Vietnam’s logistics sector attracts abundant investment from foreign firms

The logistics market in Vietnam has become bustling against thanks to a surge in foreign investment since the beginning of this year.

Many logistics projects of foreign enterprises in the country have received additional investment capital while their operation scale has also been expanded in the first months of 2022.

Delvin Fan, operations director of Best Express Vietnam, said that the firm has poured US$20 million into building sorting centers in northern Bac Ninh Province and Cu Chi District in Ho Chi Minh City.

These will be Best Express’ largest sorting facilities in Southeast Asia.

An employee sorts goods at a courier and delivery company in Cu Chi District, Ho Chi Minh City. Photo: Cong Trung / Tuoi Tre

The company is also expected to spend an additional $3 million on buffing up its means of transport this year, Fan added.

On February 24, SEA Logistic Partners kicked off the SLP Park Xuyen A project, aimed at supplying warehouses, in southern Long An Province.

Offering lease space of about 84,000 square meters, the project is anticipated to complete in the first quarter of 2023.

In January, Singapore’s Emergent Vietnam Logistics Development Pte. Ltd. announced a $35 million logistics project, which will provide cold storage systems to meet the rising demand of local businesses.

Vietnam’s logistics industry has a growth rate of 14 to 16 percent per year and a market size of $40-42 billion.

The increase in foreign investment has resulted in domestic enterprises facing fiercer competition as foreign investors tend to be at an advantage in terms of capital and technology.

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Cre: Duy Khang – Cong Trung / Tuoi Tre News

First half seafood export revenue up 40 pct

Fishermen carry a tuna in the central province of Khanh Hoa on January 23, 2021. Photo by VnExpress/Xuan Ngoc

Vietnam exported $5.8 billion worth of seafood in the first six months, up 40 percent year-on-year.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), seafood export revenues rose 46 percent and 36 percent year-on-year in Q1 and Q2, respectively.

Export of shrimp, the top item in terms of revenue, grew 33 percent to $2.3 billion in the first six months.

VASEP said inflation and the Russia-Ukraine war opened opportunities for shark catfish export. Whitefish, especially cod, has run out of stock in European markets due to Western sanctions on Russia — which accounts for about 45 percent of the world’s whitefish supply, largely pollack, cod and haddock, according to The Guardian.

Vietnamese shark catfish, therefore, became an alternative. Export turnover to the U.K. and Spain surged by six and three times, respectively, and that from France, the Netherlands, Germany and Belgium also rose 45-90 percent.

For the first half this year, shark catfish exports fetched $1.4 billion, up 83 percent.