"Fighting" tirelessly

In early July 2019, James Dong, who is in charge of the Thai market, was appointed as CEO of Lazada Vietnam. Lazada believes that James will continue to make significant contributions, helping Lazada escape the position of "the underdog" in the race to attract users with Shopee, Tiki... Because under the leadership of James Dong, Lazada Thailand has achieved very impressive business results.

According to updated data from the “Vietnam E-commerce Map” published by iPrice Insights Research Company, in the second quarter of 2019, Lazada continued to lag in its ability to attract website visitors. Specifically, Lazada Vietnam reached 28.3 million visits, Shopee reached 38.5 million visits, Tiki reached 33.7 million visits, Sendo reached 28 million visits.

In particular, the e-commerce market is witnessing the acceleration of Voso.vn, a platform under Viettel Post Joint Stock Corporation (Viettel Post). This platform was officially launched in early July 2019 but has been recorded by iPrice's measurement system since the first quarter of 2019.

The above e-commerce race also entails a chain of logistics operators, investing in warehouse systems, circulation centers, and technology to meet customer needs as quickly as possible. Currently, the demand for logistics in the e-logistics ecosystem in Vietnam is very large.

New warriors revealed and opportunities for partners

Currently, there are two main groups participating in the implementation of E-logistic services in the market: Internal shipping departments of e-commerce platforms and third-party service providers (3PL). The current e-commerce market is mainly dominated by 3PLs. In recent years, e-commerce platforms have tended to outsource delivery services through 3PLs rather than organizing their own teams. Currently, only Lazada has established E-Logistics Express, while other names have joined hands with giaohangtietkiem, giaohangnhanh and DHL e-Commerce, VN Post or EMS, Viettel Post, etc.

At the end of 2019, the market saw the emergence of a new E-logics rookie from the US, BEST Inc., which is not only a formidable warrior in the express delivery sector but also promotes the post office franchise business model to quickly expand its scale.

BEST Inc has invested in VNC (VNCPOST - delivery brand of Vinacapital Vietnam Co., Ltd.). This is a professional express delivery brand and a major partner of leading e-commerce platforms such as Lazada, Sendo, Lotte and other Homeshopping providers such as VGS Shopping, SCJ, VTV Hyundai...

With the above development potential, BEST Inc. Vietnam promises to create significant changes to the general level of express delivery service quality in Vietnam. In fact, this relatively new field may very quickly become a hot investment spot in the next few years.

Currently, the market share of e-commerce in Vietnam is quite modest compared to the total retail market, reaching only about 3%. Meanwhile, the recorded figure in China is 20% and Indonesia is 6% (Source: Forbes Vietnam). The e-commerce market is mainly concentrated in Ho Chi Minh City and Hanoi, leading to many opportunities for logistics businesses to exploit in other provincial and rural areas. “The participation of more players, like BEST Inc., will create more value for buyers and sellers”, Mr. Henry Low Kwee Kok, CEO of TikiNOW Smart Logistics commented.

One of the main targets that BEST Inc. targets is transport owners interested in expanding their service area with the support of a complete system and investors looking for profitability in a new and potential field.

BEST Inc. Vietnam affirms that this model will certainly be a highly profitable investment with a quick return on investment. The reason is that partners will be able to participate in the operation and use of all logistics and express delivery services in the Vietnamese market. BEST Inc. also commits to investors the ability to expand post offices within just 1-2 years with support in technology, market development, and management from a team of experienced and dedicated experts.

It is too early to know whether this E-logics rookie will make a splash in Vietnam. However, BEST Inc. has invested and achieved significant success in 15 countries and territories, including the US, UK, Germany, France, the Netherlands, Spain, Italy, China, Hong Kong, Japan, Korea, Thailand, Malaysia, Indonesia, India, etc. In the Vietnamese market, BEST Inc. aims to reach 300 franchised post offices by the end of this year.