freight Forwarding

In Vietnam, freight forwarding activities have been increasing since the federal government implemented the open-door policy to join the free-trade agreement. Traditional forwarding activities include two arrays, which include companies engaged in the delivery of containers, such as Gemadept, Hai Min Corporation, and SoTrans. CFS (Container Freight Station) service/consolidation services are dominated by foreign companies, who mainly dominate the market. A series of trade agreements signed by Vietnam over the past two years turned out to be a fruitful decision for Vietnamese trade, which increased the trade flow in the country. Presently, around 1,300 logistics firms are active in Vietnam, including multinational firms.

Majority of the local firms are operating on a small- and medium-scale for SMEs. Large local logistics enterprises from Ho Chi Minh City and Hanoi are also active players in the market. There are some large domestic firms, like Transimex Saigon Corporation, Sai Gon Newport Corporation, Gemadept Corporation, and Transport, and Chartering Corporation (VIETFRACHT), which are present in the market and operate as 3PL service providers.

In 2017, Trinity Logistics USA and Etihad Airways collaborated to operate a 777F freighter between Vietnam’s Hanoi International Airport (HAN) and Ohio’s Rickenbacker International Airport (LCK). This move represents that for the first time airports have been directly connected, making the transfer of goods between the two countries faster than ever.

Insights on Warehousing

Warehousing in Vietnam can be divided into two major segments, namely, dry goods storage warehouse and cold storage. Operation of the storage system is quite simple, with the goal to preserve goods effectively and optimize inventory costs. Major players in the warehouse management business include BS Logistics, Sotrans, Transimex, Gemadept, U&I Logistics, Vinafco Draco Seaborne, BK Logistics, ALS (Aviation Logistics Corporation), and ITL (IndoTrans Logistics Corporation). The big suppliers of commercial cold storage are mainly concentrated in the southern areas of Vietnam, due to the growing demand for storage of seafood for export. Some of the prominent local providers are Hoang Lai, Hung Vuong, SATRA, and Phan Duy. In particular, the two companies, Hung Vuong and SATRA, are part of the first few companies to implement cold storage solutions. Initially, their capability was focused on their needs but have now integrated backward as a provider for other enterprises.

There are large investments being made in the cold storage sector in Vietnam. A recent example is the collaborative investment project between Mekong Group's Gemadept and the Minh Phu Seafood group, with a capacity of 50,000 metric ton. The facility was built in the Industrial Park Song Hau, Hau Giang province, with a total investment of USD 46.1 million.

Key Developments in the Market
  • February 2018: DHL Supply Chain, the leading contract logistics provider, was appointed by Bridgestone, to manage its warehouse operations in Da Nang. DHL will utilize its fleet and sub-contracted vehicles to deliver to Bridgestone's distributors in Vietnam's central province. The new Bridgestone warehouse in Da Nang, a rapidly expanding regional distribution hub, spans 3,000 sq. m. To deliver Bridgestone's specially designed bespoke racking (stillage), DHL devised a flexible, efficient solution for tire storage, to minimize damage and promote cost-efficient and timely transport to the central provinces. The stillage’s fit Bridgestone's TBR (truck, bus, and industrial/commercial tires) and PSR (passenger car radial) tire ranges, and the warehouse can store 20,000 tires.
Major Players: DB Schenker, DHL, Yusen Logistics, Sinotrans/Vietrans, Transimex, SoTrans, Gemadept, Vinafreight, and Ceva amongst others.

Reasons to Purchase the Report
  • Current and future of Vietnam freight & logistics market outlook
  • Analyzing various perspectives of the market with the help of Material Flow & Trade analysis
  • Identifying the segment that is expected to dominate the market
  • End Use Industries that are expected to witness the fastest growth during the forecast period
  • Identify the latest developments, market shares, and strategies employed by the major market players
  • Market size estimation and forecasts included - by segment level, such as mode of transport, logistics function, end user industry, etc.
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Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Ceva
  • DB Schenker
  • DHL
  • Gemadept
  • Sinotrans/Vietrans
  • SoTrans
  • MORE
1. Introduction
1.1 Executive Summary
1.2 Research Methodology

2. Market Overview
2.1 Government Policies and Regulations
2.2 Logistics Performance Review

3. Market Dynamics
3.1 Drivers
3.2 Constraints
3.3 Opportunities

4. Vietnam Freight & logistics Market Insights, by Mode of Freight Transport Forecast (2014 - 2023)
4.1 Road
4.2 Shipping and Inland Water
4.3 Air
4.4 Rail

5. Vietnam Freight & Logistics Market Insights, by Function Forecast (2014 - 2023)
5.1 Freight Forwarding
5.2 Warehousing
5.3 Value-added Services
5.3.1 3PL - International and Local Freight Transport Arrangement/Management
5.3.2 3PL -Value-added Warehousing and Distribution
5.3.3 Project Logistics and Contract Logistics
5.3.4 Integrated Logistics
5.4 E-Commerce Fulfilment and Courier Express Parcel Industry
5.5 Other Emerging Areas (Cold Chain Logistics, Return Logistics, Logistics Tech Developments)

6. Vietnam Freight & Logistics Market Insights, by End User Forecast (2014 - 2023)
6.1 Manufacturing & Automotive
6.2 Oil & Gas, Mining, and Quarrying
6.3 Distributive Trade (Wholesale and Retail Segments - FMCG included)
6.4 Agriculture, Fishing, and Forestry
6.5 Construction
6.6 Telecommunication
6.7 Others

7. Key Company Players
7.1 International Players (Top global players active in Vietnam market)
7.2 Local Players (Top listed and unlisted players in freight forwarding, warehousing, 3PL, etc.)
7.3 Mergers and Acquisitions & Capital Market Activity

8. Investment Outlook

9. Appendix
9.1 GDP Distribution, by Activity and Region
9.2 Insights on Capital Flows
9.3 Economic Statistics - Transport and Storage Sector Contribution to Economy
9.4 External Trade Statistics - Export and Import, by Product
9.5 Insights on Key Export Destinations
9.6 Insights on Key Import Origin Countries

10. Disclaimer
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  • DB Schenker
  • DHL
  • Yusen Logistics
  • Sinotrans/Vietrans
  • Transimex
  • SoTrans
  • Gemadept
  • Vinafreight
  • Ceva
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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