Vietnam express delivery service market was worth around $640 million in 2021 and is predicted to grow to around $2400 million by 2028 at a CAGR rate of 23% over the forecast period.
Industry Prospective
Vietnam express delivery service market was worth around $640 million in 2021 and is predicted to grow to around $2400 million by 2028 at a CAGR rate of 23% over the forecast period. In this report, we will cover the full overview, growth drivers, opportunities, and obstacles of the Vietnam express delivery service market from 2022 -to 2028.
Vietnam Express Delivery Service Market: Overview
Express Delivery is the best shipping platform that delivers various goods and products through mediums such as air, water, and land. Some extra money for shipping would be extracted from the intended customer and the products will reach him within the time span of 24 to 72 hours depending on his location.
Express shipping is slightly expensive compared with other forms of transportation systems. However, they are very reliable and safe when it comes to preserving and delivering your product in time. They operate on a B2B (business-to-business) model, B2C (business-to-customer) mode, or C2C (customer-to-customer) mode as well. The products or goods transportable include anything from letters to documents or any consumer goods and non-palletized goods. It is not only mere delivery, they also have other arbitrary services such as packaging, labeling, billing, return, and exchange.
They are also widely leveraged by brands and E-commerce forums for delivering goods to the customers in optimal time. Customers also place orders for food products or sometimes jewelry and would not mind spending money for proper safe delivery.
Covid-19 Impact
Covid-19 has had a neutral effect on the Vietnam express delivery market. The advent of Covid-19 led to mass flight cancellations, travel bans, and lockdowns completely bringing down the leverage of express delivery to a halt. This resulted in the slowing down of the Vietnam express delivery service market growth. There was also a considerable decrease in letter and document parcels because of lesser transport amenities. Although the pandemic declined the market growth, the increasing need of consumers to shop online and rely on delivery for essential goods neutralized the negative impact of Covid-19. B2B express delivery services suffered during the pandemic while B2C showed major improvement.
Vietnam Express Delivery Service Market: Growth Drivers
Rising e-commerce industries along with growing reliance on B2C deliveries fuel market growth
The growth of e-commerce industries and rampant B2C deliveries in current times are expected to drive market growth. International trade services across the world have seen an improvement that will indirectly aid the market exclusively.
Pandemic has triggered an increase in the import and export of raw materials, consumer goods, and products which is also seen as a growth driver for the market. Food & beverages and healthcare fields have incorporated online delivery systems in recent times which has spiked the demand for these services. Healthcare especially has been leveraging these delivery services exquisitely to deliver significant samples and medicines on time to save lives. This high demand for quality, availability, accuracy, and cost control in the healthcare sector places high expectations on logistic solutions thereby triggering market growth.
Express delivery services are also extensively used by e-commerce platforms to offer a better customer experience by delivering parcels in less time. Apart from this, consumers rely on these services exclusively for receiving food products and luxury items like jewelry. These different leverage applications of express delivery services by the consumers work as effective growth drivers of Vietnam express delivery service market.
Vietnam Express Delivery Service Market: Restraints
Higher operation costs along with lack of infrastructure are restraints for market growth
The lack of infrastructure and innovations in the delivery service platforms hinders market growth to some extent. Apart from this, the operational cost of delivery service and logistic expenses is on the higher side impacting the affordability of the consumers. This factor also hinders the market growth considerably.
Vietnam Express Delivery Service Market: Opportunities
Emerging technological advancements and recent possibility of last-mile deliveries are opportunities for the market.
The rise in technological advancements and the effect of last-mile deliveries with the help of advanced vehicles offer lucrative opportunities to the market. Value-added delivery services, when coupled with the introduction of the faster delivery system, are also factors supporting the market prospectively in the future. Adoption of smartphones and improving internet access have influenced many businesses to incorporate online delivery channels providing opportunities for expansion of the market.
Vietnam Express Delivery Service Market: Challenges
Increasing demand for express delivery service industry due to prevalence of pandemic poses a challenge for the market
The outbreak of Covid-19 made people shop from home thereby heavily relying on delivery services to transport essential goods. This has increased the demand for express delivery services depending on effective infrastructures and efficient transport systems to meet the expectations of the consumers. This need for improvement in transport mediums and infrastructure to satisfy this massive demand poses a challenge for the express delivery service market.
Higher cost of delivery services combined with expense of total logistics pose a challenge for the market
Weak transport infrastructures and a lack of faster vehicles have inflated the prices of service delivery. This reduces the affordability of delivery services thereby bringing down its overall leverage. This is a potential challenge to the growth of the market.
Vietnam Express Delivery Service Market: Segmentation
Vietnam express delivery service market in this research analysis is classified by destination, business type, end-user, and region. The destination is divided into international and domestic. The business type consists of business-to-business and business-to-consumer. The end-user comprises BFSI, automotive, pharmaceuticals, IT & telecom, electronics, retail & e-commerce, and others.
Recent Development
In May 2021, DHL International GmbH launched cutting-edge equipment, DHL smart sensors, and an automated container unloading system to avoid misplacement of parcels and easy transportation.
Report Scope:
Report Attribute | Details |
---|---|
Base Year | 2020 |
Historic Years | 2016 - 2020 |
Forecast Years | 2021 - 2028 |
Segments Covered | By Product Type, By Application, and By End Use |
Forecast Units | Value (USD Billion), and Volume (Units) |
Quantitative Units | Revenue in USD million/billion and CAGR from 2021 to 2028 |
Regions Covered | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World |
Countries Covered | U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others |
Number of Companies Covered | 10 companies with scope for including additional 15 companies upon request |
Report Coverage | Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis. |
Customization Scope | Avail customized purchase options to meet your exact research needs. |
Regional Landscape:
Vietnam contributes to the market growth of express delivery by being the largest consumer
The increase in the value-added services in express delivery contributes to market growth in Vietnam. There are distinct types of services that are becoming prominent in the region which fuels market growth here. Grading, the assortment of products, labeling, packaging, and security tagging are some of the extra services that are gaining traction in this region. Rapid focus on vendors who are keen to provide value-based services is also expected to drive the growth of Vietnam express delivery services market promptly.
Competitive Landscape:
The key players in the Vietnam express delivery services market are GHN (Fast Delivery), BEST Express Vietnam (BEST Inc.), GHTK, J&T Express (Vietnam), Kerry Express (Vietnam), Nasco Logistics JSC, Nhat Tin Logistics, Nin Sing Logistics Company Limited (Ninja Van), Swift247, Viettel Post, and VNPost.
Vietnam express delivery service market is segmented as follows
By Destination
By Business Type
By End-user
By Region
Request the coronavirus impact analysis across industries and markets
The growth of e-commerce industries and rampant B2C deliveries in current times are expected to drive market growth. There has also been an improvement in the international trade services across the world which will aid the market exclusively.
According to the report by Zion Market Research, Vietnam express delivery service market was worth around $640 million in 2021 and is predicted to grow to around $2400 million by 2028 at a CAGR rate of 23% over the forecast period
The increase in the value-added services in express delivery contributes to market growth in Vietnam. There are distinct types of services that are becoming prominent in the region which fuels market growth here
The key players in the Vietnam express delivery services market are GHN (Fast Delivery), BEST Express Vietnam (BEST Inc.), GHTK, J&T Express (Vietnam), Kerry Express (Vietnam), Nasco Logistics JSC, Nhat Tin Logistics, Nin Sing Logistics Company Limited (Ninja Van), Swift247, Viettel Post, and VNPost
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