Vietnam has an average annual growth rate of 35 per cent in the sector. The boom in online shopping and home deliveries in the country in recent years have also created many opportunities for e-logistics operators, they said.

In 2017 alone, over 50 domestic and foreign e-logistics providers entered the market, which is predicted to reach US$200 million by 2020. They include Lazada, Giaohangnhanh, Grab Express and Speedlink.

The combination of local and international expertise has created a tailored solution for the Vietnamese e-logistics sector, paving the way for endless e-commerce growth, Fabian Wandt, country manager of Lazada eLogistics, told the Vietnam Investment Review (VIR).

Another delivery operator, Giaohangnhanh, is also upbeat about the prospect of the delivery market reaching a three-fold annual increase, particularly with investments from both local and foreign players to enhance their technology, network and offerings. Giaohangnhanh chief executive Nguyen Tran Thi told VIR that his company planned to expand its operations by more than double this year and targeted to reach 1,500 customer collection points by the end of 2018.

According to analysts, opportunities for companies providing e-logistics services are brighter, especially since new regulations aimed at enhancing the competitiveness of the logistics sector will soon come into force. Decision No 200/Q-TTg, which will provide the action plan to develop and raise the competitiveness of the logistics industry in Vietnam until 2025, will have a positive impact on the development of logistics companies.

With the state’s assistance in information technology, human resource training and operation cost reduction, the new decree is expected to help logistics companies, especially those providing e-logistics services.