Vietnam’s 3PL market by Market (Freight Forwarding and Warehousing Services) and by Companies (International Companies and Domestic Companies); Major Players Operating in Vietnam 3PL Market (DHL Vietnam, Damco Vietnam, FedEx, Kerry Logistics, Gemadept, Vinafco, Transimex Saigon and others.
• The growth in Vietnam’s E-commerce industry is likely to drive the country’s 3PL market.
• With Vietnam’s accession to World Trade Organization (WTO), restrictions on foreign entities have been reduced.
Over the forecasted period 2018-2022, 3PL companies operating in Vietnam will be emphasizing more towards technological upgrades in order to increase client interactions. Growth in Vietnam’s E-commerce industry is further expected to drive the country’s 3PL market due to an increase in demand for faster delivery of goods, efficient inventory management, freight forwarding and individualised shipping time. Increasing globalization is encouraging companies across several industry verticals such as E-commerce, food and beverage, durable manufacturing, and general merchandising to expand their geographical presence, therefore creating a positive impact on the 3PL market.
Third-party logistics outsourcing is rapidly gaining importance in the country as more and more corporations across the world are unable to manage their complex supply chains. Vietnam’s accession to the WTO has given a surge to the country’s FDI levels as more and more foreign entities were witnessed to set up their manufacturing facility within Vietnam.
Increasing investments have shown a rise in the production and sales of domestic as well as international products within Vietnam along with their transportation needs, thus providing companies with an option to in-house the delivery process or outsource it to a 3PL provider. Logistics outsourcing brings many benefits to the business such as it reduces capital, improves customer service, faster delivery of goods, developing business relationships and improved access to information.
Analysts at Ken Research in their latest publication “Vietnam Third Party Logistics (3PL) Market Outlook to 2022 – By Freight Forwarding and Warehousing 3PL Services and By International Companies and Domestic Companies” believe that companies focusing on an untapped market, developing innovative technological solutions and collaboration between trade-related companies and Logistics Service Providers (LSPs) will have a positive impact on the market.
Vietnam’s 3PL market is expected to register a positive CAGR of 13.6% during the forecast period 2018-2022. The market is further expected to be driven by expanding industrial activities, growing consumer preference for online shopping, upcoming infrastructure in the country & continuous investment by the government in the development of logistics infrastructure and consistent economic growth.
Author: Ankur Gupta