Vietnam Logistics Market Trends, Size, Share and Industry Report

Vietnam Logistics Market Outlook

The Vietnam logistics market size was valued at USD 80.65 billion in 2024 and is projected to experience substantial growth in the coming years. The market is expected to grow at a compound annual growth rate (CAGR) of 6.4% from 2025 to 2034, reaching an estimated value of USD 141.48 billion by 2034. This growth is driven by Vietnam’s expanding manufacturing sector, increasing demand for consumer goods, rising international trade, and continued infrastructure development.

Vietnam’s strategic location in Southeast Asia, coupled with its growing industrial and economic sectors, positions it as a key logistics hub in the region. The country's logistics infrastructure is rapidly improving, including investments in roadways, seaports, and airports, which are expected to boost the logistics industry and enhance trade connectivity.

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Vietnam Logistics Market Trends

Several key trends are influencing the growth of the logistics market in Vietnam:

E-commerce Boom: The rapid growth of e-commerce in Vietnam is increasing demand for efficient logistics and supply chain solutions. With more consumers shopping online, there is a rising need for fast, reliable, and cost-effective last-mile delivery services, which is driving growth in the logistics sector.
Integration of Technology: The logistics industry in Vietnam is increasingly adopting technology to enhance operational efficiency. Technologies such as automation, artificial intelligence (AI), big data analytics, and the Internet of Things (IoT) are being integrated into logistics operations, helping companies optimize inventory management, tracking, and routing.
Development of Infrastructure: Vietnam is heavily investing in infrastructure development, including the expansion of highways, ports, and airports. These investments are improving logistics capabilities and making transportation of goods more efficient, which is a major factor driving market growth.
Sustainability Initiatives: As environmental concerns grow, there is an increasing focus on sustainable logistics practices. Companies are adopting greener solutions, such as electric vehicles and eco-friendly packaging, to reduce carbon footprints and align with global sustainability standards.
Growth in Global Trade: Vietnam's growing role in global trade, particularly through its participation in free trade agreements (FTAs) like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), is boosting the demand for logistics services. The country's export-oriented economy is increasing the need for efficient transportation and logistics solutions.

Vietnam Logistics Market Growth

The logistics market in Vietnam is set to grow rapidly due to several key drivers:

Rising Manufacturing and Export Activities: Vietnam’s manufacturing sector continues to expand, particularly in electronics, textiles, and automotive sectors. This growth is driving the demand for logistics services, as businesses require efficient transportation of raw materials and finished goods to global markets.
Expansion of Retail and Consumer Goods Market: With increasing disposable income and a growing middle class, the retail and consumer goods market in Vietnam is booming. This has created a need for robust logistics services to distribute goods to urban and rural areas, as well as manage supply chains for large retailers.
Increase in Foreign Direct Investment (FDI): As Vietnam becomes an attractive destination for foreign investments, particularly in the automotive, electronics, and manufacturing industries, demand for logistics services will continue to rise. FDI is driving the construction of new industrial parks and warehouses, further expanding logistics needs.
Improved Connectivity with Regional Markets: Vietnam’s efforts to improve transportation networks, such as enhanced seaports and new highways, are boosting regional connectivity. This improvement in infrastructure enables faster and more cost-effective transportation, driving growth in the logistics market.
Adoption of Modern Logistics Solutions: The shift toward modern logistics solutions such as 3PL (third-party logistics) services and freight forwarding is increasing in Vietnam. As businesses seek to streamline their operations, outsourcing logistics functions to specialized service providers is becoming more common.

Vietnam Logistics Market Segmentation

The Vietnam logistics market can be segmented based on model type, transportation mode, end user, and region.

Breakup by Model Type:

1 PL (First-Party Logistics): In this model, businesses manage their own logistics operations, such as transportation, warehousing, and inventory management. Though traditional, this model is still used by companies with large-scale operations.
2 PL (Second-Party Logistics): Second-party logistics refers to the outsourcing of specific logistics services, such as transportation or warehousing, to external providers. Companies in this segment use 2PL providers for cost-effective logistics management.
3 PL (Third-Party Logistics): 3PL providers manage entire logistics functions, including transportation, warehousing, distribution, and inventory management. This model is becoming increasingly popular as businesses focus on core competencies and outsource their logistics operations to specialized companies.
Others: This category includes other logistics models, such as 4PL (fourth-party logistics) and 5PL (fifth-party logistics), which involve more comprehensive management and coordination of the entire supply chain.

Breakup by Transportation Mode:

Roadways: Road transportation is the dominant mode in Vietnam, facilitating the movement of goods within the country. The rapid development of highways and road networks is contributing to the growth of this mode of transportation.
Seaways: Seaports in Vietnam, particularly in Ho Chi Minh City and Hai Phong, are critical to the country’s logistics network. Seaways are used for transporting bulk goods, exports, and imports, making this an essential mode of transportation for the logistics market.
Railways: Railway transportation is also growing in importance for both domestic and cross-border trade, particularly for transporting bulk goods like coal and industrial materials. However, its role is still limited compared to road and sea transport.
Airways: Air freight services are increasingly being used for high-value and time-sensitive goods. Vietnam’s expanding airport infrastructure, including airports in Hanoi and Ho Chi Minh City, is contributing to the growth of the air freight segment.

Breakup by End-Use Industry:

Manufacturing: Vietnam’s manufacturing industry, including electronics, automotive, and textiles, requires robust logistics services for the transportation of raw materials and finished products. The rapid growth of this sector is driving the demand for logistics solutions.
Consumer Goods and Retail: With rising consumer demand and a booming retail sector, the logistics market in Vietnam is seeing increased demand for efficient distribution solutions, especially for retail products, both online and offline.
Food and Beverages: The food and beverage industry requires temperature-controlled logistics for transporting perishable goods. The growing consumer demand for processed and packaged food is expanding the logistics needs in this sector.
IT Hardware and Telecom: The IT and telecom sectors in Vietnam are seeing rapid growth, increasing the need for logistics services for the transportation of electronics, telecommunications equipment, and related components.
Healthcare: The healthcare sector, which includes pharmaceutical products, medical devices, and hospital supplies, requires reliable logistics solutions to ensure timely delivery and maintain the integrity of sensitive products.
Chemicals: The chemicals industry, including the transportation of raw materials and finished products, requires specialized logistics services due to the hazardous nature of many chemicals. Vietnam’s growing chemical industry is driving demand for secure transportation and storage solutions.
Construction: The booming construction sector in Vietnam requires logistics services for transporting construction materials, heavy machinery, and equipment. This sector’s growth is contributing to the logistics market.
Automotive: The automotive industry in Vietnam, which is expanding due to increasing domestic production and exports, is driving the demand for automotive logistics services such as transportation of vehicle parts and finished vehicles.
Oil and Gas: The oil and gas industry requires specialized logistics services for transporting equipment, fuel, and chemicals. As Vietnam’s oil and gas industry continues to grow, the demand for logistics services in this sector is also increasing.
Others: This segment includes logistics services for industries such as textiles, electronics, and consumer goods, which all play important roles in Vietnam's economic growth.

Breakup by Region:

Southeast: The Southeast region, including Ho Chi Minh City, is the economic hub of Vietnam, with major ports and industries driving demand for logistics services.
Red River Delta: The Red River Delta, with Hanoi as its key city, is an important region for manufacturing, agriculture, and retail, contributing to the demand for logistics solutions.
Mekong River Delta: The Mekong River Delta, known for its agricultural production, plays a key role in the logistics of food and agricultural products, driving demand for transportation and warehousing services.
South Central Coast: The South Central Coast region is becoming increasingly important due to its growing infrastructure and trade links. The expansion of ports in this region is contributing to logistics growth.
Others: This category includes other regions of Vietnam that contribute to the overall logistics market, including the North Central Coast and Central Highlands, which are increasingly becoming important for logistics.

Vietnam Logistics Market Key Players

Several key players are shaping the Vietnam logistics market by offering innovative solutions and expanding their operations:

Viettel Post Joint Stock Corporation: Viettel Post is a leading logistics service provider in Vietnam, offering a range of solutions including domestic and international parcel delivery, e-commerce logistics, and warehousing services.
Bee Logistics Corporation: Bee Logistics is a prominent provider of logistics and supply chain solutions in Vietnam, specializing in freight forwarding, customs brokerage, and warehousing services.
Indo Trans Logistics Corporation: Indo Trans is a major logistics provider in Vietnam, offering services such as freight forwarding, transportation, and supply chain management.
FedEx Corporation: FedEx is a global logistics company offering international shipping and supply chain solutions, including express transportation, freight forwarding, and e-commerce logistics in Vietnam.
United Parcel Service, Inc. (UPS): UPS is a global leader in logistics, providing a variety of services including parcel delivery, freight forwarding, and warehousing solutions in Vietnam.
Schenker AG: Schenker is a global logistics provider offering supply chain management, freight forwarding, and customs services in Vietnam.
C.H. Robinson Worldwide Inc.: C.H. Robinson provides logistics solutions such as freight forwarding, supply chain management, and transportation services to businesses operating in Vietnam.
Deutsche Post AG: Deutsche Post provides postal and logistics services in Vietnam, including parcel delivery, express services, and supply chain solutions.
DSV A/S: DSV offers global logistics solutions, including freight forwarding, air and sea transport, and warehousing, with a growing presence in Vietnam’s logistics sector.