Vietnam has many opportunities to strongly develop the Logistics industry

In 2023, retail e-commerce revenue in Vietnam could reach 20.5 billion USD, accounting for about 8% of the total retail sales of goods and consumer service revenue in the country.

Vietnam's Logistics industry is still mainly concentrated in large markets.

This data was announced by the Department of E-Commerce and Digital Economy, showing the impressive growth of the domestic e-commerce industry. Previously, in 2022, retail e-commerce revenue in Vietnam in 2022 reached 16.4 billion USD, accounting for 7.5% of the country's total retail revenue of consumer goods and services.

According to Savills, logistics in Vietnam is still concentrated mostly in large markets. This fact also shows opportunities for investors in this segment to provide supply to meet the growing needs of logistics.

Mr. Thomas Rooney.

Mr. Thomas Rooney, Senior Manager, Real Estate Consulting Services, Savills Hanoi, said that the current logistics market has not yet fully exploited its potential. Supply has not really met demand, requiring investors to flexibly come up with new models and optimize available warehouse space.

According to Mr. Thomas, the e-commerce industry needs large warehouse space to store many items as well as install systems to support picking and packaging activities. In addition, international manufacturers with high value-added products expect to have warehouse space to store goods after production. Reality shows that the supply of warehouse space in the Vietnamese market, especially in the North, is still not much. Therefore, investors can consider high-rise warehouses or smart port warehouses.

“Vietnam is becoming one of the world's prominent manufacturing centers with an increasingly improved investment environment and major trade agreements being signed. This has created more attraction of Vietnam's industrial market for the investment portfolios of large and reputable international enterprises. Investment in infrastructure and logistics systems will simultaneously strengthen the supply chain for manufacturing businesses," Mr. Thomas Rooney commented, adding that, along with that, the positive outlook for the trade industry Electronics and the continued increase in demand for fast delivery promise to be the premise for the logistics market to further develop in the near future with more efficient and optimized operating models.