Vietnam's logistics sector to continue to attract foreign investment

Piyush Rathorenoi, general director of Vietnamese company Transworld QBV ICD, expects the sector to thrive in future, turning Vietnam into a logistics hub of the world.

CapitaLand Development (CLD) of Singapore-headquartered CapitaLand Group last month signed a memorandum of understanding (MoU) on investment cooperation worth $1 billion with the People’s Committee of the northern province of Bac Giang to build its first logistics and industrial urban project.

CLD Vietnam general director Ronald Tay told a news agency the project will be a synergistic factor in forming a flexible supply chain network for the northern key economic region, which is expected to generate jobs for over 20,000 locals.

Cargo and freight company Best Express Vietnam has invested $20 million in developing commodity sorting centres in Bac Ninh and Ho Chi Minh City. It also plans to spend an additional $3 million on buffing up its means of transport in 2022 to increase its offices to 1,500 across the country.

SEA Logistic Partners has started construction of the SLP Park Xuyen, a project that aims to supply warehouses in the Mekong Delta province of Long An. It is scheduled to be completed in the first quarter of 2023.

Supaporn Sukmak, director of the office of overseas trade promotion of Thailand in HCM City said te demand of warehouse for import and export goods in Vietnam is on the rise.

According to a report by the ministry of industry and trade, Vietnam is home to 30,000 providers of logistics service, and the warehouse service is one of the key segments of Vietnamese logistics firms.

Over the last two years, despite the complicated developments of COVID-19, nearly $3 billion was poured into Vietnam’s logistics industry.

Fibre2Fashion News Desk (DS)