As one of the fastest growing e-commerce countries in the world, Viet Nam is considered a high-potential market for e-logistics, analysts have said.

The boom in online shopping and home delivery in the country in recent years have also created many opportunities for e-logistics operator. - Photo baocongthuong.vn

Viet Nam has an average annual growth rate of 35 per cent.

The boom in online shopping and home delivery in the country in recent years have also created many opportunities for e-logistics operators, they said.

In 2017 alone, over 50 domestic and foreign e-logistics providers entered the market, which is predicted to reach US$200 million by 2020. They include Lazada, Giaohangnhanh or Grab Express or Speedlink.

The combination of local and international expertise has created a tailored, unique solution for the Vietnamese e-logistics sector, paving the way for endless e-commerce growth, Fabian Wandt, country manager of Lazada eLogistics, told the Vietnam Investment Review (VIR).

Another delivery operator, Giaohangnhanh, is also upbeat about the prospect of the delivery market reaching a three-fold annual increase, particularly with investments from both local and foreign players to enhance their technology, network and offerings.

Giaohangnhanh CEO Nguyen Tran Thi told VIR that his company planned to expand its operations by more than double this year and targeted to reach 1,500 customer collection points by the end of 2018.

Backed by State regulations

According to analysts, opportunities for companies providing e-logistics services are brighter, especially since new regulations aimed at enhancing the competitiveness of the logistics sector will soon come into force. Decision No 200/QD-TTg, which will provide the action plan to develop and raise the competitiveness of the logistics industry in Viet Nam until 2025, will have a positive impact on the development of logistics companies.

With the State’s assistance in information technology, human resource training and operation cost reduction, the new decree is expected to help logistics companies, especially those providing e-logistics services, to sharpen their competitiveness in the time to come, analysts said.

Meanwhile, the Prime Minister has also issued Decree No 163 on logistics services, which will come into force on February 20. The decree is expected to open up the e-logistics market to foreign investments. Under certain circumstances, foreign investors can establish enterprises or contribute capital to Vietnamese businesses engaged in maritime freight transport (excluding inland transportation), container handling services as part of maritime transport support services, freight transport services as part of inland waterway transport services and freight transport services as part of road transport services. — VNS