Vietnam’s logistics sector is rapidly becoming a pivotal player in its economy, driven by strong GDP growth, an expanding manufacturing base, and a booming e-commerce industry. The sector’s potential is further enhanced by supportive government policies, advantageous trade agreements, and strategic infrastructure developments, making it a highly attractive field for investment.
With a notable 6.42% growth in GDP in the first half of 2024, Vietnam is establishing itself as a prime destination for logistics investments, bolstered by the resurgence of the sector post-pandemic. In 2023, logistics contributed 4.92% to the national GDP, translating to over VND 502.56 trillion, and this growth trajectory is expected to surpass overall GDP growth by 2025, fueled by the expansion of multi-modal transport networks and last-mile delivery solutions.
Investment opportunities abound in various segments of the logistics sector, including third-party and fourth-party logistics, maritime transport, and cold chain logistics. Key trade agreements with regional partners further enhance Vietnam’s status as a logistics hub, reflecting its growing role in Southeast Asia’s trade and supply chain networks.
The rapid expansion of e-commerce is reshaping Vietnam’s logistics landscape, particularly in last-mile delivery. The e-commerce market, valued at US$14 billion in 2022, is projected to grow by 29% annually, driving demand for efficient delivery services and innovative logistics solutions in the courier, express, and parcel services sector, which is experiencing rapid growth.
Despite challenges such as infrastructure gaps and high logistics costs, the Vietnamese government is investing heavily in infrastructure development and public-private partnerships to address these issues. Significant improvements in road, rail, and port facilities are underway to support the cold chain logistics sector, essential for transporting perishable goods.
In response to global sustainability trends, Vietnam is also focusing on green logistics to minimize environmental impacts. The government is promoting multimodal transport solutions, optimizing logistics routes, and reviewing tax policies to incentivize environmentally friendly practices, aligning with the National Strategy on Green Growth aimed at achieving economic and environmental sustainability.
Foreign investors entering Vietnam’s logistics sector will find a favorable regulatory environment, with recent updates streamlining service classifications and improving market access conditions. The sector presents a dynamic and promising opportunity for investment, underpinned by robust economic fundamentals, supportive government policies, and a rapidly growing e-commerce market.
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