VIETNAM LOGISTICS INDUSTRY REPORT 2020

The Logistics Industry Report prepared by VietnamCredit was released in July 2020, providing an overview of Vietnam's economic situation, the development of the logistics industry, and the list of 10 outstanding enterprises in the sector based on the company’s performance, company scale, and credit ratings in three consecutive years 2019, 2018 and 2017.

Since the enactment of Commercial Law 2005, Vietnam's logistics services have been officially recognized as commercial activities overseen by the government. Despite the emergence of "freight forwarding" in 1997, significant growth occurred between 1997 and 2007, with enterprise numbers soaring from 300 to 800 due to Vietnam's advantageous location for international shipping. Post-WTO accession, the sector experienced double-digit growth and is projected to maintain a Compound Annual Growth Rate (CAGR) of around 16.65% until 2023. The Logistics Performance Index (LPI) of Vietnam improved significantly from 2016 to 2018, rising 25 places to 39th out of 160 countries, positioning Vietnam behind Singapore and Thailand in Southeast Asia. However, challenges persist, including fragmented industry structure, high logistics costs, and inadequate infrastructure and integration. Despite short-term impacts from the COVID-19 pandemic, the long-term outlook for Vietnam's logistics sector is favorable, driven by factors like the US-China trade war and economic stability.

TABLE OF CONTENTS
1. Vietnam’s Economic Situation
1.1. Economic growth
1.2. Trade and prices
1.3. Realized capital, State budget revenue and expenditure
1.4. Import-export activities
1.5. Establishment and dissolution of enterprises
2. Vietnamese Logistics Industry’s Development
2.1. Vietnamese logistics industry overview
2.2. Enterprises and labour in Vietnam’s logistics industry
2.3. Key ratios of Vietnam’s logistics industry
2.4. Logistics industry average financial ratios 2019
2.5. Opportunities, challenges and industry forecasts
3. 10 outstanding companies in Vietnam’s logistics industry in 2019

LIST OF FIGURES
Figure 1.1.1: Vietnam GDP Growth Rate 2011-2020
Figure 1.2.2: GDP Growth, CPI and Inflation (Last year = 100) 
Figure 1.2.1: Total retail sales of consumer goods and services at current prices 2015-2019
Figure 1.2.3: Producer price index by sector compared to the previous quarter
Figure 1.2.4: Commodity terms of trade growth rate 2015-2019 (%)
Figure 1.3.1: Growth rate and structure of social investment capital in the first half of the 2016-2020 period at current prices
Figure 1.4.1: Import-export turnover and trade balance of goods 2011-2019 (US $ billion)
Figure 1.5.1: Enterprise Establishment in H1/2020 (compared to H1/2019) 
Figure 2.2.1: Number of enterprises and employees in logistics industry
Figure 2.2.2: Distribution of enterprises providing support activities for transportation
Figure 2.2.3: Distribution of enterprises operating in freight transportation sector
Figure 2.2.4: Structure of enterprises in logistics industry by scale
Figure 2.3.1: Volume of Road Freight (thousand tonnes)
Figure 2.3.2: Volume of rail freight ( thousand tonnes)
Figure 2.3.3: Volume of Freight water transport (thousand tonnes)
Figure 2.3.4: Volume of Freight air transport (thousand tonnes)
Figure 2.3.5: Compound Annual Growth Rate of Freight Forwarding sector 2018-2022
Figure 2.3.6: Compound Annual Growth Rate of Warehousing sector 2018-2022

LIST OF TABLES
Table 1.1.1: GDP growth by sector Q1/2020 at current prices
Table 2.1.1: Outstanding M&A transactions in 2019
Table 2.2.1: Availability of labour in logistics industry by level

1. Vietnam Post
2. Airports Corporation of Vietnam
3. PetroVietnam Transportation Corporation
4. Viettel Post Joint Stock Company
5. Transimex Joint Stock Company
6. Tan Cang – Cai Mep International Terminal Co., Ltd 
7. Indo Trans Logistics Corporation
8. Damco Vietnam Company Limited
9. Gemadept Corporation
10. Expeditors Viet Nam Company Limited