Vietnam’s logistics ecosystem is extremely fragmented, with no clear winners, but offers opportunities for players who can consolidate and roll-up existing infrastructure to achieve meaningful scale.

A&M Global Transaction Advisory Group’s latest report breaks down investment opportunities in this fast-growing, hyperlocal sector within Vietnam. Key highlights include:

Infrastructure Overview

• Well capitalized investors can take advantage of high demand and low supply for logistics (ports, warehouse, trucking and waterway) through consolidation and roll-up to achieve scale.
• First-mile utilization of infrastructure is very high while others remain under-utilized due to poor quality infrastructure.

Fragmented, Hyperlocal Logistics

• Hyperlocal adaptation is a must for mid-mile, as each region has different terrain characteristics and cargo flows.
• The logistics market is highly fragmented, comprising mostly micro-to-small size enterprises.
• The warehouse and transport sector is growing at a CAGR of 15.1% and will be more than US$70B by 2025.

Key Opportunity: Cold-chain Segment

• The cold-chain logistics subsegment is particularly ripe for growth due to market trends in food, pharma and retail.
• The cold-chain sector has a high barrier to entry and presents opportunities for well-capitalized investors.
• At a CAGR of 11.8%, Vietnam’s cold warehouse market is outpacing the rest of the world.
• Despite the growth, warehouses are running out of capacity during peak seasons.
• While cold warehouse capacity doubled from 2015 to 2021, there are still no dominant players in the market.

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