The Hanoitimes - As one of the fastest growing e-commerce countries in the world with annual average growth rate of 35%, Vietnam is considered a high-potential market for e-logistics, according to the Ministry of Industry & Trade (MoIT).
The e-logistics market is expected to fetch US$200 million, thus making a positive contribution to Vietnam's overall growth.
At present, Lazada is the first e-commerce company having its own express delivery service, namely LEX. However, with the growing demand for e-commerce in the world and also in Vietnam, Lazada decided to turn LEX into a separate company.
In 2017, Vietnam had a total of 50 enterprises providing e-logistics services.
The establishment of a specialized firm providing e-logistics service will help the company control its resources, ensure service quality and meet customers' satisfaction.
The boom in online shopping and home delivery in Vietnam in recent years has created opportunities for the development of e-logistics companies. For enterprises with large revenue, developing their own logistics service is a viable option.
In 2017, Vietnam had a total of 50 enterprises providing e-logistics services, according to the MoIT's logistics report 2017, customers getting accustomed to brands such as Giao hang nhanh (Fast delivery), Grab Express, or SpeedLink.
Opportunities for companies providing e-logistics services are brighter especially since new regulations aimed at enhancing the logistics sector's competitiveness will soon come into force.
Specifically, Decision No. 200 dated February 2017 providing the action plan to develop and raise the competitiveness of logistics service in Vietnam until 2025 will have a positive impact on the development of logistics companies.
For 2025, the logistics sector has set growth targets of 15-20%, logistics costs will be cut to 16-20% of GDP, and Vietnam will be ranked 50th or higher in the world in terms of the logistics performance index, according to the plan.
In addition, the plan seeks to lure investment capital to build logistics infrastructure and develop regional- and international-level logistics centers, especially those in big cities and provinces as Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, Can Tho, Quy Nhon, Lang Son and Lao Cai.
To realize these targets, the plan sets out six groups of tasks, including improving policies and laws on logistics, developing the logistics service market, and raising capacity of logistics service businesses and service quality, among others.
With more support for information & technologies, training human resources and reducing logistics costs, the Decision is expected to help Vietnamese logistics companies in general and e-logistics in particular to enhance competitiveness in the coming years.
The Prime Minister has issued Decree No. 163 on logistics services, which will come into force on February 20. The Decree is expected to open up the e-logistics market to foreign investments.
Specifically, under certain circumstances, foreign investors can establish enterprises or contribute capital to Vietnamese businesses engaged in maritime freight transport (excluding inland transportation); container handling services as part of maritime transport support services; freight transport services as part of inland waterway transport services; and freight transport services as part of road transport services.