Global giants eye Vietnam e-commerce logistics market

By Vien Thong   November 27, 2022 | 09:03 pm PT
Global giants eye Vietnam e-commerce logistics market
Shipping containers are transported on a Maersk Line vessel through the Suez Canal in Ismailia, Egypt July 7, 2021. Photo by Reuters
The world’s largest container shipping line Maersk and U.S. express delivery company FedEx are seeking to enter Vietnam’s e-commerce logistics market.

Ditlev Blicher, regional managing director for Asia-Pacific, A.P. Moller – Maersk (Maersk), was in the country this week, three months after the Danish company spent US$3.6 billion on acquiring Hong Kong firm LF Logistics.

He said with LF Logistics’ expertise in omnichannel orders, Maersk would have a better position in the global e-commerce market, including Vietnam. His company plans to offer both business-to-business (B2B) and business-to-consumer (B2C) delivery services, he said.

Hoan Dang, head of omnichannel order fulfillment at Maersk Vietnam and Cambodia, said with the acquisition of LF Logistics, his company could join hands with e-commerce platforms to handle goods orders in the Vietnamese market.

FedEx is integrating its services with e-commerce platforms to enable online retailers to use them without having to leave the platforms.

Hardy Diec, managing director of FedEx Express Indochina, said e-commerce would continue to flourish in Vietnam.

Earlier this month his company opened a new $2-million operations center in Hanoi’s Bac Tu Liem District. Vietnam will be one of the top 10 countries for FedEx in terms of trade volume growth over the next five years.

Vietnam will achieve the highest growth in the digital economy in Southeast Asia between 2022 and 2025, a report by Google, Temasek and Bain & Company has forecast.

Its digital gross merchandise volume is likely to reach $23 billion in 2022, and $32 billion by 2025.

According to global firm Allied Market Research, Vietnam’s express delivery market is expected to be worth $4.88 billion by 2030 after growing at 24.1% annually, with the growth of e-commerce being one of the main drivers.

Logistics firms are expanding their services and lowering prices.

This month Lazada Logistics announced it would start offering omnichannel deliveries for online shops.

J&T Express announced cuts of 10-20% in freight.

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