Our prices 30-40% lower than DHL, Viettel Post: Gozo CEO

Gozo, a Vietnamese logistics startup, currently holds a key competitive advantage: its prices are 30-40% lower than those of major players like DHL and Viettel Post, said Phan Duy Minh, founder and CEO of Gozo Express.

Minh made this statement during an event in Ho Chi Minh City on Friday, where Gozo JSC officially unveiled its new brand identity, Gozo Express (formerly ABM Express), and introduced Vietnam’s first standardized international express delivery franchise model.

"In my view, the international shipping market in Vietnam is a ‘red ocean,’ with thousands of large and small companies competing side by side. Typically, foreign corporations like DHL, UPS, and FedEx collaborate with large or well-known local businesses. The same goes for domestic giants like Viettel Post and VNPost,” added Minh.

He explained that the international shipping segment for individuals, startups, and small to medium-sized enterprises (SMEs) is dominated by small-scale shipping services and companies with just 1-10 post offices operating within limited local areas rather than nationwide or internationally. This segment is often chaotic, frequently drawing customer complaints and lacking any widely trusted brand.

"Seeing the market’s needs and challenges, I launched Gozo because I want to offer high-quality services at affordable prices, to help everyone start their own businesses," Minh shared.

Gozo was founded five years ago under the name ABM Express. Today, it operates 60 post offices across Vietnam and has a branch in Thailand. In 2024, the company transported 900 tons of goods. Gozo focuses exclusively on international shipping and does not offer domestic delivery services.

During the rebranding event, Gozo signed franchise agreements with three partners in Thailand (including Allco Express and World Trade) and one in South Korea (Crown Logistics). Through these partnerships, Gozo aims to facilitate global shipping from Thailand and South Korea, not just bilateral trade between select countries.

Minh emphasized that Gozo’s primary advantage over competitors like DHL or Viettel Post is pricing: Gozo's international shipping services are 30% to 40% cheaper.

He attributes this cost advantage to Gozo’s leaner operational model. While DHL runs an extensive internal logistics system, Gozo outsources operations to cost-effective partners such as Vietjet and Vietnam Airlines. Meanwhile, Viettel Post and VNPost are stronger in domestic logistics than in international services.

That said, Gozo isn’t positioning itself as a direct competitor to global giants like DHL or UPS. Minh clarified that Gozo targets a different market segment and customer base. The company is actively seeking franchise partners for postal services in rural areas. Notably, Gozo does not charge franchise fees - partners invest in physical locations, and the two parties build the business together.

Currently, Gozo is focusing its expansion on provinces in the north-central region of Vietnam, where many residents work abroad in markets like Japan, South Korea, and Taiwan. These areas not only have strong demand for international shipping services but also a population of returning workers with capital and an interest in entrepreneurship.

At present, Gozo does not have a mobile app; their application is still under development. While many startups launch with apps from day one, Minh believes that developing an app prematurely is not always wise.

“If your business model isn’t stable or functioning properly, an app won't solve that. In the beginning, you should prioritize building solid technology and expertise, including a well-designed, functional website. Only then should you move on to developing an app,” Minh advised.

According to the market outlook forecast of Precedence Research, the global logistics market size could reach $21.91 trillion by 2033, with a compound annual growth rate of 9.35% for the period 2024-2033. In Vietnam, the logistics industry has a growth rate of 14-16% per year, with an estimated market size of $40 billion to $50 billion, among the leading groups in Southeast Asia.

In Vietnam, the international transportation sector is a private playground for domestic and foreign corporations such as DHL, UPS, FedEx, Viettel Post, and VNPost, along with thousands of startups and SMEs.

For example, the startup Swift247, a super-fast air delivery service, was founded by Tommy Nguyen, son of carrier Vietjet's CEO Nguyen Thi Phuong Thao.