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VN logistics sector struggling to meet demands of e-commerce

Last update: 14:31 | 11/04/2018

The e-commerce sector in Viet Nam has seen remarkable growth in recent years, but a lack of uniformity in delivery and payment methods may lead to many businesses missing opportunities.


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The e-commerce sector in Viet Nam has seen remarkable growth in recent years, but a lack of uniformity in delivery and payment methods may lead to many businesses missing opportunities.— Photo vnll.com.vn


The Ministry of Industry and Trade organised a seminar on logistics and e-commerce in Ha Noi on Tuesday.

The Viet Nam E-commerce Association (VECOM) said that growth in the country’s e-commerce sector was more than 25 per cent last year, and this growth could be maintained between 2018 and 2020.

Shipping is considered the backbone of e-commerce, but the current logistics infrastructure in Viet Nam is struggling to keep up.

A recent survey by Sendo JSC shows that more than 40 per cent of consumers respond on the speed of delivery, while the cost of delivery is high relative to the average price of the goods that consumers are buying.

Director of Lazada Express Vu Duc Thinh said that logistics costs in Viet Nam account for 30 per cent of all e-commerce revenue, which is above that in other countries such as India, where the rate is no more than 15 per cent.

Moreover, he said that the development of the country’s logistics sector had not yet met the requirements of e-commerce development.

With the number of orders up topping hundreds of thousands of transactions per day, businesses can not develop enough of supply chain of delivery drivers to deliver goods across the country. Motorbikes are a common vehicle used for delivering orders, while the cost of investing in transportation by cars is high and causes traffic congestion, he said.

It can be seen that the lack of collaboration between e-commerce businesses and logistics enterprises may result in lost opportunities for businesses.

Vice Chairman of the Viet Nam Logistics Association Dao Trong Khoa said that there are very few logistics enterprises that can meet the requirements necessary for e-commerce businesses.

"If businesses link to one another to take advantage of each other’s services, they can meet the demand of customers," said Khoa.

Director of Lazada Express Vu Duc Thinh recommended that logistics enterprises focus their investment on automation technology, improved operational capacity, and enhancing the quality of human resources.

He also proposed a focus on green development and said that Lazada Express would invest in electric cars when they receive the support of the state agencies.

Lai Viet Anh, the Deputy Director of the Department of E-Commerce and Digital Economy, under the Ministry of Industry and Trade, also emphasised that the system of legal documents has adjusted the core issues of e-commerce.

“This will open up better opportunities for enterprises, specifically in investment and co-operation for mutual development," she said. — VNS

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