Report Overview

A spurring demand for warehousing from the thriving e-commerce sector and just-in-time inventory management is expected to boost the growth of Vietnam Warehousing Market during the forecast period between 2024 and 2030.

Vietnam Warehousing Market - Industry Trends & Forecast Report, 2030

Vietnam Warehousing Market size by area was estimated at 850,000 square feet in 2023. During the forecast period between 2024 and 2030, Vietnam Warehousing Market size is expected to expand at a CAGR of 10.66% reaching the area of 1,727,000 square feet by 2030. Major growth factors for Vietnam Warehousing Market include rapid growth of the e-commerce sector and globalization along with an increasing demand for goods from other countries. In addition, technological advancements and rising adoption of automation to improve the supply chain and storage and to reduce carbon footprints are anticipated to present lucrative growth opportunities for Vietnam warehousing market during the forecast period.

Warehousing – Overview

A warehouse may be described as a location where finished items, raw materials, semi-finished goods, imported or exported commodities, are stored or accumulated. Goods can be stored, shipped, and distributed from a single place through warehousing. This facilitates effective inventory tracking and management. Additionally, it can lower workforce requirements, boost flexibility, and lower transportation expenses. Moreover, warehouses occasionally offer value-added services including assembly, labeling, packing, and customization.

Vietnam Warehousing Market

Growth Drivers

Rising Adoption of Automation

Vietnam Warehousing Market is increasingly leveraging advanced technologies, including automation, artificial intelligence (AI), and machine learning, to improve their business operations and efficiency. Automation technologies of warehousing, such as AGVs, autonomous mobile robots, and collaborative robots, help warehouses automate manual tasks, reduce their processing time and cost, and lower the risk of errors and accidents by laborers. With expanding e-commerce and global trade, the volume of inventory is also rising. The adoption of smart warehousing solutions, such as robotic palletizers and vertical storage systems, allows warehouse owners to efficiently manage available space, which is anticipated to drive Vietnam warehousing market growth during the forecast period.

Challenges

High Cost of Warehouse Construction

The high cost associated with warehouse construction and maintenance in Vietnam may act as a limiting factor for its market growth in the country. According to estimates, the average cost of warehouse construction in Vietnam ranges from USD 300 to USD 600 per square meter, or USD 28 to USD 55 per square foot. Many factors influence its cost, including location, materials, labor availability, as well as regulations. As a result, the Vietnam warehousing market has to depend on foreign investments to establish and expand its scope.

Impact of Escalating Geopolitical Tensions on Vietnam Warehousing Market

Intensifying and further spreading of geopolitical tensions among countries across the regions could adversely affect the growth of Vietnam Warehousing Market. Geopolitical, economic, and trade tensions cause supply chain disruptions, which affect the import and export activities in the country. Delays in shipments may increase the demand for efficient warehouses for product storage. However, international players dominate more than half of the Vietnam Warehousing Market. Conflicts and tensions may cause investment shifts from Vietnam amid uncertainties and limit the construction of new warehouses in the country. Geopolitical tensions could accelerate the shift toward e-commerce as consumers and businesses seek more stable supply options. This growth could increase demand for logistics and warehousing capabilities.

Vietnam Warehousing Market

Segmental Coverage

Vietnam Warehousing Market – By Type

By type, Vietnam Warehousing Market is segmented into general warehousing, specialized warehousing, and cold storage warehousing. The general warehousing segment holds the largest share of Vietnam Warehousing Market. The growth of the market is mainly attributed to rapid urbanization and industrialization. The rising industrial output fuels the need for efficient warehousing and storage to store finished goods. Furthermore, the growing adoption of automation and robotics in general warehouses and their operations is anticipated to propel market growth over the forecast period.

Vietnam Warehousing Market – By End Use

Based on end use, Vietnam Warehousing Market is segmented into retail, food & beverages, chemicals, and others. The retail segment leads Vietnam Warehousing Market owing to the booming e-commerce sector in the country. Warehousing enhances the business performance of retailers by improving their operational efficiency and customer satisfaction. Warehouses allow businesses to maintain a smooth flow of products and facilitate an effective supply chain. Furthermore, efficient use of warehousing also allows retailers to reduce their transportation and labor costs. However, the food & beverage segment is projected to register a high growth rate during the forecast period.

Competitive Landscape

Vietnam Warehousing Market is intensely competitive, as a number of companies are competing to gain a significant market share. Key players in the market include NCTS, MP Logistics, Empire-Group Co., Ltd, BSS Logistics, Duc Viet Cargoteam, Gemadept Logistics, HT Cargo, TCL International Co., Ltd, and PFCEX. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In March 2024 – Cainiao Group, a logistics company under Alibaba Group, announced its partnership with Mixue, a Chinese food and beverages company, for warehousing services in Vietnam.

Scope of the Report

By Type

• General Warehousing

• Specialized Warehousing

• Cold Storage Warehousing

By End Use

• Retail

• Food & Beverages

• Chemicals

• Others