Tuesday, April 10, 2018

Vietnamese Logistics Firms were observed to Become Integrated 3PL (Third Party Logistics) Service Providers: Ken Research

Vietnamese logistics firms were observed to become integrated 3PL (third party logistics) service providers, therefore offering 3PL services along with warehousing and distribution, temperature regulation and transportation management.

Competition within the logistics industry is ramping up due to tightened capacity along with increased consolidation within the supply chain arena, which has resulted in fewer partners for 3PLs and increased prices. The 3PL market within Vietnam is majorly dominated by the presence of big foreign multinationals such as DHL Logistics, Damco, FedEx and APL Logistics; who are providing end-to-end integrated logistics solutions. However, many Vietnamese firms have emerged in the domestic 3PL segment such as Gemadept, Vinafco, Transimex Saigon and others. Vinafco after winning big international contracts with Akzo Nobel and Kimberly-Clark, expanded its scale of operations in the strategic economic regions of Vietnam such as Hanoi, Hai Phong, Da Nang, Binh Duong and Hau Giang.

Establishment of ASSEAN Economic Community (AEU), the Trans-Pacific Partnership Agreement and the Free Trade Agreement (FTA) between Vietnam and the European Union (EU) have forced various logistics firms to expand their business operations in Vietnam, therefore broadening and strengthening their range of logistics services for customers as well investors. For instance, Damco Vietnam, a third party logistics service provider and freight forwarder, has invested heavily to upgrade its capacity in both geographical areas of Northern and Southern Vietnam in order to perform new value-added activities.

The logistics companies especially the international ones, instead of purchasing their own fleet for transportation of goods; were witnessed to outsource the contract to 3PL logistics companies in Vietnam. Additionally, according to the government law, it is also required for every international logistic company to collaborate with local transportation partners for the purchase of fleet. Hence, the international companies prefer to outsource the contract to local partners.

The report titled “Vietnam Third Party Logistics (3PL) Market Outlook to 2022 – By Freight Forwarding and Warehousing 3PL Services and By International Companies and Domestic Companies” by Ken Research suggested a growth at a noteworthy six year CAGR of 13.6% in terms of revenue in Vietnam 3PL market in next 5 years till the year ending 2022.

Key Topics Covered in the Report
Vietnam’s 3PL Market
Logistics Firms 3PL Share Vietnam
3PL Companies Position Vietnam
Thị Trường Hậu Cần Của Bên Thứ Ba
3PL Service Providers in Vietnam
Logistic Services E-Commerce Vietnam
Vietnam 3PL Industry
Emerging Market Trends in Vietnam Third Party Logistics
Vietnam 3PL Industry Trends
Third Party Logistics Services in Vietnam
International 3PL Companies Vietnam
Number of 3PL Service Providers in Vietnam Logistics Industry
List of 3PL Service Providers in Vietnam
Impact on Vietnam 3PL Market
Vietnam-EU Trade Agreement Third Party Logistics

For more information on the research report, refer to below link:

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