Logistics services such as transportation of products, sea-air intermodal transportation, warehouse management, cold chain services and inspection carry a major demand to support the country’s processing industries as well as food and aquaculture businesses.
The report titled “Vietnam Freight Forwarding Market Outlook to 2022 – By Normal and Express Delivery; By Sea, Road, Air and Rail Freight and By International and Domestic Freight Forwarding” by Ken Research suggested a growth at a noteworthy six year CAGR of 14.2% in terms of revenue in Vietnam freight forwarding market in next 5 years till the year ending 2022.
The freight forwarding companies operating in Vietnam specializes in providing a full range of services such as tracking inland transportation, preparation of shipping and export documents, booking cargo space, negotiating freight charges, freight consolidation, cargo insurance, and filing of insurance claims. Expanding FMCG sector, retail sector, food and E-commerce industry has attributed towards the growth of freight forwarding industry in the country. Surging demand for wearing apparels; rubber and plastic products; office, accounting and computing machineries, electrical machineries, motor vehicles and other transport equipment has expanded their production over time. Rapid growth in the country’s manufacturing sector exports was one of the major driving forces for Vietnam’s freight transportation. Vietnam’s freight transport market is majorly dominated by two modes namely inland waterway transport (IWT) and the roadways.
From bulk cargo to a single package; perishable goods to fragile freight, heavy outsized cargo and dangerous goods, all types of freight are transported. The Vietnamese government has invested a large proportion in infrastructure to facilitate freight transport and development of logistics services for instance, investment in large-scale construction and modern equipment utilized towards Vietnam’s seaport network. The development of the port system at the key gateway ports of HCMC (including Cai Mep-Thi Vai) and Haiphong (including Cai Lan) continues to favor the development of new terminals and relatively small terminal facilities compared to international standards. Vietnam has become one of the leading destinations in the world for foreign multinationals, thereby attracting FDIs to setup their global manufacturing base within Vietnam and creating a positive impact on the country’s cargo transport market.
For more information on the research report, refer to below link:
Ankur Gupta, Head Marketing & Communications