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Vietnam Express Delivery Services Market

Vietnam Express Delivery Services Market 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, 2020–2027

A11094
Pages: 138
Aug 2021 | 2075 Views
   
Author(s) : Akshay Jadhav, Akshay Jawarkar , Sonia Mutreja
Tables: 53
Charts: 30
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COVID-19

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The Vietnam express delivery services market was valued at $632.6 million in 2019, and is projected to reach $2,440.6 million by 2027, registering a CAGR of 22.4% from 2020 to 2027.

The outbreak of COVID-19 has brought effects on many aspects, such as flight cancellations, travel bans and quarantines, which made the massive slowing of the express delivery service activities across the world. The coronavirus is an unprecedented crisis with dramatic economic impacts on Vietnam express delivery service industry. Although, 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. E-commerce and daily essentials goods industry, which is expected to affect the express delivery service 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 up surging the online retail and e-commerce industry.

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-Service-Market-2020-2027

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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

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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 market.  

Vietnam Express Delivery Services Market
By End Use

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E-commerce platform is projected as the most lucrative segments

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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

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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 2019 to 2027 to benchmark the financial competency.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

Key Market Segments

By Application

  • B2B 
  • B2C

By End Use

  • E-commerce Platform
  • Social Media Platform
  • Document Service
  • Others

By Destination

  • Domestics 
  • International

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
 

CHAPTER 1:INTRODUCTION

1.1.Report description
1.2.Key benefits for stakeholders
1.3.Key market segments
1.4.Research methodology

1.4.1.Primary research
1.4.2.Secondary research
1.4.3.Analyst tools and models

CHAPTER 2:EXECUTIVE SUMMARY

2.1.CXO perspective

CHAPTER 3:MARKET OVERVIEW

3.1.Market definition and scope
3.2.Key findings

3.2.1.Top impacting factors
3.2.2.Top investment pockets
3.2.3.Top winning strategies

3.3.Porter’s five forces analysis
3.4.Market share analysis (2020)
3.5.Market dynamics

3.5.1.Drivers

3.5.1.1.Growing e-commerce industry coupled with rise in B2C deliveries
3.5.1.2.Rapid growth in international trade services

3.5.2.Restraints

3.5.2.1.Lack of infrastructure
3.5.2.2.Higher operational costs

3.5.3.Opportunities

3.5.3.1.Rise in technological advancements in delivery services
3.5.3.2.Emergence of last-mile deliveries with technological advancements in delivery vehicles

3.5.4.Trends

3.5.4.1.Growth of value-added services in express delivery
3.5.4.2.Rapid growth of same day delivery services

3.6.Impact of COVID-19 on the market

3.6.1.Evolution of outbreaks

3.6.1.1.COVID-19

3.6.2.Micro economic impact analysis

3.6.2.1.Consumer trends
3.6.2.2.Technology trends
3.6.2.3.Regulatory trends

3.6.3.Macro-economic impact analysis

3.6.3.1.GDP
3.6.3.2.Import/export analysis
3.6.3.3.Employment index

3.6.4.Impact on industry analysis

3.7.Express delivery services volume, by e-commerce platform

3.7.1.Tiki

3.7.1.1.Company overview and business insights

3.7.2.Shopee

3.7.2.1.Company overview and business insights

3.7.3.Lazada Group

3.7.3.1.Company overview and business insights

3.7.4.Sendo.vn

3.7.4.1.Company overview and business insights

CHAPTER 4:VIETNAM EXPRESS DELIVERY SERVICES MARKET, BY APPLICATION

4.1.Overview
4.2.B2B

4.2.1.Key market trends, growth factors, and opportunities
4.2.2.Market size and forecast

4.3.B2C

4.3.1.Key market trends, growth factors, and opportunities
4.3.2.Market size and forecast

CHAPTER 5:VIETNAM EXPRESS DELIVERY SERVICES MARKET, BY END USE

5.1.Overview
5.2.E-commerce platform

5.2.1.Key market trends, growth factors, and opportunities
5.2.2.Market size and forecast

5.3.Social media platform

5.3.1.Key market trends, growth factors, and opportunities
5.3.2.Market size and forecast

5.4.Document service

5.4.1.Key market trends, growth factors, and opportunities
5.4.2.Market size and forecast

5.5.Others

5.5.1.Key market trends, growth factors, and opportunities
5.5.2.Market size and forecast

CHAPTER 6:VIETNAM EXPRESS DELIVERY SERVICES MARKET, BY DESTINATION

6.1.Overview
6.2.Domestics

6.2.1.Key market trends, growth factors, and opportunities
6.2.2.Market size and forecast

6.3.International

6.3.1.Key market trends, growth factors, and opportunities
6.3.2.Market size and forecast

CHAPTER 7:COMPANY PROFILES

7.1.GHN (FAST DELIVERY)

7.1.1.Company overview
7.1.2.Company snapshot
7.1.3.Operating services segments
7.1.4.Service price list
7.1.5.Product portfolio
7.1.6.Business performance
7.1.7.Key strategic moves and developments

7.2.BEST EXPRESS VIETNAM (BEST INC.)

7.2.1.Company overview
7.2.2.Company snapshot
7.2.3.Operating services segments
7.2.4.Product portfolio
7.2.5.Business performance
7.2.6.Key strategic moves and developments

7.3.GHTK

7.3.1.Company overview
7.3.2.Company snapshot
7.3.3.Service price list
7.3.4.Product portfolio
7.3.5.Business performance

7.4.J&T EXPRESS (VIETNAM)

7.4.1.Company overview
7.4.2.Company snapshot
7.4.3.Operating services segments
7.4.4.Service price list
7.4.5.Product portfolio
7.4.6.Business performance
7.4.7.Key strategic moves and developments

7.5.KERRY EXPRESS (VIETNAM)

7.5.1.Company overview
7.5.2.Company snapshot
7.5.3.Operating services segments
7.5.4.Product portfolio
7.5.5.Business performance

7.6.NASCO LOGISTICS JSC

7.6.1.Company overview
7.6.2.Company snapshot
7.6.3.Operating services segments
7.6.4.Product portfolio
7.6.5.Business performance

7.7.NHAT TIN LOGISTICS

7.7.1.Company overview
7.7.2.Company snapshot
7.7.3.Operating services segments
7.7.4.Service price list
7.7.5.Product portfolio
7.7.6.Business performance
7.7.7.Key strategic moves and developments

7.8.NIN SING LOGISTICS COMPANY LIMITED (NINJA VAN)

7.8.1.Company overview
7.8.2.Company snapshot
7.8.3.Service price list
7.8.4.Product portfolio
7.8.5.Business performance
7.8.6.Key strategic moves and developments

7.9.SWIFT247

7.9.1.Company overview
7.9.2.Company snapshot
7.9.3.Operating services segments
7.9.4.Service price list
7.9.5.Product portfolio
7.9.6.Key strategic moves and developments

7.10.VIETTEL POST

7.10.1.Company overview
7.10.2.Company snapshot
7.10.3.Operating services segments
7.10.4.Service price list
7.10.5.Product portfolio
7.10.6.Business performance
7.10.7.Key strategic moves and developments

7.11.VNPOST (Vietnam Post)

7.11.1.Company overview
7.11.2.Company snapshot
7.11.3.Operating services segments
7.11.4.Service price list
7.11.5.Product portfolio
7.11.6.Business performance
7.11.7.Key strategic moves and developments

LIST OF TABLES

TABLE 01.VIETNAM EXPRESS DELIVERY SERVICES MARKET, BY APPLICATION, 2019–2027 ($MILLION)
TABLE 02.VIETNAM EXPRESS DELIVERY SERVICES MARKET, END USE, 2019–2027 ($MILLION)
TABLE 03.VIETNAM EXPRESS DELIVERY SERVICES MARKET, BY DESTINATION, 2019–2027 ($MILLION)
TABLE 04.GHN (FAST DELIVERY): COMPANY SNAPSHOT
TABLE 05.GHN (FAST DELIVERY): SERVICES SEGMENTS
TABLE 06.GHN (FAST DELIVERY): SERVICE PRICE LIST
TABLE 07.GHN (FAST DELIVERY): PRODUCT PORTFOLIO
TABLE 08.GHN (FAST DELIVERY): KEY STRATEGIC MOVES AND DEVELOPMENT
TABLE 09.BEST EXPRESS (BEST INC.): COMPANY SNAPSHOT
TABLE 10.BEST EXPRESS (BEST INC.): SERVICES SEGMENT
TABLE 11.BEST EXPRESS (BEST INC.): PRODUCT PORTFOLIO
TABLE 12.BEST EXPRESS (BEST INC.): KEY STRATEGIC MOVES AND DEVELOPMENT
TABLE 13.GHTK: COMPANY SNAPSHOT
TABLE 14.GHTK: SERVICE PRICE LIST OF XFAST
TABLE 15.GHTK: PRODUCT PORTFOLIO
TABLE 16.J&T EXPRESS: COMPANY SNAPSHOT
TABLE 17.J&T EXPRESS: SERVICES SEGMENT
TABLE 18.J&T EXPRESS: SERVICE PRICE LIST OF DOMESTIC DELIVERY
TABLE 19.J&T EXPRESS: SERVICE PRICE LIST OF INTERNATIONAL DELIVERY
TABLE 20.J&T EXPRESS: PRODUCT PORTFOLIO
TABLE 21.J&T EXPRESS (VIETNAM): KEY STRATEGIC MOVES AND DEVELOPMENT
TABLE 22.KERRY EXPRESS: COMPANY SNAPSHOT
TABLE 23.KERRY LOGISTICS NETWORK LIMITED: SERVICES SEGMENT
TABLE 24.KERRY EXPRESS: PRODUCT PORTFOLIO
TABLE 25.NASCO LOGISTICS JSC: COMPANY SNAPSHOT
TABLE 26.NASCO LOGISTICS JSC: SERVICES SEGMENT
TABLE 27.NASCO LOGISTICS JSC: PRODUCT PORTFOLIO
TABLE 28.NHAT TIN LOGISTICS: COMPANY SNAPSHOT
TABLE 29.NHAT TIN LOGISTICS: SERVICES SEGMENT
TABLE 30.NHAT TIN LOGISTICS: SERVICE PRICE LIST
TABLE 31.NHAT TIN LOGISTICS: PRODUCT PORTFOLIO
TABLE 32.NHAT TIN LOGISTICS: KEY STRATEGIC MOVES AND DEVELOPMENT
TABLE 33.NIN SING LOGISTICS COMPANY LIMITED (NINJA VAN): COMPANY SNAPSHOT
TABLE 34.NIN SING LOGISTICS COMPANY LIMITED (NINJA VAN): SERVICE PRICE LIST
TABLE 35.NIN SING LOGISTICS COMPANY LIMITED (NINJA VAN): PRODUCT PORTFOLIO
TABLE 36.NIN SING LOGISTICS COMPANY LIMITED (NINJA VAN): KEY STRATEGIC MOVES AND DEVELOPMENT
TABLE 37.SWIFT247: COMPANY SNAPSHOT
TABLE 38.SWIFT247: SERVICES SEGMENT
TABLE 39.SWIFT247: SERVICE PRICE LIST OF SWIFT SPEED TRANSFER
TABLE 40.SWIFT247: SERVICE PRICE LIST OF SUPERSWIFT
TABLE 41.SWIFT247: SERVICE PRICE LIST OF SWIFT SPEED TRANSFER
TABLE 42.SWIFT247: PRODUCT PORTFOLIO
TABLE 43.SWIFT247: KEY STRATEGIC MOVES AND DEVELOPMENT
TABLE 44.VIETTEL POST: COMPANY SNAPSHOT
TABLE 45.VIETTEL POST: SERVICES SEGMENT
TABLE 46.VIETTEL POST: SERVICE PRICE LIST
TABLE 47.VIETTEL POST: PRODUCT PORTFOLIO
TABLE 48.VIETTEL POST: KEY STRATEGIC MOVES AND DEVELOPMENT
TABLE 49.VNPOST: COMPANY SNAPSHOT
TABLE 50.VNPOST: SERVICES SEGMENT
TABLE 51.VNPOST POST: SERVICE PRICE LIST FOR EXPRESS MAIL
TABLE 52.VNPOST: PRODUCT PORTFOLIO
TABLE 53.VNPOST: KEY STRATEGIC MOVES AND DEVELOPMENT

LIST OF FIGURES

FIGURE 01.KEY MARKET SEGMENTS
FIGURE 02.EXECUTIVE SUMMARY
FIGURE 03.TOP IMPACTING FACTORS
FIGURE 04.TOP INVESTMENT POCKETS
FIGURE 05.TOP WINNING STRATEGIES, BY YEAR, 2018–2021*
FIGURE 06.TOP WINNING STRATEGIES, BY YEAR, 2018–2021*
FIGURE 07.TOP WINNING STRATEGIES, BY COMPANY, 2018–2021*
FIGURE 08.MODERATE-TO-HIGH BARGAINING POWER OF SUPPLIERS
FIGURE 09.LOW-TO-MODERATE BARGAINING POWER OF BUYERS
FIGURE 10.MODERATE THREAT OF SUBSTITUTES
FIGURE 11.LOW-TO-MODERATE INTENSITY OF RIVALRY
FIGURE 12.LOW-TO-MODERATE THREAT OF NEW ENTRANT
FIGURE 13.MARKET SHARE ANALYSIS (2020)
FIGURE 14.VIETNAM EXPRESS DELIVERY SERVICES MARKET SHARE, BY APPLICATION, 2019–2027 (%)
FIGURE 15.VIETNAM EXPRESS DELIVERY SERVICES MARKET FOR B2B
FIGURE 16.VIETNAM EXPRESS DELIVERY SERVICES MARKET FOR B2C
FIGURE 17.VIETNAM EXPRESS DELIVERY SERVICES MARKET SHARE, BY END USE, 2019–2027 (%)
FIGURE 18.VIETNAM EXPRESS DELIVERY SERVICES MARKET FOR E-COMMERCE PLATFORM
FIGURE 19.VIETNAM EXPRESS DELIVERY SERVICES MARKET FOR SOCIAL MEDIA PLATFORM
FIGURE 20.VIETNAM EXPRESS DELIVERY SERVICES MARKET FOR DOCUMENT SERVICE
FIGURE 21.VIETNAM EXPRESS DELIVERY SERVICES MARKET FOR OTHERS
FIGURE 22.VIETNAM EXPRESS DELIVERY SERVICES MARKET SHARE, BY DESTINATION, 2019–2027 (%)
FIGURE 23.VIETNAM EXPRESS DELIVERY SERVICES MARKET FOR DOMESTIC
FIGURE 24.VIETNAM EXPRESS DELIVERY SERVICES MARKET FOR INTERNATIONAL
FIGURE 25.BEST EXPRESS (BEST INC.): NET SALES, 2018–2020 ($MILLION)
FIGURE 26.BEST EXPRESS (BEST INC.): REVENUE SHARE BY SEGMENT, 2020 (%)
FIGURE 27.KERRY LOGISTICS NETWORK LIMITED: NET SALES, 2018–2020 ($MILLION)
FIGURE 28.KERRY LOGISTICS NETWORK LIMITED: REVENUE SHARE BY SEGMENT, 2020 (%)
FIGURE 29.KERRY LOGISTICS NETWORK LIMITED: REVENUE SHARE BY REGION, 2020 (%)
FIGURE 30.VIETTEL POST: NET SALES, 2018–2020 ($MILLION)

 
 

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.

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