Showing posts with label Cargo Output through Vietnam Seaports. Show all posts
Showing posts with label Cargo Output through Vietnam Seaports. Show all posts

Thursday, May 24, 2018

Vietnam Logistics and Warehousing Market-Ken Research


How Vietnam Logistics and Warehousing Market is Positioned?
The Vietnam Logistics and Warehousing Market is one of the fastest growing industries, but poor infrastructure is increasing its costs. The main logistics hubs can be found in the North (Ha Noi – Hai Phong area) and in the South (the wider Ho Chi Minh City area, including Dong Nai province, Binh Duong province and Ba Ria/Vung Tau). The market revenues were evaluated at USD ~ billion in 2011 and were witnessed to increase to USD ~ billion in the year 2017, thus growing at six year CAGR of ~% in the review period 2011-2017. The logistics industry encompasses with several components such as freight, warehousing, and value added services in Vietnam.  The number of industrial parks in Vietnam was evaluated at ~ as of June, 2014 out of which ~ parks had been operating for just over three years.

Major global shipping companies such as Damco, Transimex Saigon, SOTRANS, Vinafco, Vinalink, Gemadept and others have reinforced their presence in Vietnam by offering a variety of value added services such as outbound / inbound transportation, door-to-door delivery, packaging, pre-shipment inspection, labeling and others.  The E-commerce industry has contributed significantly in the growth of Vietnam logistics industry owing to express delivery services offered by the E-commerce giants to the customers in the country. The revenues generated in the E-commerce segment were evaluated at USD ~ million in 2015, which were observed to increase to USD ~ million in the year 2017, thus growing at a massive two year CAGR of ~% in 2015-2017.

Vietnam Logistics and Warehousing Market Segmentation
By Service Mix
The freight forwarding segment among service mix has dominated Vietnam logistics and warehousing market with a revenue share of ~%, thus evaluated at USD ~ billion in the year 2017 owing to the country’s export oriented manufacturing sector. Roadways were observed as the most preferred mode of transportation, thus displaying a volume share of ~% in Vietnam freight forwarding market in 2016. The remaining volume share of ~% was captured by inland waterways, maritime shipping, railways and aviation transport collectively. The warehousing segment and value added services followed freight forwarding market with a revenue share of ~% and ~% in Vietnam logistics and warehousing market in 2017.

By End User
The food and beverages segment dominated Vietnam logistics and warehousing market with a revenue share of ~%, thus evaluated at USD ~ billion in the year 2017. The sector is primarily driven by rising demand for both foreign as well as local brands in the country. Other sectors such as engineering equipments, metals, automotive, oil and gas, garments, plastic products, cosmetic, rubber products, arts and handicrafts, ceramics, glasses, pharmaceutical products and medical equipments collectively captured the remaining revenue share of ~% in Vietnam logistics and warehousing market in the year 2017.

By Regions
The Red River Delta and greater Da Nang regions are the primary source of economic activities in Vietnam where the country’s most transportation / logistics takes place. Collectively, they capture Vietnam logistics and warehousing market with revenue share of ~%, thus evaluated at USD ~ billion in the year 2017. Other regions in Vietnam such as Hanoi, Hai Phong, Thai Nguyen, Da Nang, Quang Ninh, Thanh Hoa and Quang Binh were witnessed to collectively capture the remaining revenue share of ~% in Vietnam logistics and warehousing market in the year 2017.

How Freight Forwarding Market of Vietnam is Positioned?
Roadways were observed as the most preferred mode of transportation, thus displaying a volume share of ~% in Vietnam freight forwarding market in 2016. The remaining volume share of ~% was captured by inland waterways, maritime shipping, railways and aviation transport collectively. 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 percentage of customers opting for express delivery has increased in the past five years, thus evaluated with a revenue share of ~% in Vietnam freight forwarding market in the year 2017.

By freight movement, the sea freight segment dominated Vietnam freight forwarding market by capturing revenue share of ~% in the year 2017 majorly due to increasing trade activities amongst the Southeast Asian countries. The remaining ~% revenue share was collectively captured by road, rail and air segments in 2017.

How is Express Delivery market performing in Vietnam logistics Industry?
The express logistics market in Vietnam was evaluated at USD ~ million in 2011 which witnessed an increase to USD ~ million in the year 2017, thus growing at a six year CAGR of ~% in the review period 2011-2017. Vietnamese express delivery firms such as Hop Nhat, ViettelPost and VNPost still have been operating well in the market alongside foreign giants such as DHL, FedEx and UPS. These foreign giants firms mostly deliver documents, mails, cargos in small quantities.

By international and domestic express, the domestic express segment dominated Vietnam express logistics market with a massive revenue share of ~% in the year 2017. Domestic express delivery companies operating in Vietnam were witnessed to start investing in modern technology in order to meet the increasing demand in the delivery of goods through E-commerce. In domestic express, Viettel post established itself as market leader within Vietnam, followed by GHN, VNPost and DHL Express. On the other hand the international express was dominated by DHL Express, followed by global players including FedEx, TNT and UPS Express.

Air express logistics has dominated the Vietnam express logistics market with a revenue share of ~% during 2017 owing to major international shipments falling in this category. Ground Express witnessed lower revenue market share accounting to ~% in 2017. Over the forecast period, Vietnam express logistics market is expected to drive demand for express mail services majorly from leading growth sectors such as IT, pharmaceuticals, electronics and financial & business services in the country. The market is estimated to generate revenues worth USD ~ million by the year ending 2018.

How E-commerce Logistics Market is Positioned in vietnam?
Vietnam E-commerce logistics market generated revenues worth USD ~ million in the year 2015 owing to the country’s increasing access to internet and smartphones coupled with the emerging trend of online shopping. Rising number of online orders, especially shipments for FMCG products and consumer durables among the Vietnamese population have been driving the demand for E-commerce logistics in the country. The total number of orders was evaluated at ~ million in the year 2015, which witnessed an increase to ~ million in 2017. The revenue generation increased to USD ~ million in 2017, thus displaying massive growth with a two year CAGR of ~% in the review period 2015-2017. The average price for delivering goods in Vietnam was estimated at USD ~ in the year 2017.

By speed of delivery, the 2 day delivery, commonly known as standard delivery segment was observed to be chosen as the most preferred shipping choice for Vietnamese digital buyers owing to the rise in availability for free shipping among many e-retailers in the country. The segment dominated by capturing a market share of ~% in terms of number of orders, thus evaluated at ~ million in the year 2017. Other delivery modes include 1 day delivery, same day delivery and delivery beyond 2 days in Vietnam. By area of delivery, the intercity segment within Vietnam E-commerce logistics market established itself as market leader with a massive market share of ~% in terms of number of orders, thus evaluated at ~ million orders in the year 2017. The segment dominates owing to the rising vehicle load capacity. The remaining ~% revenue share was captured Intracity segment, thus evaluated at ~ million orders in 2017.

How 3PL Market is Positioned in vietnam?
In terms of revenues, Vietnam 3PL market was evaluated at USD ~ billion in the year 2011, which witnessed an increase to USD ~ billion in the year 2017, thus growing at a six year CAGR of ~% in the review period 2011-2017. 3PL providers can offer a variety of services to companies seeking to outsource logistics functions in Vietnam majorly including domestic transportation, international transportation and warehousing. International companies operating in Vietnam 3PL market has clearly established themselves as market leader by capturing a whopping revenue share worth ~% in the year 2017. Major international players include VN Post, Viettel Post, GHN, GHTK, DHL Logistics, Damco, FedEx, APL, Gemadept, Vinafco and Transimex Saigon. On the other hand, domestic 3PL players captured the remaining revenue share of ~% in Vietnam 3PL market in the year 2017. The freight forwarding segment within Vietnam 3PL market dominated with a massive revenue share of ~% in the year 2017. The growth of E-commerce industry in Vietnam is one of the major driving forces for the 3PL freight forwarding owing to increase in demand for fast paced delivery, efficient inventory management and individualized shipping time. The remaining revenue share of ~% was captured by the warehousing segment in the year 2017.

Vietnam’s demographics and proximity to other markets presented an opportunity for newly established players to localize production and to expand distribution networks through mergers and acquisitions. The market is estimated to generate revenues worth USD ~ billion by the year ending 2022, thus growing at a CAGR of ~% in the forecast period 2018-2022.

What is the Potential of Warehousing Market in Vietnam?
In terms of revenue generation, the warehousing market in Vietnam was evaluated at USD ~ billion in the year 2011. The market was witnessed to increase to USD ~ billion in the year 2017, thus growing at a six year CAGR of ~% for the review period 2011-2017. Growing manufacturing activities in Vietnam, rising domestic consumption and increasing international trade were some of the primary growth drivers of warehousing in Vietnam. By number of warehouses, the Southern region dominated Vietnam warehousing market with the presence of ~% warehouses in the year 2017 owing to proximity towards key destinations such as airports, seaports, major cities, main highways and borders. The remaining ~% revenue share was collectively captured by the Northern and Central Vietnam in 2017.

By end users, the retail sector drives significant investment and value for Vietnam warehousing market by capturing revenue share worth ~% in the year 2017. Various product segments such as electronic devices, textile and footwear, wooden products, seafood and others captured the remaining revenue share worth ~% in Vietnam warehousing market in the year 2017.

By international and domestic companies, the international segment operating in Vietnam warehousing market dominated by capturing revenue share worth ~% whereas, domestic firm captured the remaining revenue share worth ~% in the year 2017. By business model, the industrial/retail freight segment dominated overall Vietnam warehousing market with a massive revenue share of ~% in the year 2017. The rise in the industrial sector over the years gave an opportunity to the warehousing market to increase in numbers making a positive impact on the warehousing industry. The container freight, cold storage, agriculture and other segments collectively captured the remaining revenue share of ~% in Vietnam warehousing market in the year 2017.
Over the forecast period, Vietnam warehousing market is expected to drive demand for more warehouses in near future on account of rising production in the country. Vietnam warehousing market is expected to generate revenues worth USD ~ billion in the year 2018 owing to rising demand for warehousing services because of lack of adequate space in the ports and IDC and CFS.

Future Outlook and Projections in Indonesia Daycare Market
Over the forecast period, Vietnam logistics and warehousing market is expected to generate revenues worth USD ~ billion by 2018. The country will focus on attracting investment in logistics infrastructure development, constructing regional and international logistics service centers, improving the efficiency of connection between Vietnam and other countries, thereby becoming a modern logistics hub in near future. By the year ending 2019, Vietnam’s E-commerce association is setting goals to improve logistics infrastructure in association with the country’s E-commerce industry. The association plans to develop transport systems with the aim of following E-commerce growth drivers including growing importance of last mile delivery.

Over the long term, the Ministry of Transport and Ministry of Industry and Trade is expected to invest and give support to improve operating and marketing efficiency, and expand sources of goods for the Cai-Mep Thai Vai port complex, situated in Vung Tau region, Vietnam. Various Free Trade Agreements (FTAs) signed between Vietnam and the ASEAN Economic Community (AEC) in 2015 will lead to boost the country’s trade relations in long term. Additionally, foreign investment is anticipated to grow strongly in Vietnam as many logistics enterprises in ASEAN countries are keen to invest and have a better understanding of the laws, customs and culture of Vietnam. The market is estimated to generate revenues worth USD ~ billion, thus growing at a CAGR of ~% over the forecast period 2018-2022.

By service mix, the freight forwarding segment within Vietnam is expected to dominate the Vietnam logistics and warehousing market in the near future with a revenue share of ~% by the year ending 2022. The warehousing segment and value added services are anticipated to follow freight forwarding with a market share of ~% and ~% in terms of revenue by the year ending 2022.

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