Logistics

With a drastically increasing GDP, beneficial geographical location, young and tech-savvy population, Vietnam has become one of the top destinations for foreign direct investment. The logistics market in the country is in its transition stage with a strong rise in demand for this sector. High economic growth, increasing domestic manufacturing, approved free-trade agreements, booming e-commerce and the relocation of factories out of China are some of the key growth drivers of the Vietnamese logistic industry.

To become one of the fastest-growing industries in Vietnam, the government has invested a lot in improving the quality of infrastructure, which used to be one of Vietnam’s weaknesses. Currently, Vietnam has the 2nd highest spending on transport infrastructure in South East Asia.

According to Vietnam Investment Review, the logistics market has become more vibrant in recent times with large merger and acquisition (M&A) deals between Vietnamese businesses and foreign investors, especially those from Japan and the Republic of Korea. Furthermore, the country’s Decree No.163/2017/ND-CP enacted in December 2017 concerning the removal of restrictions on the commercial presence of foreign investors in the logistics sector. Decree 163 will considerably enhance the flow of FDI into Vietnam’s logistics, encourage the sustainable development of this sector in all modes of transportation, and push to the local market.

With a broad international network and a deep understanding of Vietnam’s market condition, TBRC can not only support foreign investors and companies in finding promising investment opportunities and market-entry into Vietnam, but also accompany with Vietnamese enterprises to improve and grow faster and more sustainably.