The logistics industry in Vietnam has experienced robust growth and is expected to continue expanding at a rapid pace. In 2024, the Vietnam logistics market reached a value of USD 80.65 billion, and it is projected to grow at a compound annual growth rate (CAGR) of 6.40% between 2025 and 2034, reaching an estimated value of USD 149.98 billion by 2034.
Vietnam Logistics Market Outlook
The Vietnam logistics market is on a strong growth trajectory, driven by the country's strategic geographic location, strong industrial base, and rapid urbanization. The market’s growth can be attributed to the increasing demand for efficient transportation and warehousing services, as well as the expansion of e-commerce, which is fueling the need for logistics solutions.
Vietnam’s strategic position in Southeast Asia allows it to serve as a key logistics hub for international trade. Its proximity to other major markets such as China, Japan, and Southeast Asian countries enhances its role as a critical supply chain link in the region. The development of infrastructure, such as new highways, ports, and airports, has further contributed to the positive outlook for the logistics market in Vietnam.
Vietnam Logistics Market Trends
Several trends are shaping the Vietnam logistics market. E-commerce growth is one of the most significant trends, which has resulted in increased demand for last-mile delivery services. As more consumers in Vietnam turn to online shopping, businesses need to develop more efficient and cost-effective logistics solutions to meet this rising demand.
The adoption of technology and digital transformation is also a key trend in the market. Businesses in the logistics industry are increasingly using advanced technologies such as artificial intelligence (AI), big data, the Internet of Things (IoT), and blockchain to streamline operations, improve supply chain transparency, and enhance customer experience.
Drivers of Growth
E-commerce Growth: The rapid rise in e-commerce activities is significantly boosting the demand for logistics services. As more consumers in Vietnam shop online, there is a growing need for reliable and fast delivery services, especially for last-mile logistics.
Infrastructure Development: The Vietnamese government has invested heavily in improving the country’s transportation infrastructure, including highways, seaports, airports, and railways. These improvements are essential for facilitating smoother, faster, and more efficient logistics operations.
Growing Industrial Base: Vietnam’s manufacturing and industrial sectors are expanding rapidly, creating an increased demand for transportation, warehousing, and logistics services. Industries such as automotive, chemicals, and healthcare require efficient logistics solutions to ensure the timely and safe delivery of goods.
Foreign Direct Investment (FDI): Vietnam's growing attractiveness to foreign investors has further propelled the logistics market. FDI inflows have boosted the demand for logistics services, especially in areas related to warehousing, transportation, and distribution.
Technology and Advancement
Automation and Robotics: Warehouses and logistics centers are adopting automation technologies such as robots and drones to streamline operations. Automated systems help reduce labor costs, increase accuracy, and improve efficiency.
Internet of Things (IoT): IoT technology is helping logistics companies track shipments in real time, monitor the condition of goods, and optimize routes for transportation. This technology enables more transparency in the supply chain and improves customer service.
Artificial Intelligence (AI): AI is being used to optimize inventory management, route planning, and demand forecasting. By analyzing large amounts of data, AI can help businesses predict supply chain disruptions and improve decision-making.
Blockchain: Blockchain technology is increasingly being explored for its ability to provide secure, transparent, and tamper-proof transactions. In logistics, it can enhance traceability, reduce fraud, and improve overall supply chain efficiency.
Challenges and Opportunities
Despite its growth potential, the logistics industry in Vietnam faces several challenges. One of the primary challenges is the lack of skilled labor in the logistics sector. As the industry grows, there is an increasing demand for workers with specialized knowledge in logistics management, technology, and operations.
Another challenge is the relatively high transportation costs, especially for road transportation. With limited modern infrastructure in some parts of the country, logistics companies often face delays and inefficiencies in the supply chain.
However, these challenges also present significant opportunities. The government’s ongoing investments in infrastructure development provide a favorable environment for logistics companies to expand and improve their operations. Additionally, the growing interest in e-commerce offers vast opportunities for logistics companies to offer specialized services such as last-mile delivery, express shipping, and reverse logistics.
Vietnam Logistics Market Segmentation
Breakup by Model Type:
1 PL: First-party logistics involves companies handling their own logistics operations internally.
2 PL: Second-party logistics involves a company contracting transportation or logistics services to a provider.
3 PL: Third-party logistics refers to the outsourcing of logistics functions such as transportation, warehousing, and inventory management.
Others: Includes hybrid models and other logistics arrangements.
Breakup by Transportation Mode:
Roadways: The most common mode of transportation in Vietnam, particularly for domestic shipments.
Seaways: Important for international trade, especially for large volumes of goods.
Railways: An emerging mode of transportation, offering cost-effective and environmentally friendly options.
Airways: Used for high-value or time-sensitive shipments.
Breakup by End User:
Manufacturing
Consumer Goods and Retail
Food and Beverages
IT Hardware and Telecom
Healthcare
Chemicals
Construction
Automotive
Oil and Gas
Others
Breakup by Region:
Southeast
Red River Delta
Mekong River Delta
South Central Coast
Others
Key Players
Viettel Post Joint Stock Corporation
Bee Logistics Corporation
Indo Trans Logistics Corporation
FedEx Corporation
United Parcel Service, Inc.
Schenker AG
FAQ
1. What is driving the growth of the logistics market in Vietnam?
The growth of e-commerce, infrastructure development, foreign direct investment, and the expansion of the industrial sector are key drivers of the logistics market in Vietnam.
2. What technologies are being adopted in the Vietnam logistics market?
Technologies such as automation, AI, IoT, and blockchain are being increasingly used to improve efficiency and transparency in the logistics sector.
3. What are the key challenges in the logistics market in Vietnam?
Challenges include the lack of skilled labor, high transportation costs, and limitations in infrastructure.
4. Who are the key players in the logistics market in Vietnam?
Key players include Viettel Post, Bee Logistics, Indo Trans Logistics, FedEx, UPS, and Schenker AG.
5. What are the key trends in the Vietnam logistics market?
The major trends include the growth of e-commerce, digital transformation, and increasing adoption of technology in logistics operations.
