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
Elon Musk company okayed to pilot Starlink satellite internet service in Vietnam

Elon Musk company okayed to pilot Starlink satellite internet service in Vietnam

Vietnam has allowed the U.S.'s SpaceX to pilot Starlink low-orbit satellite internet service in the country on a pilot basis until January 1, 2031.

Industries - Wed, March 26, 2025 | 5:18 pm GMT+7

Danish toymaker Lego to open $1.3 bln Vietnam plant next month

Danish toymaker Lego to open $1.3 bln Vietnam plant next month

Denmark's Lego will officially open its factory in VSIP III Industrial Park in Vietnam's southern province of Binh Duong on April 9.

Industries - Wed, March 26, 2025 | 4:18 pm GMT+7

Top Singaporean firms earn high incomes in Vietnam

Top Singaporean firms earn high incomes in Vietnam

Singapore is the second-biggest foreign investor in Vietnam, with over $84 billion in registered investment capital as of end-January and many prominent investors raking in high incomes.

Companies - Wed, March 26, 2025 | 3:45 pm GMT+7

Vietnam, Singapore ink significant deals in Hanoi

Vietnam, Singapore ink significant deals in Hanoi

Vietnamese Prime Minister Pham Minh Chinh and his Singaporean counterpart Lawrence Wong on Wednesday witnessed the signing of many cooperation deals between agencies and enterprises of the two countries.

Economy - Wed, March 26, 2025 | 2:51 pm GMT+7

Vietnam's major policies are reshaping economic development

Vietnam's major policies are reshaping economic development

Major policies are reshaping Vietnam's approach to economic development, which focuses on science, technology, and private enterprises, said a leader at the Vietnam Chamber of Commerce and Industry (VCCI).

Economy - Wed, March 26, 2025 | 12:11 pm GMT+7

PM okays over $10 bln urban area project in central Vietnam

PM okays over $10 bln urban area project in central Vietnam

The over VND260.3 trillion ($10.16 billion) Cam Lam New Urban Area project in the south-central province of Khanh Hoa has received in-principle approval from Prime Minister Pham Minh Chinh.

Real Estate - Wed, March 26, 2025 | 8:58 am GMT+7

S Korea's KIM Fund raises stake in Vietnam's marine transportation firm VIPCO

S Korea's KIM Fund raises stake in Vietnam's marine transportation firm VIPCO

South Korea’s KIM Fund has increased its stake in Hai Phong city-based Vietnam Petroleum Transport JSC (VIPCO, HoSE: VIP) to 2.73%, making it the latter’s second-largest shareholder.

Companies - Wed, March 26, 2025 | 8:30 am GMT+7

Vietnam, Singapore seek cooperation chances in semiconductor industry

Vietnam, Singapore seek cooperation chances in semiconductor industry

The Vietnam Trade Office in Singapore, in collaboration with the Singapore Semiconductor Industry Association (SSIA), organized a hybrid seminar on Monday to introduce Vietnam's potential, advantages, and development strategies for the semiconductor industry.

Southeast Asia - Tue, March 25, 2025 | 10:55 pm GMT+7

OV intellectuals in UK suggest blueprint for Vietnam’s int’l financial hub ambition

OV intellectuals in UK suggest blueprint for Vietnam’s int’l financial hub ambition

Vietnam can rise as a major international financial centre, both regionally and globally, with a strategic vision that highlights transparency, a skilled workforce, modern infrastructure, robust financial markets, and strong international branding, the Vietnam Intellectual Society in the UK and Ireland (VIS) told visiting Vietnamese Permanent Deputy Prime Minister Nguyen Hoa Binh in a recent meeting.

Southeast Asia - Tue, March 25, 2025 | 10:55 pm GMT+7

Vietnam Deputy PM discusses financial center development with ECB

Vietnam Deputy PM discusses financial center development with ECB

Vietnam's Standing Deputy Prime Minister Nguyen Hoa Binh on Monday met with representatives of the European Central Bank (ECB) to discuss plans for the establishment of financial centers in Vietnam, as part of his working visit to Germany – the final stop in his European tour.

Southeast Asia - Tue, March 25, 2025 | 10:52 pm GMT+7

Indonesia keeps commitment on energy transition

Indonesia keeps commitment on energy transition

Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto on Monday affirmed that the U.S. decision to pull out of the Just Energy Transition Partnership (JETP) will not impact the other partners' commitment to it.

Southeast Asia - Tue, March 25, 2025 | 10:35 pm GMT+7

Malaysia’s electric vehicle sales surge

Malaysia’s electric vehicle sales surge

Malaysia’s automotive industry is gaining momentum, with electric vehicle (EV) sales soaring over the past two years and continuing to rise in 2025, driven by both domestic and international manufacturers.

Southeast Asia - Tue, March 25, 2025 | 10:23 pm GMT+7

Japan turns to Vietnam, Indonesia to tackle truck driver shortage

Japan turns to Vietnam, Indonesia to tackle truck driver shortage

Logistics and transportation companies in Japan have begun recruiting foreign nationals as drivers now that their industries qualify for a special employment visa amid a severe labor shortage.

Southeast Asia - Tue, March 25, 2025 | 10:19 pm GMT+7

Malaysia expected to achieve economic growth of 4.5-5.5% in 2025

Malaysia expected to achieve economic growth of 4.5-5.5% in 2025

The Malaysian economy is projected to expand between 4.5% and 5.5% in 2025, underpinned by resilient domestic demand and ongoing investment activity, despite external uncertainties, according to the country’s central bank Bank Negara Malaysia (BNM).

Southeast Asia - Tue, March 25, 2025 | 10:10 pm GMT+7

Singapore’s core inflation falls in Feb

Singapore’s core inflation falls in Feb

Singapore’s core inflation declined for the fifth straight month in February after falling sharply in January as most spending categories saw smaller year-on-year price increases.

Southeast Asia - Tue, March 25, 2025 | 10:01 pm GMT+7

China’s apparel giant 'unwinds' Texhong Industrial Park expansion in Vietnam

China’s apparel giant 'unwinds' Texhong Industrial Park expansion in Vietnam

China-headquartered Texhong, among the largest core cotton textile suppliers in the world, will “unwind” the expansion of its Texhong Industrial Park (Texhong Hai Ha Industrial Park) in the northern Vietnam province of Quang Ninh, the firm said on Monday.

Industrial real estate - Tue, March 25, 2025 | 9:28 pm GMT+7