E-Logistics in Vietnam 2026: How E-Commerce is Reshaping Warehouse Real Estate Demand

E-logistics in Vietnam is experiencing remarkable growth, with a USD 11.62 billion GMV in 9M 2025 (+34.4% YoY) and TikTok Shop hitting 148% YoY growth. The market is projected to grow from USD 2.22B to USD 6.35B by 2034.

On the other hand, the industry is also facing challenges during its rapid development. Let’s delve into the article to learn about the obstacles, opportunities, and prospects of e-commerce in Vietnam logistics.

“Flexibility and strategic accessibility have become key criteria in site selection. Many companies are expanding into provinces such as Tay Ninh, Quang Ninh, and Hung Yen, rather than focusing only on traditional hubs like Binh Duong or Bac Ninh. The trend of building dual distribution centres, one in the North to serve China and one in the South targeting ASEAN, is becoming increasingly common.”

– John Campbell, Head of Industrial Services, Savills Vietnam

Overview of E-Logistics in Vietnam

What is E-Logistics?

E-logistics, or E-Commerce logistics, defines the use of digital technologies and the internet to handle the distribution and transportation of goods. It’s not the same as traditional logistics, but these two can be combined. Due to its numerous nuances, e-logistics is an important concern for online retailers. It’s especially effective in the flow management process.

Thanks to rapid tech adoption, Vietnam ranks among the top 10 emerging logistics markets worldwide (Source: Vietnamplus). The sector contributes 4.5–5% as value-add, with 14–16% annual sector growth, driven by hyper-local fulfillment, smart warehousing, and last-mile delivery demand. Major domestic and foreign corporations are investing heavily, aligning with Vietnam’s national logistics strategy through 2035.

Read more: How is E-Commerce Changing Logistics?

The Landscape of Vietnamese E-Commerce: Key Challenges

Understanding e-commerce in Vietnam logistics will provide investors with a proper background and outlook. Here are some challenges that the market can bring:

Infrastructure Constraints

Vietnam currently ranks 43rd globally on the World Bank’s Logistics Performance Index (LPI), maintaining its status as a top 10 emerging market.

While the country suffers from a heavy reliance on road transport, it also boasts over 3,000km of expressways and a vast multimodal transport network connecting railways, inland waterways, and major seaports.

The first phase of Long Thanh International Airport is accelerating towards commercial operation. The government is utilizing public-private partnerships (PPPs) to expedite funding and ease infrastructure bottlenecks.

High Logistics Costs and Last-Mile Delivery

High logistics costs remain a substantial hurdle with 94% of respondents sharing the same issue. In 2024, the cost for logistics in Vietnam is 16-17% of GDP, compared to other countries such as Japan with 11%, Singapore 8%, Malaysia 13%, etc. (Source: B&Company Inc.)

This significant cost differential affects competitiveness and puts pressure on margins for e-commerce businesses operating in Vietnam.

Technology Investment Pressure

The State must continue adopting policies supporting retailers and logistics companies in improving smart logistics capabilities through advanced technologies.

Mechanisms promoting postal services as e-commerce delivery infrastructure are also essential, creating pressure on companies to invest despite limited resources.

The Landscape of Vietnamese E-Commerce: Opportunities

Vietnam’s e-commerce sector presents tremendous opportunities for logistics providers and real estate investors. Digital transformation and government support create a favorable environment for e-logistics in Vietnam to thrive.

E-Commerce Growth Driving Logistics Demand

Vietnam’s e-commerce market, projected to exceed $29 billion, demands expanded warehousing, advanced tracking, and faster delivery networks. Companies are racing to build micro-fulfillment centers for 30-minute delivery standards.

Key opportunities include:

• Micro-Fulfillment Centers: Online buyers want goods fast. Platforms must build small, city-center warehouses that hold fast-moving items like food or clothes right near customers.
• Third-Party Logistics (3PLs): Many online shops do not own trucks. They hire 3PLs – outside companies that handle packing and shipping.
• Industrial Real Estate: The government is changing how land is used. New plans allow industrial parks to hold warehouses instead of just factories, helping companies store more goods close to buyers.
• Smart Technology: Delivery requires near real-time tracking. Companies use software to map the fastest routes and track packages instantly.
• National Expansion: E-commerce used to only happen in big cities like Ho Chi Minh City. Now, it is growing in rural areas too, meaning shipping networks must cover wider spaces.

Investment and Policy Momentum

According to a report by YouNet ECI, the top four e-commerce platforms (Shopee, TikTok Shop, Tiki and Lazada) exceeded 458 trillion VND ($17.4 billion) in 2025, up 26%. Vietnam maintains 20–25% annual growth, ranking third in Southeast Asia.

Growth drivers include:

• Market Size: Combined sales on the top four platforms reached $11.62 billion in just the first nine months of the previous year, and $17.4 billion in total. Analysts predict the market could reach nearly US$50 billion by 2028.
• Online Export Hub: Vietnam is transitioning into a global e-commerce export hub. Cross-border Business-to-Consumer (B2C) exports are projected to reach US$5.7 billion by 2028.
• Beyond Basics: Growth is expanding from fashion and electronics into fresh food, groceries, and essential consumer goods.
• Policy Momentum: The government recently passed a new E-commerce Law to create a transparent digital market, aiming to resolve grey areas like counterfeit goods, misleading advertising, and unfair competition.
• National Master Plan: The Ministry of Industry and Trade (MoIT) is implementing the National E-commerce Development Master Plan, improving digital policies and partnering with global platforms to aid MSMEs.

Operator Diversity and Forward Warehouse Expansion

Vietnam’s e-commerce logistics relies on diverse 3PL partners and forward warehouse expansions. Three main provider types dominate:

• Domestic Leaders: Companies like ViettelPost use deep domestic networks to reach rural areas, while VNPost leverages its thousands of local offices.
• Specialized E-commerce Couriers: Local firms like GHTK (Giaohangtietkiem) and Ninja Van use tech for fast last-mile delivery.
• Global Giants: Players like DHL operate international supply chains to support cross-border trade.

Forward warehousing moves inventory closer to buyers through smaller regional hubs in Da Nang, Hanoi, and Ho Chi Minh City, speeding delivery and lowering costs. Foreign developers control over 75% of Vietnam’s warehouse space, building mega-hubs near China and in manufacturing zones like Binh Duong (now Ho Chi Minh city) and Bac Ninh.

Warehouse Real Estate Implications: What Investors and Occupiers Need to Know

The evolution of e-logistics in Vietnam is fundamentally reshaping warehouse requirements. Understanding these dynamics helps investors identify promising opportunities while enabling occupiers to make strategic operational decisions.

Dual Distribution Center Model

The dual DC model splits supply chains into centralized bulk storage hubs and agile last-mile fulfillment centers, dictating high demand for automation-ready assets while requiring occupiers to balance urban rental costs against transportation savings.

For investors:

• Obsolescence Gap: Legacy warehouses lack clear heights, floor flatness, and power grids for modern robotics, shifting focus toward Class A assets
• Asset Class Divergence: Upstream hubs demand 23,000+ square meters with highway access; downstream hubs require smaller urban infill sites
• Flight to Quality: Automated-ready assets in gateway markets deliver stable income streams

For occupiers:

• Cost Tug-of-War: Urban premiums must be weighed against long-haul freight savings
• Inventory Management: Bulk centers cushion disruptions while last-mile centers handle real-time demand
• Labor and Automation: Sites must align with local labor availability and retrofitting costs

Total Occupancy Cost Matters More Than Headline Rent

TCO, encompassing maintenance fees, property taxes, insurance, and hidden costs, reveals the true financial burden. Evaluating this fully loaded cost helps investors and occupiers make smart, long-term budget decisions.

 Total Occupancy Cost = Base Rent + OpEx + Utilities + Hidden Fees.

Key cost drivers:

• OpEx: CAM fees, building insurance, and property taxes often passed to tenants
• Reinstatement Costs: Expensive restoration fees when vacating
• Power and Data Infrastructure: Upgrading older buildings for robotics adds major upfront costs
• Transport and Labor Access: Location affects fuel and wage expenses significantly

What occupiers and investors need to know:

• Total Occupancy Cost over Headline Rent: A property with a lower base rent might actually have higher taxes and maintenance fees. You can use a TCO framework to compare real prices across different properties.
• Lease Flexibility: Occupiers want shorter commitments to manage risk. However, landlords might trade a cheaper rate for a longer lease.
• Hidden Costs: Location-specific charges (like land rent or subletting fees) can blindside businesses. It helps to audit historical utility bills and operating expenses before you sign.

LEED-Certified Ready-Built Warehouse Supply Is Expanding

Sustainable, ready-to-use warehouse space lowers risk and ensures climate compliance. According to U.S. Green Building Council, as of March 2026, over 8,300 warehouse projects have achieved or registered for LEED certification globally. Vietnam’s industrial hubs are experiencing a surge in modern, sustainable spaces. Major industrial park developments in Dong Nai are built to target top-tier LEED Gold certification.

For investors:

• Better Asset Value: Green buildings command higher rents and attract more tenants than older, uncertified properties.
• Market Resilience: Studies show that LEED-certified properties hold higher sales prices and experience lower vacancy rates, making them safer investments.
• The “Brown Discount”: Buildings without green certifications are increasingly seeing lower rent and sales prices as the market transitions to sustainability.

For occupiers:

• Lower Operating Costs: Efficient lighting, smart HVAC systems, and water-saving features reduce ongoing utility expenses.
• Meeting ESG Goals: Occupiers face heavy pressure to reduce their carbon footprints. Renting a pre-certified building helps brands meet strict Environmental, Social, and Governance (ESG) targets quickly.
• Capital Efficiency: Occupiers use ready-built spaces to save massive amounts of upfront capital. Instead of buying land and building from scratch, they shift these large expenses into predictable, ongoing rental costs.

E-commerce Logistics’s Future Prospects 2030

Free trade agreements including CPTPP and EVFTA will positively impact e-logistics in Vietnam, attracting FDI to infrastructure and data systems.

Vietnam actively lowers regulatory barriers through Decision No. 163/NQ-CP for cohesive supply chain solutions and Decision No. 1012/QD-TTg for nationwide logistics centers. Investors are expected to increase spending as the government targets reducing high logistics costs through automation and smart hubs.

Businesses must adopt AI-driven warehousing, predictive delivery systems, and localized fulfillment models to succeed despite ongoing challenges with costs, integration, and digital adoption.

Conclusion

E-logistics in Vietnam faces challenges with high costs (16-17% of GDP) and infrastructure constraints, yet presents immense opportunities for growth.

Investing in a Vietnam warehouse promises stable and long-term profit. If you want to know more about this investing area, don’t hesitate to contact Savills Industrial for consultation.