Vietnam Air Cargo Market Challenges Archives

Air freight refers to the transportation of goods by aircraft. It is one of the fastest methods of shipping, making it ideal for time-sensitive, high-value, or perishable items. Used by businesses across industries like electronics, pharmaceuticals, fashion, and e-commerce, air freight ensures quick delivery across long distances. It plays a vital role in global trade by linking major economies and supply chains. Though more expensive than sea or land transport, its speed, reliability, and security make it a preferred choice for urgent shipments. Air freight services are offered by airlines, logistics companies, and cargo carriers using dedicated cargo planes or commercial flights.

According to SPER Market Research, ‘Vietnam Air Freight Market Size- By Service, By Destination, By End User- Regional Outlook, Competitive Strategies and Segment Forecast to 2033’ the Vietnam Air Freight Market is estimated to reach USD XX billion by 2033 with a CAGR of XX%.

Drivers:

Vietnam’s air freight market is expanding rapidly due to the country’s booming export-oriented manufacturing sector. As Vietnam becomes a preferred destination for global companies seeking alternatives to China, demand for timely and efficient logistics has risen sharply. Trade agreements like the CPTPP and RCEP have enhanced Vietnam’s global trade relations, further pushing air cargo demand. Government efforts to modernize airports and simplify customs processes are also aiding growth. Moreover, the country’s strategic location in Southeast Asia gives it access to global trade routes, making it a regional logistics hub with increasing investment in air cargo infrastructure and smart logistics.

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Restraints:

Despite strong growth prospects, Vietnam’s air freight market faces several limitations. Infrastructure development is lagging behind cargo demand, with congestion at major airports like Tan Son Nhat and limited facilities in secondary airports. Poor road connectivity and inadequate cold-chain systems raise transportation costs. Human resource shortages also affect efficiency—most logistics workers lack formal training, leading to skill gaps. Regulatory complexities, including foreign investment restrictions and bureaucratic delays, hinder smooth operations. The volatility of fuel prices and rising operational costs challenge profitability. Additionally, environmental concerns about air freight’s carbon footprint are pushing for greener solutions, increasing compliance costs. These structural issues slow scalability, especially in competing with more advanced freight systems in Singapore, Thailand, and Malaysia.

Ho Chi Minh City dominates Vietnam’s air freight due to Tan Son Nhat Airport’s large cargo capacity and strategic export hub location. Some key players are- Air Cargo Services Company (ACS), BSS Logistics, Bull Lines Group, Duc Viet Cargoteam, Empire-Group Co., Ltd, HL Vietnam International Co., Ltd, HT CARGO, Kunna Logistics, TCL International Co., Ltd, Venus Logistics, VOLTRANS LOGISTICS CO., LTD, and Others.

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Vietnam Air Freight Market Share

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Delivering expedited cargo by aircraft, usually over greater distances, is known as air freight transportation. Because the ability to quickly and efficiently deliver valued goods to customers worldwide is essential to the functioning of the global economy, air freight plays a significant role in its development. Because of the aircraft’s temperature-sensitive environment and quick delivery times, vaccines are typically delivered by air to ensure they reach their intended location in time for effectiveness.

According to SPER market research, ‘Vietnam Air Freight Market Size- By Service, By Destination, By End User – Regional Outlook, Competitive Strategies and Segment Forecast to 2033’state that the Vietnam Air Freight Market is predicted to reach USD XX billion by 2033 with a CAGR of XX%.

Crucial to Vietnam’s economic vitality, the air freight sector serves as a vital conduit for global trade. Positioned for substantial growth, it presents enticing prospects for investors, buoyed by recent legislative revisions reflecting Vietnam’s commitment to an investment-friendly environment. New investment laws and directives, including those in aviation, aim to enhance conditions for foreign investors. Interest from various investors, including domestic airlines, underscores the sector’s appeal. Advancements like the Cargo Services Conference’s approval of the ONE Record Initiative mark a significant stride in modernizing the air cargo industry, fostering transparency and efficiency. This initiative positions Vietnam’s air freight sector favourably for future expansion.

The primary obstacle to Vietnam’s air freight industry development is the inadequacy of infrastructure and logistic services, resulting in elevated logistic costs. The proliferation of airlines poses safety concerns and airport congestion due to insufficient infrastructure and technology. To address this, concurrent investments in modern equipment and infrastructure are essential. Additionally, an underdeveloped road system hampers connectivity between localities and airports, impacting goods quality through extended transport times. Despite challenges, concerted efforts are underway to confront these issues. Furthermore, the industry grapples with a shortage of well-trained human resources, presenting an investment opportunity for specialized training programs to supply high-quality personnel for cargo transport.

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Furthermore, due to international logistical issues and air cargo difficulties, Vietnam’s air freight business had significant disruptions during the Covid-19 pandemic. The industry witnessed a significant fall in the demand for air freight as a result of supply chain disruptions brought on by restrictions on foreign travel. Vietnam Freight and Logistics Market shown flexibility and perseverance in the aftermath. The business managed fewer passenger flights, which led to higher air freight charges and supply chain limitations worldwide. Unexpectedly, Vietnam’s international air freight industry proved resilient, with a significant uptick in business over the previous year, demonstrating its ability to adjust and prosper in the face of difficult conditions.

Vietnam Logistic Market Key Players:

Additionally, some of the market key players are Air Cargo Services Company (ACS), BSS Logistics, Bull Lines Group, TCL International Co., Ltd, Venus Logistics, VOLTRANS LOGISTICS CO., LTD, and Others.

Vietnam Air Cargo Market Segmentation:

By Service: Based on the Service, Vietnam Air Freight Market is segmented as; Freight, Express, Mail, Others.

By Destination: Based on the Destination, Vietnam Air Freight Market is segmented as; Domestic, International.

By End User: Based on the End User, Vietnam Air Freight Market is segmented as; Commercial, Private.

By Region: This research also includes data for Central Region, Southern Region, Northern Region.

This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.

For More Information, refer to below link:-

Vietnam Air Freight Logistic Market Forecast Research

Germany Logistics and Warehouse Market Size- By Type of Services, By Warehousing, By Freight Forwarding- Regional Outlook, Competitive Strategies and Segment Forecast to 2033

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