by position.vn 
Why Vietnam’s Booming E-commerce Sector is Driving Warehouse Growth
Vietnam is witnessing a surge in demand for warehouse space, driven by the rapid growth of its e-commerce industry. This presents a significant opportunity for foreign investors, who are seizing the chance to establish large-scale logistics centers in the country. In this article, we’ll explore the factors behind this warehouse boom, the ranking of Vietnam in the global logistics market, and the impressive growth projections for the logistics sector.
The Warehouse Supply Shortage
Vietnam’s warehouse supply is falling into a state of scarcity, leaving businesses scrambling for storage space. The result? Foreign investors have stepped in to open substantial logistics centers in Vietnam, eager to meet the growing demand.
Vietnam’s Emergence in the Global Logistics Market
In 2023, Vietnam has made a significant mark in the global logistics landscape, ranking among the top 10 emerging markets in the world. Within Southeast Asia, it’s secured the 4th position. This achievement underlines the country’s emergence as a key player in the global logistics industry.
The Growing Northern Warehouse Market
A recent report from global real estate consultancy Jones Lang Lasalle (JLL) reveals that in the third quarter of 2023, the demand for ready-built warehouses in Northern Vietnam is steadily rising. This heightened demand is attributed to diverse sectors, such as retail, e-commerce, and manufacturing.
The Vibrant Southern Warehouse Market
Southern Vietnam is also experiencing significant growth in its warehouse market, with net absorption rates soaring. Dong Nai leads the demand for warehouse rentals in the region, as it remains an attractive hub for investors.
E-commerce Boom Fuels Warehouse Demand
Vietnam’s e-commerce sector is booming, with substantial revenue growth. In the first half of 2023, e-commerce revenue reached $10.3 billion, reflecting a 25% year-on-year increase. This surge is primarily driven by robust consumer demand and online shopping trends.
Future Supply Projections
According to JLL, the Northern region is expected to witness a significant increase in warehouse supply, with an additional 700,000 m2 forecasted for 2024. This expansion is driven by competitive land prices and available land resources in nearby provinces.
The Arrival of Foreign Investors
Major foreign companies are capitalizing on the Vietnamese warehouse demand, opening large logistics centers across the country. Notably, FM Logistic, a French-based supply service provider, launched a multi-customer distribution center in Binh Duong and secured contracts to manage multi-channel distribution centers.
Vietnam’s Potential as a Logistics Hub
With favorable geographic features, strong infrastructure development, and government incentives, Vietnam is well-positioned to become a logistics hub. The country’s logistics sector has demonstrated impressive growth, paving the way for it to play a pivotal role in the global supply chain.
Vietnam’s surging e-commerce industry has created a thriving demand for warehouse space, presenting an opportunity for foreign investors to establish large logistics centers. As Vietnam’s ranking in the global logistics market continues to rise, the country is on track to become a significant player in the industry. With robust growth projections and an ever-increasing e-commerce market, the potential for Vietnam’s logistics sector is vast, making it an attractive destination for foreign investors with a keen eye for opportunity.
