Logistics is the fastest growing industry in Ho Chi Minh City in 2024

Data recently released by the Ho Chi Minh City Statistics Department shows that logistics activities contributed 25.4% to the increase in GRDP. In 2024, the City’s economic growth will reach 7.17%.

Specifically, total revenue from transportation, warehousing and transportation support services is estimated at VND 460,849 billion, an increase of 34.5% compared to 2023. While passenger transportation decreased by 8.3%, freight transportation decreased by 8.3%. increased by 12.2% and support services increased by 47.9%.

Warehouse activities and transportation, postal and delivery support services alone account for nearly 72.5% of total industry revenue, estimated at more than 333,900 billion VND and an increase of 47.9% compared to 2023. “Operations Positive growth of e-commerce contributes to promoting the City’s logistics services,” the Department of Statistics commented.

Last month, a report from the Department of Industry and Trade said that Ho Chi Minh City is gradually becoming a leader in the field of e-commerce, growing 52% in 2024, compared to 42% for the whole country. In terms of sales, the City leads and accounts for 33% of the country.

According to this agency, the explosion, maintenance and development of platforms such as Shopee, TikTok Shop, Lazada, Tiki along with the development of support services such as logistics, electronic payment and digital marketing have created creating the most vibrant e-commerce ecosystem in the country.

In addition, Ho Chi Minh City also has advantages thanks to its advanced technology infrastructure, with the total number of Internet subscribers leading the country, a high smartphone usage rate and a strongly developed telecommunications network, creating conditions for consumers to approach e-commerce and businesses deploy online business activities.

The locality has more than 28,400 websites (accounting for nearly 47% of the country), 305 sales applications (more than 45% of the country), 165 e-commerce service applications (more than 43% of the country) registered. According to the Department of E-commerce and Digital Economy (Ministry of Industry and Trade), Vietnamese e-commerce last year exceeded 25 billion USD, which means the estimated market size of Ho Chi Minh City has exceeded 8 billion USD.

In general, by 2024, the service sector will still be the main growth driver of Ho Chi Minh City’s economy, with growth of 7.7%, accounting for 65.5% of GRDP and contributing nearly 69% to GRDP growth. The industrial and construction sector increased by 6.89% and contributed 22.5% to the increase in GRDP.

According to the Statistics Department, the industry continues to recover and contribute to growth but the pace is still slow. The processing and manufacturing industry is the pillar of industry but has a lower growth rate than the entire industry.

Construction activities contributed only 2.4% to the increase in GRDP. Disbursement of public investment capital did not meet the target, significantly affecting the growth of this industry and other industries, thereby reducing the growth momentum of the economic engine.

Capital poured into business is not strong. FDI attraction last year was more than 2.28 billion USD, down 39.5% compared to the same period in 2023. From the beginning of the year to December 20, the City licensed 48,012 newly established businesses with registered capital of 402,033 billion VND , down 7.9% in licenses and 14.5% in capital over the same period. In general, the business environment in the area has not had a breakthrough as the number of businesses participating in the market decreased by 3.1% and the number of businesses withdrawing increased by 5.2% last year.