The seaport and logistics industry is expected to grow significantly as global trade recovers in 2021 when the Covid-19 vaccine is made available worldwide.
According to SSI Securities Company, the seaport and logistics industry’s revenue will increase by 10% this year.
Despite being affected by the Covid-19 pandemic last year, the industry was fueled by expectations about Vietnam’s trade growth as a result of the positive effects of recent free trade agreements (FTAs), such as the European Union – Vietnam FTA (EVFTA) and the Regional Comprehensive Economic Partnership (RCEP), as well as expectations about an increase in investment inflows triggered by the Covid-19 pandemic.
“The seaport and logistics industry’s growth prospects are bright in 2021, driven by global recovery,” SSI analysts wrote.
The Covid-19 pandemic would continue to spread globally, according to SSI, but social distancing measures would be reduced and vaccines would become more widely available. The “new normal” and inventory re-establishment would take place in the second half of this year, according to SSI.
Vietnam’s exports would benefit from a recovery in global consumption, but not significantly because other exporting countries would resume production as well.
According to SSI, Vietnam’s import-export value and total goods via seaports will rise by around 10% in 2021, owing to global recovery, the effects of FTAs, and a shift in global production.
Despite forecasting a 10% increase in revenue for the seaport and logistics industry in 2021, SSI stated that profit would grow at a single-digit rate because the largest company in this industry, Gemadebt, would not see profit growth in the first year the Gemalink seaport was operational.
There were also risks, according to SSI. Container demand may increase in the second half of this year.
According to the Vietnam Maritime Administration, the total volume of goods transported through Vietnamese ports increased by 9.8 percent in 2020.Statistics of the General Statistics Office showed that Việt Nam’s total import-export value reached US$543.9 billion in 2020, an increase of 5.1 percent over the previous year.
