Growth E-Commerce Logistics Market, Express Delivery Services in Hanoi-Ken Research

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Vietnam Express E-Commerce Logistics Market
Research Report-Ken Research
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Growing commercialization and busier lifestyles
of people has led to the requirement of faster
delivery. This gave the logistics industry an
opportunity to launch a new service vertical
named express logistics which was a faster way of
delivery compared to the normal delivery. The
express delivery services industry comprises of
firms that provide expedited movement of
document, parcels and other goods. These firms
maintain control over the shipments throughout
the delivery process and often use technology to
monitor the location of each item. As the air
transport develops, the express services can
reach longer distances and fulfill the
time-sensitive delivery. The express logistics
market in Vietnam was evaluated at USD million
in 2011 which witnessed an increase to USD
million in 2012, thus displaying a growth rate of
in the market. Air express was the most
popular means of express delivery as compared to
ground express delivery. The trend of shopping
online for perishable items such as food products
including fruits and vegetables, meat, fish and
others has been rising. Changing consumer
shopping habits coupled with rising usage of
E-commerce has given a rise to express delivery
services in the country. Vietnam express
logistics market was observed to generate
revenues worth USD million in the year 2017,
thus growing at a six year CAGR of in the
review period 2011-2017.   The domestic express
segment dominated Vietnam express logistics
market with a massive revenue share of in the
year 2017.
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Domestic express delivery companies operating in
Vietnam were witnessed to start investing in
modern technology in order to meet the increasing
demand in the delivery of goods through
E-commerce. On the other hand, international
express services in Vietnam express logistics
market captured the remaining revenue share in
the year 2017 majorly owing to development in
transportation for sending goods to international
locations. The express logistics industry in
Vietnam was witnessed to be highly concentrated
with the presence of major players in both
domestic as well as internal express segments.
Express logistics has gained popularity in
Vietnam majorly due to shift in consumer
preferences rise in E-commerce owing to
increasing internet and smartphone penetration in
the country and companies offering faster
options of delivery. In accordance with the
Vietnam E-commerce association, speedy
development of online trading activities within
the country has led to express delivery firms in
the domestic market to improve their fees and
speed of the delivery, thereby increasing
competitiveness in the market. Major domestic
players include Viettel Post, GHN, VNPost and
others. On the other hand, Vietnams entry into
World Trade Organization (WTO) has opened entry
of several foreign express delivery firms
including DHL from Germany, TNT from Netherlands,
FedEx and UPS from US. Additionally, foreign
tie-ups with Vietnamese companies were also
witnessed to increase in the country.
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Over the forecasted period, Vietnam express
logistics market is expected to drive demand for
express mail services majorly from leading growth
sectors such as IT, pharmaceuticals, electronics
and financial business services in the country.
The market is estimated to generate revenues
worth USD million by the year ending 2018. With
same-day delivery, orders are delivered within a
few hours after purchasing them, or in a chosen
time window on the same day, thus driving the
demand for express delivery services in Vietnam.
The express logistics industry is expected to
respond well towards growth in international
trade by investing in new delivery routes and
services to ensure that they can meet the growing
demand for rapid, guaranteed international
delivery. Vietnam express logistics market is
estimated to reach revenues worth USD million
by the year ending 2022, thus growing at a CAGR
of in the forecast period 2018-2022. In
accordance with Vietnam E-Commerce Association,
Vietnam is the 4th country in terms of e-commerce
development within Asia-Pacific region and is
estimated to reach a market size of USD billion
in the upcoming five years. Vietnams E-commerce
market majorly belongs to international giants
such as Amazon and Alibaba whereas small players
operating within this industry have more than
online sales sites and more than active fan
pages. Growing E-commerce activities has led to
high frequency of large scale deliveries across
provinces, therefore giving birth to logistics
services specific for e-commerce activities in
Vietnam. E-commerce in Vietnam is further
anticipated to grow at a good pace owing to the
widespread of broadband internet and technology
services.
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Vietnam E-commerce logistics market generated
revenues worth USD million in the year 2015
owing to the countrys increasing access to
internet and smart phones coupled with the
emerging trend of online shopping. The market is
primarily dominated by third party logistics
providers such as GHN, Viettel Post, VN Post and
DHL eCommerce followed by E-commerce merchants
such as Lazada, Shopee, Tiki and others. The
gradual shift in the preference of customers from
physical shopping (store based) to online
shopping has exponentially increased the number
of online orders. In accordance with Vietnam
E-Commerce Association, Vietnam is the 4th
country in terms of e-commerce development within
Asia-Pacific region and is estimated to reach a
market size of USD billion in the upcoming five
years.   By Channel 3PL companies in Vietnam
E-commerce logistics market have dominated
E-commerce logistics market with the share of
in terms of number of orders received during
2017. Some of the major 3PL companies include VN
Post, Viettel Post, GHN and others which provide
end to end services i.e. from securing inventory
in a warehouse to transporting goods from one
place to another. Whereas, E-commerce merchants
via their in-house logistics team captured the
remaining market share of in terms of number
of orders in the year 2017. Major E-commerce
companies in Vietnam include Lazada Vietnam,
Adayroi and Tiki which have their own well
established distribution channel in the country.
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By Speed of Delivery The 2 day delivery, commonly
known as standard delivery segment was observed
to be chosen as the most preferred shipping
choice for Vietnamese digital by the 1 day
delivery segment with a market share of in
terms of number of orders, thus evaluated at
million in 2017. Growing expectations of
consumers towards fast shipping from e-retailers
has led to rise of same-day delivery option in
Vietnam. The segment captured a market share of
, thus evaluated at million orders in Vietnam
E-commerce logistics market in the year 2017.
Delivery within 2 hours and delivery beyond 2
days captured the remaining revenue shares of
and respectively in terms of number of orders
in the year 2017.   By Payment Method The Cash on
Delivery (COD) segment established itself as
market leader in Vietnam E-commerce logistics
market with a massive revenue share of in the
year 2017. Cash on Delivery (COD) remains the
dominant means of payment method accepted by
merchants in the country owing to low consumer
confidence in online payments and limited card
penetration. Other payment modes such as bank
transfers, payment cards debit / credit cards,
E-wallets and scratch cards collectively captured
the remaining share in Vietnam E-commerce
logistics market in the year 2017.
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By Area of Delivery The intercity segment within
Vietnam E-commerce logistics market established
itself as market leader with a massive market
share of in terms of number of orders, thus
evaluated at million orders in the year 2017.
Intercity delivery majorly happens with ground
shipping where mini-trucks are preferred to
transport multiple deliveries of orders of
multiple customers for the same route taken. The
segment dominates owing to the rising vehicle
load capacity. The remaining revenue share was
captured by the intracity segment in Vietnam
E-commerce logistics market in 2017.   The
E-commerce logistics market in Vietnam was
observed to highly concentrate with the presence
of major players such as GHN, VNPost and Viettel
Post covering around of the market share in
the year 2017. These logistics companies in
Vietnam were witnessed to compete on the basis of
shipping points, coverage area, delivery boys,
prices, payment collection methods and
associations with E-commerce merchants. Other
E-commerce logistics in Vietnam includes DHL
Vietnam, Saigon Post and Shipchung. Since the
E-commerce business environment has become more
dynamic and competitive, the companies tend to
demand better logistics services which are
flexible and cost effective in nature. Over the
forecast period, Vietnam E-commerce logistics
market is expected to drive demand from rising
E-commerce spending especially by a young,
smartphone addicted and incredibly internet-savvy
millennial group which has prompted E-commerce
platforms in Vietnam to alter strategies to cater
to the younger generation.
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Fulfillment of service order and electronic
logistics play a vital role in expansion of
businesses, specifically for E-commerce logistics
providers. Value added services such as door
delivery, real time tracking and others have
given a competitive advantage to logistics
players to build long lasting relationship with
their customers. The sector is expected to
escalate its way in the urban cities where a huge
share of traffic is coming from the tier 2 and
tier 3 cities as well. Along with the expansion
of logistic carriers network, now a shipment can
be delivered across a wider geography including
other rural hubs. Vietnam E-commerce logistics
market is expected to generate revenues worth USD
million in 2018 to USD million by the year
ending 2022, thus growing at a CAGR of in the
forecast period 2018-2022. For more information
on the research report, refer to below
link https//www.kenresearch.com/automotive-trans
portation-and-warehousing/logistics-and-shipping/v
ietnam-express-ecommerce-logistics-market-report/1
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