City of HCM (VNS/VNA) – The rapid growth of e-commerce is driving an unprecedented rise in demand for logistics services, including express delivery services, according to industry insiders.
In its 2021 e-commerce white paper, the Vietnam E-commerce and Digital Economy Agency said that Vietnam has the highest number of people shopping on e-commerce platforms in the Vietnam region. Southeast Asia, or some 49.3 million.
Over the past two years, the country has seen both consumers and businesses move online, he said.
Nguyen Ngoc Dung, chairman of the Vietnam E-commerce Association, said there had been a boom in e-commerce since the start of the pandemic.
More than 70% of the population has internet access and almost 50% shop online, he said.
The boom in online shopping has presented opportunities as well as challenges for the logistics industry to meet the growing demand for order fulfillment and last-mile delivery, he said.
Speed of delivery is a major factor affecting customer satisfaction and retention in the highly competitive online market, and therefore online stores that provide quality products and fast delivery gain an edge.
According to logistics companies, there is also an increased demand for transporting specific or imported goods, especially cross-border express delivery.
New consumer trends and the e-commerce boom are forcing express delivery, shipping and freight forwarding companies to adjust their business models and strategies, they said.
Many have launched specialized services to meet the demands of diverse customer groups and have embraced digital transformation to improve service quality and increase customer satisfaction.
Delivery companies said the traffic infrastructure did not guarantee the desired traffic speed, with frequent traffic jams in the two cities and on inter-provincial roads making it difficult for them.
This has no immediate solution and so companies are looking for ways to optimize order processing time, they said.
Most online sellers need a last-mile delivery solution, which has driven growth, especially for express delivery services, they said.
In recent years, delivery companies have actively partnered with third parties to offer integrated service packages and solutions to optimize seller operations and better meet customer demand.
J&T Express has, for example, signed agreements with Pancake, Upos, Haravan and Kiot Viet to allow sellers to monitor the entire shipping process and the quality of goods at each stage, and control the flow of incoming goods. and leaving the warehouse.
Phan Binh, its brand manager, said the competitive challenge in today’s ever-changing market is both a source of pressure and a driving force for express delivery businesses to improve.
His company has stepped up its investments in transit centers and the use of technological solutions in its management and operations.
Having a network of 36 modern transit centers helps his company move and transport goods to consumers quickly and accurately, he said.
It has the “Track and Trace” technology system that allows customers to update the status of goods, their order information or contact the carrier directly, he said.
Mobile apps and websites also make delivery of goods easier, faster and more efficient, he added./.