Big players vie for Vietnam’s delivery market share

Online shops could be the major clients of the firms as they have diverse service requests.

Big players vie for Vietnam’s delivery market share

DHL eCommerce have also jumped into the delivery market in Vietnam

In this field, small firms have bigger advantages than large ones. Delivery services can also seek niche markets such as instant delivery services, low-cost services and delivery of specialized products.

The Vietnamese billion-dollar e-commerce delivery services industry is turning into an increasingly fierce battlefield with big companies trying to gain larger market share.

The express delivery market is now dominated by not only traditional companies, such as Viettel Post, VNPost, and EMS, but also startups including giaohangnhanh, supership, giaohangtietkiem, etc.

Besides, multinational companies, such as DHL eCommerce, Grab Express, Lazada Express, have also jumped into the field, heating up competition.

All the companies are under pressure to provide faster and better services as delivery speed and quality have a direct impact on their successful order rates.

Following the trend, The Gioi Di Dong (Mobile World), a large retail chain, which runs thegioididong.com and dienmayxanh.com, is committed to delivering goods within 30 minutes.

Meanwhile, FPT Shop pledges to deliver goods within 60 minutes to addresses within 10 kilometers in all 63 cities and provinces across the country. The company also takes orders with requested delivery time.

Freight and forwarding companies have also joined the race to satisfy online buyers’ requirements and serve large e-commerce sites such as Lazada, Tiki and Sendo.

Tiki, under cooperation programs with payment service providers such as MoMo and ZaloPay, now offers TikiNow, a coupon for free delivery within two hours.

According to Pham Anh Tuan, VNPost’s chairman, the race in the delivery market is fiercer as the postal industry, including delivery, shipping services, and logistics, is pulled about by approximately 300 authorized enterprises, not to mention a series of freelance delivery enterprises and unlicensed delivery services from bus operating companies to small and super-small companies competing via discounts.

Some investors have recently poured money into startups and they are willing to suffer losses for a couple of years just to win market share, Tuan said.

While startup companies are trying to boost sales by offering low prices and discounts, providing services around the downtown of big cities, multinational companies continue to enhance their presence by launching special services or establishing new subsidiaries in different cities and provinces.

 

Under such circumstances, domestic traditional delivery companies, such as Viettel Post and VNPost, have to improve the quality of their transport and warehouse systems, developing the logistics sector.

Viettel Post has been listed on the UPCoM to attract investment for the expansion of its delivery services to reach other foreign countries, boosting logistics and postal technology.

Meanwhile, VNPost has brought its southern center of transport and logistics in Ho Chi Minh City on stream. The company is also carrying out the construction of seven regional transport and logistics centers, forming three main complexes in Hanoi, Ho Chi Minh City, and Danang.

Promising land

The Vietnamese delivery services industry currently makes for a particularly promising land. According to the Vietnam E-commerce Association (VECOM), e-commerce in Vietnam witnessed a growth of over 25 percent in 2017 and might hit the scale of US$10 billion in 2020.

A survey of some delivery companies shows that delivery services are posting revenue growth of 62-200 percent. This is an ideal opportunity for delivery enterprises to make a breakthrough in development.

Meanwhile, experts said though small delivery firms are less competitive than big ones which have good technology and finance, they will still be able to grow if they can choose suitable market segments.

According to Hoang Giang, the founder of TopShip, a platform that connects transport service providers, small firms can provide services to customers’ requests with different service packages and fast delivery service within cities.

Online shops could be the major clients of the firms as they have diverse service requests. In this field, small firms have bigger advantages than large ones. Delivery services can also seek niche markets such as instant delivery services, low-cost services and delivery of specialized products, Giang said.

Hanoitimes

Vietnam food delivery market is battlefield for four Asian unicorns

Vietnam food delivery market is battlefield for four Asian unicorns

SEA and Grab from Singapore, Woowa Brothers from South Korea and Go-Jek from Indonesia are fighting for market share.

Big players compete for market share in VN delivery market

Big players compete for market share in VN delivery market

Speed and delivery quality will determine the growth of the e-commerce market in the time to come, according to the Vietnam E-commerce Association (Vecom).v

Fierce race in Vietnam’s food delivery market: The game really ends?

Fierce race in Vietnam’s food delivery market: The game really ends?

Newcomers have shaken up Vietnam’s food delivery sector with intensified competition in which only strong contenders can withstand the challenges.  

 
 

Other News

.
Commercial centres deserted in Hanoi amidst COVID-19 fears
Commercial centres deserted in Hanoi amidst COVID-19 fears
PHOTOSicon  22/03/2020 

With fears surrounding the potential spread of COVID-19 gripping Hanoi, the majority of commercial centres located in the capital have been increasingly quiet in recent days with local people cautious about going outside.

VN firms resolute in business goals despite COVID-19 impacts
VN firms resolute in business goals despite COVID-19 impacts
BUSINESSicon  22/03/2020 

Many companies have performed well in the first two months of the year despite the COVID-19 outbreak and insist on keeping business targets unchanged.

State capital commission to work with struggling mega-projects
State capital commission to work with struggling mega-projects
BUSINESSicon  21/03/2020 

The Commission for the Management of State Capital at Enterprises (CMSC) must continue to support managers of 12 struggling mega-projects under the Ministry of Trade and Industry with the State’s capital investment.

Real estate firms calls for Government support
Real estate firms calls for Government support
BUSINESSicon  21/03/2020 

The HCMC Real Estate Association has urged the Government to add the property industry to the list of those affected by the COVID-19 outbreak and are eligible for a five-month postponement of VAT and land-use fee payments.

Textile and footwear firms go local to survive pandemic
Textile and footwear firms go local to survive pandemic
BUSINESSicon  21/03/2020 

While most textile and footwear enterprises in Vietnam struggled to find alternative sources of raw materials to maintain production, some with local sources have survived during the COVID-19 pandemic.

US has no plan to suspend import of Vietnamese garment-textiles: ambassador
US has no plan to suspend import of Vietnamese garment-textiles: ambassador
BUSINESSicon  21/03/2020 

The US Government has no plan to suspend the import of Vietnamese garments-textiles, said Vietnamese Ambassador to the US Ha Kim Ngoc.

BUSINESS NEWS HEADLINES MARCH 21
BUSINESS NEWS HEADLINES MARCH 21
BUSINESSicon  21/03/2020 

State Bank approves restructuring plan for Saigon Commercial Bank

BUSINESS NEWS HEADLINES MARCH 20
BUSINESS NEWS HEADLINES MARCH 20
BUSINESSicon  20/03/2020 

Garment export value hits US$5.3 billion during Jan-Feb

EVFTA expected to create great pressure on domestic logistics firms
EVFTA expected to create great pressure on domestic logistics firms
BUSINESSicon  20/03/2020 

The expected execution of the EU-Vietnam Free Trade Agreement in 2020 will create great pressure on Vietnamese logistics businesses, insiders said.

Ministry cuts, exempts fees of 15 securities services to support stock market
Ministry cuts, exempts fees of 15 securities services to support stock market
BUSINESSicon  20/03/2020 

The Ministry of Finance has cut the fees of nine securities services and exempted fees for six others as from March 19 as part of efforts to support the stock market amid the negative impact of the COVID-19 epidemic.

How are Vietnamese businesses managing during the Covid-19 crisis?
How are Vietnamese businesses managing during the Covid-19 crisis?
BUSINESSicon  20/03/2020 

While tourism, transportation and F&B sectors are suffering heavily from Covid-19, the impact on other business fields has been less severe.

VN digital payment market reshaped because of new rules
VN digital payment market reshaped because of new rules
BUSINESSicon  21/03/2020 

A new payments market will be created with the presence of more players, including commercial banks, fintechs, telcos and foreign investors.

Supporting industries secure more orders following Chinese supply disruptions
Supporting industries secure more orders following Chinese supply disruptions
BUSINESSicon  19/03/2020 

A number of local firms in supporting industries have been receiving more orders from foreign partners due to the coronavirus outbreak disrupting supply chains in China.

Vietnam jumps 23 places in economic freedom index
Vietnam jumps 23 places in economic freedom index
BUSINESSicon  19/03/2020 

Vietnam jumped 23 places from last year to reach 58.8 points, ranking 105th place in the economic freedom index this year.

ECB launches emergency €750bn coronavirus package
ECB launches emergency €750bn coronavirus package
BUSINESSicon  19/03/2020 

European Central Bank head Christine Lagarde: "There are no limits to our commitment to the euro".

VN aviation and transport sector seeks help with downturn caused by COVID-19
VN aviation and transport sector seeks help with downturn caused by COVID-19
BUSINESSicon  19/03/2020 

The aviation and transport sector are facing a range of challenges in the time ahead caused by the outbreak of COVID-19, with many being in need of urgent assistance from the government in order to restore production and business.

Visa suspension to cause economic losses
Visa suspension to cause economic losses
BUSINESSicon  19/03/2020 

The temporary suspension of visas for foreign arrivals to the country is anticipated to have a significant impact on the Vietnamese economy in general, with the aviation industry being particularly damaged, according to economic insiders.

EU’s border closure yet to affect goods circulation: official
EU’s border closure yet to affect goods circulation: official
BUSINESSicon  19/03/2020 

The European Union (EU)’s border closure to prevent the spread of the novel coronavirus disease (COVID-19) has not yet had a significant impact on goods circulation, said an official from the Ministry of Industry and Trade.

CNN: Vietnamese coffee wakes up the world
CNN: Vietnamese coffee wakes up the world
BUSINESSicon  19/03/2020 

The US Cable News Network (CNN) published an article on March 17, explaining why the world is waking up to Vietnamese coffee.

High vulnerability rate of businesses in Covid-19 expected
High vulnerability rate of businesses in Covid-19 expected
BUSINESSicon  19/03/2020 

The human mortality rate due to Covid-19 is 3.4 percent worldwide. For businesses, the vulnerability rate is believed to be much higher.

 
 
 
Leave your comment on an article

OR QUICK LOGIN