Challenges and opportunities in Vietnam’s Logistics sector for foreign investors

Vietnam's logistics sector presents opportunities for investors willing to navigate challenges such as infrastructure, competition, and more.
Vietnam Logistics

25Dec2025

B&Company

Latest News & Report / Vietnam Briefing

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B&Company is the first Japanese company specializing in market research and investment consulting in Vietnam since 2008.

In this section “Vietnam Briefing”, young researchers of B&Company will provide timely information of Vietnam’s industrial trends, consumer trends, and social movements.

This article is written in English and automatic translation is used for other language versions. Please refer to the English version for accurate content. Although we strive to ensure the accuracy of the original information, please check separately for each information. Interpretations and future prospects are the personal opinions of each researcher.

Vietnam’s logistics sector is emerging as a key growth engine, supported by strong manufacturing activity, rapid e-commerce expansion, and large-scale infrastructure investment. Valued at over USD 52 billion in 2025, the market is projected to grow steadily toward 2030, underpinned by improving logistics performance and rising demand for value-added services. However, high logistics costs, infrastructure bottlenecks, workforce skill gaps, and regulatory complexity remain significant challenges.

Market Overview

According to the Vietnam Logistics Business Association (VLA) in 2024, there are currently more than 30,000 enterprises engaged in providing logistics services, of which around 70% are headquartered in Ho Chi Minh City. Approximately 89% are fully domestic-owned enterprises, while the remainder are foreign-invested companies. It is estimated that the logistics sector employs nearly 1.2 million workers nationwide[1].

Market size and Growth trajectory

Vietnam’s logistics sector has emerged as a critical pillar of economic growth, demonstrating remarkable expansion despite global economic uncertainties. The sector’s market size is estimated at USD 52.06 billion in 2025, and is expected to reach USD 71.88 billion by 2030, at a CAGR of 6.67% during the forecast period (2025-2030)[2]. The sector has demonstrated clear advancement, as Vietnam’s Logistics Performance Index (LPI) improved to 3.3 in 2023, ranking 43rd among 139 economies worldwide and fifth across ASEAN countries[3]. It also contributes directly around 5-7% of GDP annually during 2025 – 2035 period[4].

Vietnam Freight And Logistics Market Size

Unit: USD billion
Vietnam Freight And Logistics Market Size

Source: Mordor Intelligence

Investment situation

As of the end of 2024, Vietnam had a cumulative total of 1,238 FDI projects invested in the logistics sector, generating employment for 63,515 workers, including nearly 30 of the world’s leading logistics groups such as DHL, Schenker, Expeditors[5]. The five countries with the largest number of investment projects in Vietnam’s logistics sector include South Korea and Singapore, each with 221 projects, jointly accounting for the highest share at 17.9%; Hong Kong (China) with 177 projects (14.3%); and Japan and China, each with 140 projects, representing 11.3% apiece.

Logistics enterprises landscape

Although the number of newly established logistics enterprises increased by 13.5% (with approximately 6,503 companies formed, accounting for 5.33% of all newly established enterprises in the first nine months of 2024), the industry continues to face significant cost challenges, as logistics costs still account for around 16.5%-16.8% of GDP, well above the global average of 11.6%[6]. At the same time, 4,519 transport and warehousing enterprises temporarily suspended operations. Overall, while several logistics companies have achieved stable and impressive growth, small and medium-sized logistics firms have experienced declining business performance, incurred losses, and, in some cases, exited the market altogether.

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