ROAD INFRASTRUCTURE HOLDING BACK VIETNAM LOGISTICS POTENTIAL

Logistics Insight Asia, 1/5/2009

In a global economic downturn, there are few opportunities for the transport and logistics sector. However Vietnam continues to offer long term growth potential for those companies willing to risk expansion in this immature but fast developing market, according to a new report out from Research and Markets, Vietnam Logistics 2009.

The country has become a focal point for off shore production for global manufacturers looking for even lower cost locations than in China, which has seen labor and transportation costs rise quickly over the past few years, leading companies to reassess their global supply chain strategies.

In an effort to keep pace with these demands, as well as cater to the needs of the world’s 13th largest population, the Vietnamese Government has invested heavily in upgrading its transport infrastructure. However overall, its record of success can best be described as mixed, says the report.

While Vietnam’s vast network of inland waterways transport goods efficiently throughout the country, an inadequate road network – less than 20 percent paved – and limited railway capacity have prevented Vietnam from meeting its full transport potential.

On the other hand, Vietnam’s rapidly growing air and seaport industry has facilitated a higher volume of trade, lending hope that improvements across all transport networks will have a similar effect.

Vietnam Logistics 2009 provides an overview of all the key transport modes (air, sea, road and rail) in the country as well as analysis of the main logistics sectors. This includes market sizes and forecasting for the contract logistics and freight forwarding sectors, with overviews of road freight, shipping and express.