Vietnam Rises as the Dominant Force in Breakbulk and Container Shipping in Southeast Asia

Estimated reading time: 8 minutes

From Textile Mills to Terminals — How Vietnam Became the Region’s Logistics Rising Star

If you talk to port operators or freight forwarders anywhere in Southeast Asia these days, Vietnam inevitably comes up. Not as a competitor, but as a phenomenon. The country’s ports — once modest regional gateways — are now among the most dynamic in the world. Container throughput in Vietnam has risen 34% since 2019, according to Drewry Shipping Consultants’ Ports and Terminals Insight Q1 2023, a figure that stands out in a region where growth has been uneven.

The transformation didn’t happen overnight. It’s the result of years of investment, timing, and a shifting global trade order that has pushed Vietnam into the spotlight. What’s happening there is more than just an economic boom; it’s a logistics realignment that’s redrawing maritime maps and reshaping the global breakbulk and container trade.

The Shifting Currents of Global Trade

To understand Vietnam’s rise, it helps to look at what’s happening globally. The steady diversification of supply chains away from China — a trend driven by the U.S.-China trade dispute, pandemic disruptions, and the desire for resilience — has created new winners.

DP World’s Trade in Transition report found that 96% of global companies plan to adjust their supply chains in response to geopolitical events, with many adopting reshoring, nearshoring, or “China+1” sourcing strategies. These shifts have turned attention toward markets like Vietnam, India, and Mexico, where infrastructure and labor conditions are seen as ideal for long-term investment.

For Vietnam, this wave of diversification couldn’t have come at a better time. The country had already been investing heavily in maritime and inland infrastructure, gradually building out an efficient port system and industrial zones that connect factories to global markets. The effect has been a kind of compounding growth — where every new manufacturing investment triggers more cargo, which then justifies more port expansion, which in turn attracts even more manufacturing.

It’s the kind of positive feedback loop that logistics professionals dream about.

The Port Numbers Tell the Story

According to Drewry, Vietnam’s container throughput increased from 14.9 million TEU in 2019 to around 20 million TEU in 2022, representing an annual average growth rate of nearly 12%. Compare that with Malaysia’s 4% growth or Singapore’s near stagnation during the same period, and the scale of Vietnam’s achievement becomes clear.

Even during the turbulence of 2022, when container demand dropped in North America and Europe, Vietnam’s ports held steady — up 5% year-on-year, bucking regional trends.

The momentum is being driven by several key hubs:

• Cat Lai (Ho Chi Minh City), Vietnam’s largest gateway port, handled an estimated 14 million TEU in 2022, up 5% from the year before.
• Hai Phong, the main northern port, processed 4.2 million TEU, growing steadily thanks to its access to industrial zones in the Red River Delta.
• The southern Cai Mep–Thi Vai complex continues to attract direct deepsea calls from major lines, reflecting Vietnam’s growing importance in the Transpacific trades.

Those numbers might seem abstract until you realize what they mean on the ground: new container yards, truck convoys rolling through industrial zones, and a constant stream of feeder vessels shuttling between Vietnam and Singapore or Malaysia.

When Strategy Meets Infrastructure

Vietnam’s rise hasn’t been accidental. It’s the product of a national logistics strategy that ties together port expansion, rail and road development, and special economic zones designed to attract manufacturing.

The government’s National Port Masterplan calls for $13.3 billion in investment by 2030 — a staggering figure for a developing country — and lays out a roadmap for expanding capacity and connectivity across the entire coastline.

Among the flagship projects:

• Lach Huyen (Hai Phong): The northern port’s ongoing expansion will add 2.6 million TEU of capacity, positioning it as a deepwater alternative to China’s southern ports.
• Lien Chieu (Da Nang): Under construction, this central port will eventually serve as a new logistics hub for central Vietnam. Private sector investment is being sought for terminal development.
• Long An Port and Logistics Park: Led by Dong Tam Group, this project south of Ho Chi Minh City will integrate port, warehouse, and logistics facilities — a model increasingly common across Asia.
• Vung Ang Port: A strategic project being developed to serve as a maritime outlet for landlocked Laos, further integrating Indochina’s supply chains.

These developments show that Vietnam’s growth is not just about handling more cargo — it’s about reshaping the map of how goods move through the region.

Regional Context: Shifting Hub Dynamics

Vietnam’s ascent has inevitably shifted the balance of power among Southeast Asia’s traditional port giants.

Singapore, long the region’s dominant hub, saw volumes dip 0.5% year-on-year in 2022, handling 37.3 million TEU. Malaysia’s ports fared worse, down 3.2% overall as transshipment traffic dropped. At Port Klang, transshipment fell 12%, though gateway traffic rose 5%.

Meanwhile, Tanjung Pelepas (PTP) — another key Malaysian transshipment hub — handled about 10.5 million TEU, down 6% year-on-year. These declines partly reflect the global slowdown, but they also suggest a subtle shift: Vietnam is no longer just feeding cargo into these hubs; it’s taking a slice of the pie.

Carriers have noticed. Drewry notes that deepsea services calling at Southeast Asian ports have increased by 21% over the past three years, with Vietnam now a regular stop on mainline Asia–U.S. and Asia–Europe services. In other words, what used to be a feeder destination is now a mainline player.

The Breakbulk and Project Cargo Dimension

Beyond containers, Vietnam’s port expansion has major implications for the breakbulk and project cargo segment. The country’s industrial growth — from power plants to heavy manufacturing — has created steady demand for project logistics.

Ports such as Dung Quat, Quy Nhon, and Vung Ang are increasingly handling heavy lift shipments, machinery, and steel structures destined for domestic construction and export. As more renewable energy projects come online, especially in wind and solar, breakbulk operators are finding new opportunities to move turbines, transformers, and cable reels.

For global carriers and logistics companies, this diversification means Vietnam is not just another manufacturing hub; it’s a full-service logistics ecosystem capable of handling everything from a 40-foot container to a 200-ton nacelle.

Connectivity is the New Competitiveness

In logistics, access is everything — and Vietnam has quietly built the infrastructure to compete.

New highways link industrial parks to ports; expanded rail corridors connect northern factories to China’s border crossings; and international airports in Hanoi, Da Nang, and Ho Chi Minh City support multimodal supply chains.

Equally significant are the deepwater capabilities of ports like Cai Mep, which can accommodate vessels of up to 200,000 DWT. This allows direct calls by megaships to North America and Europe, cutting transit times and costs.

As one local logistics manager put it recently, “The difference is night and day. Ten years ago, most of our exports went via Singapore. Now, they sail directly to Los Angeles.”

That direct connectivity is a major reason foreign manufacturers — including electronics giants, apparel brands, and automotive suppliers — are expanding their presence in Vietnam. The EU-Vietnam Free Trade Agreement, which removes tariffs on 99% of goods over time, is amplifying the effect by making exports even more competitive.

The Competitive Edge — and the Challenges Ahead

Vietnam’s advantage goes beyond labor costs, which are now lower than many Chinese provinces. The real edge lies in policy consistency, strategic geography, and private sector engagement.

Located along major east-west shipping routes, Vietnam offers direct access to both the Pacific and Indian Oceans — a natural crossroads for Asian and transpacific trade. The country has also fostered a business climate that, while still bureaucratic at times, has proven stable enough for long-term investment.

Still, challenges remain. Port congestion, inland bottlenecks, and limited cold chain capacity continue to strain efficiency. Environmental concerns are also growing, especially as coastal developments expand. There’s a balancing act ahead: how to maintain growth without sacrificing sustainability or overextending resources.

For now, however, Vietnam’s trajectory appears unstoppable. The Drewry report projects further increases in deepsea calls, with more than a third of planned new capacity in Southeast Asia located in Indonesia and Vietnam combined.

The Ripple Effect Across Asia and Beyond

Vietnam’s rise is not happening in isolation. It’s part of a larger pattern where new regional players — from India’s Mundra and JNPT ports to Mexico’s Lázaro Cárdenas — are redefining the logistics map.

In India, Drewry notes a 22% increase in container traffic across northwest ports since 2019, driven by the Western Dedicated Freight Corridor. In Mexico, container handling on the west coast is up 25% as nearshoring accelerates.

But what makes Vietnam unique is scale and speed. Few countries have managed to transform from a primarily agricultural exporter into a manufacturing and logistics hub this quickly.

It’s a transformation that can be felt not only in trade statistics but in the rhythm of the ports themselves — the constant hum of cranes, the lines of feeder ships, and the trucks rolling out loaded with containers marked “Made in Vietnam.”

A New Anchor for Asian Trade

For shippers, carriers, and port operators, Vietnam has become a symbol of what’s possible when trade policy, infrastructure, and timing align. The country’s ports are no longer peripheral stops on Asia’s maritime map; they’re strategic anchors in a new global logistics order.

As the world’s supply chains continue to diversify and the balance of trade shifts further south, one can’t help but wonder: will Vietnam soon rival the region’s long-standing giants?

For now, the data speaks louder than speculation — and the message is clear. The tide has turned.