TradeLink’s partnered services in Vietnam seize on growing demand for integrated logistics solutions

As one of the fastest growing economies in the world, Vietnam is experiencing rapid growth in international export trade and foreign investment, leading to increasing customer demand for turnkey logistics services.

Vietnam has so far been the big winner of the US-China trade war.  Manufacturers, both from foreign and Chinese companies, have been shifting production to Vietnam to avoid US tariffs, resulting in rising exports from Vietnam to the US.

In recent years, foreign direct investment in Vietnam has surged and on track to exceed US$20 billion in 2019 as a result of the manufacturing exodus from China.  In 2018, Vietnam’s total exports hit $241.5, up 12%, with as much as 70% of the export value accounted for by foreign direct investment firms (FDI) based in Vietnam, according to recent reports in the Asia Business Times.

While the US is Vietnam’s largest export market, recent trade agreements with the EU are set to attract more FDI from the EU to Vietnam in the years ahead.  On June 30, Vietnam signed the EU and Vietnam Free Trade Agreement (EVFTA), paving the way for tariff reductions on 99% of goods over a 10-year period.

Vietnam Logistics Challenges

As a growing number of companies look to Vietnam for manufacturing capability, demand for integrated, dedicated logistics solutions is fast growing, creating both opportunities and challenges in the region, including:

  • Vietnam’s transport infrastructure is expanding rapidly, however the development in this sector is still far below the needs of the country’s economic growth.
  • More efficient transport infrastructure will lead to a reduction in logistics costs and less congestion at ports. Hanoi (North) and Ho Chi Minh City (South) are the current major logistics hubs in Vietnam.  Container handling is concentrated in the two major shipping centres of Ho Chi Minh City and Haiphong, including their respective satellite ports of Cai Mep and Cat Lai, that account for over 90% of total container handling volume;
  • Logistics facilities (warehouses and distribution centres) are often clustered in remote locations, far from ports and centres of manufacture.
  • Navigating Customs procedures that are underdeveloped and rely on manual processes;
  • Growing outsourcing trend for logistic services in Vietnam for value-added services including vendor management, order processing, multi-modal transports optimisation, customs formalities and support, reverse logistics and climate-controlled logistics;
  • Recruiting the right people, with the right skills, is essential for business success.

TradeLink’s Logistics Expertise in Vietnam

TradeLink’s partnered services have a long-established track record in Vietnam, supporting global customers with comprehensive logistics services including supply chain solutions, multi-modal transportation, consolidation services, warehousing & distribution.

Managed from two main offices, in Ho Chi Minh City and Hanoi, our local expert teams provide a professional and truly personal service, supporting customers from diverse industries including Automotive, Retail, Chemical & Industrial.

Customer benefits include:

  • End-to-end supply chain management
  • Multi-modal transports services (Sea, Air, Road and Rail) and preferential carrier rates
  • Cross-border transport with main services covering South China, Cambodia, Laos and Thailand.
  • Warehousing & Distribution with strategic hubs located at main ports
  • Control tower solutions with single point of contact customer support
  • Track and Trace ™ shipment tracking

For more information on TradeLink’s partnered services in Vietnam, download our market profile.

If you would like to learn more about our Global services at TradeLink or would like to discuss how we can assist you – Contact us

For more information on TradeLink’s partnered services in Vietnam, download our market profile.

Managed from two main offices, in Ho Chi Minh City and Hanoi, our local expert teams provide a professional and truly personal service, supporting customers from diverse industries including Automotive, Retail, Chemical & Industrial.

2019-09-23T12:07:23+00:00September 23rd, 2019|Global Trade, Logistics Expertise, Services, Supply Chain Management|