- DHL eCommerce has experienced a fierce 4-year journey in the Vietnamese market.
- During the period of isolation due to the COVID-19 pandemic, Vietnam’s economy faced many difficulties. That’s part of the reason why DHL eCommerce decided to stop playing in this market.
A 4-year journey of “fierce” competition
DHL Group officially launched its B2B shipping service for Vietnam’s e-commerce segment in July 2017. By June 2018, DHL Vietnam continued to launch DHL Parcel Metro Same Day shipping service in Ho Chi Minh City and Hanoi, to complement DHL eCommerce.
At that time, DHL eCommerce owned a network of more than 250 service points, providing convenient pick-up and return locations for sellers and buyers across the country. In big cities such as Hanoi, Ho Chi Minh City and central cities, goods will be delivered in 1-2 days, in other provinces, delivered from 3 to 7 days.
DHL eCommerce will manage the handling and delivery of all parcels using a single mobile app, while their shoppers will receive shipment confirmation via SMS and email. Shipment tracking and tracking services, cash on delivery, and shipment insurance are also available.
The company has warehouses located in the two largest cities in the country and distribution centers across the country. Like other delivery companies, DHL eCommerce accepts Cash on Delivery (COD).
However, in the latest announcement, the shipping giant DHL said it will officially close the B2B service segment dedicated to the e-commerce industry in Vietnam – DHL eCommerce in November 2021.
DHL eCommerce officially announced the shutdown
“DHL eCommerce Solutions regularly reviews its business environment and operations. At this time, we have made the decision to discontinue DHL eCommerce Solutions’ domestic parcel delivery service within Vietnam,” the DHL Group’s latest announcement about DHL eCommerce.
All DHL eCommerce Solutions customers will continue to be served during the notice period until the end of November 2021. All employees involved have been informed of the situation, and the company will make every effort to assist them in their transition. Other divisions such as DHL Express, DHL Global Forwarding and DHL Supply Chain will continue to operate in Vietnam.
This is a rather abrupt decision of DHL Group, because the e-commerce industry in Vietnam is developing strongly. Even during the period of isolation due to the COVID-19 pandemic, Vietnam’s economy faced many difficulties, leading to a decrease in the revenue of the logistics industry in the e-commerce segment in big cities, but the growth of the industry still has many advantages.
However, for DHL, the business results during the past 4 years did not meet expectations, so this business decided to “stop the game”.
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