Vietnam Logistics
Overview
Vietnam's logistics sector has experienced rapid development to support the country's manufacturing export economy and booming domestic e-commerce. With a long coastline, major ports, and an expanding highway network, Vietnam serves as both a production hub for global supply chains and a growing consumer market requiring last-mile delivery.
The logistics market remains fragmented with a mix of state-owned enterprises, international freight forwarders, and local last-mile specialists competing across different segments of the value chain.
Key Characteristics
- Geographic challenges: Mountainous north, Mekong Delta waterways, 3,000km coastline
- Fragmented market: Top 10 players hold less than 30% market share
- Two-day delivery standard for domestic inter-city shipping
- Cash-on-delivery handling required for 60-70% of e-commerce shipments
- Warehouse concentration in Binh Duong, Dong Nai (south) and Hanoi region (north)
- Cross-border e-commerce driving demand for international express and bonded warehouses
Market Structure
Freight and Cargo
- Sea freight: Cai Mep, Hai Phong, Da Nang major container ports
- Air freight: Tan Son Nhat (Ho Chi Minh City), Noi Bai (Hanoi) international cargo hubs
- Road transport: North-South Expressway corridor critical for domestic distribution
- Rail: Limited freight usage, Vietnam Railways state monopoly
Last-Mile Delivery
- Hyper-local competition with price-sensitive market
- Motorcycle-based delivery dominant in urban areas
- Locker and pickup point networks emerging but limited
- Attempted delivery rate critical metric due to COD and address accuracy issues
Warehouse and Fulfillment
- Modern warehouse supply limited, particularly cold storage
- E-commerce platforms building owned fulfillment centers
- Bonded warehouses growing for cross-border trade
- Industrial park concentration creates logistics clustering
Major Players
Express Delivery (Last-Mile)
- Vietnam Post: State-owned, universal coverage including remote areas
- GHN (Giao Hang Nhanh): E-commerce focused, Scommerce subsidiary
- GHTK (Giao Hang Tiet Kiem): Low-cost leader, SME focused
- J&T Express: Indonesian-owned, aggressive pricing, wide network
- Ninja Van: Regional player, technology-focused
- Kerry Express (now Flash Express): Thai-owned, e-commerce specialist
- SPX Express: Shopee-owned logistics arm
- Lazada Logistics: Alibaba-owned, integrated with marketplace
Freight and Supply Chain
- ITL Corporation: Major 3PL, supply chain solutions
- SNP (Saigon Newport): Port operations and inland container depots
- Transimex: Cold chain and warehousing specialist
- Maersk, DHL, FedEx, UPS: International freight and express
Warehouse and Industrial
- SNP: ICDs and container yards
- GLP, ESR, BW Industrial: Modern logistics facility developers
- Kerry, Konoike: Bonded and specialized warehousing
Technology Platforms
- Abivin: Route optimization and TMS software
- Logivan: Trucking marketplace and freight matching
- EcoTruck: Digital freight forwarding
Why This Matters
- COD handling capabilities are essential for e-commerce market entry
- Warehouse location near industrial parks reduces inbound logistics costs
- Multi-provider strategies needed due to service coverage gaps
- Address standardization challenges require flexible delivery protocols
- Peak season capacity (Tet, Double 9, Double 11) requires advance planning
- Cross-border clearances benefit from bonded warehouse partnerships
Sources
- Vietnam Ministry of Transport logistics development reports
- Vietnam Logistics Association (VLA) industry statistics
- World Bank Logistics Performance Index
- General Statistics Office of Vietnam transport and storage data
- Vietnam Seaports Association cargo volume reports
- Civil Aviation Authority of Vietnam air cargo statistics