Growing manufacturing activities in Vietnam, rising domestic consumption and increasing international trade were some of the primary growth drivers of warehousing in Vietnam
The report titled “Vietnam Warehousing Market Outlook to 2022 – By Business Model (Industrial / Retail Freight, Container Freight, Cold Storage, Agriculture and Others) and by End User (Retail, Electronic Devices, Textile and Footwear, Wooden Products and Others)” by Ken Research suggested a growth at a noteworthy six year CAGR of 13.4% in terms of revenue in Vietnam warehousing market in next 5 years till the year ending 2022. 93.3% of general warehouse systems are located at international border gate whereas; the remaining 6.7% warehouses are located at the main gate.
Warehouse operations in Vietnam are currently being disrupted by the development of advanced robotic systems, the most basic of which use digital add-on systems to transform forklifts and other types of MHE asset into robots. Technological advancements in Vietnam warehousing services such as EDI (Electronic Data Interchange) communications has allowed companies to share documents, with a particular single format between two computers. Furthermore, growing demand of YMS (Yard Management System) is expanding the scope of warehousing in the country. For instance, at present there are 31 kinds of yards at Vietnam-Laos border gates and Vietnam-Cambodia border to oversee the movement of trucks and trailers in the yard of a manufacturing facility, warehouse, or distribution center. Rising number of industrial parks which have been established in the southern region of Vietnam such as Linh Trung Export Processing Zone and Industrial Park III, My Phuoc Industrial Park, Sai Gon Hi-Tech Park and others have also created a positive impact on Vietnam’s warehousing market.
Over the past few years, rapid retail market developments have been evident in Vietnam with a continuous increase in organized retail or modern shopping across the country. Additionally, the growing trend of online shopping in Vietnam has led to establishment of new warehousing facilities for E-commerce companies to store their goods. Many domestic logistics firms have showcased interest in expanding their warehouses in order to compete with foreign ones in terms of service quality.