In today's economic climate, the logistics industry is perhaps one of the most critical sectors in every country, as they are the life and blood of transportation and supply chain. Recently, we saw the supply chain failure due to COVID-19 and how the blockage of the Suez Canal affected everyone. This goes to show just how vital the logistics industry is.
With the rise of e-commerce, which logistics market in the world is currently the largest and is predicted to be the largest in the future?
The answer is Asia.
According to Kearny, the Southeast Asia market generates over $2.5 trillion in GDP and is forecasted to grow at a 6% annual increase.
As stated by Statista, "with roughly 3.9 trillion U.S. dollars in size, the logistics market in the Asia Pacific region is the largest one globally. The Asia-Pacific region has the most postal offices in the world as well.
The region's leading position in the logistics industry could be explained mostly because of the importance of the region in supplying most of the necessary trade goods globally."
At the same time, Asia is leading with around $2.5-4 trillion in GDP, second place in North America with approximately $2 trillion, a possible gap of 2 trillion in GDP difference. This further consolidates the potential of the Asia logistics market and how impactful it is to the global economy.
Source from: parcelmonitor.com
According to Statista, the revenue from water transport in Vietnam is forecasted to reach USD 3.1 billion in 2023. The revenue generated by express delivery is forecasted to reach $1.66 billion from the current $0.7 billion.
Moreover, the share of the employment in the warehousing and transportation sector in Vietnam in 2020 is shown to be at 3.67% compared to the previous average of 3%, and the value of investments in the warehousing and transportation sector in 2020 is valued at USD 10 billion.
In addition to this, the $39billion turnover which is expected this year is helped through such FTAs which also allow local businesses to expand to further markets and related sectors.
The above quote refers to Vietnam's Textile and Garment industry. This is highly related to Vietnam's logistics industry because textile and garments are perhaps industries that contribute the most to the logistics industry GDP. Read the full article here.
What does that mean for you?
As business owners or business developers, you want to know the trend and seize the opportunity.
It seems that Asia will be the most robust global logistics market in the world in the future. What would you do to make this the most beneficial moment for your business?
It is understandable if you are not entirely sure where to start or how to break into the Asia or Indochina region properly; that is why VICO LOGISTICS is here to guide you through it.
We offer logistics and supply chain solutions for all clients & factories across China and Indochina. If you require assistance with investment in Vietnam, let VICO LOGISTICS be your logistics partner every step of the way to your success.