Vietnam's Logistics Boom: Unprecedented Growth Attracts Foreign Investment

Vietnam’s logistics industry is experiencing an unprecedented surge. Many Vietnamese firms are determined to make substantial investments and reduce costs.

Many Vietnamese businesses are determined to invest heavily and cut logistics costs. In the photo: Import-export goods at Cat Lai port, Ho Chi Minh City (Photo: Quang Dinh)

Meanwhile, alongside warehouses near border crossings, foreign companies are also aggressively investing in Vietnam, clearly aiming to seize a larger share of the market.

"When it comes to logistics, if the sector is slow to resolve current bottlenecks, its competitive advantage will shrink - making room for international players" - Ms. Dang Minh Phuong

Vietnamese Firms Strive to Rise

At the start of 2025, major logistics players like Viettel Post, Bee Logistics, and Gemadept set out to continuously innovate technologically, lower costs, and enhance operational efficiency. Ongoing projects are accelerating the expansion of modern infrastructure, transportation networks, and warehousing to create a significant wave that elevates Vietnam's logistics landscape.

For example, Viettel Post, which used to focus mainly on last-mile delivery, is now striving - according to CEO Hoang Trung Thanh - to build cross-border logistics systems. With bonded-warehouse systems at international borders, Viettel Post is poised to become a key connector between Vietnam and other Southeast Asian countries, as well as China.

One concrete example is the 143-hectare Viettel Logistics Park in Lạng Sơn, adjacent to the Chinese border, which started operations at the end of 2024 with around VND 3,300 billion invested. This project not only reduces congestion - especially for agricultural products - but also cuts customs clearance from 3 - 4 days down to just 24 hours. Now, goods like dragon fruit and watermelon can be quickly and safely exported, helping farmers avoid losses from border delays.

Viettel Post is also building logistics centers in key production regions such as the Mekong Delta and the Central Highlands, aiming to shorten waiting times and reduce costs. For instance, currently a refrigerated container truck costs about VND 100 million; if waiting time is decreased, this cost can drop to VND 50 - 60 million, and eliminating 10 days of wait time can save another VND 20 million in yard and cooling expenses.

Alongside Viettel Post, Bee Logistics targets revenue of VND 20,000 billion by 2027. With its strengths in supply-chain optimization and multimodal transport, Bee Logistics is rapidly expanding to offer comprehensive logistics solutions globally.

Vietnamese firms also continue to pour capital into port projects and fleet expansion - notably by Hai An, Gemadept, Viconship, among others. In the maritime sector, Hai An is reputable; they purchased large Panamax container ships (3,500–5,000 TEU) late last year, increasing fleet capacity by 45%. They are also strengthening domestic and international shipping routes, linking major ports like Hai Phong, Da Nang, and Ho Chi Minh City with Nansha, Qinzhou, and Cai Mep–Thi Vai. With flexible internal deployment and chartering strategies, Hai An continuously improves profits and competitiveness.

Meanwhile, Gemadept is capitalizing on its deep-water port Gemalink, which has already processed over 3 million TEU - far exceeding its 1.5 million TEU/year design capacity. Expansion projects such as Gemalink 2A (expected 2026 completion) and Nam Dinh Vu 3 (800,000 TEU capacity, to open at the end of 2025) are underway.

80% - that's the percentage of Vietnam’s warehousing market share currently dominated by foreign firms, mainly from the U.S., Singapore, and other countries, according to a Viettel Post executive.

Foreign Investment Floods Warehousing & Logistics Services

Vietnam’s logistics boom is drawing major global players from the U.S. and China. According to Eric Liang, CEO of Best Express Vietnam, the explosive e-commerce growth - 16-30% annually, valued at over USD 20 billion - is a key driver fueling the logistics sector.

Best Express entered via a franchise model, expanding its service points from 450 in early 2023 to 600 by year-end. They currently handle 2.2 million orders daily, with sorting speeds of 0.5–2 seconds per parcel.

They are now investing in smart warehouses and technology-driven logistics to stay ahead of the e-commerce boom. Liang also points out Vietnam’s strategic advantage on the Trans‑Asian Railway, linking through Singapore, Malaysia, Myanmar, Thailand, Laos, Cambodia, Vietnam, and Kunming (China).

Sanne Manders, President of Flexport, stated that before opening a Vietnam office, Flexport served more than 1,300 Vietnamese export factories and assisted 500 importers. Vietnam has become a strategic market for them.

International developers such as Mapletree (Singapore), BW Industrial (funded by Warburg Pincus), and SEA Logistics Partners of GLP Capital now occupy almost 75% of Vietnam’s leaseable warehousing space.

A Chance to Become the Region’s Logistics Hub

Dang Minh Phuong, President of the Ho Chi Minh City Logistics Association, notes that global supply-chain shifts present both opportunities and challenges, requiring Vietnamese logistics firms to be agile and innovative.

Vietnam stands at a pivotal logistics crossroads. “If we leverage the opportunity, improve infrastructure, encourage innovation, and execute policy reform, we can become a regional logistics hub,” said Ms. Phuong.

Vietnam's logistics sector is attracting major corporations from the U.S. and China - (Photo: Tu Trung)

Enhancing Logistics Competitiveness

The Vietnam Logistics Business Association (VLA) states that Vietnam’s logistics attractiveness is undeniable. Yet, a major challenge is high logistics costs.

Currently, logistics expenses account for 18-20% of Vietnam’s GDP, equating to USD 72-80 billion of its USD 400 billion GDP-far above the global average of 10.6%.

Many businesses highlight gaps like fragmented infrastructure, poor port planning, and lack of centralized hubs-hindering rapid logistics growth.

Nguyen Thanh Trung, director of a logistics firm in HCM City, warns that with foreign entrants aggressively expanding their share in warehousing and transport, domestic firms are seeing sharp declines in these sectors due to scale, capital, technology, and workforce barriers. There's growing concern that Vietnam’s logistics market may largely be controlled by foreign entities.

Still, Hoang Trung Thanh believes there’s room for domestic companies: logistics players in Vietnam are still few, and the market is growing rapidly. Parcel delivery could grow 5-10× over the next five years, while the logistics market may see 14-15% annual growth.

Foreign firms mainly capture existing market share, while growth potential remains untapped-offering opportunities for Vietnamese businesses.

According to FM Logistics Vietnam, Vietnamese manufacturers and exporters urgently need multi-functional logistics hubs offering warehousing, logistics management, packing, distribution, and e-commerce integration.

However, Vietnam faces a logistics warehouse shortage, driven by high industrial land rental costs and shrinking industrial land availability.

Experts say Vietnam needs a strong ‘conductor’ to develop policies addressing these bottlenecks and to unlock development potential-otherwise the hundreds-of‑billions‑of‑dollars logistics market will be dominated by foreign firms.

Source: Cong Trung/ tuoitre.vn

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