Vietnam's express delivery services market is booming with a valuation of $700.4 million in 2020 and is projected to reach $1655.96 million by 2028, according to the latest report by Research and Markets.
|Vietnam's express delivery market has been soaring since the coronavirus pandemic |
The report points out that many domestic express delivery companies are operating in Vietnam and they are constantly witnessing huge growth by investing in the adoption of modern technology to meet the expanding demand in the delivery of goods through e-commerce.
High adoption of express delivery services has been observed across major essential sectors, such as food and beverages and healthcare. The demand from Vietnamese customers to receive the items on the same day or in a day's time has increased over the years.
The highest adoption is noticed across the healthcare sector. In the healthcare sector, the high demand for quality, availability, accuracy, and cost control place similarly high expectations on logistic solutions. Thus, the above-mentioned factors are likely to influence the growth of the Vietnam express delivery services market during the forecast period.
The emergence of COVID-19 across Vietnam – which led to lockdown scenarios – has led the industry experts to analyse that the industry would face at least a quarter of lag in offering express delivery services. This disruption is expected to create tremors through mid-2021. The express delivery of parcels and electronics equipment is likely to pick up pace soon as governments across Vietnam lift the various containment measures in order to revive the economy.
The flight cancellations restricting international delivery and travel to curb the spread of the pandemic, have led to substantial slowdown of express delivery service activities. There has been a decrease in letters and document parcels due to the pandemic. However, there is an increase in e-commerce parcels, owing to the rising number of people shopping through online platforms. The delivery of daily essentials and e-commerce industry is anticipated to influence the express delivery services industry in Vietnam positively throughout the COVID-19 outbreak.
The country's B2B express delivery services experienced a slowdown and came to a halt whereas B2C services are witnessing growth during the pandemic, owing to huge growth of the online retail and e-commerce industry. Further, due the interruption in supply chain and logistics, the procurement rate of various delivery services, including domestic and international, has been quite affected.
Despite the challenges, Vietnam's express delivery services market is expected to grow at a compound annual growth rate of 11.9 per cent from 2021 to 2028.
By Research and Markets