Vietnam Warehousing Market More Than Doubles Its Area to Reach 1.73 Million Square Feet by 2030

Vietnam Warehousing Market is flourishing primarily due to a spurring demand for booming the e-commerce sector and just-in-time inventory management.

Report Ocean, a leading strategic consulting and market research firm, in its recent study, estimated Vietnam Warehousing Market size at 850,000 square feet in 2023. During the forecast period between 2024 and 2030, Report Ocean expects Vietnam Warehousing Market size to expand at a CAGR of 10.66% reaching 1,727,000 square feet by 2030. Globalization, the e-commerce industry's explosive expansion, and the rising demand for goods from other countries are the main drivers of Vietnam Warehousing Market. Additionally, major players in Vietnam Warehousing Market is expected to gain lucrative growth opportunities due to rapid adoption of technological advancements including automation to enhance supply chain and storage and to minimize carbon footprints.

Opportunity - Expanding E-commerce and Growing Foreign Direct Investments

The growth of Vietnam Warehousing Market is mainly attributed to the flourishing e-commerce sector across the country. Efficient warehousing is at the core of the e-commerce sector for storing and distributing goods and managing complex regulations surrounding logistics in cross-border trade. The lucrative opportunities in the sector attract significant foreign investment to improve and advance warehousing solutions and logistics efficiency. China, for instance, is constructing large scale e-commerce warehouses around the Vietnam-China border to facilitate trade between the two countries. Such strategic developments are anticipated to drive the Vietnam warehousing market over the forecast period.

Impact of Escalating Geopolitical Tensions on Vietnam Warehousing Market

Escalating geopolitical tensions could impact different aspects of Vietnam Warehousing Market. Geopolitical conflicts disrupt the supply chain, which impacts the country's import and export activities. The need for effective warehouses to store products may rise as a result of transportation delays. However, foreign companies control more than half of the Vietnam storage sector. Tensions and conflicts may force Vietnamese investors to reconsider the country in the face of uncertainty, which could affect the warehousing market. As firms and consumers look for more reliable supply sources, geopolitical conflicts could accelerate the transition to e-commerce. The need for storage and logistics skills may rise as a result of this expansion.

Food & Beverages to Register Fastest CAGR among End Users

The retail segment dominates Vietnam Warehousing Market by end use industries. However, the food & beverages segment is projected to register a high growth rate during the forecast period. A spurring demand for frozen food has escalated the need for efficient cold storage warehousing. Vietnam has a strong demand for frozen food, particularly from other East Asian countries, including China, Japan, South Korea, and Thailand. With increasing disposable income and the changing lifestyle of consumers, the demand for frozen food products is projected to surge in the coming years, propelling the demand for warehousing across the country.

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.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and Vietnam Warehousing Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Vietnam Warehousing Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.