On November 1-3, leading companies in the transport logistics and air cargo industry in the region and beyond gathered at the event, held at Sands Expo & Convention Centre in Singapore. It provided a platform for discussions and sharing insights into the prospects and breakthrough solutions in the transportation and logistics industry.

The event took place amid reports expecting the market size of Asia-Pacific's transportation and logistics industry to reach $3.35 trillion by next year and $4.56 trillion by 2030, with a growth rate of 5.24 per cent over that period, according to Mordor Intelligence.

Post-pandemic challenges and China+1 supply chain strategies to diversify manufacturing and sourcing operations beyond China make Southeast Asia outstanding, according to Michael Wilton, CEO of event organiser MMI Asia.

“Southeast Asia is a dynamic hub for trade and commerce, and transport logistics here gives visitors access to a wide range of market opportunities,” Wilton said.

In this region, besides key hubs like Singapore, Thailand, or Malaysia, Vietnam is emerging as a new transit hub for goods, contributing to the expansion of international trade flows.

The General Department of Vietnam Customs stated that the total trade turnover in the first ten months of this year reached $558.33 billion. In terms of volume, goods through seaports were estimated to reach almost 624.6 million tons, an increase of 3 per cent compared to the same period in 2022, according to the Vietnam Maritime Administration.

Meanwhile, the average annual volume of goods transported by air in Vietnam is about 1.4 million tonnes. In the first nine months of the year alone, the total volume of goods through Vietnam's airports was 887,500 tonnes, with international cargo transportation accounting for 637,000 tonnes and domestic cargo transportation reached 250,400 tonnes, according to the Civil Aviation Authority of Vietnam.

There are a lot of favourable conditions, including continuously upgraded and expanded transportation infrastructure, from warehouses to roads, seaports, and airports. It happens thanks to Vietnam's top-ranking expenditure on infrastructure in ASEAN, which accounts for over 6 per cent of total annual GDP. Simultaneously, booming foreign trade, robust economic growth, and a large middle-class population create strong demand.

"Vietnam is the largest manufacturing hub in the region. Therefore, collecting goods here is more meaningful than in Cambodia, Laos, or elsewhere. Moreover, Vietnam is becoming a more strategic market to many companies, especially American companies," said Alexander Olsen, vice president of Freight Management and Commercial at ITL.

The proactive approach of pioneers in the logistics industry also significantly contributes to forming a new transit hub for goods in Vietnam. As one of the two representatives attending the exhibition, ITL's booth welcomed hundreds of customers and partners during the three-day event. ITL not only showed its capabilities but also provided international customers with the latest market updates about Vietnam.

"ITL's presence at the regional exhibition and conference event continues to illustrate that Vietnam is increasingly ready to become an international transit hub for goods. Vietnam is capable of seamlessly connecting from the air to the sea and providing demand-based solutions for both manufacturers and e-commerce businesses," said Tony Anh, deputy general director and vice president of ITL's Aviation Services.

ITL's booth welcomed hundreds of customers and partners during the three-day event

For domestic air transport in Vietnam, as well as in Southeast Asia, ITL has been a leading company since the 2000s. It is the general sales agent of 23 airlines, operating cargo transportation in more than 200 flights per week, with a potential capacity of up to 150,000 tonnes of cargo per year. In addition, ITL is an ideal partner for airlines seeking to expand into Vietnam.

Its air transport capability, combined with more than five ports and inland container depots all over the country, 500 trucks and prime movers, 30 barges, and a total warehouse area of nearly 500,000 square metres, has helped ITL lead in providing various logistics solutions - from international end-to-end cargo transportation to services related to the cold chain. It has created a seamless service covering sea, land, and air, meeting various demands of customers.

"Most of our customers want Vietnam to be the transit hub. They want goods to be manufactured in Cambodia, Myanmar, Laos, and Vietnam, then Vietnam will be the centre for the Indochina region," Olsen added.

Seeing this demand, ITL notes that it will continue to develop comprehensive integrated logistics services to support businesses' cargo transportation in the best way, thereby integrating Vietnam's air cargo transportation industry deeply and widely into the global market.