E-logistics holds promise in Vietnam

According to Agility’s “Emerging Market Logistics Index 2021” report, Vietnam is ranked in the Top 8 highest growth logistics markets globally.

As in the SYNC Southeast Asia Report from Facebook and Bain & Company, Vietnam’s e-commerce sector is forecast to grow the fastest in Southeast Asia, with a gross merchandise value (GMV) of $56 billion by 2026.
Vietnam’s shipping and logistics industry holds great potential and is fertile ground for businesses specializing in e-commerce logistics services (e-logistics), Mr. Phan Xuan Dung, CEO of Ninja Van, told VnEconomy - Vietnam Economic Times.

2022 marks an important milestone as Vietnam gradually reopens and becomes used to the “new normal”, and the number of orders through e-commerce platforms is constantly increasing. At the same time, there are hundreds of thousands of new online sellers entering the market through selling features on social networks such as TikTok Shop, Instagram Reels, and Zalo Shop, making the e-logistics market really explode.

E-logistics still faces some challenges in Vietnam, however. Firstly, 95 per cent of consumers who use e-commerce platforms choose COD (cash-on-delivery) as the method of payment, making delivery more complex and difficult to manage, according to Mr. Dung.

Moreover, the transit time in Vietnam is longer than in other regional countries because road and bridge infrastructure is still being upgraded. Sources of goods traded on e-commerce platforms are not diversified and depend on imports, so often encounter congestion.

In order to develop, e-logistics businesses need to focus on sustainable development, which aims to apply new technology, innovate the way of operation, and ensure care and support for customers, businesses, and their partners to move forward together towards mutual prosperity.