Freight Forwarding Services in Ho Chi Minh City-Ken Research

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Vietnam Freight Forwarding Market Outlook-Ken
Research
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How Vietnam Freight Forwarding Market
Evolved? Previously, freight forwarders were
known to be innkeepers who helped hotel guests in
holding and re-forwarding their goods. The system
developed and transformed into business contracts
over the years. Advancement in transport systems
and increasing availability of trains and
steamships led to the start of Vietnamese trade
activities with other countries. The growth of
freight forwarding in Vietnam was highly
supported by development in major industries such
as manufacturing, retail, wholesale,
construction, agriculture and mining. The Vietnam
freight forwarding industry in was evaluated at
USD billion in terms of revenue contribution in
2011. The market witnessed an increase to USD
billion in 2012, thus growing at in comparison
with previous year. Expanding FMCG sector, retail
sector, food and E-commerce industry in the
country has attributed to the extraordinary
growth of the freight forwarding industry in the
country. The market generated revenues worth USD
billion in the year 2017, thus growing at a six
year CAGR of in the review period 2011-2017.
The development of the port system at the key
gateway ports of HCMC (including Cai Mep-Thi Vai)
and Haiphong (including Cai Lan) continues to
favor the development of new terminals. The GOVs
direction on improving the sectors including
infrastructure development, the restructure of
the air freight market by the year ending 2020
will see the development of the cargo transport
market via air and increase the role of
airfreight.
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Vietnam Freight Forwarding Market Segmentation By
Normal and Express Delivery The normal / standard
delivery segment dominated Vietnam freight
forwarding market with a massive revenue share of
, whereas the remaining revenue share of was
captured by the express delivery segment in the
year 2017. Normal delivery services are generally
preferred where there is no urgent requirement
for orders. Major companies operating into normal
delivery include Damco, Geods, DB Schenker,
KuehneNagel and others. By International and
Domestic Freight Forwarding International freight
forwarding accounted for majority of the revenues
for overall Vietnam freight forwarding market by
capturing massive revenue share of in the year
2017. Free trade agreements with other nations
over the period 2010-2017 have provided
significant boost to international freight
forwarding sector in Vietnam. On the other hand,
the domestic freight forwarding segment was
observed to capture the remaining revenue
share in 2017. By Freight Movement The sea
freight segment dominated Vietnam freight
forwarding market by capturing revenue share of
in the year 2017 majorly due to increasing
trade activities amongst the Southeast Asian
countries.
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The road freight segment followed with a revenue
share of in the year 2017 owing to a larger
fleet of vehicles and a national network of
strategically located warehouses and distribution
centers. The remaining revenue share was
captured by air freight and rail freight segments
collectively in 2017. Vietnam Freight Forwarding
Market Segmentation By Flow Corridors Asia flow
corridor was observed to be the largest
contributor in terms of revenue in Vietnam
freight forwarding market by capturing revenue
share of in the year 2017. In accordance with
International Trade Centre, Vietnams import to
Asia as well as export from Asia was recorded as
USD thousand and USD thousand as of 2015 in
comparison with other regions such as Europe,
America and Africa. The Vietnam-Europe flow
corridor followed Vietnam-Asia with a revenue
share of in the year 2017. Other major flow
corridor includes the Africa region which has
been counted as emerging trading partners for
Vietnam. By International and Domestic
Companies International companies operating in
Vietnam freight forwarding market dominated by
capturing revenue share of , thus evaluated at
USD billion in the year 2017.
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Ho Chi Minh City is drawing interest from a
number of global investors seeking office /
commercial space, retail and hospitality
investment opportunities coupled with a high rise
in buildings and a number of shopping centers in
the city. The city is well connected with the
rest of the world through air and sea routes and
thereby, drawing huge foreign investments from
international players to various sectors. The
domestic companies operating in Vietnam freight
forwarding market captured the remaining
revenue share thus, evaluated at USD billion in
2017. Competitive Landscape in Vietnam Freight
Forwarding Market The freight forwarding industry
in Vietnam was observed as highly fragmented with
the presence of both domestic as well
international freight forwarders in the country.
In accordance with the Vietnam Freight Forwarders
Association (VIFFAS), there are approximately
freight forwarders in Vietnam as of 2013, most of
which constitute small and medium sized
enterprises with limited capital, well-equipped
facilities and a respectable number of
warehouses. On the basis of revenue, major
freight forwarding companies amongst the air
freight segment are ranked in the following order
- DHL, UPS, Expeditors, Panalpina, Kintetsu,
APLL, Hellmann, UTI and Kuehne Nagel. Other
freight forwarders focusing on ocean freight /
contract logistics / warehousing services include
Ceva, Bollore, DB Schenker and others. The US and
EU market was witnessed to majorly contribute
towards Vietnam freight forwarding market.
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Vietnam Freight Forwarding Market Future Outlook
and Projections Over the forecasted period,
Vietnam freight forwarding market is expected to
generate revenues worth USD billion by the year
ending 2018, driven by expanding industrial
activities, growing E-commerce industry and
continuous investment by the government in
development of logistics infrastructure in
Vietnam. Offshore services such as data,
business-process outsourcing, and IT appear to be
promising areas, thus leading to rise in trade
activities for computers and other electronic
items, thus driving the demand for freight
forwarding services. HCMC region is one of the
ideal locations for Vietnams exports and
imports, which is expected to deliver expertise
in the ocean and air forwarding industry. In
terms of revenue recognition, Vietnam freight
forwarding market is estimated to see a positive
trend owing to expanding industrial activities in
the country, thus evaluated at USD billion by
the year ending 2022. For more information on
the research report, refer to below
link https//www.kenresearch.com/automotive-trans
portation-and-warehousing/logistics-and-shipping/v
ietnam-freight-forwarding-market/145654-100.html
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