Vietnam’s transportation and logistics market is forecast to reach a value of 48.6 billion USD in 2024 and continue to grow to 71.9 billion USD by 2030.

Vietnam’s transport and logistics market is forecast to reach a value of US$48.6 billion in 2024 and continue to grow to US$71.9 billion by 2030 at a compound annual growth rate (CAGR) of 6.8%.

The strong development of logistics and e-commerce requires a large supply of warehouses, factories and synchronous infrastructure. According to the recently released Vietnam Industrial Real Estate Highlights 2024 report by Savills, the total supply of ready-built factories nationwide reached 15.1 million m², up 31% over the previous year, mainly concentrated in the southern region with an occupancy rate of 80%. The northern region accounts for 30% of the country’s supply, but the average rental price is higher, reaching 5 USD/m²/month.

Mr. John Campbell, Director of Industrial Services at Savills Vietnam, commented that infrastructure is the backbone of the logistics industry. The government needs to invest heavily in developing transportation, warehouse and seaport systems to meet the growing needs of the market. At the same time, new industrial zones also need to be more flexibly planned to serve both production and logistics, reducing administrative barriers in converting land use purposes.

In addition, according to the e-Conomy SEA 2024 report recently released by Google, Temasek and Bain & Company, the growth rate of Vietnam’s e-commerce market this year reached 18%, ranking third in Southeast Asia, after the Philippines and Thailand. The average growth rate is maintained at 19% per year until 2030, when this market becomes one of the important economic drivers.

In addition, the e-commerce market has also recorded an explosion, reaching a value of 22 billion USD this year, placing Vietnam in third place in Southeast Asia, behind only Indonesia and Thailand. By 2030, Vietnam’s e-commerce is expected to grow to 63 billion USD, surpassing Thailand and ranking only behind Indonesia in the region.

With a population of over 100 million and over 80% of its population using the internet to shop online, Vietnam is emerging as a leading potential e-commerce market. Other driving factors include GDP growth, production diversification, an expanding middle class, and efforts to improve infrastructure. All of these factors not only provide momentum for logistics and e-commerce but also contribute to boosting Vietnam’s digital economy in the long term.