Can Vietnam Sustain Its E-Commerce Delivery Boom?

Vietnam’s e-commerce sector has been on a meteoric rise over the past decade, driven by a young, tech-savvy population, smartphone penetration, and widespread digital payment adoption. In 2023, Vietnam’s online retail market was valued at over $16 billion, and it is projected to exceed $39 billion by 2025, making it one of Southeast Asia’s fastest-growing e-commerce economies (Statista).

However, with opportunity comes pressure—particularly on delivery infrastructure, last-mile logistics, and fulfillment ecosystems. This raises a crucial question: Can Vietnam sustain its e-commerce delivery boom?

Let’s explore the key factors shaping Vietnam’s e-commerce delivery performance, the challenges the country faces, and whether its infrastructure and ecosystem can keep pace with consumer expectations.

📦 What’s Driving the Boom?

1. Digital-First Consumers

Vietnam boasts over 70 million internet users and a high mobile-first internet usage rate. A large portion of the population shops online via Shopee, Lazada, Tiki, and TikTok Shop, making Vietnam one of the most mobile-driven e-commerce markets in Asia.

According to the DataReportal 2024 Vietnam Digital Report, over 57% of Vietnamese users engage in online shopping every week.

2. Cashless Payment Adoption

The adoption of e-wallets like MoMo, ZaloPay, and VNPay has reduced reliance on cash-on-delivery. This has accelerated smoother transaction flows, enabling faster order processing and return handling.

3. Supportive Policy Environment

Vietnam’s National E-Commerce Development Strategy 2021–2025 supports infrastructure investment, cross-border trade, and e-logistics innovation.

More info: Vietnam E-commerce Strategy – Ministry of Industry and Trade

🚚 Delivery Ecosystem: The Backbone of E-Commerce

Key Players:

GHN, GHTK, Viettel Post, and Ninja Van Vietnam are among the major delivery providers.
Retailers like Tiki and Lazada operate their own fulfillment centers and fleets.
Cross-border sellers are increasingly relying on Vietnam agents to navigate customs and ensure last-mile coordination.

Learn how Vietnam-Agent.com helps streamline e-commerce logistics through sourcing, customs, and fulfillment services.

⚠️ Challenges Facing the Delivery Boom

Despite impressive growth, several friction points could slow or compromise the scalability of e-commerce logistics.

1. Urban Congestion & Poor Infrastructure

Vietnam’s largest cities—Hanoi, Ho Chi Minh City, and Da Nang—face traffic bottlenecks that delay deliveries. Rural and semi-urban areas lack adequate last-mile coverage and warehousing.

According to ASEAN Briefing, over 30% of online buyers are located in areas where delivery networks remain underdeveloped.

2. Last-Mile Logistics Complexity

Last-mile delivery in Vietnam accounts for up to 53% of total e-commerce logistics costs. Issues include:

High return rates due to COD (cash-on-delivery) rejections
Difficulty in locating rural addresses
Seasonal spikes during Tet and year-end sales

3. Lack of Cold Chain Infrastructure

Food delivery and online grocery shopping are booming, but Vietnam’s cold chain logistics is still limited, especially for fresh and frozen goods.

Read more: Smart Warehousing and Cold Chain Logistics in Vietnam

4. Labor Shortages & Turnover

Courier fatigue, rising fuel prices, and labor turnover create instability in delivery fleets, especially for independent logistics providers.

🧠 How Vietnam Is Addressing These Challenges

1. Technology and Automation

From AI route optimization to smart lockers and automated sorting centers, technology is transforming Vietnamese logistics. Companies like Giaohangnhanh (GHN) and Lazada are investing in robotics and automation to boost speed and accuracy.

2. Urban Micro-Fulfillment Centers

Retailers are setting up smaller urban warehouses closer to dense populations. This reduces delivery times and allows for same-day or 2-hour delivery windows in metropolitan areas.

3. Policy Support for Logistics Development

The Vietnamese government has committed to reducing logistics costs from 20.9% of GDP to below 16% by 2030, as outlined in the Master Plan for Logistics Development.