The potential market of nearly 5 billion USD is facing fierce competition between postal delivery businesses and e-commerce platforms.
Competing for a piece of the delivery cake
According to the latest report of the Ministry of Information and Communications, in the first 6 months of 2024, total postal service revenue reached VND 33,790 billion, up 22% over the same period in 2023 and reaching 52.1% of the yearly plan. 2024. Contribution to the postal sector budget reaches 2,500 billion VND, up 10% over the same period in 2023 and reaching 41.7% of the plan in 2024. Total output reaches 1,525 billion postal items, up 38% over the same period 2023 and reaching 46.9% of the 2024 plan.
Of which, Vietnam Post Corporation (VNPost) achieved total revenue of about 7,000 billion VND, equal to 39.5% of the year's plan. Pre-tax profit reached 268.3 billion VND, equal to 50% of the year plan, equal to 103.5% compared to the same period in 2023. Viettel Post Joint Stock Corporation (Viettel Post) achieved postal revenue of 4,389 billion VND , equal to 110.1% of the plan, an increase of 44.1% over the same period. Total consolidated revenue reached 9,631 billion VND, equal to 158.7% of the plan. Pre-tax profit reached 190.5 billion VND, equal to 103% of the plan.
Meanwhile, Economy Delivery Joint Stock Company (GHTK) achieved an output of 132.6 million postal items, down 15% over the same period. Total revenue reached VND 3,365 billion, down 17% over the same period in 2023...
Most notably, from the beginning of 2024 until now, the Ministry of Information and Communications has reviewed and supervised the activities of postal businesses on compliance with legal regulations on postal services in 63 provinces, cities across the country. In the first 6 months of the year, the Ministry of Information and Communications revoked 41 postal licenses due to non-use or use of licenses for other purposes.
The postal market is fiercely competitive. Vietnam's postal market has nearly 800 businesses licensed to provide postal services. Output focuses mainly on a number of businesses such as Best Express, EMS, GHN, GHTK, J&T, Flex Speed, Nin Sing, Viettel Post, VNPost and SPX Express.
Among them, there are many 100% foreign-owned enterprises that have strongly participated in recent years. Businesses have created competition for cheap freight rates, many free shipping programs, big promotions..., making the profit margin of this industry very low, only about 3%.
Moreover, the market's competition becomes even more fierce when e-commerce platforms set up their own delivery units, exclusively delivering goods from sellers to buyers, such as Tiktok Shop, Shopee... In addition, the emergence of the model of passenger car companies transporting goods to customers also affects market operations.
Competitive focus
According to Modor Intelligence, the scale of Vietnam's e-commerce market is estimated to reach 14.7 billion USD in 2024 and is expected to reach 23.77 billion USD in 2029. According to the Ministry of Information and Communications, revenue and delivery output for e-commerce in 2023, accounting for 49% and 73% of the entire postal industry, respectively. Thus, the "battlefield" of postal delivery will take place on the e-commerce platform.
Traditional delivery businesses believe that the fierce competition in postal service fees is partly due to the provisions of the 2010 Postal Law, with quite "open" conditions for delivery. business licensing. For example, the Law does not stipulate the lowest price frame for postal activities, including e-commerce delivery activities... Mr. Le Quoc Anh, Deputy General Director of VNPost, said that with the explosion of e-commerce activities, the structure The postal delivery market share has shifted strongly with the postal market capacity serving e-commerce accounting for 70 - 80% of the entire postal delivery market. At the same time, many related value chains appear such as storage, return, collection, payment... On the other hand, e-commerce platforms appear more and more and expand postal delivery activities to the recipient. , instead of depending on postal businesses.
(baodautu.vn)
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