Focus Outlook

Logistics Firms Pivot to Meet Soaring E-commerce Demand

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The rapid surge in e-commerce is creating an unprecedented demand for logistics services, particularly express delivery, as reported by industry experts. Vietnam stands out with the highest number of e-commerce shoppers in Southeast Asia, with approximately 49.3 million people engaging in online shopping, according to the Vietnam E-Commerce and Digital Economy Agency’s E-commerce White Book 2021.

Over the past two years, a significant shift towards online commerce has occurred in Vietnam, driven in part by the global pandemic. With over 70% of the population having internet access and nearly 50% making online purchases, e-commerce’s popularity has surged.

Nguyễn Ngọc Dũng, president of the Vietnam E-commerce Association, has observed an e-commerce boom during the pandemic. As more people shop online, the logistics sector is grappling with the challenge of meeting the surging demand for order fulfillment and last-mile delivery. In the highly competitive online market, delivery speed plays a crucial role in ensuring customer satisfaction and retention, providing an advantage to online retailers that can offer both quality products and swift delivery.

Many companies have introduced specialized services tailored to various customer groups and have embraced digital transformation to enhance service quality and customer satisfaction. Notably, traffic congestion in both urban areas and inter-provincial roads is a concern for delivery firms, but given the lack of immediate solutions, they are focusing on optimizing order processing times.

Most online sellers require efficient last-mile delivery solutions, fostering remarkable growth, particularly in the express delivery segment. To enhance their service offerings, delivery companies have been collaborating with third parties to provide comprehensive service packages and solutions that optimize seller operations and meet the diverse demands of customers.

Companies have significantly increased investments in transit centers and the implementation of technology solutions in their management and operations. With a network of 36 modern transit centers, J&T Express ensures swift and accurate goods circulation and transportation for consumers. Their ‘Track and Trace’ technology system empowers customers to stay updated on the status of their goods, order information, and the ability to contact carriers directly. The use of mobile applications and websites further streamlines the delivery of goods, making the process more efficient and speedier.

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