Vietnam's delivery market value to hit $4.9 bln by 2030: global research firm

By Nguyen Thuy
Sun, June 4, 2023 | 10:18 am GMT+7

Vietnam’s courier, express and parcel services market could exceed $4.9 billion in value by 2030, registering an annual growth rate of up to 23.8%, according to Research and Markets.

The market was valued at $710 million in 2021 and reached $900 million last year, the global market research company wrote in its “Vietnam Courier, Express and Parcel Services Industry Research Report 2023-2032" released on Thursday.

Vietnam’s courier sector offers a range of services including same or next-day delivery, international delivery, and specialized services such as refrigerated transport of perishable goods. Courier services in the country, home to 100 million people, use a variety of transportation methods, including motorcycles, trucks and airplanes, to ensure fast and efficient deliveries.

Couriers of delivery firm Ahamove in Vietnam. Photo courtesy of the company.

Couriers of delivery firm Ahamove in Vietnam. Photo courtesy of the company.

Vietnam's retail e-commerce market was estimated at $16.4 billion in 2022, according to the Ministry of Trade and Industry, accounting for 7.5% of the country's total retail market sales and the second highest percentage of online shopping in Southeast Asia after Singapore.

The compound annual growth rate (CAGR) of Vietnam's e-commerce retail sales from 2018-2022 reached 19.3%. In 2022, Shopee, Lazada, Tiki, and Sendo were the top four e-commerce platforms in Vietnam with total revenue of VND135 trillion ($5.75 billion), according to Research and Markets.

Vietnam's e-commerce industry is ranked by international market research firm eMarketer as one of the top 5 countries in the world with an annual growth rate of 20%.

According to the 2022 Vietnam E-Commerce White Paper, the country’s e-commerce industry set a number of annual records last year. The number of online shoppers in Vietnam reached 57 million for the first time in 2022, and 74.8% of Vietnam's internet users shopped online.

In addition, for the first time, Vietnam's online shopping transactions reached $260-285 per capita, and the market share of business-to-customer e-commerce in Vietnam's total retail sales of consumer goods and services reached 7.5%.

Retail sales of e-commerce will reach $50.94 billion in 2032 and the 2023-2032 period’s CAGR is likely to hit 12%, said Research and Markets.

Currently, Vietnam's retail market size is about $250 billion, providing vast space for e-commerce development. The Vietnamese government has proposed a target to increase the share of e-commerce sales to 20% of the total.

According to the Vietnam E-Commerce White Paper 2022, Vietnam's e-commerce market will reach $39 billion by 2025, ranking second in Southeast Asia in terms of growth. The fast-expanding e-commerce sector will provide opportunities for the country's foreign and local logistics services, particularly courier services.

The Vietnam E-Commerce and Digital Economy Agency (iDEA) predicts that the e-commerce market will reach $23 billion by 2025. According to Ministry of Trade and Industry estimates, by 2025, the number of online shoppers will account for about 55% of the country's total population and average annual spending will reach $600.

A.P. Moller Capital, a global fund manager focused on high-growth markets, and VinaCapital, Vietnam’s most diversified asset manager, announced on May 22 they had established a joint platform to grow and scale investments in transportation and logistics infrastructure in Vietnam. The pair explained that with a population of 100 million, a consistent GDP growth rate of over 5%, and a strong and stable regulatory and investment climate, Vietnam offers clear high-growth opportunities in transportation and logistics.

A.P. Moller Capital, which is part of the global logistics giant A.P. Moller Group, is a value-add infrastructure fund manager focused on the logistics and transportation sectors.

"Logistics is a critical part of Vietnam’s economic growth story,” said VinaCapital chief investment officer Andy Ho.

He stressed that the new joint platform will invest in promising Vietnamese logistics companies to contribute to the sector’s growth and development.

This February, IFC, the largest global development institution focused on the private sector in emerging markets, announced a new partnership between the World Bank arm and two Southeast Asian companies, with more than $2 billion to be invested in Vietnam’s logistics industry over the next five years.

The IFC said it will help Singapore’s YCH Group and Vietnam’s T&T Group develop a bankable and sustainable logistics hub near Hanoi by providing technical expertise, helping the developers mitigate risks, and strengthening environmental and social standards.

The multimodal logistics hub, called Vietnam SuperPort and located in Vinh Phuc province, is being developed by T&Y Superport Vinh Phuc JSC, a joint venture between YCH and T&T.

Vietnam remains an attractive market for foreign investors and manufacturers and is set to rise as one of the manufacturing hubs in Asia, potentially replacing China as "a factory of the world" in the future, Chan Yoke Ping, CEO of the joint venture, told The Investor earlier this year.

She said Vietnam has become a destination for supply chain diversification to reduce global overreliance on one country and scale up production across multiple suppliers and regions.

Comments (0)
  • Read More
Use social media influencers in targeted manner for e-commerce success: Vietnam execs

Use social media influencers in targeted manner for e-commerce success: Vietnam execs

Vietnamese companies should use new generation influencers in a targeted manner, prioritizing specific market segments, standardizing quality and focusing on strong product categories to achieve e-commerce success, says Nguyen Ngoc Luan, CEO of Meet More Coffee.

Companies - Fri, November 22, 2024 | 4:26 pm GMT+7

VinFast’s parent, PV Power partner to speed up charging station expansion

VinFast’s parent, PV Power partner to speed up charging station expansion

Vietnamese private conglomerate Vingroup, the parent firm of electric vehicle manufacturer VinFast, and state-controlled PV Power have entered an agreement to develop charging stations across the country and promote rooftop solar installations.

Companies - Fri, November 22, 2024 | 4:11 pm GMT+7

Petrovietnam, Petronas to boost renewable energy cooperation

Petrovietnam, Petronas to boost renewable energy cooperation

Petrovietnam and Petronas, two state-owned oil & gas giants of Vietnam and Malaysia, will further cooperate in renewable energy, including exchange of information, knowledge, and experiences.

Energy - Fri, November 22, 2024 | 2:59 pm GMT+7

FTSE Vietnam ETF may heavily buy Vinhomes, sell Vingroup in upcoming reshuffle: broker

FTSE Vietnam ETF may heavily buy Vinhomes, sell Vingroup in upcoming reshuffle: broker

FTSE Vietnam ETF is forecast to strongly buy in several Vietnamese heavyweights such as Vinhomes, Hoa Phat, and Vietcombank in its upcoming portfolio reshuffle.

Finance - Fri, November 22, 2024 | 2:45 pm GMT+7

$681 mln central Vietnam urban area project eyed by Sun Group gets authorities' nod

$681 mln central Vietnam urban area project eyed by Sun Group gets authorities' nod

A VND17.3 trillion ($681 million) urban area project that is drawing the interest of major realty developer Sun Group has received an in-principle approval from Khanh Hoa province's administration.

Real Estate - Fri, November 22, 2024 | 1:53 pm GMT+7

Vietnam foreign ministry dismisses allegations of tightening visa rules for foreigners

Vietnam foreign ministry dismisses allegations of tightening visa rules for foreigners

Allegations of Vietnam tightening visa policies and control over foreigners are "baseless", Foreign Ministry spokeswoman Pham Thu Hang said Thursday.

Politics - Fri, November 22, 2024 | 11:29 am GMT+7

Thailand-invested food giant CP fined $31,000 for environmental violations

Thailand-invested food giant CP fined $31,000 for environmental violations

Vietnam’s southern province of Dong Nai has issued a fine of VND790 million ($31,080) to Thailand-invested C.P. Vietnam Corporation for violating environmental regulations.

Companies - Fri, November 22, 2024 | 10:48 am GMT+7

Vietnamese billionaire’s daughter spends $25 mln on Masan share purchases

Vietnamese billionaire’s daughter spends $25 mln on Masan share purchases

Nguyen Yen Linh, the daughter of chairman Nguyen Dang Quang of consumer goods giant Masan Group (HoSE: MSN), has purchased nearly 8.5 million MSN shares over the past three weeks, meeting 85% of her target.

Finance - Fri, November 22, 2024 | 10:27 am GMT+7

PYN Elite manager upbeat about Vietnam’s economy, stock market despite Trump uncertainty

PYN Elite manager upbeat about Vietnam’s economy, stock market despite Trump uncertainty

The Vietnamese economy will still fare well, and the local stock market will remain appealing despite the recent pullback following Donald Trump’s election win for a second term, said Petri Deryng, portfolio manager of Finland-based the PYN Elite fund.

Finance - Fri, November 22, 2024 | 8:25 am GMT+7

Central Vietnam province plans to build $2.4 bln LNG power plant from 2031

Central Vietnam province plans to build $2.4 bln LNG power plant from 2031

The 4,800-MW Chan May LNG power plant, with an investment of $2.4 billion, can be deployed in 2031-2035, according to Thua Thien Hue authorities.

Energy - Thu, November 21, 2024 | 10:41 pm GMT+7

Indonesia, France step up cooperation in economy, defence

Indonesia, France step up cooperation in economy, defence

Indonesian President Prabowo Subianto discussed economic and defence cooperation during a bilateral meeting on Tuesday with French President Emmanuel Macron on the sidelines of the G20 Summit in Rio de Janeiro, Brazil, Antara reported.

Southeast Asia - Thu, November 21, 2024 | 10:25 pm GMT+7

Thai economy to maintain upward momentum in 2025

Thai economy to maintain upward momentum in 2025

The National Economic and Social Development Council of Thailand (NESDC) expects the Thai economy to sustain its upward momentum in 2025 with a growth of 2.3-3.3% despite growing risks.

Southeast Asia - Thu, November 21, 2024 | 10:24 pm GMT+7

Former parliament chairman Vuong Dinh Hue warned for violations

Former parliament chairman Vuong Dinh Hue warned for violations

The Politburo, Vietnam's supreme decision making body, on Wednesday issued warnings to Vuong Dinh Hue, former Chairman of the National Assembly, and Nguyen Van The, former Minister of Transport, for violations while on duties.

Politics - Thu, November 21, 2024 | 10:10 pm GMT+7

Sumitomo insists on building LNG power plant in central Vietnam

Sumitomo insists on building LNG power plant in central Vietnam

Japanese trading house Sumitomo has been pushing for a liquefied natural gas (LNG)-fed power plant investment in Vietnam’s central province of Khanh Hoa.

Energy - Thu, November 21, 2024 | 8:53 pm GMT+7

Vietnam’s Vinhomes fulfils 67% of record buyback plan

Vietnam’s Vinhomes fulfils 67% of record buyback plan

Vinhomes, the housing development arm of conglomerate Vingroup, has purchased back 246.98 million shares, meeting 66.75% of the plan and accounting for 5.7% of the outstanding volume.

Finance - Thu, November 21, 2024 | 8:43 pm GMT+7

Vietnam high-speed railway should run beyond Hanoi, HCMC on either side: lawmakers

Vietnam high-speed railway should run beyond Hanoi, HCMC on either side: lawmakers

Vietnam’s mega North-South high-speed railway project should be redesigned and extended beyond Hanoi and Ho Chi Minh City as currently planned, several lawmakers have suggested.

Infrastructure - Thu, November 21, 2024 | 6:11 pm GMT+7