VIETNAM’S LOGISTICS SECTOR ATTRACTS MORE FOREIGN INVESTMENT INFLOWS

Foreign investors will continue to pour money into Vietnam’s logistics sector to seize post-pandemic development opportunities, Lao Dong newspaper quoted Piyush Rathorenoi, General Director of the Transworld QBV ICD as saying.

Piyush said he expects the logistics industry of Vietnam will thrive in the future, turning Vietnam into a logistics centre of the world.

CapitaLand Development (CLD) of CapitaLand Group on February 26 signed a Memorandum of Understanding (MoU) on investment cooperation worth 1 billion USD with the People’s Committee of the northern province of Bac Giang to build its first logistics and industrial urban project in Vietnam.

Ronald Tay, General Director of CLD Vietnam said 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 local labourers.

Delvin Fan, operation director of Best Express Vietnam recently revealed that his firm has invested 20 million USD in developing commodity sorting centres in Bac Ninh and Ho Chi Minh City.

This enterprise also plans to spend an additional 3 million USD on buffing up its means of transport in 2022, towards increasing its offices to 1,500 across Vietnam, he added.

Meanwhile, SEA Logistic Partners has kicked off construction of the SLP Park Xuyen A project which aims to supply warehouses in the Mekong Delta province of Long An. This project is scheduled to be completed in the first quarter of 2023, covering an area of 84,000 sq.m.

Experts said the pouring of capital by foreign investors into Vietnam will help turn Vietnam into a logistics centre of the world.

According to Tran Thanh Hai, deputy head of the Ministry of Industry and Trade (MoIT)’s Export and Import Department, Vietnam has advantages in geo-economics to promote development of production, export and logistics service because it is located in a dynamic area of the world.

Sharing Hai’s opinion, Supaporn Sukmak, director of the Office of Overseas Trade Promotion of Thailand in HCM City said free trade agreements (FTAs) between Vietnam and partners have helped the Southeast Asian nation attract more foreign investors, especially those operating in logistics.

The demand of warehouse for import and export goods in Vietnam is on the rise, she added.

According to a report on logistics market by the MoIT, 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 USD was poured into Vietnam’s logistics industry, a sign that the country could become a logistics centre in the region and the world, Supaporn said.

Source: VIR

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