Still "widening the road" for domestic logistics businesses

Compared to export, the logistics segment for import is considered "suitable" and there is still plenty of room for domestic enterprises to exploit...

Foreign investors go first

According to a report by Agility - a logistics market ranking unit, in 2022, Vietnam's logistics market will rank 11th in the top 50 global emerging logistics markets, with a projected compound annual growth rate (CAGR). reported to reach 5.5%/year in the period 2022-2027.

Dao Trong Khoa, Standing Vice President of the Vietnam Logistics Association (VLA), said that there are more than 5,000 businesses participating in the logistics market in Vietnam. Of which, 89% are domestic enterprises and are mainly small and medium sized, 10% are joint ventures and 1% are 100% foreign owned enterprises providing transnational logistics services.

However, according to information from units in the industry, the number is not proportional to the revenue when foreign investors dominate with 70-80% of the total market revenue.

According to experts, competitiveness in this field is mainly considered on two areas of operation, which are logistics for export and import. For export, most domestic logistics enterprises are exporting in the form of FOB (Free on board), FCA (Free Carrier - Delivered to the carrier). That is, foreign import enterprises often appoint a local logistics company to provide services, so the competition for Vietnamese enterprises in this field is very low.

Internal block needs a leader

From the perspective of an investment consulting and connection unit, Ms. Do Thi Thu Hang - Senior Director of Research and Consulting Department, Savills Hanoi said, compared to 10 years ago, industrial real estate and Logistics is currently very interested by investors, especially foreign investors. Maintaining stable economic growth for a long time is the foundation for these markets to develop, attracting the attention of investment capital flows.

“Even when the economy is strongly influenced by external factors such as the Covid-19 pandemic, world geopolitical fluctuations, etc., the attraction of investment in industrial and logistics real estate is still increasing. , is even 'hotter' than the housing market," Hang said, adding that currently, the supply of warehouses and ready-built factories serving the North's logistics needs is over 600,000 m2. with an average rent of 5 USD/m2/month, occupancy is about 78%.

The demand for warehouses and ready-built factories is increasing day by day

“We see that the industrial and logistics real estate industry is being well supported, with proactive and flexible policies from the Government and local authorities. Now is a favorable time to develop this segment in Vietnam, an opportunity for businesses to participate in exploitation. From the perspective of foreign investors, we highly appreciate the foundational factors and policies to promote the development of the logistics industry in Vietnam", a representative of Sembcorp emphasized.