Vietnam’s revenue from delivery services expected to grow 30-40% in 2020

The logistics sector is forecast to continue growing strongly this year when the Vietnamese e-commerce retail market will reach $10 billion this year, Bizhub, a publication of Vietnam News cited forecast from Vietnam E-commerce and Digital Economy Agency.

The agency also estimated that the delivery market will grow 20 percent and large companies taking a bigger share.

Vietnam’s e-commerce market is estimated to increase from $4.6 billion last year to $23 billion by 2025, according to Google-Temasek report on e-commerce in ASEAN.

The strong growth of e-commerce is beneficial for other supporting industries, such as logistics and e-payment services.

However, the competition in the delivery industry is high as new competitors entered the market in the 2018-19 period, such as Grab Express.

Vietnam’s Internet economy is booming as it reached for $12 billion in 2019 on a 38% annualised growth rate since 2015. Vietnam is emerging as the most digital of all economies in the region.

E-Commerce is a key driver behind the impressive numbers and homegrown marketplaces like Sendo and Tiki compete with regional players like Lazada and Shopee.  

Source: Bizhub