The development of Ecommerce pose opportunities and challenges for delivery services. – Photo afriqueinside.com

HA NOI (Biz Hub)  — The rapid development of online shopping websites has presented both opportunities and challenges for express delivery businesses, said the Viet Nam E-commerce Association (VECOM).

According to Tran Huu Linh, Head of the Ministry of Industry and Trade's Department of E-commerce, e-commerce is not a requirement, but a tool that creates favourable conditions for delivering goods and setting up logistical capabilities.

Catching up with the trend, several companies in the sector have strengthened their investment to take advantage of the market.

Express delivery services are experiencing a boom nationwide. Online shopping has become a vital trend, creating opportunities for both e-commerce and express delivery enterprises as 35 to 40 per cent of the country's population uses the internet daily.

It is because of this reason that enterprises in the sector are considering developing special services for customers using e-commerce.

For example, DHL-VNPT has invested US$10 million to expand its market and open a 4,900sq m office with modern equipment.

It has 134 transport vehicles and more than 400 staff members for processing the over 10,000 orders received daily.

Viettel Post, which was ranked third in the sector with a 10 per cent market share, has also tapped into the opportunities by investing 3 to 5 per cent of its turnover in technology, thus maximising delivery time and cost.

Nguyen Thanh Hung, VECOM's general secretary said 91 businesses were granted licences by the postal service. However, several enterprises have not implemented the service.

In addition, the poor quality of delivery has not made online shopping cheaper than traditional purchasing methods. This has become a big barrier for the e-commerce sector in Viet Nam.

Hung said delivery companies should improve quality and competitive prices by expanding their scale, enhancing training, as well as the application of information and technology.

He also suggested closer collaboration among online companies and delivery firms to meet customers' demand more effectively. — VNS