VN postal groups eye the logistics industry

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Viettel Post and Vietnam Post are eying the local logistics market worth nearly 62 billion USD.


Viettel Post has gradually escaped the shadow of a traditional delivery company, when investing heavily in logistics, e-commerce, and technology. This corporation aims to become the leading logistics firm based on high technology by 2025.

Mr. Tran Trung Hung, general director of Viettel Post, said in 2022 and the following years, Viettel Post will focus investment in warehouses, vehicles, warehousing logistics, and international freight forwarding. Its advantage is the network spanning 63 provinces and cities across the country.

Viettel Post also invests heavily in high technology to solve the logistics service chain problem and considers this a unique selling point for logistics services.

Meanwhile, Viettel Post’s biggest competitor, Vietnam Post, has also made positive moves into the logistics market.

Chu Quang Hao, General Director of Vietnam Post, said that to prepare for a breakthrough in the near future, Vietnam Post has established two companies, Vietnam Post Logistics (VPL) and Vietnam Post Digital. These are two new services, and at the same time an important push for Vietnam Post to fulfill its strategic development goals in the next phase.

Particularly, Vietnam Post Logistics specializes in warehousing services, international transportation, import and export, customs. In 2022, Vietnam Post Logistics will set up branches in major markets such as the US, EU, and Japan. This company also aims to increase revenue in 2022 more than 10 times compared to 2021.

Equal opportunity

2021 witnessed a logistics boom for e-commerce when the Vietnamese market grew by 16%, reaching the milestone of 14 billion USD. It is forecast that in 2025, the scale of Vietnam’s e-commerce can reach 52 billion USD. That is an opportunity for companies like Vietnam Post and Viettel Post to make a breakthrough.

According to the Vietnam Logistics Association (VLA), Vietnam’s transport and logistics market is estimated at 61.83 billion USD, with more than 1,000 businesses providing logistics services, along with about 1.5 million employees.

Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade), said that the number of orders placed online is huge, the product categories are diverse, and the delivery addresses are in all localities. Without technology, logistics businesses for e-commerce will not be able to meet the delivery speed.

Ms. Nguyen Vu Hong Thanh, Director of the Postal Department (Ministry of Information and Communications), said the postal industry is emerging as a logistics industry for socio-economic development, with many opportunities to become the infrastructure of the digital economy. As sharing platform business models and the new generation retail and e-commerce business models explode, Vietnam will need a widespread delivery infrastructure to bring goods to consumers.

“This is an advantage that not all fields have. In the coming time, when smart devices are popularized, the postal infrastructure needs to become a stronger bridge for e-commerce activities, especially in rural areas,” said Thanh.

Mr. Pham Anh Tuan, Deputy Minister of Information and Communications, said the Postal Development Strategy to 2025, with a vision to 2030, determines to promote the development of e-commerce and logistics fields with a market size of up to 70-80 billion USD by 2025 and transform the postal industry from traditional postal services to digital postal services. Accordingly, the postal sector is an essential infrastructure of the country and of the digital economy, especially of e-commerce. Postal services will shift to e-commerce and logistics.

It can be seen that postal businesses are facing a huge opportunity to dominate the market of tens of billions of US dollars in the near future.

Hoang Viet

Foreign investors have increased their capital in the Vietnamese logistics market to seize upon development opportunities after the COVID-19 pandemic, according to industry experts.

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