Vietnamese CEP market – promising potential together with intense competition
• According to the Ministry of Information and Communications (MIC), Vietnam’s courier, express and parcel (CEP) delivery industry generated VND 71,140 bn (USD 2,825 mn) in revenue in 2024, with an average annual growth rate of 19.7% from 2017 to 2024. By 2032, the industry is projected to grow at an average annual rate of 5.8%, reaching VND 111,686 bn (USD 4,432 mn), according to Claight Corporation (Expert Market Research). Key growth drivers include rapid urbanization, rising income levels and living standards, post-Covid shifts in shopping behavior, the booming e-commerce sector, and progress in major transportation projects (measured by total investment value).• However, the delivery market also faces several challenges, including limited logistics infrastructure, intense competition, and the dominance of cash-on-delivery (COD) payment method (over 80% of transactions) which complicates cost reduction efforts, making it difficult to manage and reconcile transactions, and add to the difficulty of managing deliveries.
• Three core factors determine the success and operational efficiency of a delivery company:
1. Parcel volume and coverage: measured by the total number of orders delivered and the average service radius.
2. Logistics optimization: optimizing delivery routes to maximize parcel volume per trip, measured by cost per shipment.
3. Service quality and customer satisfaction: sssessed through on-time delivery rates, successful delivery rates, Customer Satisfaction Score (CSAT), Net Promoter Score (NPS), and churn rate.
• Vietnam currently has over 700 postal and delivery companies (including both traditional and tech-driven firms). The top 6 players—SPX Express, GHTK, VNPost, VTP, J&T Express, and GHN—account for more than 70% of the market share in 2023, despite representing only about 1% of total industry players. The top four domestic delivery firms (VTP, VNPost, GHTK, and GHN) controlled 46% of the market in the same year. As foreign e-commerce platforms continue to expand into delivery industry, the market share of international delivery companies is rising.
• In the medium to long term, we expect that well-performing State-owned enterprise (VTP) and foreign firms—with their superior infrastructure and financial strength—will continue to gain market share by excelling in the most critical success factor: scaling up order volume.
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