Logistics & Last-mile Delivery Vietnam

Market Overview

Vietnam’s logistics market reached $55-60 billion in 2024, representing approximately 14-16% of GDP. The sector is characterized by rapid e-commerce-driven growth, infrastructure development, and increasing foreign investment.

Market Structure

By Service Type

• Freight transport: 65-70% of market
• Warehousing: 15-18% of market
• Last-mile delivery: 12-15% of market
• Value-added services: 3-5% of market

By Transport Mode

• Road: 77% of freight volume
• Waterway: 17% of freight volume
• Rail: 3% of freight volume
• Air: 0.1% volume (high value goods)

Key Players

Domestic Logistics Companies

Vietnam Post (VNP)

• State-owned, widest coverage network
• 13,000+ post offices nationwide
• Universal service obligation (remote areas)
• Modernizing with e-commerce focus

Giao Hang Nhanh (GHN)

• Private courier, e-commerce specialized
• 2,000+ employees, 63 provinces covered
• Same-day delivery in major cities
• GHN Express: International services

Giao Hang Tiet Kiem (GHTK)

• Cost-efficient model
• Strong in Tier 2-3 cities
• 500+ collection points
• Technology-light operations

Viettel Post

• Viettel Group subsidiary
• Leverages telecom infrastructure
• 1,000+ transaction points
• Electronic customs services

International Operators

DHL Vietnam

• International express leader
• 6 major facilities
• Time-definite services
• Pharma and healthcare focus

FedEx/TNT

• International freight and express
• Strong air freight capabilities
• Multinational client base

Kerry Express

• Thailand-based, regional network
• SME-focused services
• Cross-border expertise

E-commerce Logistics

Shopee Xpress (SPX)

• Platform-owned fulfillment
• Integrated with Shopee ecosystem
• 200+ sorting centers
• Flash delivery pilots

Lazada Logistics

• Alibaba-owned network
• 30+ warehouses nationwide
• Automated sorting facilities

J&T Express

• Indonesia-based, aggressive expansion
• Price-competitive positioning
• TikTok Shop partnership

Last-mile Delivery

Urban Last-mile

• Same-day delivery: Available HCMC, Hanoi, Da Nang
• 2-hour delivery: Limited products, central districts
• Cost: $0.80-2.00 per delivery (urban)
• Attempts: 1.5 average per successful delivery

Rural Last-mile

• Coverage: 95% communes reachable
• Time: 3-7 days (vs 1-2 urban)
• Cost: $3-8 per delivery (rural)
• Challenge: Low order density, return logistics

Delivery Models

1. Hub-and-spoke: Central sorting, radial distribution
2. Micro-fulfillment: Small urban warehouses
3. Locker networks: Pickup points (growing)
4. Crowdsourced: Independent drivers (GrabExpress, etc.)

Warehousing Infrastructure

Total Stock

• Modern warehousing: 3-4 million sqm (grade A/B)
• Industrial parks: Integrated logistics zones
• Cold storage: 1.2 million cubic meters (growing rapidly)

Key Locations

• HCMC Region: 40% of modern warehouse stock
• Hanoi Region: 25% of modern warehouse stock
• Da Nang: Central region hub
• Bac Ninh, Binh Duong: Manufacturing adjacency

Warehouse Types

• General: Multi-purpose facilities
• Bonded: Customs supervision, FTZ access
• Cold chain: Temperature-controlled (2-8°C, frozen)
• E-commerce: High throughput, robotics pilots

Technology Adoption

• WMS (Warehouse Management Systems): 30-40% penetration
• Automation: Limited, picking optimization
• RFID: Tracking in select facilities
• Drones: Not operational (regulatory)

Freight and Long-haul

Road Transport

• Fleet: 800,000+ commercial vehicles
• Container trucks: 50,000+ units
• North-South axis: Primary corridor (1,800km)
• Congestion: HCMC port area, Hanoi ring roads

Ports and Shipping

• Container ports: Cai Mep (deep water), HCMC cluster
• Throughput: 20+ million TEU annually
• Feeder services: Intra-Asia connectivity
• Challenges: Port congestion, customs delays

Air Freight

• Noi Bai (Hanoi): Northern hub
• Tan Son Nhat (HCMC): Southern hub (capacity constrained)
• Long Thanh Airport: Under construction (2026+ operations)
• Volumes: Electronics, garments, seafood

Rail Freight

• Network: 3,000+ km, meter and standard gauge
• Volume: Limited, 3% modal share
• Potential: China connectivity, bulk goods
• Challenges: Speed, reliability, last connection

Supply Chain Characteristics

Manufacturing Integration

• Just-in-time: Electronics, automotive
• Vendor managed inventory: Retail sector
• Cross-docking: FMCG distribution

Import/Export Flows

• Imports: China, Korea, Japan, ASEAN
• Exports: US, EU, China, Japan
• Processing trade: Re-export manufacturing

Cold Chain

• Pharma: Temperature-sensitive drugs
• Fresh produce: Fruits, vegetables, flowers
• Seafood: Export quality frozen
• Dairy: Growing domestic consumption

Technology and Innovation

Digital Platforms

• Logistics matching: Uber-style freight (LoG, Go2Joy)
• Fleet management: GPS tracking, route optimization
• Warehouse exchanges: Unused capacity platforms

Automation

• Sorting centers: Automated in major hubs
• AGVs: Limited warehouse deployment
• Delivery robots: Pilots only (regulatory)

Data Analytics

• Demand forecasting: Inventory optimization
• Route optimization: Fuel and time savings
• Predictive maintenance: Fleet management

Costs and Economics

Cost Structure (Typical 3PL)

• Labor: 35-40%
• Fuel/energy: 25-30%
• Depreciation: 15-20%
• Other: 15-20%

Pricing Benchmarks

• City courier: $0.80-2.00 per kg
• Inter-city (HCMC-Hanoi): $0.15-0.25 per kg
• Warehousing: $4-8 per sqm per month
• Cold storage: $8-15 per cubic meter

Regulatory Environment

Key Regulations

• Road transport: Driver hours, vehicle standards
• Customs: E-customs, bonded warehouse regulations
• Safety: Dangerous goods transport
• Environment: Euro emission standards (implementing)

Foreign Investment

• Logistics: 100% foreign ownership allowed (WTO commitment)
• Road transport: Requires local partnership
• Warehousing: Fully open

Infrastructure Investment

• Expressways: 1,900+ km operational, expanding
• Deep-water ports: Cai Mep-Thi Vai development
• Logistics centers: Government-planned zones

Challenges

Infrastructure Gaps

• Last-mile: Rural road quality
• Port capacity: Tan Son Nhat airport constraints
• Connectivity: Inter-provincial road links

Cost Pressures

• Fuel costs: 25-30% of operating costs
• Labor: Rising wages, driver shortages
• Land: Urban warehouse costs increasing

Efficiency Issues

• Empty runs: 35-40% of truck kilometers
• Consolidation: Fragmented market, scale challenges
• Standardization: Limited pallet/container standards

Future Outlook

2025-2030 Developments

• Long Thanh Airport: Cargo capacity expansion
• High-speed rail: Potential freight services
• Expressway network: 5,000+ km target
• Logistics costs: Target 12-14% of GDP (from 16%)

Technology Trends

• Electric vehicles: Fleet electrification pilots
• Blockchain: Supply chain traceability
• IoT: Real-time cargo monitoring
• Autonomous: Long-term potential

Sources

• Ministry of Transport Statistics
• Vietnam Logistics Association Reports
• World Bank Logistics Performance Index
• Ministry of Industry and Trade
• Vietnam Seaport Association
• General Statistics Office
• McKinsey Vietnam Logistics Analysis