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2022

Vietnam Express Delivery Services Market

Vietnam Express Delivery Services Market Size, Share, Competitive Landscape and Trend Analysis Report by Application (B2B and B2C), End Use (E-Commerce Platform, Social Media Platform, Document Service, and Others), and Destination (Domestics and International): Opportunity Analysis and Industry Forecast, 2022-2030

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Author's: Akshay Jadhav | Lalit Janardhan Katare
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Express Delivery Services in Vietnam:

The Vietnam express delivery services market was valued at $0.71 billion in 2021, and is projected to reach $4.88 billion by 2030, registering a CAGR of 24.1% from 2022 to 2030.

Express delivery is the fastest form of shipping that involves the delivery of various goods and products through different mediums such as air, water, and land. The customer pays an extra shipping cost for this type of delivery, as the shipment will get transported to him anywhere between 24 to 72 hours depending on the distance of the shipment. In express shipping, the price and rates are also higher than other forms of transportation. Express delivery services significantly operate on the business-to-business (B2B), business-to-customer (B2C), and customer-to-customer (C2C) models. These include personal and business items such as letters, documents, merchandise, consumer goods, and other non-palletized goods. Several express delivery service providers also offer value-added services such as packaging, labeling, billing, payment collection, return, and exchange.

Vietnam-Express-Delivery-Services-Market

Factors such as the growing e-commerce industry coupled with rise in B2C deliveries and rapid growth in international trade services, are expected to drive the market growth. However, lack of infrastructure and higher operational costs hinder the market growth. Further, rise in technological advancements in delivery services and emergence of last-mile deliveries with technological advancements in delivery vehicles are some of the factors that are expected to offer lucrative opportunities for the market growth. Moreover, the growth of value-added services in express delivery and rapid growth of same day delivery services are some factors trending in the Vietnam express delivery services market.

The Vietnam express delivery services market is segmented on the basis of application, end use, and destination. Based on application, it is bifurcated into B2B and B2C. By end use, it is divided into e-commerce platform, social media platform, document service and others. On the basis of destination, it is categorized into domestics and international.

COVID-19 Impact Analysis: 

The outbreak of COVID-19 resulted in flight cancellations, travel bans, and quarantines, which led to massive slowing of express delivery service activities across the world. The coronavirus pandemic is an unprecedented crisis with dramatic economic impacts on the Vietnam express delivery services industry. Although the pandemic has accelerated the decline of letters & document parcel and growth of e-commerce parcels due to an increased number of people shopping from home. The e-commerce and daily essentials goods industry is expected to affect the express delivery services industry positively during the COVID-19 outbreak in Vietnam. As B2B express delivery services suffered and came to a halt, B2C emerged during the pandemic, owing to rapid growth of the online retail and e-commerce industry.

The key players operating in the Vietnam express delivery services market are GHN (Fast Delivery), BEST Express Vietnam (BEST Inc.), GHTK, J&T Express (Vietnam), Kerry Express (Vietnam), Nasco Logistics JSC, Nhat Tin Logistics, Nin Sing Logistics Company Limited (Ninja Van), Swift247, Viettel Post, and VNPost.

Vietnam Express Delivery Services Market
By Application
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B2C is projected as the most lucrative segments

Growing e-commerce industry coupled with rise in B2C deliveries

E-commerce refers to the buying and selling of goods by using internet. Vietnamese consumers are one of the most frequent online shoppers in the Southeast Asian region. The e-commerce market in Vietnam is significantly growing, owing to factors such as young population, high internet penetration rate, and rising smartphone penetration rates. For instance, according to the Vietnamese government, the number of online shoppers in the country is expected to reach around 55% of the population with an average spend of $600 annually by 2025. In addition, the growing e-commerce industry is expected to provide future growth opportunities for foreign and local logistics services, especially express delivery services. For instance, according to the Vietnam e-commerce and Digital Economy Agency (IDEA), the Vietnamese e-commerce market is expected to reach $23 billion by 2025. Moreover, increasing consumer preference toward faster delivery of goods has made express delivery services a key differentiator among larger e-commerce players as well as emerging startups. 

Rapid growth in international trade services

Growth of cross-border e-commerce coupled with rapid globalization is the key factor for the development of international trade in the country. Attributed to factors, such as unavailability of products in the domestic market, affordability, and better quality, people prefer to buy things from international websites. Therefore, growth in cross-border e-commerce sales led to increase in the import volume of international parcels, thereby, fueling the demand for express delivery services in the country. In addition, development of the overseas market is a significant factor that fuels the growth of the Vietnam express delivery services industry.  

Vietnam Express Delivery Services Market
By End Use
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E-commerce platform is projected as the most lucrative segments

Higher operational costs

Vietnam remains a cash-dominant economy. Cash-on-delivery (COD) is the most preferred payment method among online shoppers. Having COD capability is an important criterion for express delivery service providers. However, COD rate stands at more than 80% and the return rate at B2C websites is between 10%-15% in Vietnam. The cost for express delivery service provider companies to operate COD service is very high as it makes the delivery process more human-resources intensive, fragmented, and difficult to manage. In addition, weak transport infrastructure and less effective information technology application increase the cost of delivery services in Vietnam. For instance, in Vietnam, the total logistics cost accounts for 25% of the gross domestic product (GDP) and transportation costs account for 30 to 40% of the product cost. This rate is up to 15% in other countries. Therefore, this factor collectively increases the total operation cost of express delivery services in Vietnam, which in turns, hampers the market growth.

Growth of value-added services in express delivery

The growth of value-added services in express delivery is one of the latest trends that will contribute to the growth of the market in Vietnam. Service providers in the express delivery services market in Vietnam are increasingly focusing on providing distinct types of services such as grading & assortment of products, packaging, labeling, online tracking of parcels, mobile applications, e-mail, and SMS alerts. For instance, express delivery services provider, Kerry Express, offers a diversified range of value-added services at origin and destination, including labeling, packing, gift packing, security tagging, reverse logistics, and call center support to provide convenience to customers. Therefore, increasing focus of vendors toward providing such value-added services is expected to drive the growth of the Vietnam express delivery services market. 

Vietnam Express Delivery Services Market
By Destination
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Domestics is projected as the most lucrative segments

Key Benefits For Stakeholders

  • This study presents analytical depiction of the Vietnam express delivery services market analysis along with current trends and future estimations to depict imminent investment pockets.
  • The overall Vietnam express delivery services market opportunity is determined by understanding profitable trends to gain a stronger foothold.
  • The report presents information related to the key drivers, restraints, and opportunities of the Vietnam express delivery services market with a detailed impact analysis.
  • The current Vietnam express delivery services market is quantitatively analyzed from 2021 to 2030 to benchmark the financial competency.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

Vietnam Express Delivery Services Market Report Highlights

Aspects Details
Vietnam Express Delivery Services Market By Application
By Application
  • B2B
  • B2C
Vietnam Express Delivery Services Market By End Use
By End Use
  • E-commerce Platform
  • Social Media Platform
  • Document Service
  • Others
Vietnam Express Delivery Services Market By Destination
By Destination
  • Domestics
  • International
Vietnam Express Delivery Services Market By KEY PLAYERS
By KEY PLAYERS
  • GHN (Fast Delivery)
  • BEST Express Vietnam (BEST Inc.)
  • GHTK
  • J&T Express (Vietnam)
  • Kerry Express (Vietnam)
  • Nasco Logistics JSC
  • Nhat Tin Logistics
  • Nin Sing Logistics Company Limited (Ninja Van)
  • Swift247
  • Viettel Post
  • VNPost

Analyst Review

The Vietnam express delivery services market is expected to witness remarkable growth in the future, owing to the growing preference for last-mile and same day deliveries in the e-commerce industry across and rise in international cross-border trade activities.

In addition, according to the Vietnam Ministry of Industry and Trade, growth in Vietnam's e-commerce industry will increase the demand for express delivery services, especially in the business-to-consumer segment. In addition, Luong Duy Hoai, CEO and founder of last-mile delivery firm, Giao Hang Nhanh (GHN), said that Chinese transport corporations, such as Best Express and GD Express, have been entering Vietnam to create growth opportunities for express delivery services. He also said that local and foreign logistics companies, such as Vietnam Post, Viettel Post, GHN, DHL, FedEx, and TNT, are also bolstering their express and last-mile delivery services to catch up with the rising demand in Vietnam

However, lack of infrastructure and higher operational costs hinder the market growth. Further, rise in technological advancements in delivery services and emergence of last-mile deliveries with technological advancements in delivery vehicles are some of the factors that are expected to offer lucrative opportunities for the market growth. Moreover, growth of value-added services in express delivery and rapid growth of same day delivery services are some factors trending in the Vietnam express delivery services market.

Author Name(s) : Akshay Jadhav | Lalit Janardhan Katare

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Vietnam Express Delivery Services Market

Opportunity Analysis and Industry Forecast, 2022-2030