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The evolution of digital technology has revolutionised information and communications infrastructure, with the postal network increasingly intertwined with e-commerce and logistics. Consequently, the postal market witnessed remarkable value escalation, skyrocketing from 28.3 trillion VND (1.15 billion USD) in 2019 to nearly 59 trillion VND in 2023. The parcel delivery volume also surged from 715 million to 2.5 billion parcels, with e-commerce parcels alone constituting approximately 75% of the total in 2023.
By the end of 2020, the expansive postal network boasted 21,600 points nationwide, yet it lacked optimisation for modern business needs. Postal services and delivery companies have traditionally developed separate networks, neglecting integration with the public postal system and each other. Meanwhile, logistics networks have primarily focused on cost minimisation through outsourced transport partnerships, lacking cohesive integration strategies.
Recognising these inefficiencies, the postal network is undergoing a transformative redesign to address existing challenges and leverage its potential as a cornerstone of the digital economy. With a focus on enhancing stability and facilitating the uninterrupted flow of goods, the reimagined postal infrastructure aims to cater to the evolving needs of e-commerce and logistics sectors, emerging as a vital component of modern infrastructure.
At the heart of this transformation lies the principle of bridging the physical and digital realms through robust information and communications infrastructure planning. The redesigned postal network is poised to ensure seamless supply chain operations under all circumstances, facilitating efficient and reliable delivery services.
Vietnam Post, a key player in this evolution, highlighted the significance of information and communications infrastructure planning in preparing the postal sector for future trends and technological advancements.
Deputy Minister of Information and Communications, Phan Tam, emphasised the importance of major postal service companies pooling resources to develop comprehensive postal infrastructure coverage tailored to e-commerce requirements. This modernised network will leverage cutting-edge technology and foster seamless connectivity, with an emphasis on infrastructure sharing to drive down logistics costs.
Planned upgrades aim to increase postal network capacity to handle 93,000 tons daily and achieve five-day delivery for inter-provincial and international shipments, signalling a concerted effort to modernise postal systems and enhance logistics efficiency in an increasingly digital landscape.
The exponential growth of the postal service industry, with an average revenue surge exceeding 20% from 2019 to 2023, has intensified market competition, sparking concerns about unhealthy market practices. This surge was further accelerated by the COVID-19 pandemic, which propelled online shopping to new heights, solidifying it as an integral part of consumer behaviour.
In response to the burgeoning e-commerce landscape, many platforms began integrating postal services into their ecosystems, leading to the rapid expansion of affiliated postal enterprises. These enterprises swiftly ascended to the top ranks of the market, leveraging their synergistic relationship with e-commerce platforms to capture significant market share within a remarkably short timeframe.
The rapid competition surge raises concerns about e-commerce giants and cross-border delivery firms’ influence, potentially distorting the market. While short-term price wars may bring quick gains, they could harm market integrity and all players in the long run.
La Hoang Trung, Director of the Department of Posts, urges amendments to postal laws to enforce stricter regulations on licensing and the conduct of dominant market players, emphasising the need for a robust legal framework to govern competition, including penalties for pricing, promotions, and market dominance violations.
Moreover, safeguarding postal service user data is crucial, necessitating strict regulatory oversight. The ministry vows to enhance supervision and disclose the performance rankings of the top 20 postal enterprises, while taking firm action against repeat violators, including license revocation, to uphold regulatory integrity.
