The Logistics Race in the Era of Ultra-Fast Delivery

Vietnam's Booming E-Commerce Market

In recent years, Vietnam's e-commerce market has seen rapid and robust development. With an annual growth rate of about 20-30%, Vietnam has emerged as one of the most attractive e-commerce markets in Southeast Asia. According to data from the Ministry of Industry and Trade, Vietnam’s e-commerce revenue reached USD 16.4 billion in 2023 and is expected to continue growing in the coming years.

This growth has been driven by several factors, including a high internet user rate (over 70% of the population), widespread mobile device use, and the increasing ease of online payments. In particular, the rise of e-commerce platforms like Shopee, Lazada, Tiki, and Sendo has made it easy for consumers to access a wide variety of products and services with just a few clicks.

Logistics: The Key Link in the Supply Chain

To keep up with the rapid expansion of e-commerce, logistics services play a vital role. Logistics not only ensures the delivery of goods from warehouses to consumers but also helps businesses compete more effectively through fast shipping and reasonable costs.

For Vietnamese consumers, fast and accurate delivery has become an essential criterion when shopping online. Studies show that 89% of consumers expect orders to be delivered within 2-3 days, and 58% are willing to cancel their orders if delivery takes longer than expected.

This creates significant pressure on logistics companies, forcing them to innovate, optimize processes, and invest in warehousing systems, workforce, and transportation infrastructure.

The Major Players in the Race for Ultra-Fast Delivery

Giao Hang Tiet Kiem (GHTK)

Giao Hang Tiet Kiem (GHTK) is one of the largest logistics companies in Vietnam, particularly known for providing fast delivery services for online shops. GHTK has an extensive network across the country with over 1,000 branches and thousands of delivery personnel.

With same-day or next-day delivery services, GHTK has built a solid reputation among customers. Additionally, GHTK invests heavily in technology, utilizing smart tracking systems and applications that make the delivery process more convenient and transparent.

Ninja Van

Ninja Van, a logistics company from Singapore, is a formidable competitor in this race. Since entering the Vietnamese market, Ninja Van has rapidly expanded its services, focusing on last-mile delivery – the most crucial phase in the logistics chain.

Ninja Van is renowned for its ability to offer fast and professional delivery services, attracting numerous e-commerce business partners. The combination of technology and a deep understanding of the Southeast Asian market has helped Ninja Van make a strong impression in Vietnam.

Shopee Express

As the in-house logistics service of Shopee – the largest e-commerce platform in Vietnam – Shopee Express focuses on optimizing delivery times for orders within Shopee’s ecosystem. With a nationwide network of warehouses, Shopee Express ensures fast delivery within 1-2 days in major cities and 2-3 days in other areas.

Shopee Express also leverages technology, from route tracking to the use of big data to optimize operations, minimizing errors and speeding up delivery times.

Lazada Logistics

Lazada Logistics, a division of Lazada – the e-commerce platform under Alibaba Group – has heavily invested in warehousing systems and distribution networks in Vietnam. Backed by its parent company, Lazada Logistics can provide same-day delivery services in major regions like Hanoi and Ho Chi Minh City.

The strength of Lazada Logistics lies in its tight integration with Lazada's sales system, optimizing the transportation process from warehouse to final delivery. Additionally, Lazada Logistics boasts advanced warehouse management and operational technologies, ensuring accurate and timely deliveries.

Challenges and New Development Trends

Despite its successes, the e-commerce logistics sector in Vietnam still faces several challenges. Transportation infrastructure remains inconsistent, especially in rural and mountainous areas, making fast deliveries difficult. Furthermore, high operational costs and competitive pricing pressures pose a significant challenge for logistics companies in balancing profitability and service quality.

However, alongside the continuous advancement of technology, logistics companies are gradually adopting new solutions such as warehouse automation, the use of unmanned delivery vehicles, and artificial intelligence (AI) for predicting and managing logistics processes. These trends promise to improve logistics efficiency and better meet market demands.

The competition among logistics giants in Vietnam’s e-commerce sector is certain to intensify. Consumers are becoming more demanding, expecting fast and reliable delivery services. To survive and thrive in this market, logistics companies must continually innovate, adopt advanced technologies, and develop optimal delivery solutions.

The success of an e-commerce platform depends not only on product quality but also on its ability to provide superior delivery services. In an era where delivery times are measured in hours rather than days, logistics companies that can keep pace with this trend will emerge as the winners in this fierce race.

Ultimately, with the rapid growth of e-commerce in Vietnam, the future of the logistics industry will present numerous opportunities for companies willing to invest and adapt to modern technological trends. The race has begun, and only the fastest, most efficient players will lead the pack.

By Phong Le