Vietnam’s logistics sector is experiencing significant growth, fueled by infrastructure development and strategic government initiatives. This growth, estimated at 14-16% annually, contributes a substantial 4.5-5% to the nation’s GDP. This positions Vietnam as a key player in the regional logistics landscape.
Infrastructure Development: A Catalyst for Growth
The rapid expansion of Vietnam’s infrastructure is reshaping its logistics sector. Optimisation is occurring across the board, addressing costs that currently account for approximately 16% of GDP. This is notably higher than rates in Singapore (8%), Malaysia (12%), and the global average (around 11%). The benefits of this optimisation include:
- Improved corporate profit margins
- A surge in mergers and acquisitions (M&As) as logistics assets are re-evaluated to reflect increased utilisation potential.
Strategic hubs such as Lach Huyen, Lien Chieu, and Cai Mep-Thi Vai are attracting considerable attention from investors based in Japan, Singapore, and South Korea. These investors are actively seeking regional expansion opportunities, driven by supply chain realignments and the shifting of global capital flows back into Asia.
Government Strategy: Building a Sustainable Ecosystem
The Vietnamese government’s commitment to logistics development is evident in its strategy towards 2035, approved in October. This strategy centres on the creation of a sustainable and technology-driven ecosystem. This vision has bolstered market confidence, fostering domestic M&As aimed at increasing scale and competitiveness within the industry.
Shifting Investor Priorities: Focus on Key Segments
As Vietnam progresses toward becoming a mega-industry, its synchronised infrastructure expansion is redefining investor priorities. M&A capital is increasingly being directed towards segments that can fully capitalise on the new infrastructure backbone. Key areas of focus include:
- Warehousing
- Cold storage
- Multimodal transport
- Third-party logistics (3PL) services
Warehousing and Cold Storage: Benefiting from Infrastructure
The warehousing and cold storage sectors are experiencing rapid expansion, driven by new infrastructure developments. These include deep-sea ports, international airports, and inter-regional expressways, all of which contribute to shorter transportation cycles and enhanced logistics efficiency.
- E-commerce boom: The surge in e-commerce is a major driver.
- Export growth: Increasing exports are fueling demand.
- Supply chain shifts: The ongoing relocation of global supply chains away from China is creating new opportunities.
This segment has become a central point for investment inflows. Ready-built factory and warehouse models are gaining significant traction due to their:
- Short development cycles
- Competitive rental rates
- High construction standards
These factors enable manufacturers to scale production and storage without substantial upfront infrastructure investment.
Multimodal Transport and 3PL: Connecting the Ecosystem
Multimodal transport and 3PL providers are playing a crucial role in integrating Vietnam’s logistics ecosystem. They connect transport, warehousing, and distribution across key regional corridors. Investors are particularly interested in tech-enabled operators that offer end-to-end integration and scalability.
Infrastructure upgrades are significantly reducing transit times between the northern, central, and southern economic zones. These upgrades are also strengthening connections to seaports and international gateways. As a result, local players, previously confined to regional markets, now have a viable path to expand nationally and move into higher-margin, specialised segments such as:
- Cold-chain logistics
- Agri-product supply chains
- Industrial park last-mile solutions
- Transshipment services
- Integrated multimodal transport
Achieving M&A Success: Operational Strength and Institutional Readiness
Attracting strategic or financial partners hinges on a combination of operational strength and institutional readiness. Potential partners will assess companies based on their:
- Demonstrated operational excellence
- Ability to deliver consistent, high-quality services at scale
- Clear, standardised operating model that can be replicated in new regions
Further differentiating factors include:
- Strong progress in digital transformation (real-time track-and-trace, modern warehouse management systems, and route optimisation)
- Credible environmental, social, and governance (ESG) and sustainability initiatives
Transparent financials, accountable governance, and professional management teams are also essential to satisfy the rigorous due diligence processes of international strategic buyers and private equity investors.
Regional Outlook for 2026: A Distributed Landscape
Looking ahead, logistics M&A activity in Vietnam is expected to be distributed across the country, with each region offering unique opportunities.
- Southeast Key Economic Region: This region, anchored by the Cai Mep–Thi Vai deep-sea port complex, will be the epicentre, handling nearly half of Vietnam’s total cargo volume. The imminent removal of inland obstructions, coupled with the operational launch of Long Thanh International Airport’s Phase 1, the progressive opening of ring roads 3 and 4, new expressways, and dedicated rail links to ports, will drive a quantum leap in multimodal efficiency. Government master planning reinforces this momentum, designating the south as Vietnam’s primary growth pole with a mandated regional GDP target of 8-8.5% annually. Six defined economic corridors will solidify its role as the country’s pre-eminent logistics hub.
- Northern Region: The northern region will remain a strong competitor. Ongoing port expansion, new cross-border expressways, and its dominance in China-linked trade and cold-chain logistics will continue to attract steady capital, particularly from Korea, Japan, and China.
- Central Region: The central region is emerging as a frontier. The completion of the North-South Expressway and maturing industrial clusters around Danang, Chu Lai, Dung Quat, and Quang Ngai, combined with Danang’s strategic position on the East-West Economic Corridor, are transforming the centre into the logistical spine connecting north and south. Early mover acquisitions here will be attractive for platforms seeking pivotal nodes, although deal volume and enterprise values may initially trail the larger zones.
Preparing for M&A: Key Considerations
To fully leverage the momentum created by Vietnam’s expanding infrastructure, logistics companies preparing for M&A should prioritize building operational and financial credibility while aligning with global investment expectations. This includes:
- Enhancing financial transparency and governance: To increase investor confidence and valuation potential.
- Operational standardisation: Through the adoption of ISO-certified processes, performance benchmarks, and unified service quality.
- Investing in digital transformation: To improve efficiency and attract strategic investors seeking scalable, tech-enabled operations.
- Embracing green logistics initiatives: Such as low-emission fleets, renewable-powered warehouses, and ESG reporting.
By taking these steps, Vietnamese logistics firms can capitalize on new infrastructure and emerge as strong contenders in upcoming M&A opportunities.