Vietnam Logistics Market Outlook to 2035

The report titled “Vietnam Logistics Market Outlook to 2035 – By Service Type, By Transport Mode, By End-Use Industry, By Ownership Model, and By Region” provides a comprehensive analysis of the logistics industry in Vietnam. The report covers an overview and genesis of the market, overall market size in terms of value, detailed market segmentation; trends and developments, regulatory and operating landscape, buyer-level demand profiling, key issues and challenges, and competitive landscape including competition scenario, cross-comparison, opportunities and bottlenecks, and company profiling of major logistics service providers operating in Vietnam. The report concludes with future market projections based on trade growth, manufacturing relocation, port and transport infrastructure expansion, e-commerce penetration, regional logistics corridor development, cause-and-effect relationships, and case-based illustrations highlighting the major opportunities and cautions shaping the Vietnam logistics market through 2035.

Vietnam Logistics Market Overview and Size

The Vietnam logistics market is valued at approximately ~USD ~ billion, representing the provision of integrated logistics services including freight forwarding, transportation (road, sea, air, inland waterways, and rail), warehousing and distribution, customs brokerage, cold chain logistics, and value-added services such as packaging, labeling, and inventory management. The logistics sector plays a foundational role in Vietnam’s export-oriented economy, supporting manufacturing supply chains, domestic consumption, and cross-border trade flows across ASEAN and global markets.

The market is underpinned by Vietnam’s position as a major manufacturing and export hub for electronics, textiles and apparel, footwear, furniture, machinery, and processed foods. Strong foreign direct investment inflows, particularly from East Asia and increasingly from Europe and the United States, have expanded industrial parks, export processing zones, and supplier ecosystems, directly increasing demand for inbound raw material logistics and outbound finished goods movement. In parallel, rapid growth in domestic consumption, modern retail, and e-commerce has elevated the importance of nationwide distribution networks, last-mile delivery capabilities, and urban logistics infrastructure.

Geographically, Southern Vietnam represents the largest logistics demand center, anchored by Ho Chi Minh City and surrounding industrial provinces such as Binh Duong and Dong Nai, supported by major seaports, manufacturing clusters, and dense consumer markets. Northern Vietnam follows as a high-growth region driven by electronics manufacturing, cross-border trade with China, and port connectivity through Hai Phong. Central Vietnam plays a developing but strategic role, serving as a logistics bridge between north and south and supporting industrial and port-led growth along the central coastline. Inland and secondary provinces are increasingly integrated into national logistics networks as expressways, logistics parks, and regional distribution hubs expand.

What Factors are Leading to the Growth of the Vietnam Logistics Market:

Manufacturing relocation and export growth strengthen structural logistics demand: Vietnam continues to benefit from the diversification of global supply chains, with manufacturers relocating or expanding production to reduce dependence on single-country sourcing. Sectors such as electronics assembly, consumer appliances, garments, footwear, and furniture require time-sensitive and cost-efficient logistics solutions to support just-in-time production and global export commitments. This has increased demand for international freight forwarding port handling, bonded warehousing, and integrated third-party logistics services that can manage complex, multi-country supply chains.

Expansion of port capacity, transport infrastructure, and logistics corridors improves market scalability: Significant public and private investment in ports, expressways, inland container depots, and logistics parks is improving cargo handling capacity and reducing transit bottlenecks. Deep-sea port development, highway connectivity between industrial zones and ports, and upgrades to inland waterway transport are gradually enhancing network efficiency. These infrastructure improvements enable logistics providers to scale operations, offer multimodal solutions, and extend services beyond primary metros into secondary industrial clusters.

E-commerce growth and modern retail distribution reshape domestic logistics requirements: Rising internet penetration, digital payments adoption, and consumer preference for online shopping are transforming Vietnam’s domestic logistics landscape. E-commerce platforms, omnichannel retailers, and consumer brands increasingly require nationwide warehousing footprints, faster order fulfillment, and reliable last-mile delivery. This has accelerated demand for urban distribution centers, sortation hubs, technology-enabled delivery fleets, and outsourced logistics partnerships capable of managing high shipment volumes with shorter delivery windows.

Which Industry Challenges Have Impacted the Growth of the Vietnam Logistics Market:

Infrastructure gaps and congestion across ports, roads, and urban corridors constrain service efficiency and reliability: Despite sustained investment in transport infrastructure, Vietnam’s logistics sector continues to face capacity bottlenecks at key seaports, industrial access roads, and urban delivery corridors. Congestion around major ports, delays in hinterland connectivity, and limited availability of high-quality logistics parks increase transit times and operating costs. These inefficiencies affect schedule reliability for exporters and importers, particularly in peak seasons, and limit the ability of logistics providers to consistently meet tight delivery commitments across regions.

Fragmented logistics market structure limits scale efficiencies and service standardization: The Vietnam logistics market remains highly fragmented, with a large number of small and mid-sized operators focused on single service segments such as trucking, warehousing, or customs brokerage. Many domestic players operate with limited fleet scale, low technology adoption, and constrained capital for expansion. This fragmentation reduces end-to-end service integration, creates variability in service quality, and increases coordination complexity for shippers managing multi-leg supply chains, particularly those serving export-oriented manufacturing and nationwide distribution networks.

High logistics costs relative to trade value pressure shipper margins and competitiveness: Logistics costs in Vietnam remain elevated as a percentage of GDP compared to more mature logistics markets, driven by inefficiencies in multimodal integration, empty backhauls, fuel price sensitivity, and limited automation in warehousing and transport operations. For export-driven industries such as electronics, garments, and furniture, logistics costs directly impact landed prices and global competitiveness. Cost pressures also limit the willingness of small and mid-sized shippers to adopt higher-value integrated logistics services, slowing market consolidation and service upgrading.

What are the Regulations and Initiatives which have Governed the Market:

Trade facilitation policies and customs modernization initiatives shaping cross-border logistics flows: Vietnam has implemented a range of trade facilitation measures aimed at simplifying customs procedures, reducing clearance times, and improving transparency in import–export processes. Initiatives such as electronic customs declarations, risk-based inspections, and alignment with international trade agreements influence how logistics providers structure customs brokerage, bonded warehousing, and cross-border freight services. While these reforms improve efficiency over time, transitional complexity and varying enforcement practices can still affect clearance predictability.

Transport, port, and logistics infrastructure development programs influencing capacity expansion: Government-led investment programs focused on expressways, deep-sea ports, inland container depots, and logistics centers play a central role in shaping the logistics market’s long-term capacity. These initiatives aim to improve regional connectivity, reduce congestion, and support industrial zone development. The pace of project execution, land acquisition challenges, and coordination across ministries and provinces directly impact how quickly logistics providers can expand networks and optimize routing across the country.

Regulatory frameworks governing foreign investment, licensing, and service scope in logistics: Vietnam’s logistics sector operates under a defined regulatory framework that governs foreign ownership limits, service licensing, and permitted activities across different logistics segments. While the market is progressively opening under international trade commitments, regulatory clarity and compliance requirements continue to influence entry strategies, partnership models, and expansion plans for international logistics providers. These regulations shape competitive dynamics between domestic operators, joint ventures, and global logistics firms.

Vietnam Logistics Market Segmentation

By Service Type: Transportation and freight forwarding services hold dominance in the Vietnam logistics market. This is because Vietnam’s trade-driven economy relies heavily on the movement of import–export cargo across ports, borders, and industrial corridors. Road freight, ocean freight forwarding, and associated customs clearance services form the backbone of logistics demand, particularly for manufacturing exporters. Warehousing and value-added logistics are expanding steadily as e-commerce, modern retail, and inventory decentralization gain traction, but transportation-led services continue to account for the largest share due to volume intensity and recurring shipment flows.

Freight Transportation (Road, Sea, Air, Inland Waterways)  ~45 %
Freight Forwarding & Customs Brokerage  ~25 %
Warehousing & Distribution  ~20 %
Value-Added Logistics (Packaging, Labeling, Kitting, Returns)  ~10 %

By End-Use Industry: Manufacturing and export-oriented industries dominate logistics demand in Vietnam. Electronics, garments, footwear, furniture, and machinery sectors require high-frequency inbound and outbound logistics to support global supply chains and time-bound export schedules. Consumer-driven sectors such as retail and e-commerce are growing rapidly, particularly in urban regions, while agriculture and food logistics maintain steady demand driven by domestic consumption and export of processed food and seafood products.

Manufacturing & Export Industries  ~55 %
Retail & E-commerce  ~20 %
Food, Agriculture & Fisheries  ~15 %
Others (Construction, Pharmaceuticals, FMCG, Projects)  ~10 %

Competitive Landscape in Vietnam Logistics Market

The Vietnam logistics market exhibits high fragmentation, characterized by a large number of small and mid-sized domestic transporters and service providers alongside a growing presence of global and regional logistics companies. Market leadership is driven by network coverage, multimodal capability, customs expertise, technology adoption, and the ability to serve multinational manufacturing clients with consistent service standards. While international logistics players dominate high-value freight forwarding, contract logistics, and multinational accounts, domestic companies remain competitive in trucking, port services, and regional distribution due to local knowledge and cost advantages.

Some of the Recent Competitor Trends and Key Information About Competitors Include:

DHL: DHL continues to strengthen its position in Vietnam by focusing on international express, contract logistics, and supply-chain solutions for multinational manufacturers and e-commerce platforms. The company’s competitive edge lies in global network integration, customs expertise, and technology-enabled visibility, making it a preferred partner for export-driven industries.

Kuehne + Nagel: Kuehne + Nagel remains strongly positioned in sea and air freight forwarding, particularly for electronics, industrial goods, and project cargo. Its Vietnam operations benefit from standardized operating procedures, digital freight platforms, and long-standing relationships with global shippers seeking reliability and compliance across trade lanes.

DB Schenker: DB Schenker emphasizes integrated logistics solutions combining freight forwarding, contract logistics, and supply chain consulting. The company is active in supporting automotive, industrial, and high-tech clients that require coordinated inbound and outbound logistics aligned with regional production networks.

Gemadept: As one of Vietnam’s leading domestic logistics players, Gemadept benefits from strong port operations, inland container depots, and integrated logistics services. The company’s competitive advantage lies in its deep understanding of local regulations, port connectivity, and end-to-end service capability for domestic and regional shippers.

Saigon Newport Corporation: Saigon Newport Corporation plays a critical role in Vietnam’s container port ecosystem, handling a significant share of national container throughput. Its port-centric logistics services, ICD network, and hinterland connectivity make it a key enabler of export logistics, particularly in Southern Vietnam.

What Lies Ahead for Vietnam Logistics Market?

The Vietnam logistics market is expected to expand steadily through 2035, supported by sustained manufacturing growth, rising export volumes, expanding domestic consumption, and Vietnam’s deepening integration into global and regional supply chains. Growth momentum is further reinforced by continued foreign direct investment in industrial zones, port and transport infrastructure upgrades, and the steady shift of shippers toward outsourced and integrated logistics models. As supply chains become more time-sensitive and geographically dispersed, logistics providers capable of offering reliability, scalability, and end-to-end coordination will play an increasingly central role in Vietnam’s economic growth trajectory.

Transition Toward Integrated and Higher-Value Logistics Solutions: The future of the Vietnam logistics market will see a gradual shift from fragmented, single-service offerings toward integrated logistics solutions encompassing transportation, warehousing, customs clearance, and value-added services. Manufacturers and retailers increasingly require logistics partners that can manage inbound raw materials, inter-factory movements, export shipments, and domestic distribution under a single operating framework. Cold chain logistics, contract logistics, and industry-specific solutions for electronics, food, and pharmaceuticals are expected to gain prominence as service differentiation becomes more important than price-led competition.

Strengthening of Port-Centric and Multimodal Logistics Networks: Vietnam’s logistics development will increasingly revolve around port-led ecosystems and improved multimodal connectivity. Deep-sea port expansion, inland container depots, inland waterways, and expressway corridors will shape cargo flows and regional logistics strategies. Logistics providers that align warehousing, distribution centers, and value-added services close to ports and industrial clusters will benefit from reduced transit times and cost efficiencies. Over the forecast period, improved rail and inland waterway utilization is expected to gradually complement road-dominated transport, particularly for bulk and containerized cargo.

Rising Importance of Speed, Reliability, and Visibility in Domestic Distribution: As e-commerce, modern retail, and omnichannel distribution expand, domestic logistics requirements will increasingly prioritize faster delivery cycles, reliable service levels, and real-time shipment visibility. Urban logistics hubs, regional fulfillment centers, and technology-enabled last-mile delivery models will become critical infrastructure elements. Logistics providers investing in transport management systems, warehouse automation, and data-driven route optimization will be better positioned to meet evolving customer expectations and capture higher-margin distribution contracts.

Growing Role of Sustainability, Compliance, and Risk Management in Logistics Decisions: Environmental considerations, regulatory compliance, and supply chain resilience will play a growing role in logistics procurement decisions through 2035. Shippers are expected to place greater emphasis on fuel-efficient fleets, emissions reduction, safety standards, and compliance with trade and customs regulations. Logistics providers that proactively invest in fleet modernization, process standardization, and compliance capabilities will gain credibility with multinational clients and long-term contracts in regulated industries.

Vietnam Logistics Market Segmentation

By Service Type
• Freight Transportation (Road, Sea, Air, Inland Waterways)
• Freight Forwarding & Customs Brokerage
• Warehousing & Distribution
• Cold Chain Logistics
• Value-Added Logistics (Packaging, Labeling, Kitting, Returns)

By Transport Mode
• Road Transport
• Sea Freight
• Inland Waterways
• Air Freight
• Rail Transport

By End-Use Industry
• Manufacturing & Export Industries
• Retail & E-commerce
• Food, Agriculture & Fisheries
• Pharmaceuticals & Healthcare
• Construction, Energy & Others

By Ownership Model
• Third-Party Logistics (3PL) Providers
• Fourth-Party Logistics (4PL) / Lead Logistics Providers
• In-house / Captive Logistics
• Joint Ventures & Strategic Partnerships

By Region
• Northern Vietnam
• Southern Vietnam
• Central Vietnam
• Mekong Delta & Secondary Provinces

Players Mentioned in the Report:

• DHL
• Kuehne + Nagel
• DB Schenker
• DSV
• Nippon Express
• Gemadept
• Saigon Newport Corporation
• Viettel Post
• Regional trucking companies, port operators, freight forwarders, and warehousing service providers

Key Target Audience

• Logistics service providers and freight forwarders
• Port operators and inland container depot developers
• Manufacturing companies and export-oriented enterprises
• E-commerce platforms and modern retail chains
• Industrial park developers and logistics real estate investors
• Cold chain and food logistics operators
• Government agencies and trade facilitation bodies
• Private equity, infrastructure, and supply chain-focused investors

Time Period:

Historical Period: 2019–2024
Base Year: 2025
Forecast Period: 2025–2035