With the constant growth in the e-commerce industry across Vietnam—owing to rise in foreign investments, enhanced internet access, and favorable regulatory environment—the online sales are predicted to witness approximately a tenth of the country’s overall goods and services sales by 2025. Vietnam is booming as a digital economy and its exciting e-commerce space makes it a favorable place to create a huge opportunity for new business expansion. According to the Statista, Vietnam’s e-commerce revenue is anticipated to cross approximately US$ 9 billion by 2025. Therefore, the demand for express delivery service in the retail and e-commerce industry across the country is anticipated to grow during the forecast period.
Vietnam government is robustly focusing on investing toward the advancement of the pharmaceutical industry and developing a domestic standard pharmaceutical industry to efficiently meet the demands of its customers. Despite of efforts taken by the government, several domestic pharmaceutical manufacturers witness the lack of resources to withstand in the market and create opportunities for foreign multinational companies (MNCs) to manufacture. With the current global economic disruptions due to COVID-19 impact and the ongoing trade uncertainties with China, developing countries such as Vietnam offer an appropriate opportunity for expanding and hedging operations, by providing sustainable long-term growth opportunities for foreign MNCs. Many domestic express delivery companies are operating in Vietnam, and they are constantly witnessing huge growth by investing in the adoption of modern technology to meet the expanding demand in the delivery of goods through E-commerce. Furthermore, the international express services in the country are also boosting express logistics market across different industries such as electronics, automotive, and IT & telecom secured significant revenue share in 2020, owing to advancements in transportation for delivering goods to international locations.
The Vietnam express delivery services market is segmented based on destination, business type, end user, and geography. Based on destination, the Vietnam express delivery services market is segmented into domestic and international. In terms of business type, the market is segmented into business-to-business and business-to-consumer. Based on end user, the market is segmented into BFSI, automotive, pharmaceuticals, IT and Telecom, electronics, retail and e-commerce, and others.
The emergence of COVID-19 virus across Vietnam—which led to lockdown scenarios—has led the industry experts to analyze that the industry would face at least a quarter of lag in offering express delivery services. This disruption is expected to create tremors through till mid-2021. The express delivery of parcels and electronics equipment is likely to pick up pace soon as the Vietnam government lifts the various containment measures steadily in order to revive the economy. Cancellations of flights for international delivery and travel bans to curb the spread of the pandemic, have led to substantial slowdown of express delivery service activities. There has been a decrease in letters and document parcels due to the pandemic. However, there is an increase in e-commerce parcels, owing to rising number of people shopping through online platforms. The delivery of daily essentials and e-commerce industry is anticipated to influence the express delivery services industry in Vietnam positively throughout the COVID-19 outbreak. The country’s B2B express delivery services experienced a slowdown and came to a halt, whereas the B2C services are witnessing growth during the pandemic, owing to huge growth of the online retail and e-commerce industry. Further, due the interruption in supply chain and logistics, the procurement rate of various delivery services, including domestic and international, has been quite affected.
| Report Attribute | Details |
|---|---|
| Market size in 2020 | US$ 700.40 Million |
| Market Size by 2028 | US$ 1,655.96 Million |
| Global CAGR (2021 - 2028) | 11.9% |
| Historical Data | 2018-2019 |
| Forecast period | 2021-2028 |
| Segments Covered |
By Destination
|
| Regions and Countries Covered | Vietnam
|
| Market leaders and key company profiles |
The List of Companies - Vietnam Express Delivery Services Market