Hong Kong delivery platform Lalamove has claimed its year-on-year growth in Vietnam doubled in the first 11 months this year.
But it has not released figures for either year. Vietnam is a key and positive market, its CEO Paul Loo said during a recent visit to the country, and his company has seen opportunities in long-distance delivery grow.
It now covers 40 localities.
“Inter-province delivery still accounts for a small ratio of our revenues but it is growing very fast,” Loo said.
The e-commerce boom has also contributed to the growth, he said.
Vietnam’s e-commerce market is estimated at $14 billion this year, up 14% from 2021, and is set to reach $32 billion in 2025, according to a report by Google, Temasek and Bain & Company.
The report said 85% of urban residents use online delivery services. Lalamove, which operates in over 350 cities in mainland China, has a presence in 11 global markets.
Since entering Vietnam in 2017 it has signed up over 100,000 drivers and 20,000 business partners.
Businesses are now reluctant to invest in their own vehicles and drivers due to fear of risks amid an uncertain future, which is why they rely on delivery services to transport their products, Loo said.
His company is investing in technology to improve the algorithm connecting vehicles and customers, he said.
With $700 million invested in online private transportation companies in the first half of this year, the sector is believed to have high competition.
There is great potential to increase market share as long as a company meets the needs of its customers and increases the value of its ecosystem, Loo added.