Due to strong commercial, manufacturing and retail activities, warehousing is the most attractive logistics segment in the country, attracting both local and foreign investors, said the report.

Vietnam's modern logistics industry was using nearly 3.9 million sq m of floor space by the end of last year. The annual growth rate from 2020 to 2023 was 23 per cent and is expected to remain high in the next few years.

Modern logistics are concentrated in the top five provinces—Binh Duong, Long An, Bac Ninh, Hung Yen and Dong Nai.

The top three foreign-invested players—Mapletree, BW Industrial and SLP—jointly account for 46 per cent of the total modern warehouse rental area.

Domestic enterprises account for more than a quarter of the market share. The top three local players—ICD ST, NPL Logistics and Gemadept—account for 10.6 per cent of the total modern warehouse rental area, the report, titled 'Vietnam Logistics: Aggressive expansion of Foreign Investors', said.

About 25 warehouse projects will be developed between now and 2027, with a total additional area of 1.87 trillion sq m. The annual growth rate of the modern logistics area is forecast to remain at 7 per cent during this period.

BW Industrial will deploy a large project in Dong Nai province in 2026, with an estimated effective floor area of 243,000 sq m. Mapletree will also deploy a project in Bac Ninh province in 2025, with an estimated effective area of 198,000 sq m.

Mapletree is expanding its warehouse portfolio in the country, with major logistics centres in Bac Ninh, Hung Yen and Binh Duong provinces. Each centre has 12-24 warehouses.

BW Industrial and NPL Logistics are holding 22 new warehouses in both the north and the south.

Localities in Long An, Dong Nai and Bac Giang provinces are planning to expand industrial park land to attract investment, the report says.

Fibre2Fashion News Desk (DS)