The Logistician
  • Tiếng ViệtTiếng Việt
  • What to read today?
  • Knowledge
  • Insight
  • Podcast
  • Blog
  • Document
VIẾT BLOG
  • Login
  • Register
No Result
View All Result
  • What to read today?
  • Knowledge
  • Insight
  • Podcast
  • Blog
  • Document
VIẾT BLOG
  • Tiếng ViệtTiếng Việt
  • Login
  • Register
No Result
View All Result
The Logistician
No Result
View All Result

Viettel Post focuses on express delivery for e-commerce and plans to invest 2.000 billion VND to cooperate with Saigon Newport

edt052 by edt052
02/06/2021
in Blog

Focus on express delivery on e-commerce

Earlier this year, Viettel Post stated that the company would start concentrating on e-commerce platforms business. In 2020, Viettel Post mainly focused its sales efforts on small and medium-sized online retailers with websites or on social networks.

Taking advantage of the e-commerce trend, the shift is forecasted to bring higher-than-average growth for Viettel Post.

Why e-commerce?

According to SSI Securities Corporation, in the past 5 years (2016 – 2020), the scale of Vietnam’s e-commerce market has recorded a compound growth rate (CAGR) of 25%, bringing the size of this market to three times higher (12 billion USD in 2020) than that of 2016. It is estimated that in the next 5 years, the size of the e-commerce market will continue to grow at a CAGR of 20% over the same period to reach 30 billion USD in 2025. All the companies in this field as well as supporting industries such as express delivery and payments will experience the same increase.

In particular, the battle in the field of express delivery on e-commerce is projected to be on price and may last until 2022. Previously, the total delivery cost/GMV (total value of goods) was about 9% in 2019. Due to discounts from newcomers like BEST and J&T Express, the industry’s general price must be around 8% lower than GMV.

Cooperation with Saigon Newport

In order to realize the goal of increasing revenue for the logistics segment, Viettel Post Joint Stock Corporation (Viettel Post) will cooperate with a strategic partner Saigon Newport – the largest seaport operator in Vietnam with about 60% of seaport market share.

At the Annual General Meeting of Shareholders, Viettel Post set a goal in the next 5 years to increase 55% of revenue in the logistics segment, therefore, Viettel Post plans to spend VND 2.000 billion of investment capital for this new venture, mainly for building warehouses. Currently no raising-capital plan is expected to be implemented by this company.

Owing to the cooperation with Saigon Newport, Viettel Post is supposed to provide a full range of logistics services for import and export activities, mass operations from goods loading to transporting to the final destination nationwide through Viettel Post’s network of warehouses and employees with the support of the MyGo platform.

According to SSI, this cooperation can help Viettel Post to develop significantly due to the much larger size of the import-export logistics market than that of the e-commerce one. The total import-export value in 2020 is recorded to be over 500 billion USD compared to 12 billion USD of the e-commerce market in the same year.

However, Viettel Post will also have to face some difficulties in the initial stage of cooperation. The company needs time to gain the trust of customers before it can bring in big enough profits. In addition, the current logistics market is still quite fragmented, leading to fierce competition and new entrants such as Viettel Post will need to keep profit margins low from the beginning to be able to capture a large share of the market advantage in terms of market share.

Invest in technology – automation and redundancy

Besides focusing on e-commerce delivery and preparing to cooperate with the seaport giant, over the past two years, Viettel Post has also invested maassively in technology and process automation at distribution centers in Hanoi and Ho Chi Minh City. This activity has helped Viettel Post to cut off more than 500 employees and achieve stable growth in output.

In addition, Viettel Post will start to take advantage of economies of scale by shifting from the good purchasing by kilogram into the entire aircraft cargo compartment to economize transportation costs. Along with that, the cost of premises is expected to decrease by about VND 200-300 billion.

From the second quarter of 2021, Viettel Post will also divide its business into three separate divisions to manage under SBU (Strategic Business Unit), including delivery, fulfillment, and telecommunications. This management is expected to improve efficiency with cost management and revenue growth.

With the aforementioned potential activities and plans, the gross profit margin for Viettel Post’s delivery service segment in the period 2021 – 2022 is projected to increase to 10%. Profit after tax in 2021 and 2022 is estimated at VND 496 billion and VND 628 billion respectively with an increase of 29,3% and 26,6% compared to the previous year.

                                                                                                                                                                Phan Quyen

Tags: e-commerceViettel Post

Related Posts

​​Shell and CMA CGM signed an agreement to supply LNG fuel in Singapore

​​Shell and CMA CGM signed an agreement to supply LNG fuel in Singapore

01/07/2022
0
Private: TP Hồ Chí Minh xem xét chuyển đổi mục đích sử dụng một số khu công nghiệp sang logistics

Ho Chi Minh City considers converting some industrial parks into logistics

29/06/2022
0
Image: Thu Trang

DB Schenker’s agreement to acquire USA Truck

28/06/2022
0
Finding new suppliers after the unprecedented “Chicken-rice crisis” in Singapore

Finding new suppliers after the unprecedented “Chicken-rice crisis” in Singapore

22/06/2022
0
FedEx invests in FourKites to build intelligent supply chain platform

FedEx invests in FourKites to build intelligent supply chain platform

22/06/2022
0
LG Electronics “shake hand” with CJ Logistics to develop logistics robots

LG Electronics “shake hand” with CJ Logistics to develop logistics robots

19/06/2022
0

ĐỀ XUẤT NÊN ĐỌC

UPS: Putting e-bikes to the test in urban delivery

UPS: Putting e-bikes to the test in urban delivery

12 months ago
0
JD Logistics có kế hoạch sở hữu hơn 100 chuyên cơ vận tải hàng không

JD Logistics plans to own more than 100 air freighters

1 year ago
0
Nghịch lý: Thiếu container chuyển hàng trong khi hơn 6600 container nằm “đắp chiếu” tại cảng

Paradox: Lack of shipping containers while more than 6600 containers are “covered” at the port

2 years ago
0
Amazon sẽ sử dụng những chiếc Boeing 767 cũ của hãng Delta cho việc chở hàng

Former Delta Boeing 767s Will Become Freighters For Amazon

2 years ago
0
ADVERTISEMENT

THẺ NỔI BẬT

ACQUISITIONaircraftAirlineairlinesamazonAppleblockchainBoeingchinaCMA CGMcontainerContainer shortageCovid-19covid19crisisDHLe-commerceEVFTAexportfedexgoodsinfrastructureInvestmentLNGlogisticsLogistics centerM&Amaerskportport congestionRAILWAYRussiaRussia-Ukraineseasupply chainSupply chain disruptiontechnologyThai AirwaysthailandtransportusvietnamVietnam AirlineswalmartWarehouse
ADVERTISEMENT

TIN TỨC PHỔ BIẾN

  • Uniqlo Supply Chain Management

    Uniqlo Supply Chain Management

    0 shares
    Share 0 Tweet 0
  • Certificates that advance your career in Logistics and supply chain management

    0 shares
    Share 0 Tweet 0
  • Cross-docking: The key to Walmart’s great success

    0 shares
    Share 0 Tweet 0
  • How Aviation Fuel Differs From Regular Fuel

    0 shares
    Share 0 Tweet 0
Facebook Twitter Youtube RSS
The Logistician

© 2021 Copyright The Logistician - Designed by Đông Đô Media.,JSC.

  • Login
  • Sign Up
  • What to read today?
  • Knowledge
  • Insight
  • Podcast
  • Blog
  • Document
  • Tiếng ViệtTiếng Việt

© 2021 Copyright The Logistician - Designed by Đông Đô Media.,JSC.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

-
00:00
00:00

Danh sách

Update Required Flash plugin
-
00:00
00:00