Previously, freight forwarders were known to be innkeepers who helped hotel guests in holding and re-forwarding their goods. The system developed and transformed into business contracts over the years. Advancement in transport systems and increasing availability of trains and steamships led to the start of Vietnamese trade activities with other countries. The growth of freight forwarding in Vietnam was highly supported by development in major industries such as manufacturing, retail, wholesale, construction, agriculture and mining. The Vietnam freight forwarding industry in was evaluated at USD ~ billion in terms of revenue contribution in 2011. The market witnessed an increase to USD ~ billion in 2012, thus growing at ~% in comparison with previous year. Expanding FMCG sector, retail sector, food and E-commerce industry in the country has attributed to the extraordinary growth of the freight forwarding industry in the country. The market generated revenues worth USD ~ billion in the year 2017, thus growing at a six year CAGR of ~% in the review period 2011-2017. 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. The GOVs direction on improving the sectors including infrastructure development, the restructure of the air freight market by the year ending 2020 will see the development of the cargo transport market via air and increase the role of airfreight, particularly in key economic zones and remote areas.
Vietnam Freight Forwarding Market Segmentation
By Normal and Express Delivery
The normal / standard delivery segment dominated Vietnam freight forwarding market with a massive revenue share of ~%, whereas the remaining revenue share of ~% was captured by the express delivery segment in the year 2017. Normal delivery services are generally preferred where there is no urgent requirement for orders. Major companies operating into normal delivery include Damco, Geods, DB Schenker, Kuehne+Nagel and others.
By International and Domestic Freight Forwarding
International freight forwarding accounted for majority of the revenues for overall Vietnam freight forwarding market by capturing massive revenue share of ~% in the year 2017. Free trade agreements with other nations over the period 2010-2017 have provided significant boost to international freight forwarding sector in Vietnam. On the other hand, the domestic freight forwarding segment was observed to capture the remaining ~% revenue share in 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 road freight segment followed with a revenue share of ~% in the year 2017 owing to a larger fleet of vehicles and a national network of strategically located warehouses and distribution centers. The remaining ~% revenue share was captured by air freight and rail freight segments collectively in 2017.
Vietnam Freight Forwarding Market Segmentation
By Flow Corridors
Asia flow corridor was observed to be the largest contributor in terms of revenue in Vietnam freight forwarding market by capturing revenue share of ~% in the year 2017. In accordance with International Trade Centre, Vietnam’s import to Asia as well as export from Asia was recorded as USD ~ thousand and USD ~ thousand as of 2015 in comparison with other regions such as Europe, America and Africa. The Vietnam-Europe flow corridor followed Vietnam-Asia with a revenue share of ~% in the year 2017. Other major flow corridor includes the Africa region which has been counted as emerging trading partners for Vietnam.
By International and Domestic Companies
International companies operating in Vietnam freight forwarding market dominated by capturing revenue share of ~%, thus evaluated at USD ~ billion in the year 2017. Ho Chi Minh City is drawing interest from a number of global investors seeking office / commercial space, retail and hospitality investment opportunities coupled with a high rise in buildings and a number of shopping centers in the city. The city is well connected with the rest of the world through air and sea routes and thereby, drawing huge foreign investments from international players to various sectors. The domestic companies operating in Vietnam freight forwarding market captured the remaining ~% revenue share thus, evaluated at USD ~ billion in 2017.
Competitive Landscape in Vietnam Freight Forwarding Market
The freight forwarding industry in Vietnam was observed as highly fragmented with the presence of both domestic as well international freight forwarders in the country. In accordance with the Vietnam Freight Forwarders Association (VIFFAS), there are approximately ~ freight forwarders in Vietnam as of 2013, most of which constitute small and medium sized enterprises with limited capital, well-equipped facilities and a respectable number of warehouses. On the basis of revenue, major freight forwarding companies amongst the air freight segment are ranked in the following order - DHL, UPS, Expeditors, Panalpina, Kintetsu, APLL, Hellmann, UTI and Kuehne Nagel. Other freight forwarders focusing on ocean freight / contract logistics / warehousing services include Ceva, Bollore, DB Schenker and others. The US and EU market was witnessed to majorly contribute towards Vietnam freight forwarding market.
Vietnam Freight Forwarding Market Future Outlook and Projections
Over the forecasted period, Vietnam freight forwarding market is expected to generate revenues worth USD ~ billion by the year ending 2018, driven by expanding industrial activities, growing E-commerce industry and continuous investment by the government in development of logistics infrastructure in Vietnam. Offshore services such as data, business-process outsourcing, and IT appear to be promising areas, thus leading to rise in trade activities for computers and other electronic items, thus driving the demand for freight forwarding services. HCMC region is one of the ideal locations for Vietnam’s exports and imports, which is expected to deliver expertise in the ocean and air forwarding industry. In terms of revenue recognition, Vietnam freight forwarding market is estimated to see a positive trend owing to expanding industrial activities in the country, thus evaluated at USD ~ billion by the year ending 2022.
For more information on the research report, refer to below link:
https://www.kenresearch.com/automotive-transportation-and-warehousing/logistics-and-shipping/vietnam-freight-forwarding-market/145654-100.html
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