In the report on the future journey of Vietnam’s logistics industry, JLL Vietnam said that e-commerce (e-commerce) is a great driving force for logistics real estate development. In which, the demand for logistics (especially cold storage) will increase dramatically, spurring growth for the whole industry in the future, especially when the economy recovers after Covid-19.
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In the context of the global pandemic, trade businesses all over the world and in Vietnam are experiencing a strong shift in sales structure for the domestic consumption market, from traditional mega-mall to omni-channel.
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Accordingly, the shape of the logistics industry can also shift with this change. Lets together with Boxme discover the new trend and to what extent does the logistics demand increase in Vietnam.
The logistics demand tripled the e-commerce growth
Vietnam JLL has given some evaluations about the development journey of logistics demand in Vietnam in upcoming years.
>>>Read more: Vietnam enters in the top 10 of emerging logistics market 2021
In a press conference with the topic “The future path of Vietnam’s logistics industry” which took place on the morning of December 15, JLL Vietnam assessed that e-commerce is a great driving force for logistics real estate demand.
Generally, e-commerce companies use more logistic space than traditional retailers. This is largely due to the wider product ranges of e-commerce businesses, large inventory levels, greater overseas shipping space requirements, and two-way logistics needs (return and exchange).
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According to Ms. Trang Bui, JLL Senior Director of Vietnam market, in the past 2 years, FDI inflows into logistics real estate in Vietnam have increased sharply. Big investors had made huge capital of about $ 3 billion for phase 1 and some are also calling for phase 2 investment.
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“The demand of investors in industrial real estate when entering the Vietnam market at this time is also increasing. In the past, they often needed to find a land fund to develop with a scale of 5,000-10,000 m2. The course has increased to 10,000 – 50,000 m2, “commented Ms. Trang Bui.
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In addition, this unit assessed that cold storage will be an emerging segment in the future logistics sector when more and more consumers are ordering goods online during the pandemic.
Logistics demand – towards the future
Many experts believe that in order to achieve future expansion goals, Vietnam’s logistics industry will still have to overcome many challenges. First of all, in order for Vietnam to move to the next stage in logistics development, and gaining more competitive advantages and even before other countries, it is necessary to continue to maintain a reasonable level of investment. Infrastructure, emphasis should be placed on the development of both highways and utility networks, including renewable energy.
>> Read more: Vietnam enters in the top 10 of emerging logistics market 2021
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According to experts from JLL Vietnam, the Covid-19 epidemic is speeding up the automation process in the logistics sector and will become a major trend in the coming time. Warehouse tenants are having the intention to upgrade from outdated, small, and medium-sized privately owned properties to a more modern property in a better location.
More readings?
>>Read more:Understand the importance of reverse logistics in your supply chain
> Read more: Vietnam enters in the top 10 of emerging logistics market 2021
>>>Read more:Key factors of E-commerce logistics in Vietnam
About Boxme: Boxme is the premier E-commerce fulfillment network in Southeast Asia, enabling world-wide merchants to sell online into this region without needing to establish a local presence. We deliver our services by aggregating and operating a one-stop value chain of logistic professions including: International shipping, customs clearance, warehousing, connection to local marketplaces, pick and pack, last-mile delivery, local payment collection and oversea remittance.
