Vietnam is becoming a powerhouse for business and enterprise and this has led to huge demand for transportation services. From roads to rail to ships to aeroplanes there are a multitude of ways of moving people and products around Vietnam

This section covers: aviation, shipping, and road and rail transport and associated services.

Vietnam domestic flight numbers experience biggest fall this year in September

the-shiv October 16, 2024

Of note, year to date, Vietnam Airlines and Vietjet have executed 83,552 and 83,326 flights, respectively, putting Vietjet just a cat’s whisker away from being Vietnam’s biggest airline in terms of the number of flights…

Bamboo Airways is resuming international flights

the-shiv October 16, 2024

This is somewhat of a surprise in that the airline has been struggling for the better part of two years during which it has repeatedly downsized its fleet and number of routes…

Vietnam car sales jump 50 percent September over August

the-shiv October 11, 2024

Year on year sales are also up about 2 percent, on the back of the jump in sales in September. Car imports are also up averaging 13,820 units a month so far this year which is up from an average of 9,612 in 2023…

Vietnam’s PM asks Japan for ODA support for North-South railway

the-shiv October 11, 2024

This comes after the Ministry of Transport announced that it intended to avoid foreign loans to pay for the project in favour of utilising domestic finances…

Paying For Vietnam’s High-Speed Rail: Unpacked

the-shiv October 8, 2024

Vietnam’s Transport Ministry has said that Vietnam’s high-speed railway project connecting Hanoi and Ho Chi Minh City will utilise domestic finances and technology, as opposed to support from abroad. It is, however, expensive and financing it alone will be challenging.

Vietnam to self-fund high-speed rail, avoid ‘strings attached’ foreign loans

the-shiv October 3, 2024

Notably, debt-diplomacy has become common in recent years particularly in developing nations and given Vietnam’s precarious position in the world in terms of geopolitics, a reluctance to be indebted to external creditors is understandable. That said, this is a huge and very expensive project that really needs to be done right and Vietnam has no existing high-speed rail and therefore no experience installing and using the technology to speak of.

Vietnam Mercedes-Benz plant lease extended after months of uncertainty

the-shiv October 2, 2024

The joint venture between Mercedes-Benz and local firm SAMCO had requested an extension of its land lease as far back as 2021, however, the request was never actioned due to the aforementioned regulatory challenges (the can was kicked down the road). This came to a head earlier this year, however, when the company said it was considering shutting down its operations in Vietnam altogether as a result of the lolly-gagging…

Freight Forwarding in Vietnam: Overview 2024

the-shiv September 22, 2024

Freight forwarding in Vietnam plays a critical role in facilitating international trade and logistics in Vietnam, serving as a key connector between manufacturers, exporters, and global markets–with its strategic location in Southeast Asia and a rapidly expanding infrastructure network, Vietnam has become an important hub for freight forwarding services. Furthermore,

Last-Mile Delivery in Vietnam in 2024

the-shiv September 21, 2024

The last-mile delivery sector in Vietnam is undergoing rapid transformation driven by the e-commerce boom and evolving consumer expectations. Despite challenges such as infrastructure limitations, high costs, and logistical complexities in rural areas, the industry is poised for growth through technological innovation and strategic partnerships. Emerging trends like AI-driven optimization, micro-fulfillment centres, and alternative delivery methods are shaping the future of last-mile delivery in the country.

Skoda assembly plant in northern Vietnam almost ready-to-go

the-shiv September 21, 2024

A new assembly plant for the Czech Republic’s Skoda vehicles is set to go into operation later this year in northern Vietnam, The Investor is reporting. The plant in Quang Ninh province is 90 percent complete, according to the firm, and began a trial run back in May. Set on 36.5 hectares the factory will add a capacity of 120,000 vehicles a year to Vietnam’s automotive industry…

Vietnam’s Aviation Industry: Overview 2024

the-shiv September 19, 2024

Vietnam’s aviation industry has grown quickly, driven by a rising middle class and increasing demand for both domestic and international travel. Key players, including national carriers and low-cost airlines, are competing to offer diverse services while maintaining affordability. That said, the industry has not yet fully recovered from COVID border closures and it still may have some way to go yet.

Vietnam Ministry wants to target car sales of 1 million units a year by 2030

the-shiv September 19, 2024

Of note, Vietnam’s cities are already straining to accommodate the rise in car ownership and the penetration rate is only around 5 percent. If the country is to reach car sales of 1 million units a year, there will need to be some fairly big investments in infrastructure. It’s not clear how or if this will be addressed…

US automotive manufacturer inaugurates second Vietnam factory

the-shiv September 14, 2024

Motorcycle sales, despite a decline of 16.21 percent in 2023 compared to 2022, still far exceeded car sales. The comparison between the over 2.5 million motorcycles sold and just over 214,000 passenger cars sold underlines how deeply motorcycles are integrated into daily life…

Vietjet Air: Vietnam Stock Overview

Huong Nguyen September 9, 2024

Moving forward, total demand for air passenger transport in 2024 is forecast to reach 84.2 million passengers, an increase of 15 percent compared to 2023. However, the aviation industry has been facing a shortage of aircraft due to a recall of Pratt & Whitney engines. VJC has had to temporarily ground 22 of its 85 aircraft for maintenance and repairs and this may last until 2025…

Indonesian ride-hailing app GoJek to withdraw from Vietnam market

the-shiv September 5, 2024

Of note, it is not the first ride-hailing app to withdraw from the country. South Korea’s Baemin announced it would cease operations in the country back at the end of last year and Uber left Vietnam back in 2018 after selling its Southeast Asian operations to Grab…

Key Vietnam car maker reports profit fall of 6 percent in first half 2024

the-shiv September 2, 2024

From a peak in 2022 of VND 7.4 trillion or US$298.3 million, Thaco has seen its profits continue to fall. This has been attributed to a decline in car sales on the back of broader economic challenges in Vietnam. This is, however, only one part of much bigger changes in Vietnam’s car market as new trade agreements pull down tariffs on imports and trade remedies against cars imported from China into the US and EU see Chinese car makers search for new markets…

Vietnam’s Ho Chi Minh City to Hanoi flight route among busiest in the world

the-shiv August 26, 2024

The local airline industry has faced a number of challenges, particularly recovering from pandemic border closures which grounded most of their aircraft. Foreign investment and expertise could be one possible solution, however, investment in airlines in Vietnam is capped at 34 percent which can make influencing key decisions challenging…

New Dong Nai seaport in Southern Vietnam set to be operational next month

the-shiv August 25, 2024

The first phase of Phuoc An seaport, the largest seaport in Dong Nai Province, is scheduled to start operating in September 2024, according to Dantri. The project has cost an estimated US$833.33 million and has taken almost 15 years to complete. Approved for construction in 2009, the project was almost

Airlines in Vietnam down to just 160 aircraft operational

the-shiv August 25, 2024

With flight demand outstripping supply and the reputations of Vietnam’s airlines among lessors low, there are a myriad of ways Vietnamese airlines could benefit from an injection of foreign capital and expertise. Foreign firms, however, should make sure they have a full grasp on how the industry is tracking before embarking on any major decisions.

Vietnam EV maker VinFast delays Thailand dealership launch

the-shiv August 24, 2024

Of note, VinFast’s expansion outside of Vietnam has been rife with big announcements that have failed to materialise. Most recently, a factory in North Carolina announced back in 2022 was put on ice this year after the company failed to meet sales targets in the North American market. This fits with a largely rocky market entry in the US, at least partly due to the vastly different auto-market dynamics in Vietnam versus in the United States.