Market Size and Potential Growth Total logistics cost in Vietnam is largely at US$25bn and total transportation cost is about US$15bn. However, the sector is still in early development stages with more than 1200 companies. Segmentation Analysis Although transportation services (road and ocean) appears to be the largest sub-sector. However, cold chain (storage and cold transportation) are commonly viewed as a trend as it is important to the country’s export of farming products and seafoods. Cold chain is currently under-invested and the Government recently introduced various incentives to lure local and foreign investors in this segment. We also know some Japanese players are tapping these businesses. Domestic Key Players •The largest player in logistics sector in Vietnam is Gemadept with annual revenue of US$130mn (2012) and with a strong related asset base and infrastructure including ports, vessels, warehousing, etc. •Tier 2 companies mainly include former SOEs as they own and operate related infrastructure such as ports, warehousing, etc and the soft asset: ICD license. •Tier 3 companies consists of many private players. Noticeable is Vinafco Shipping JSC who is Top 5 logistic companies in Vietnam with total 53ha warehousing capacity in Hanoi, Danang and HCMC areas. Competition Dynamics For ocean shipping, foreign players are totally dominating the market. Local transportation service players mainly involve in road transportation, forwarding and warehousing. Foreign ownership There are still foreign ownership restriction in this sector: (i) container shipping & uploading services: 50% max; (ii) warehousing: 51% max; (iii) Freight forwarding: 51% max; and (iv) other logistics: 51% max. However, all of these restrictions are expected to be removed from 11 January 2014 as per the Vietnam’s WTO Commitment. - See more at: http://stoxresearch.com/Reports/13E-vietnam-logistics-report-2013.aspx#sthash.kUNTToUX.dpuf

1. Vietnam Logistics
Sector Overview
Hanoi, Vietnam
March 2014
Presentation and Marketing Material

2. 2
Table of Contents
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Research Division
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Content Page
Sector Structure and Description 3
Market Size and Growth 4-6
Challenges 7
Competition Dynamics 8-11
Segmentation Analysis 12-18
Sector summary 19
About StoxPlus 20-25