Revenue up 12.8% year-on-year

In the first half of 2025, Vietnam’s postal and delivery market recorded impressive growth, underscoring the sector’s critical role in the national economy. According to the Ministry of Science and Technology, total industry revenue for the first half of the year is estimated at VND38.3 trillion (US$1.46 billion), up 12.8% compared to the same period in 2024.

The total volume of postal items reached an estimated 1.8 billion, increasing 16% year-on-year. The sector contributed about VND2.95 trillion to the state budget, a 14.3% rise over the same period last year. Vietnam currently has 745 organisations and enterprises operating in the postal sector.

Despite the growth, profit margins in the postal and delivery industry remain modest, with profits estimated at only VND950 billion, a 20% year-on-year increase.

The boom of e-commerce continues to fuel the sector. A report by The Investor estimated that Vietnam’s e-commerce market may reach US$33 billion in 2025, creating major opportunities for logistics and delivery providers. The postal and delivery market alone is projected to hit US$10 billion by 2030, with annual growth of 20–30%.

However, competition is intensifying due to the entry of international players. Global giants like Alibaba, Tencent, J&T Express, ZTO, SF, and Ninja Van are pursuing cost-competitive franchise models in Vietnam with the adoption of advanced technologies. As a result, fierce price competition have driven the industry's profit margin down to around 3%.

Meanwhile, major e-commerce platforms such as Shopee and TikTok have begun establishing their own delivery units and prioritising logistics partners within their ecosystems, putting domestic courier companies at a disadvantage.

Competitive strategy

Although the market holds great potential and is experiencing strong growth, Vietnam’s postal and delivery sector faces numerous domestic challenges. Most notably, price competition is depleting resources and eroding business resilience.

For instance, Viettel Post is seeing strong revenue growth, yet it remains cautious, aiming at a consolidated revenue target of VND21.028 trillion in 2025, up 1% from last year, and post-tax profit of VND405 billion, up 6%.

According to Viettel Post General Director Phung Van Cuong, once the domestic market reaches saturation, if growth continues only by expanding the order volume or widening coverage, it will soon hit a ceiling. Therefore, expansion to regional and international markets is not optional—it’s a must for companies aiming for long-term growth.

Facing mounting competition, both VNPost Express and Vietnam Post are revamping their strategies. VNPost Express is adjusting its business model and increasing promotions, while Vietnam Post is shifting from a traditional postal company to a service technology one, improving pricing and operational efficiency to strengthen market position.

Particularly, Vietnam Post is also developing and rolling out the Bach hoa buu dien (Postal Supermarket) chain, aiming to make it one of the country’s three largest retail systems by 2030, thereby increasing the value and reach of its logistics and delivery ecosystem.

These trends suggest that Vietnam’s postal and delivery market will continue to grow rapidly, thanks in part to rising e-commerce demand both domestically and internationally.

However, the industry still faces major challenges: cost pressures, price wars, and labour shortages. Some companies are investing heavily in technology to speed up delivery and reduce costs. In the near future, the competition in this industry is likely to shift from pricing to delivery speed.

Vietnam climbs two spots in global postal development index

Vietnam climbed two places from last year to rank 47th out of 168 countries and territories in the Integrated Index for Postal Development (2IDP) 2021, according to the Universal Postal Union (UPU).