Vietnam freight forwarding market by normal and express delivery, by freight movement (sea freight, road freight, air freight and rail freight), by international and domestic freight forwarding and by flow corridors (Asian Countries, European Countries, America and African Countries, and by international and domestic companies (3PL and Owned); Company Profile of Major Players (Damco Vietnam, Sotrans Vietnam, Vinafco, Kerry Logistics Vietnam, Bac Ky Logistics Vietnam, Nippon Express Vietnam, Vietnam Airlines, Transimex Saigon Corporation, Sea and Air Freight International, Vinalink Logistics, PetroVietnam Transport Corporation, Noi Bai Cargo Terminal Services and Others)
- Logistics demand from import & export activities is expected to boost with several Free Trade Agreements (FTAs) for instance, EU-Vietnam FTA.
- Road is by far the most popular medium for moving freight within the country and will continue to grow owing to integration of regional economies.
By joining World Trade Organization (WTO), Vietnam officially opened its doors to foreign MNCs to establish their manufacturing bases and assembly lines within Vietnam, thereby supporting the country’s long term vision of achieving stimulating export-led growth. Vietnam’s FTA with the European Union has led to increase in cross-border freight transportation via inland waterways without any limitations. Some of the major export products include electrical machinery and equipment, nuclear reactors, footwear, apparel and textiles, furniture and others. Ho Chi Minh City region is one of the ideal locations for Vietnam’s exports and imports and is expected to be in forefront in ocean and air freight forwarding industry.
Roadways is gaining attraction in Vietnam with the registration of more than 1,050 enterprises in the road transport business, thus becoming the first preference for moving freight within the country with a vast presence of local freight forwarders coupled with trucking fleet operators. The government of Vietnam’s emphasis on completing the North-South expressway (2,500 Kms) by 2022 and upgrading connecting roads to Laos, Cambodia, China and other GMS and ASEAN countries which will further help to strengthen the country’s trade relations. Additionally, the development of sea port infrastructure will support increasing cargo volumes throughout Cai Mep port zone in the coming years with an improvement in port capacity and connectivity.
Analysts at Ken Research in their latest publication “Vietnam Freight Forwarding Market Outlook to 2022 – By Normal and Express Delivery; By Sea, Road, Air and Rail Freight and By International and Domestic Freight Forwarding” believe that increasing the number of channel points, strengthening infrastructure connections, improving service quality and promoting railways for freight transportation will have a positive impact on market.
Vietnam freight forwarding market is expected to register a positive CAGR of 14.2% during the forecast period 2018-2022. The market is further expected to be driven by expanding industrial activities, growing consumer preference for online shopping, upcoming infrastructure in the country & continuous investment by the government in development of logistics infrastructure and consistent economic growth.
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Ankur Gupta, Head Marketing & Communications