Vietnamese Third Party Logistics Service Providers - Ken Research

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Vietnam Third Party Logistics (3PL) Market
Research Report to 2022 Ken Research
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How Vietnam 3PL Market is Positioned? In Vietnam,
3PL started with small enterprises in the early
70s, who tried to outsource parts of their
business operations to outside service providers.
These service providers eventually expanded their
geographical coverage, facilities and
commodities as well as updated their warehousing
and transportation. Compared to other parts of
the world, logistics industry in Vietnam is still
in its developing phase, as supply chain
processes for instance procurement,
transportation, warehousing and delivery are not
executed in an integrated manner. In terms of
revenues, Vietnam 3PL Market was evaluated at USD
billion in the year 2011, which witnessed an
increase to USD billion in the year 2017, thus
growing at a six year CAGR of in the review
period 2011-2017. Logistics outsourcing aids
businesses by reducing capital and overall costs
improving customer service and lastly helps in
developing business relationships with clients.
3PL providers can offer a variety of services to
companies seeking to outsource logistics
functions in Vietnam majorly including domestic
transportation, international transportation and
warehousing.
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Most of the foreign firms operating in Vietnam
such as Maersk Logistics, APL Logistics, NYK
Logistics and MOL Logistics were observed to
offer 3PL or 4PL services whereas, Vietnamese
domestic firms could only handle 2PL services. In
Vietnam, large scale companies such as DHL,
Kuehne Nagel or DB Schenker were witnessed to
be the leading suppliers of 3PL
services. Vietnam 3PL Market Segmentation By
Market The freight forwarding segment within
Vietnam 3PL market dominated with a massive
revenue share of in the year 2017. The growth
of E-commerce industry in Vietnam is one of the
major driving forces for the 3PL freight
forwarding owing to increase in demand for fast
delivery, efficient inventory management and
individualized shipping time.
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In Vietnam, 3PL market vendors are focusing on
providing international freight management and
customs brokerage with their extensive knowledge
of import-export processes and international
regulations, thereby leading to increase in
demand for 3PL freight. On the other hand, the
warehousing segment within Vietnam 3PL market was
witnessed to capture the remaining revenue share
of in the year 2017. 3PL warehousing companies
in Vietnam handles all aspects of shipping a
particular product from anywhere in the world to
their facilities and then straight into customers
hands. By Companies International companies
operating in Vietnam 3PL market has clearly
established themselves as market leader by
capturing a whopping revenue share worth in
the year 2017. Major international players
operating in third party logistics segment
include VN Post, Viettel Post, GHN, GHTK, DHL
Logistics, Damco, FedEx, APL, Gemadept, Vinafco
and Transimex Saigon. On the other hand, domestic
3PL players captured the remaining revenue share
of in Vietnam 3PL market in the year 2017.
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Competitive Landscape in Vietnam 3PL
Market Third-party logistics outsourcing is
rapidly gaining importance in the country as more
and more corporations across the world are unable
to manage their complex supply chains and hence
are outsourcing logistics activities to the 3PL
service providers. Competition within the
logistics industry is ramping up due to tightened
capacity along with increased consolidation
within the supply chain arena, which has resulted
in fewer partners for 3PLs and increased prices.
The companies operating in Vietnam 3PL market
are competing with each other by offering
multiple value added services to the customers.
The leading companies in the segment are DHL,
Damco, Vinafco, Transimex Saigon and others.
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Over the forecasted period, Vietnam 3PL market is
expected to generate revenues worth USD billion
by the year ending 2018 owing to a rising trend
for both local and multinational enterprises to
outsource logistics functions to 3PL services
providers. It has been expected that industrial
activities in the country will expand, which will
result into growing opportunities for the foreign
players. This will positively impact the 3PL
market as these companies will require third
party logistics partners for handling their
supply chain management. Vietnam 3PL market is
estimated to generate revenues worth USD
billion by the year ending 2022, thus growing at
a CAGR of in the forecast period 2018-2022.
Additionally, in the coming years, 3PL companies
will be emphasizing more on the technological
upgradation to engage with the customers such as
ERP and SCM and the trend of Fourth-party
logistics (4PL) will be emerging in future to
support the 3PL business in the country. For
more information on the research report, refer to
below link https//www.kenresearch.com/automotive
-transportation-and-warehousing/logistics-and-ship
ping/vietnam-3pl-market/145653-100.html
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