Vietnam’s logistics sector attracts abundant investment from foreign firms
Vietnam’s logistics sector attracts abundant investment from foreign firms
The logistics market in Vietnam has become bustling against thanks to a surge in foreign investment since the beginning of this year.
Many logistics projects of foreign enterprises in the country have received additional investment capital while their operation scale has also been expanded in the first months of 2022.
Delvin Fan, operations director of Best Express Vietnam, said that the firm has poured US$20 million into building sorting centers in northern Bac Ninh Province and Cu Chi District in Ho Chi Minh City.
These will be Best Express’ largest sorting facilities in Southeast Asia.
The company is also expected to spend an additional $3 million on buffing up its means of transport this year, Fan added.
On February 24, SEA Logistic Partners kicked off the SLP Park Xuyen A project, aimed at supplying warehouses, in southern Long An Province.
Offering lease space of about 84,000 square meters, the project is anticipated to complete in the first quarter of 2023.
In January, Singapore’s Emergent Vietnam Logistics Development Pte. Ltd. announced a $35 million logistics project, which will provide cold storage systems to meet the rising demand of local businesses.
Vietnam’s logistics industry has a growth rate of 14 to 16 percent per year and a market size of $40-42 billion.
The increase in foreign investment has resulted in domestic enterprises facing fiercer competition as foreign investors tend to be at an advantage in terms of capital and technology.
