Vietnam Logistics Market Outlook

The Vietnam logistics market size is experiencing robust growth, driven by the country's rapid economic development, expanding trade activities, and strategic geographic location. As a gateway to the ASEAN region and an integral part of global supply chains, Vietnam has emerged as a logistics hub in Southeast Asia. The Vietnam logistics market value reached USD 80.65 billion in 2024. The market is further projected to grow at a CAGR of 6.4% between 2025 and 2034, reaching a value of USD 141.48 billion by 2034. The market is bolstered by the government’s commitment to infrastructure development, foreign direct investment (FDI) in logistics operations, and a growing manufacturing sector that fuels demand for efficient transportation and warehousing solutions.

The burgeoning e-commerce sector has further accelerated the growth of the logistics industry in Vietnam. With a rising middle class and increasing internet penetration, the demand for fast and reliable delivery services has surged, leading to significant investments in last-mile delivery capabilities and technology-driven logistics solutions. As Vietnam continues to integrate into global trade networks, its logistics market is expected to sustain its upward trajectory over the forecast period.

Vietnam Logistics Market Share

Vietnam’s logistics market holds a pivotal position within the Southeast Asian region, underpinned by its vibrant export-driven economy and trade partnerships. The market’s size has expanded significantly in recent years, driven by the country’s growing export volumes and increasing demand for import goods. Major contributors to the market include road transportation, sea freight, and air cargo, with sea freight commanding the largest share due to Vietnam’s strategic coastal location and robust port infrastructure.

Ho Chi Minh City and Hanoi serve as key logistics hubs, facilitating domestic and international trade. The rise of industrial zones across the country has further diversified the logistics landscape, enabling seamless connectivity between manufacturing centers and export terminals. Foreign logistics firms, in partnership with local companies, play a significant role in enhancing service quality and efficiency, reflecting Vietnam’s openness to FDI and collaborative growth.

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Drivers of Growth

The growth of the Vietnam logistics market is propelled by several factors, including its thriving manufacturing sector and increasing trade volumes. Vietnam’s membership in multiple free trade agreements (FTAs) has facilitated tariff reductions and opened access to international markets, boosting demand for logistics services. Key agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP) have positioned Vietnam as an attractive destination for global trade and investment.

Infrastructure development is another critical growth driver. The government’s investments in highways, ports, airports, and railways have enhanced the connectivity and capacity of Vietnam’s logistics network. Initiatives such as the North-South Expressway and deep-water port projects aim to improve transit times and reduce logistics costs, bolstering the market’s competitiveness.

The rise of e-commerce has also been transformative for the logistics industry. Online retail giants and local e-commerce platforms have driven demand for advanced warehousing, inventory management, and last-mile delivery solutions. With consumers demanding faster delivery times, logistics providers are leveraging technology to streamline operations and improve customer satisfaction.

Vietnam Logistics Market Trends

Several trends are shaping the Vietnam logistics market, reflecting its evolution and adaptability. The adoption of digital technologies and automation is a prominent trend, with logistics companies increasingly investing in systems such as warehouse management software (WMS), transportation management systems (TMS), and blockchain for supply chain transparency. These technologies enable real-time tracking, predictive analytics, and efficient resource utilization, addressing the complexities of modern logistics operations.

The growth of cold chain logistics is another notable trend, driven by increasing demand for temperature-sensitive goods such as pharmaceuticals, fresh produce, and frozen foods. The expansion of Vietnam’s food export sector and rising consumer preference for high-quality perishables have created a thriving market for cold storage facilities and refrigerated transportation.

Sustainability has emerged as a critical focus area for logistics providers in Vietnam. With growing environmental concerns, companies are adopting green logistics practices, such as electric vehicles for deliveries, energy-efficient warehouses, and optimized routing to reduce carbon footprints. These initiatives not only align with global sustainability goals but also enhance the reputation of logistics firms among environmentally conscious clients.

Cross-border e-commerce is another trend reshaping the market. As Vietnamese consumers increasingly shop from international online platforms, the demand for efficient cross-border logistics solutions has risen. Companies are establishing partnerships and leveraging regional networks to facilitate seamless international shipping, customs clearance, and last-mile delivery.

Vietnam Logistics Market Segmentation

The market can be divided based on the Model Type, Transportation Mode, End User and Region.

Market Breakup by Model Type

• 1 PL
• 2 PL
• 3 PL
• Others

Market Breakup by Transportation Mode

• Roadways
• Seaways
• Railways
• Airways

Market Breakup by End User

• Manufacturing
• Consumer Goods and Retail
• Food and Beverages
• IT Hardware and Telecom
• Healthcare
• Chemicals
• Construction
• Automotive
• Oil and Gas
• Others

Market Breakup by Region

• Southeast
• Red River Delta
• Mekong River Delta
• South Central Coast
• Others

Challenges and Opportunities

Despite its growth potential, the Vietnam logistics market faces several challenges. Infrastructure bottlenecks, particularly in urban areas, pose a significant obstacle to efficient transportation. Traffic congestion, inadequate road networks, and limited rail freight capacity can lead to delays and higher operational costs, impacting the overall efficiency of the logistics sector.

Fragmentation within the logistics industry is another challenge, with numerous small and medium-sized enterprises (SMEs) operating alongside larger players. This fragmentation often leads to inconsistent service quality and pricing disparities. However, consolidation and strategic partnerships present opportunities to address this issue, enabling firms to leverage economies of scale and offer comprehensive logistics solutions.

Regulatory complexities and bureaucratic hurdles also pose challenges, particularly for foreign investors navigating Vietnam’s logistics landscape. Streamlining regulatory processes and enhancing transparency would encourage greater participation from international logistics firms and improve the market’s overall competitiveness.

Opportunities in the market are abundant, driven by Vietnam’s growing trade relationships and the expansion of its consumer market. The development of multimodal transportation solutions—combining road, rail, sea, and air freight—offers immense potential to optimize supply chain efficiency and reduce costs. Additionally, the untapped potential in rural logistics presents an avenue for growth, with investments in infrastructure and technology enabling better access to remote areas.

Competitive Landscape

• Viettel Post Joint Stock Corporation
• Bee Logistics Corporation
• Indo Trans Logistics Corporation
• FedEx Corporation
• United Parcel Service, Inc.
• Schenker AG
• C.H. Robinson Worldwide Inc.
• Deutsche Post AG
• DSV A/S
• CMA CGM Group (CEVA Logistics SA)
• Kuehne + Nagel International AG
• Nippon Express Co., Ltd.
• Expeditors International of Washington, Inc.
• Kintetsu World Express Inc.
• A.P. Møller — Mærsk A/S
• Others

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