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, the industry supports the smooth movement of goods across borders, managing complex logistical processes such as customs clearance, transportation, warehousing, and documentation.
But perhaps most importantly, as Vietnam’s economy continues to grow and integrate with the global market, the demand for efficient and reliable freight forwarding services will likely continue to rise, making it a pivotal sector for the country’s economic development and international trade dynamics.
What is freight forwarding in Vietnam?
Freight forwarding in Vietnam refers to the process of organising and coordinating the shipment of goods from one location to another, both domestically and internationally. Freight forwarders act as intermediaries between shippers and various transportation services, such as shipping lines, airlines, and trucking companies. They handle all logistics-related activities, including transportation, customs clearance, documentation, and storage, ensuring that goods move smoothly and efficiently through the supply chain.
In Vietnam, freight forwarding is a vital industry that supports the country’s burgeoning trade activities. Given Vietnam’s strategic location in Southeast Asia, its expanding manufacturing base, and numerous free trade agreements, the demand for freight forwarding services has increased significantly. Companies in this sector offer a range of services, including sea and air freight, cross-border trucking, warehousing, and distribution. By managing the complexities of international shipping, freight forwarders in Vietnam help businesses navigate the challenges of global trade, optimise supply chains, and connect with markets around the world.
Who needs freight forwarding in Vietnam?
Freight forwarding services in Vietnam are essential for a wide range of businesses and industries that require efficient logistics solutions to manage the transportation of goods, both domestically and internationally.
Manufacturers and exporters
Manufacturers and exporters, spanning sectors such as garments and textiles, electronics, furniture, automotive, and agriculture, heavily rely on these services. They need freight forwarders to handle the complex logistics of moving raw materials and finished goods, managing customs clearance, documentation, and compliance with export regulations. Importers and distributors, particularly in industries like consumer goods, pharmaceuticals, machinery, and technology, also depend on freight forwarding for navigating the import process, ensuring timely delivery, and coordinating the distribution of products to warehouses or retail outlets across Vietnam.
E-commerce companies
E-commerce companies, including those in online retail, fashion, electronics, and food delivery, find freight forwarding crucial for managing high volumes of small parcel shipments and ensuring efficient last-mile delivery. This sector requires logistics solutions that support fast delivery times, real-time tracking, and cost-effective distribution. Similarly, agricultural and seafood exporters, dealing with fisheries, seafood processing, rice, coffee, and fruits, need specialised freight forwarding services. These services provide temperature-controlled transportation and expedited customs clearance to maintain product quality and compliance with international standards.
Companies involved in large-scale projects
Companies involved in large-scale projects, such as those in construction, energy, and infrastructure, utilise freight forwarders to handle the logistics of transporting oversized and heavy equipment. This includes complex tasks like route planning, obtaining special permits, and coordinating multi-modal transport options. For pharmaceutical and healthcare companies, including those dealing with medical devices and healthcare products, freight forwarding is vital for handling sensitive items that require temperature-controlled environments and adherence to stringent regulatory requirements during transport.
Retail chains and supermarkets
Retail chains and supermarkets, operating in sectors like fast-moving consumer goods, groceries, and consumer electronics, depend on freight forwarders to manage the supply chain from international and domestic suppliers to their stores. This involves coordinating the transportation, warehousing, and distribution of a diverse range of products. The fashion and apparel industry, encompassing clothing, footwear, and accessories, also relies on these services to transport products from manufacturers in Vietnam to global markets and vice versa, requiring solutions that accommodate high-value goods, seasonal demand, and strict delivery timelines.
Logistics and supply chain companies
Logistics and supply chain companies, particularly third-party logistics providers, warehousing services, and supply chain managers, often subcontract freight forwarding services to enhance their offerings, especially for specialised transportation needs or international shipments. Small and medium enterprises (SMEs) across various sectors, including handicrafts, food processing, and electronics, benefit significantly from freight forwarding services. These services help SMEs manage logistics complexities that they may not have the capacity or expertise to handle internally, enabling them to compete effectively in both domestic and international markets by ensuring their products are transported efficiently and cost-effectively.
More or less, any business or organisation involved in the transportation of goods, whether for import, export, or domestic distribution, can benefit from freight forwarding services in Vietnam. These services help companies streamline logistics operations, navigate regulatory challenges, and ensure the timely and secure delivery of their products, making them a vital component of Vietnam’s growing economy and international trade network.
Key players in Freight forwarding in Vietnam?
DHL Global Forwarding
DHL Global Forwarding is a leading international freight forwarder with a strong presence in Vietnam. The company offers comprehensive logistics solutions, including air, ocean, and road freight services. It serves various industries such as manufacturing, technology, and consumer goods, leveraging its extensive global network and advanced digital solutions. DHL’s expertise in customs clearance and supply chain management makes it a preferred partner for businesses seeking reliable and efficient logistics support in Vietnam.
DB Schenker
DB Schenker is one of the world’s largest logistics providers and has established a significant footprint in Vietnam. The company offers integrated supply chain solutions, including air and ocean freight, contract logistics, and specialised services such as project logistics and warehousing. With a strong international connectivity and experience in handling complex project logistics, DB Schenker is well-equipped to meet the diverse needs of its clients in Vietnam.
Kuehne + Nagel
Kuehne + Nagel is a global leader in logistics, providing sea, air, and road freight services in Vietnam. The company is known for its robust digital platforms and innovative logistics solutions that cater to a wide range of industries. Kuehne + Nagel’s digital innovation and strong presence in the Asia-Pacific region enable it to offer tailored solutions that support efficient supply chain operations for businesses operating in Vietnam.
Bolloré Logistics
Bolloré Logistics is a major player in the global supply chain, offering multimodal transport and logistics solutions. It has a significant presence in Vietnam, particularly in sectors like oil and gas, aerospace, and consumer goods. Bolloré’s expertise in managing complex supply chains and its strong local presence make it a key logistics partner for companies involved in international trade and high-stakes industries.
Yusen Logistics
Yusen Logistics, a subsidiary of the Nippon Yusen Kaisha Group, provides comprehensive logistics services in Vietnam, including freight forwarding, warehousing, and distribution. It has a strong focus on the automotive and healthcare sectors, offering specialised logistics services that meet the stringent requirements of these industries. Yusen’s extensive network in Asia and strong customer service focus position it as a reliable logistics partner in Vietnam.
Gemadept Corporation
Gemadept Corporation is a leading local logistics company in Vietnam, offering a range of services including freight forwarding, port operations, and warehousing. It operates several major ports in the country, making it a critical player in Vietnam’s logistics infrastructure. With strong local expertise and extensive port operations, Gemadept provides integrated logistics services that support the country’s growing trade activities.
Transimex Corporation
Transimex Corporation is a prominent Vietnamese logistics company that provides freight forwarding, warehousing, and distribution services. It has a significant presence in both Ho Chi Minh City and Hanoi, catering to a wide range of industries. Transimex’s comprehensive logistics solutions and strategic locations enable it to effectively support businesses in Vietnam’s dynamic and competitive market.
Sotrans Logistics
Sotrans Logistics is a major Vietnamese logistics provider offering air, sea, and road freight services, as well as warehousing and project logistics. It is known for its strong network within Vietnam and expertise in handling oversized cargo, making it a valuable partner for industries requiring specialised logistics solutions. Sotrans’ diverse service offerings and extensive domestic network enhance its capability to meet the logistics needs of businesses across the country.
ITL Corporation (Indo Trans Logistics)
ITL Corporation is one of the leading local logistics providers in Vietnam, offering freight forwarding, warehousing, and supply chain management services. It has partnerships with global logistics companies and operates its own fleet of trucks, enabling it to provide comprehensive logistics solutions. ITL’s strong local network, strategic partnerships, and diverse service portfolio make it a prominent player in Vietnam’s logistics industry.
Damco
Formerly part of the Maersk Group, Damco provides air and sea freight forwarding and supply chain management services in Vietnam. It focuses on offering flexible and efficient logistics solutions tailored to specific industry needs. Damco’s strong customer focus and integration with Maersk’s global network provide a competitive advantage in optimising supply chain operations for businesses in Vietnam.
These key players, both international and local, are instrumental in supporting Vietnam’s trade and logistics sector, offering a wide range of services to meet the needs of businesses operating in the country.
Key questions about freight forwarding in Vietnam
Common questions about freight forwarding in Vietnam often revolve around understanding the logistics processes, regulations, and best practices for efficient shipping.
What is the role of a freight forwarder in Vietnam?
Freight forwarders in Vietnam act as intermediaries between shippers and various transportation services, managing the logistics of moving goods domestically and internationally. They handle tasks such as booking cargo space, coordinating shipments, customs clearance, documentation, and ensuring timely delivery of goods.
What documents are required for freight forwarding in Vietnam?
Common documents required include the Bill of Lading, Commercial Invoice, Packing List, Certificate of Origin, and customs declarations. Depending on the nature of the goods, additional permits or licences may be necessary, such as phytosanitary certificates for agricultural products or hazardous material permits.
How do customs procedures work in Vietnam?
Customs procedures in Vietnam can be complex and vary based on the type of goods and the trade agreement under which they are being imported or exported. Freight forwarders typically assist with preparing and submitting customs declarations, paying duties and taxes, and ensuring compliance with Vietnamese regulations.
What are the main ports and airports used for freight forwarding in Vietnam?
Key seaports include Cat Lai Port in Ho Chi Minh City, Hai Phong Port in the north, and Da Nang Port in central Vietnam. Major airports for air freight are Tan Son Nhat International Airport in Ho Chi Minh City and Noi Bai International Airport in Hanoi. These ports and airports serve as primary hubs for the import and export of goods.
Are there any restrictions on what can be imported or exported?
Yes, Vietnam has specific restrictions and regulations regarding certain goods. Items such as explosives, narcotics, and weapons are prohibited, while others like pharmaceuticals, food products, and technology equipment may require special permits or licences. It’s essential to verify with a freight forwarder or the relevant authorities before shipping.
How can I find a reliable freight forwarder in Vietnam?
Choosing a reliable freight forwarder involves considering factors such as their experience, network of contacts, range of services, and reputation in the industry. It’s advisable to seek recommendations, check for memberships in professional associations like FIATA, and review customer feedback.
What are the typical costs involved in freight forwarding?
Costs can vary based on the mode of transport, distance, type of goods, and services required. Typical costs include shipping fees, customs duties, handling charges, and insurance. It’s important to get detailed quotes from freight forwarders and understand all potential fees to avoid unexpected expenses.
Can freight forwarders handle customs clearance for me?
Yes, most freight forwarders in Vietnam offer customs clearance services. They will prepare and submit all necessary documents, handle communications with customs authorities, and ensure that all duties and taxes are paid. This service is especially beneficial for businesses unfamiliar with Vietnam’s customs regulations.
How do Incoterms affect freight forwarding in Vietnam?
Incoterms define the responsibilities of buyers and sellers in international trade, including who pays for shipping, insurance, and customs duties. Understanding Incoterms is crucial for determining the division of costs and liabilities in a freight forwarding contract. Freight forwarders can provide guidance on the most suitable Incoterm for your shipment.
What should I do if my shipment is delayed or lost?
If a shipment is delayed or lost, the first step is to contact your freight forwarder for an update and clarification. They will liaise with the carriers and relevant authorities to track the shipment and resolve the issue. It’s also important to have proper insurance coverage to protect against potential losses.
Summary
Freight forwarding in Vietnam is a crucial component of the logistics industry, supporting the movement of goods both domestically and internationally. It involves coordinating and managing the transportation, customs clearance, and delivery of products across various modes of transport, such as air, sea, and road. As Vietnam’s economy and trade activities grow, the demand for efficient freight forwarding services has increased, driven by sectors like manufacturing, e-commerce, and agriculture.
That said, as a relatively young and dynamic market, the business environment in Vietnam changes a lot and often. With this in mind, foreign firms looking to keep up with these changes, should do so by subscribing to the-shiv.