VIETNAM COURIER, EXPRESS, AND PARCEL (CEP) MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market is segmented by Business (Business-to-Business, Business-to-Consumer), and by Destination (Domestic and International).

Market Snapshot

vietnam courier express and parcel cep market
Study Period: 2016 - 2026
Base Year: 2021
vietnam courier express and parcel cep market size

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Market Overview

The market for Courier, Express, and Parcel business in Vietnam is expected to cross USD 3.5 billion by 2024, witnessing a CAGR of 15-18%, during the forecast period (2019-2024).

Vietnam is the emerging hotspot of the world, with its bolstering economy and growing business activities in the country. The courier services industry is the catalyst for the growth in domestic and international trade. E-commerce has been another disruption in the world in many countries, especially in the Southeast Asian region.

  • The strong growth of the e-commerce industry in Vietnam is leading to growth in the volumes of parcels. At the same time, the growth is leading to rise in competition among the delivery companies, in order to capture the growth of the market.
  • The explosive growth of country’s e-commerce is presenting opportunities, as well as challenges for online retailers and logistics players.
  • According to industrial estimates, around 500,000 e-commerce orders are placed every day, with 75% of the activity taking place within and between the two major metropolitan areas, namely, Hanoi and Ho Chi Minh City. Being 2,000 km apart from each other, the two cities are home to 16 million people, roughly accounting for 17% of the population. This creates significant transport headaches, and incurs high logistics cost of e-commerce, which accounts for 28% of product value.

Scope of the Report

A complete background analysis of Vietnam CEP Market, market overview, market size estimation for key segments and emerging trends by segments, and market dynamics are covered in the report.

BY BUSINESS
B2B (Business-to-Business) (Electronic Appliances, Food and Beverages, Life Sciences, Financial Services, etc.)
B2C (Business-to-Consumer) (E-Commerce, Omnichannel retailing, etc.)
BY DESTINATION
Domestic
International

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Key Market Trends

Growing E-commerce > Growing B2C Deliveries

The e-commerce market in Vietnam is skyrocketing, driven by factors like young population, high internet penetration rate, and rising smartphone penetration rates. The number of online shoppers in major cities, such as Hanoi and Ho Chi Minh City increased from 40% to 52%, between 2016 and 2017. Vietnamese consumers are one of the most frequent online shoppers in the Southeast Asian region. The number of online shoppers in the country is estimated at around 49.5 million in 2018, and is expected to reach above 50 million in 2019. The top players in Vietnamese e-commerce market include Shoppee, Lazada, Tiki, and Sendo.

Although Vietnam remains a cash-dominant economy, the digital and mobile payments are rapidly growing in the country. Cash-on-delivery (COD) is the most preferred payment method among the online shoppers. Having COD capability is an important criteria for the delivery companies and presents a competitive advantage over other players. COD delivery rate still stands at more than 80% and the return rate at B2C websites is between 10% -15%, which increases the costs of transportation and operation of the company. Goods delivery from businesses to consumers is dominated by major e-commerce players like Lazada, Tiki or Sendo, all of which have their own marketplace and partnerships with logistics services. Some vendors on these e-commerce sites offer delivery within two hours of purchase.

vietnam courier express and parcel cep market share

International CEP Market - driven by Growth in Cross-border E-commerce

The growth of the cross-border e-commerce and the increase in the international trade in the country are the major market drivers for the international segment of the CEP market. The global cross-border e-commerce is expected to witness a higher growth than the overall e-commerce market. Owing to factors, such as the unavailability of products in the domestic market, affordability, and better quality, people are preferring to buy things from international websites. The growth in the cross-border e-commerce sales lead to increase in the import volume of the international parcels.

Apart from ordering online, the overseas demand for Vietnamese products and the rising cross-border e-commerce activities across the region, as well as the world, would drive the export volume of international parcels. For instance, Singapore and Malaysia are the two countries in which cross-border e-commerce activity is more prevalent, with cross-border accounting for more than 50% and 40% of the total e-commerce transactions. Vietnam has geographical advantage in terms of bordering with China, and this presents an immense opportunity for the growing businesses in the country to capitalize on this emerging trend. The companies can also capitalize on Laos and Cambodia, which are comparatively less developed than Vietnam.

Airfreight transport is very important for express delivery of items, especially for international parcel deliveries that are time bound. As of 2018, there are 21 airports operating in Vietnam, including 08 international airports. Of all the airports in Vietnam, only four of them have separate cargo terminals. The remaining airports do not have cargo terminals, and all cargo is handled in the passenger terminal. The large airports, such as Noi Bai and Tan Son Nhat, have logistics centers for air cargo handling. In Noi Bai, the logistics centers, such as ACVS and ALS, handle most of the cargo volume of airfreight exports and imports, with diverse categories of goods. In 2017, the total cargo throughput increased by 25.9%, when compared to 2016, reaching 1.13 million tons while the international air freight increased by 29.2% in 2017 from 2016.

vietnam courier express and parcel cep market forecast

Competitive Landscape

Some of the large players dominate the Vietnam CEP market. The domestic deliveries are dominated by companies like Vietnam Post, Viettel Post, while DHL, UPS, and FedEx hold majority of the share in international CEP deliveries. Apart from the established companies gaining significant market shares, new start-ups are entering the market that are expanding fast and gaining huge growth rates. One such example is Giao Hang Nhanh (GHN). Technology is key in serving the growing demand. Viettel post has been growing rapidly in the recent times, increasing its market share and is expected to take major share of the Vietnam CEP market in the forecast period. The investment of the company in technology is believed to be the main reason behind the company gaining huge growth.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Government Regulations and Initiatives

    6. 4.6 Technological Trends

    7. 4.7 Overview of the Logistics Market and Transport Infrastructure

    8. 4.8 Brief on CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) and its effect

    9. 4.9 Insights on Reverse Logistics

    10. 4.10 Insights on the Trucking Industry

    11. 4.11 Elaboration on Warehousing Market of Vietnam

  5. 5. MARKET SEGMENTATION

    1. 5.1 BY BUSINESS

      1. 5.1.1 B2B (Business-to-Business) (Electronic Appliances, Food and Beverages, Life Sciences, Financial Services, etc.)

      2. 5.1.2 B2C (Business-to-Consumer) (E-Commerce, Omnichannel retailing, etc.)

    2. 5.2 BY DESTINATION

      1. 5.2.1 Domestic

      2. 5.2.2 International

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration, Major Players)

    2. 6.2 Company Profiles (including Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements)

      1. 6.2.1 International Companies

        1. 6.2.1.1 Deutsche Post DHL Group

        2. 6.2.1.2 United Parcel Service Inc.

        3. 6.2.1.3 FedEx Corporation

        4. 6.2.1.4 SF Express (Group) Co., Ltd.

        5. 6.2.1.5 Kerry Logistics Network Limited

        6. 6.2.1.6 Yamato Holdings Co. Ltd

        7. 6.2.1.7 Sagawa Express Co., Ltd.*

      2. 6.2.2 Domestic Companies

        1. 6.2.2.1 Vietnam Post Corporation (VNPost)

        2. 6.2.2.2 Viettel Post

        3. 6.2.2.3 New Post Express Joint Stock Company

        4. 6.2.2.4 Proship Joint Stock Company

        5. 6.2.2.5 Two Four Seven Joint Stock Company (247Post)

        6. 6.2.2.6 SpeedLink Company Limited

        7. 6.2.2.7 Vietstar Express Joint Stock Company

        8. 6.2.2.8 Shipchung (Vietnam Shipchung Electronic Commerce Joint Stock Company)

        9. 6.2.2.9 Giao Hang Nhanh*

      3. 6.2.3 Other companies (Key Information/Overview)

        1. 6.2.3.1 Grab Express, Lazada Express, supership, Giaohangtietkiem, Saigon Post and Telecommunication Services Joint Stock Company*

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. APPENDIX

    1. 8.1 GDP Distribution, by Activity and Region

    2. 8.2 Insights on Capital Flows

    3. 8.3 E-Commerce and Cross-Border E-Commerce in ASEAN (Market Size, Growth Rate and Forecast)

    4. 8.4 E-Commerce Sales in Vietnam by Product

    5. 8.5 External Trade Statistics - Export and Import, by Product

**Subject to Availability

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Frequently Asked Questions

The Vietnam Courier, Express, And Parcel (Cep) Market market is studied from 2016 - 2026.

Deutsche Post DHL Group, Vietnam Post Corporation (VNPost), Viettel Post, Two Four Seven Joint Stock Company (247Post), Vietstar Express Joint Stock Company are the major companies operating in Vietnam Courier, Express, And Parcel (Cep) Market.

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