Vietnam’s logistics market is highly ranked

Vietnam is currently in top 10 of 50 emerging logistics markets globally. In 2024, it is forecast that the world economy will gradually recover. This is opportunity for logistics businesses to find orders again.

In 2023, the world economy shows signs of recovery affter the Covid-19 pandemic.

However, the recovery speed is slow due to many complex factors combined with unpredictable geopoliticial risks, causing the global economy to face the risk of recession. Weak demand and rising costs push back production, business, investment and trade activities.

Vietnam is currently among the top 5 countries in terms of logistics development in the ASEAN region

It is known that The United States’ continuous interest rate increases have a negative impact on the USD exchange rate, global inflation, and strong fluctuation in energy and essential food prices. Highly USD interest rates and competition between major economies also affect the movement of FDI capital flows and entails major changes in the financial and monetary policies of major economies in the world.

All of the above factors have an impact on the development of Vietnam’s logistics service industry. Despite facing many challanges in 2023, the logistics industry continues to strive regain growth momentum.

The World Bank (WB) recorded that by 2023, Vietnam will rank 64/160 countries in terms of logistics development; ranked 43rd in the logistics performance index (LPI). In the ASEAN region, Vietnam is in top 5 countries along with the Philipines, Singapore, Malaysia, and Thailand.

According to the Emerding Market Index Ranking of Agility – the world’s leading transportation and logistics service provider, Vietnam is currently in top 10 of 50 emerging logistics markets globally.

Regarding international logistics opportunity criteria, Vietnam ranks 4th and is considered the country with the leading logistics development potential Southeast Asia. This countinues to confirm that the development potential of logistics industry is very large, the only problem is which environment and policies will be focused on promoting in the future.

Although Vietnam’s logistics sector has developed rapidly and achived positive results, the field has limitiations and challenges. Specifically, the legal framework for the logistics industry has had many documents issued.

However, specific policies detailing those guidelines have not yet been implemented or are still overlapping.

In addition, transportation and logistics infrastructure is not synchronized, creating multimodal transportation corridors while the need for high-quality transshipment of goods between modes is growing.

At the same time, Vietnam also lacks a centralized logistics supply with a strategic location, synchronized with a system of ports, airports, national highways, and production facilities… These things are posing significant challenges for the development of Vietnam’s logistics industry in the future. However, this is also an opportunity for the warehouse market to develop.

For businesses looking for a solution to start a business or expand production effectively, optimize costs, and create quick revenue conversion, choosing a ready-built warehouse is the right decision.

Possessing strategic locations, fronting Highway 50, adjacent to developed infrastructure area, convenient transportation, the OSSIF ready-built factory system cannot be ignored.

Update more information about FDI Long An here.

Follow OSSIF fanpage to update the latest preferential policies for service factory/warehouse rental.