HÀ NỘI — The presence of both international and domestic players is energising the postal and delivery services market, yet fierce price competition continues to narrow profit margins, testing corporate endurance.

In the first half of this year, Việt Nam’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 VNĐ38.3 trillion (US$1.46 billion), up 12.8 per cent compared to the same period last year.

The total volume of postal items reached an estimated 1.8 billion, increasing 16 per cent year-on-year. The sector contributed about VNĐ2.95 trillion to the State budget, a 14.3 per cent rise over the same period last year. Việt Nam 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 VNĐ950 billion, a 20 per cent year-on-year increase.

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

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 Việt Nam with the adoption of advanced technologies. As a result, fierce price competition have driven the industry's profit margin down to around 3 per cent.

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, Việt Nam’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 VNĐ21.028 trillion this year, up 1 per cent from last year, and post-tax profit of VNĐ405 billion, up 6 per cent.

According to Viettel Post General Director Phùng Văn Cường, 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 Bách hóa bưu điện (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 Việt Nam’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. — VNS