Big players vie for Vietnam’s delivery market share

19-Jun-2019 Intellasia | VOV | 7:04 AM Print This Post

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 specialised 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 and, 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 programmes 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 chair, the race in the delivery market is fiercer as the postal industry, including delivery, shipping services, and logistics, is pulled about by approximately 300 authorised 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.


Category: Business, Vietnam

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