Did Trade in the Vedic Age led to the rise of kingdoms because of the importance of controlling land and long-distance travel routes?

Yes it did. :D

In the 11th century BCE, as Rig Veda took its final form, the Vedic society transitioned from semi-nomadic life to settled agriculture. This transition led to increased competition and conflicts over resources such as land and water. The Gangetic plains had remained out of bounds to the Vedic tribes because of thick forest cover. However, after 1000 BCE, the use of iron axes and ploughs became widespread and the jungles could be cleared with ease. This enabled the Vedic Aryans to extend their kingdoms along the Gangetic plains and ushered the later Vedic age.