According to our latest market study on “Vietnam Express Delivery Services Market Forecast to 2028 – COVID-19 Impact and Analysis – by Destination ( Domestic, International ); Business Type ( Business-to-Business, Business-to-Consumer ); End-User ( BFSI, Automotive, Pharmaceuticals, IT and Telecom, Electronics, Retail and E-commerce, Others ),” the market was valued at US$ 700.40 million in 2020 and is projected to reach US$ 1655.96 million by 2028; it is expected to grow at a CAGR of 11.9% from 2021 to 2028.
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.
High adoption of express delivery services has been observed across major essential sectors—such as food & beverages and healthcare. The demand from Vietnam customers to receive the items to be delivered in the same day or to be delivered maximum in a day’s time has increased over the years. The highest adoption is noticed across the healthcare sector. In healthcare, proper prioritization reduces misery and saves lives. There must be access to high-tech medical devices and work around the clock, all year round. It is essential to deliver critical samples and medicines on time, without being tempered in the process of transportation. In the healthcare sector, high demands for quality, availability, accuracy, and cost control place similarly high expectations on logistic solutions. Thus, the above-mentioned factors are likely to influence the growth of the Vietnam express delivery services market during the forecast period. The restriction flight cancellations 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.
In Vietnam, the integration of technologies such as radio-frequency identification (RFID) systems and tags for better handling of cargoes and parcels along with avoiding human errors is expected to fuel the express delivery market growth in Vietnam in the coming years. Courier companies are increasingly investing in the adoption of high-tech solutions to make their operations simpler and more efficient. For instance, DHL International GmbH has invested significant amounts in cutting-edge equipment and applications over the past years. Technologies deployed by the company include celluveyor, DHL Resilience360 (a risk management tool), DHL SmartSensor, EffiBOT, and automated container unloading systems, which helps them avoiding misplacement of parcels during the transportation. These efforts allow DHL International GmbH to focus on providing their clients with the cost-effective and enhanced solutions and services.
Impact of COVID-19 on Vietnam Express Delivery Services Market
The emergence of COVID-19 virus across the 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 governments across the Vietnam lift the various containment measure steadily in order to revive the economy. The restriction flight cancellations 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.
The report segments the Vietnam Express Delivery Services Market as follows:
Vietnam Express Delivery Services Market – by Destination
Vietnam Express Delivery Services Market – by Business Type
- Business-to-Business
- Business-to-Consumer
Vietnam Express Delivery Services Market – by End-User
- BFSI
- Automotive
- Pharmaceuticals
- IT and Telecom
- Electronics
- Retail and E-commerce
- Others
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