HANOI—Vietnam’s logistics industry is witnessing a surge in foreign investment, positioning the country as one of the most attractive logistics hubs in Southeast Asia. Global logistics giants like FESCO Transportation Group and Alibaba have made significant investments, tapping into Vietnam’s growing role in cross-border trade.

In August 2024, Russia’s FESCO launched a regular shipping line between Vietnam and Malaysia to expand its operations, while Alibaba rolled out new logistics services in collaboration with UPS and DHL to facilitate the export of Vietnamese goods to over 200 countries. These initiatives underline the growing demand for logistics services in Vietnam, with more companies seeking to establish or expand their presence in the country.

Flexport, a US-based logistics firm, has also announced plans to further develop its sea and air freight services in Vietnam, as the country continues to benefit from supply chain diversification trends away from China. Forecasts suggest that Vietnam’s logistics market could grow at a rate of 6.64% annually until 2032, as demand for both sea and air cargo services increases.

According to a report from VinaCapital, Vietnam’s air and sea cargo volumes surged by 30-40% in early 2024, largely driven by a recovery in exports to the United States, which had dipped during the pandemic. As foreign investment continues to pour in, Vietnam’s logistics sector is expected to play an even bigger role in the global supply chain​