Many businesses increase investment in logistics
The report on the emerging market logistics index released by the leading logistics and transportation service provider Agility in 2022 shows that Vietnam ranks 11th in the ranking of the top 50 countries. Among ASEAN countries, Vietnam is only behind Indonesia and Malaysia, Thailand, ahead of the Philippines, Myanmar and Cambodia.
It is expected that next year, the number of logistics and e-commerce businesses will still grow at a stable rate, contributing to boosting the demand for warehousing and transportation services in Vietnam. Besides, according to the Vietnam Logistics Business Association (VLA) – the growth rate of the industry in the domestic market in recent years has reached about 14-16% with a scale of 40-42 billion USD/year.
Mr.Matthew Powell – Director of Savills Hanoi said: Vietnam is a destination for many businesses in the field of manufacturing and logistics. However, this has been coupled with an increased demand for high-quality industrial real estate. Currently, many businesses are having a hard time finding locations. Industrial parks and logistics areas such as industrial real estate supply have not been able to meet the development needs of businesses.
“The past time has witnessed an increase in investment attraction, technology and infrastructure to support logistics growth. In early 2022, Emergent Vietnam Logistics Development (Singapore) announced a project with an investment of 35 million USD, specializing in providing cold storage systems to meet the increasing market demand,” added Mr.Matthew Powell.
In the field of express delivery, the presence of BEST Inc. also brings “a wind of change” to the domestic market. Thanks to the support of technology, BEST Express only takes 2 seconds to process a bulky package, weighing over 3 kg. Up to now, this delivery business owns a total area of warehouse operations nationwide to more than 100,000 m2, with the capacity to handle over 1.8 million parcels per day.
Or recently, the international logistics warehouse developer Logos Property has entered into a joint venture with Manulife Investment Management in a project to develop a modern built-to-suit logistics factory with a total area of more than 116,000 m2 and over 80 million USD. The emergence of these international entities has enhanced the quality of construction and operation of logistics industrial real estate in Vietnam.
Opportunities for Vietnamese logistics industry to rise
According to Mr. Matthew, investors in industrial real estate in Vietnam are increasingly focusing on solutions to optimize business performance. They consult expertise from developed regions such as the US, UK, Singapore, Australia or Japan to make improvements in design and operation, in line with the needs of logistics businesses in Vietnam.
Besides, accessibility is a prerequisite for the logistics industry. Not only at the production stage, the transportation process will also determine the success of the supply chain. Businesses will find locations with complete transport infrastructure to set up factories and warehouses. As a result, it will be more convenient to move goods to ports and airports for export or to supply products to large domestic markets. Therefore, the completion of transport infrastructure will create leverage for the development of Vietnam’s logistics industry.
Mr. Le Duy Hiep – Chairman of the Vietnam Logistics Service Association (VLA) said that in Vietnam, the logistics infrastructure in general, including transportation infrastructure and warehousing infrastructure, has changed. fast in the past. From the perspective of traffic infrastructure, in the last 10 years, the system of highways and national highways has been expanded and extended. Vietnam also has large seaports such as Cai Mep – Thi Vai port, Cat Lai port… which are international transshipment gateways. For the logistics-related real estate industry, the key is supply. Many project developers have been working with experts around the world to apply methods to increase investment and operational efficiency for businesses.
Source Ngoc Thao – congthuong.vn