Foreign firms keep an eye on Vietnam logistics industry
Vietnam’s logistics growth reached about 14-16% in recent years, standing at US$40-42 billion a year, according to the Vietnam Logistics Business Association (VLA)..
Currently, Vietnam is home to more than 3,000 logistics companies, of which 20% are state-owned, 70% are limited liability companies and 10% are privately held, according to VLA surveys. Most of the world-leading multinational logistics corporations are active in Vietnam, including DHL, FedEx, UPS and Maersk, and accounting for a significant market share. With their rich experience, they have completed logistics lines that can provide services at 3PL, 4PL and even 5PL levels.
According to the Ministry of Industry and Trade, by investing in well-functioning domestic logistics companies, foreign firms will quickly make use of existing networks, customers and domestic operation experiences. This helps them reduce market entry costs in comparison to starting business from the beginning.
Big foreign corporations are investing and expanding their logistics business in Vietnam. Remarkable names include DHL Supply Chain, Maersk Logistics, APL Logistics, Nippon Express, Expeditors, Panalpina, Agility, DHL, Global Forwarding and DGF. Another example is Samsung SDS, a subsidiary of Samsung Group. The firm joined a venture with Aviation Logistics Service (ALS) to deliver logistics services at Noi Bai International Airport (Hanoi) as it forecast an annual logistics growth of 15 - 20% in Vietnam. Japanese shipping lines are also interested in developing deep-water container ports in Vietnam, both investment and operation. MOL invested in Vietnam's two largest deep-water ports, namely Cai Mep - Thi Vai and Lach Huyen (Hai Phong International Container Terminal). Saigon Newport Corporation also cooperated with NYK and Mitsubishi to operate ODA-funded container port in Cai Mep - Thi Vai.