Vietnam’s economic landscape is undergoing a dynamic transformation, attracting a surge of foreign direct investment (FDI), and solidifying its position as a key player in the global supply chain.
As the Brunswick Review highlights, “companies now are pursuing supply chain diversification, with Vietnam being one of the most notable beneficiaries. In 2022, the total FDI registered in Vietnam reached $27.72 billion, a 13.5% increase from the previous year.”1
Navigating challenges, seizing opportunities
The country’s rapid growth presents a unique set of supply chain challenges, from infrastructure limitations to sustainability concerns, but also poses more supply chain opportunities in Vietnam.
Across delivery, inadequate infrastructure is one of the major problems facing the logistics factor today. Domestic enterprises in Vietnam have not fully established a multimodal transport corridor, while the demand for high-quality transhipment is still growing. Alongside this, the operation efficiency of Vietnam’s seaport is slow due to the lack of proper infrastructure.
There is also a lack of local suppliers, and most companies struggle with uncertainty of supplier delivery and scarcity of qualified supply base for alternative sources, which disrupts production and distribution.
However, businesses, like us at Unipart, are well-equipped to address these challenges head-on and support our partners with overcoming these hurdles, to realise the supply chain opportunities in Vietnam. Richard Nguyen, Territory Director for Unipart Vietnam, explains, “Using Unipart’s global expertise in a wide range of sectors will enable us to tackle the common supply chain challenges such as sustainability, infrastructure, efficiency, and disruptions that customers are facing in the Asia Pacific region. Unipart specialises in key factors: especially automotive, technology, retail, and industry that we could focus on as the vertical markets.“
We recognise Vietnam’s thriving manufacturing sector, driven by the “China Plus One“2 strategy. In fact, the World Bank reports Vietnam’s manufacturing sector has grown by an average of 10% annually over the past decade, making it a prime destination for companies seeking to diversify their supply chains.3 And, alongside Vietnam’s strategic location, this is creating a wealth of opportunities that we can support our partners in seizing.
Beyond manufacturing, Vietnam’s burgeoning e-commerce market, and increasing domestic consumption present additional opportunities for growth for our partners and businesses looking to break into the Vietnamese market. According to Statista, Vietnam’s e-commerce market is projected to reach $56 billion by 2025, driven by a young, tech-savvy population and increasing internet usage.4
Vietnam – The Unipart Way
Unipart, having recently launched our operations in Vietnam, is at the forefront of this exciting expansion, bringing expertise and commitment to excellence to the Vietnamese market. Leading the way is Richard Nguyen, a seasoned professional with a deep understanding of the local landscape.
In his words, “I am excited to take on a new challenge with Unipart in Vietnam. I expect to help build Unipart in Vietnam into a successful logistics company that will grow and be recognised among the top logistics service providers in Vietnam over the next five years.”
Unipart’s customer success is built on a foundation of striving to achieve operational excellence through continuous improvement. “We are dedicated to bringing The Unipart Way to Vietnam, building a professional team who will deliver exceptional service to customers by delivering regional support to global and local accounts,” said Richard. “By combining our global expertise with local knowledge, we will deliver efficiency, resilience and growth to customers, becoming a trusted partner in this dynamic market.”
Unipart is ready to support our partners in navigating these challenges and supply chain opportunities in Vietnam, offering our tailored solutions that address your specific needs.
Contact Richard Nguyen
Contact Richard Nguyen today at richard.nguyen@unipart.com to learn more about how we can help you within the Vietnamese market.
References
- Brunswick Review, Vietnam’s place in the global supply chain, 2023
- Z2data, Everything you need to know about China plus one, 2023
- Asian Insiders, Vietnam’s Business Growth and China Plus One, 2023
- Statista, E-commerce in Vietnam, 2023