Vietnamese postal service firms foray into logistics industry

21 Mar '22

2 min read

Pic: Shutterstock

Several Vietnamese postal service firms like Viettel Post and Vietnam Post are now shifting from their traditional delivery role to logistics, e-commerce and technology. The country’s Postal Development Strategy aims to promote the development of e-commerce and logistics with a market size of up to $70-80 billion by 2025 and digitise the postal industry.

Viettel Post has invested heavily in logistics and e-commerce, and aims to become the leading hi-tech logistics firm by 2025. It will investment in warehouses, vehicles, warehousing logistics and international freight forwarding. Its advantage is its network spanning 63 provinces and cities.

Its competitor Vietnam Post has also made strong moves into the logistics market by setting up two companies, Vietnam Post Logistics (VPL) and Vietnam Post Digital. VPL specialises in warehousing services, international transportation, import and export, and customs.

In 2022, Vietnam Post Logistics will set up branches in major markets such as the United States, the European Union and Japan. It also aims to raise revenue this year by more than 10 times over the 2021 figure, according to a report in a popular Vietnamese English-language media outlet.

Last year witnessed a logistics boom for e-commerce when the Vietnamese market grew by 16 per cent, reaching the milestone of $14 billion. It is forecast that in 2025, the scale of Vietnam's e-commerce can reach $52 billion.

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

Fibre2Fashion News Desk (DS)

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