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Logistics industry in Vietnam - statistics & facts

Vietnam’s emergence as a new manufacturing hub and its rising e-commerce sector has contributed significantly to the importance of logistics within its economy. Indeed, logistics has been among the fastest-expanding sectors in the country, accounting for around 2.5 percent of the total GDP. By 2025, the growth rate of this sector was forecast to outpace the growth of Vietnam’s GDP.

Matching goods with the fitting modes of transportation

Vietnam has oriented itself as an export-driven economy since its economic reform in the 1980s. As a result, the movement of goods, such as the import of raw materials and the export of finished products, has been increasing. Thus, this has led to the exploitation of all available transportation modes. Prior to the COVID-19 pandemic, the volume of carried freight in Vietnam had been growing each year. While the transportation of domestic cargo relies heavily on road, most traded goods arrive in and depart from Vietnam via waterway and airways. Typical products to be transported through maritime channels include machinery, electronics as well as textiles, and garments. By comparison, air transport is usually reserved for higher-value goods, such as computers and phones.

Consumer-driven: the future of Vietnam’s blooming domestic logistics services

The growth of the e-commerce sector has been further accelerated by the impact of the COVID-19 pandemic on online retail channel usages in Vietnam. Compared to brick-and-mortar stores, e-commerce requires a different set of logistics services, including outbound shipping and reverse logistics for returns of orders. How an online shop handles its logistics has become increasingly customer-driven. For instance, delivery speed can have a considerable influence on the purchasing decision of many Vietnamese consumers. Furthermore, cash on delivery has been the most used method for payment and shipping among online shoppers in Vietnam. As a result, most e-commerce shops in Vietnam require a last-mile delivery solution that involves both payment and inventory management as well as better trained delivery personnel. This demand has created dynamic competition and stimulated growth among delivery firms, especially among express delivery services. According to a recent forecast, the express delivery market will become a billion-dollar industry in the country in the next few years.

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Freight transportation

Logistics infrastructure

Interesting statistics

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Logistics industry in Vietnam

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Logistics industry in Vietnam - statistics & facts

Vietnam’s emergence as a new manufacturing hub and its rising e-commerce sector has contributed significantly to the importance of logistics within its economy. Indeed, logistics has been among the fastest-expanding sectors in the country, accounting for around 2.5 percent of the total GDP. By 2025, the growth rate of this sector was forecast to outpace the growth of Vietnam’s GDP.

Matching goods with the fitting modes of transportation

Vietnam has oriented itself as an export-driven economy since its economic reform in the 1980s. As a result, the movement of goods, such as the import of raw materials and the export of finished products, has been increasing. Thus, this has led to the exploitation of all available transportation modes. Prior to the COVID-19 pandemic, the volume of carried freight in Vietnam had been growing each year. While the transportation of domestic cargo relies heavily on road, most traded goods arrive in and depart from Vietnam via waterway and airways. Typical products to be transported through maritime channels include machinery, electronics as well as textiles, and garments. By comparison, air transport is usually reserved for higher-value goods, such as computers and phones.

Consumer-driven: the future of Vietnam’s blooming domestic logistics services

The growth of the e-commerce sector has been further accelerated by the impact of the COVID-19 pandemic on online retail channel usages in Vietnam. Compared to brick-and-mortar stores, e-commerce requires a different set of logistics services, including outbound shipping and reverse logistics for returns of orders. How an online shop handles its logistics has become increasingly customer-driven. For instance, delivery speed can have a considerable influence on the purchasing decision of many Vietnamese consumers. Furthermore, cash on delivery has been the most used method for payment and shipping among online shoppers in Vietnam. As a result, most e-commerce shops in Vietnam require a last-mile delivery solution that involves both payment and inventory management as well as better trained delivery personnel. This demand has created dynamic competition and stimulated growth among delivery firms, especially among express delivery services. According to a recent forecast, the express delivery market will become a billion-dollar industry in the country in the next few years.

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