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VietNamNews

Express delivery firms invest in more technology

Update: November, 12/2014 - 08:40

DHL-VNPT, which holds the second largest domestic market share at 15.28 per cent, has invested US$10 million to further expand its market, including the purchase of modern equipment and the opening of more delivery centres in large cities. — Photo Vnpost

HA NOI (VNS) — Domestic express delivery companies have invested in technology to meet increasing demand in the delivery of goods through domestic e-commerce.

According to the Viet Nam E-commercial Association, the rapid development of online trading activities has opened great opportunities and challenges for express delivery companies in the domestic market.

Meanwhile, the Ministry of Information and Communication has reported that the domestic e-commerce market has often achieved two-digit revenues each year in previous years.

To take advantage of opportunities, express delivery companies should improve the speed of and fees for delivery to increase competitiveness in the market, said the association.

The Thoi bao Kinh doanh newspaper quotes Nguyen Quoc Vinh, deputy general director of Viet Nam Postal Corporation (VNPost), as saying that VNPost plans to invest in the development of services for e-commerce customers as a key business strategy for the future.

VNPost holds the largest share at 37 per cent of the domestic express delivery market and has seen potential market opportunities.

It aims to take full advantage of its postal delivery system nationwide by investing in workforce development for e-commerce activities as well as service products and equipment development to better manage orders and deliveries for e-commerce.

DHL-VNPT, which holds the second largest domestic market share at 15.28 per cent, has invested US$10 million to further expand its market, including the purchase of modern equipment and the opening of more delivery centres in large cities.

Viettel Post, which holds the third largest domestic market share at 10.08 per cent, has built a system for delivering goods and postal products to 95 per cent of districts and communes in 63 provinces and cities nationwide.

Hoang Quoc Anh, Viettel Post general director, said each year, the company invested three to 5 per cent of its revenue in technology to reduce delivery time and fees for the express delivery of goods.

The company planned to modernise equipment to control the quality of delivery and save on petrol costs.

Anh revealed that revenue from delivery orders of e-commerce customers had grown by 35 to 40 per cent.

Online trading activities are expected to increase in the future, along with express delivery requests, thereby creating more business opportunities for express delivery companies, according to Anh.

Vinh agreed with Anh, saying customers would be expecting more in the future regarding the quality of goods sent using express delivery services.

The ministry says Viet Nam has 220 companies with express delivery services, including 91 enterprises that have been granted trading postal service licences. — VNS

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