The rise of e-commerce in Vietnam has significantly transformed Vietnam’s logistics and delivery landscape.
With increasing consumer demand for convenience and speed, the last-mile delivery segment has become a critical focus for businesses looking to differentiate themselves in a highly competitive market.
This article delves into the dynamics of last-mile delivery in Vietnam, covering the current market landscape, key challenges, emerging trends, and future prospects for the industry.
Overview of last-mile delivery in Vietnam
The last-mile delivery sector in Vietnam has experienced rapid growth alongside the e-commerce boom.
According to the Vietnam E-commerce Association (VECOM), the country’s e-commerce market has grown exponentially in recent years, with the COVID-19 pandemic accelerating the shift towards online shopping.
This surge has led to increased demand for efficient and reliable last-mile delivery services.
Vietnam’s unique geographical features, such as its dense urban areas and vast rural regions, present both opportunities and challenges for the last-mile delivery industry.
Major cities like Hanoi and Ho Chi Minh City have become bustling hubs of e-commerce activity, but rural areas still pose logistical difficulties.
Additionally, the Vietnamese consumer market is characterised by a high preference for cash-on-delivery (COD) payments, which adds complexity to the delivery process.
The last-mile delivery ecosystem in Vietnam comprises a mix of traditional postal services, specialised logistics providers, and tech-driven startups.
Established players like Vietnam Post and Viettel Post are increasingly competing with newer entrants such as GHN, AhaMove, and Ninja Van, all of which leverage technology to optimise delivery routes and enhance customer experience.
The growing presence of international players like Lazada and Shopee Express further intensifies competition and drives innovation in the sector.
Last-mile delivery in Vietnam market size
The Vietnam Courier, Express, and Parcel Market is poised for significant growth in the coming years, reflecting the dynamic expansion of e-commerce and the increasing demand for efficient logistics solutions.
Estimated at US$1.62 billion in 2024, the market is projected to reach US$2.53 billion by 2030, with a robust Compound Annual Growth Rate of 7.76 percent, according to data collated by Mordor Intelligence.
Key challenges in last-mile delivery
Despite its rapid growth, last-mile delivery in Vietnam faces several significant challenges that affect efficiency and cost-effectiveness.
One of the primary issues is the country’s infrastructure, which, although improving, still lags behind developed markets.
Congested urban roads, inadequate transport networks, and inconsistent address systems make timely deliveries difficult, especially in densely populated cities.
Another major challenge is the high cost associated with last-mile delivery.
Given the fragmented nature of the market and the high volume of small orders, logistics companies often struggle to maintain profitability.
The preference for cash-on-delivery also complicates matters, as delivery personnel must handle cash transactions, increasing delivery times and the risk of errors or theft.
In rural areas, the lack of clear address systems and poor road conditions pose significant hurdles.
Many delivery companies face difficulties in reaching customers in remote locations, leading to delayed deliveries and higher operational costs.
Additionally, the diverse geography and varying levels of digital adoption across regions create logistical inconsistencies that complicate route planning and delivery efficiency.
The issue of customer expectations also plays a crucial role.
Vietnamese consumers increasingly demand faster and more flexible delivery options, influenced by their experiences with international e-commerce platforms.
This puts pressure on logistics providers to offer same-day or next-day delivery, further straining resources and necessitating innovative solutions to meet these demands.
Emerging trends and innovations in last-mile delivery in Vietnam
In response to the challenges, several trends and innovations are shaping the future of last-mile delivery in Vietnam.
One notable trend is the adoption of technology to optimise delivery operations.
Companies are increasingly using AI and machine learning for route optimisation, demand forecasting, and dynamic pricing models. These technologies help reduce delivery times, lower costs, and improve overall efficiency.
The use of micro-fulfilment centres and local warehouses is another emerging trend.
By decentralising inventory closer to the customer, businesses can shorten delivery times and reduce costs.
This model is particularly effective in densely populated urban areas where space is limited and traffic congestion is a significant issue.
Companies like Tiki and Shopee are investing in local warehousing to better serve customers with faster deliveries.
Another innovation gaining traction is the use of alternative delivery methods, such as electric bikes and drones.
Given the challenges of navigating congested urban areas and remote rural locations, these solutions offer promising alternatives for improving delivery efficiency.
Startups like Giao Hang Nhanh (GHN) are exploring the use of electric vehicles to reduce environmental impact and operating costs, while others are experimenting with drones for deliveries in hard-to-reach areas.
The rise of social commerce, where transactions occur directly on social media platforms, is also influencing last-mile delivery dynamics.
As more businesses and consumers engage in social commerce, logistics providers are developing tailored solutions to support this growing segment, such as flexible delivery options and integrated payment solutions.
Cross-border influence is also reshaping last-mile delivery in Vietnam.
As the country becomes more integrated into regional and global supply chains, platforms like Temu are making inroads by offering low-cost goods shipped directly from China.
This model bypasses traditional retail distribution and places added pressure on last-mile logistics to handle higher volumes of small, individual parcels.
Vietnamese logistics providers are now adapting to meet the demands of Temu’s cross-border model, investing in faster customs clearance processes, local fulfilment support, and more precise tracking systems.
The growing presence of platforms like Temu is accelerating the need for scalable, tech-enabled last-mile solutions aligned with international e-commerce standards.
See also: Temu in Vietnam: What’s Fair in Free Trade?
Last-mile delivery in Vietnam companies in Vietnam
Last-mile delivery in Vietnam is a rapidly evolving sector, driven by the growth of e-commerce and the demand for fast and reliable delivery services.
Several companies, both local and international, are competing in this space, leveraging technology and logistics expertise to enhance customer experience.
Below are some of the key last-mile delivery companies operating in Vietnam:
Giao Hang Nhanh (GHN)
GHN is one of Vietnam’s leading last-mile delivery service providers, focusing primarily on e-commerce logistics.
It offers services like same-day and next-day delivery, with a network covering over 63 provinces and cities in Vietnam.
Giao Hang Tiet Kiem (GHTK)
GHTK specialises in e-commerce logistics, providing cost-effective delivery solutions to online retailers.
It has a strong presence in both urban and rural areas, offering services such as cash-on-delivery (COD) and warehousing.
AhaMove
AhaMove is a technology-based logistics platform that connects businesses with a network of delivery drivers.
It primarily operates in major cities like Hanoi and Ho Chi Minh City, offering instant and same-day delivery services.
Ninja Van
Ninja Van is a regional logistics company with a strong presence in Vietnam.
It offers a wide range of delivery services, including standard, next-day, and express delivery, catering to e-commerce platforms and retailers.
Viettel Post
A subsidiary of the Viettel Group, Viettel Post is one of the largest logistics companies in Vietnam, providing both domestic and international delivery services.
It has a broad network and infrastructure, including a presence in rural and remote areas.
Lalamove
Lalamove is a global on-demand delivery service that operates in Vietnam, focusing on same-day and last-mile deliveries in urban areas.
It connects customers with a fleet of drivers for quick and efficient delivery services.
Shopee Express
Shopee Express is the logistics arm of Shopee, a major e-commerce platform in Vietnam.
It offers last-mile delivery services for orders placed on the Shopee platform, ensuring timely and efficient delivery to customers.
TikiNow
TikiNow is the logistics division of Tiki, one of Vietnam’s largest e-commerce platforms.
It focuses on providing fast delivery services, including two-hour and same-day delivery, for products sold on the Tiki platform.
GrabExpress
GrabExpress is the delivery arm of Grab, a leading super app in Southeast Asia.
It offers on-demand and scheduled delivery services for individuals and businesses, primarily in urban areas.
Best Express
Best Express is part of Best Inc., a leading logistics company in China.
It operates in Vietnam, providing comprehensive logistics services, including last-mile delivery, warehousing, and cross-border logistics.
Prospects and opportunities in last-mile delivery in Vietnam
The future of last-mile delivery in Vietnam looks promising, with several strategic opportunities for growth and development.
One key area is the continued investment in infrastructure.
As the government prioritises the development of transport networks and urban infrastructure, logistical challenges related to poor roads and traffic congestion are likely to diminish, improving delivery efficiency.
Another significant opportunity lies in the digital transformation of logistics operations.
By investing in digital platforms and automation, companies can streamline their operations, reduce costs, and improve service quality.
The integration of digital payments and the reduction of reliance on cash-on-delivery will also enhance efficiency and reduce the risks associated with handling cash.
Partnerships and collaborations between e-commerce platforms, logistics providers, and technology firms will be essential for driving innovation and addressing market challenges.
By leveraging each other’s strengths, these partnerships can develop comprehensive solutions that enhance the overall last-mile delivery experience for consumers.
Sustainability will also be a critical focus for the future.
As consumer awareness of environmental issues grows, logistics companies will need to adopt more sustainable practices, such as using electric vehicles, optimising packaging, and reducing carbon footprints.
Companies that prioritise sustainability in their operations are likely to gain a competitive advantage and appeal to a broader consumer base.
FAQ: Last-mile delivery in Vietnam
These are some of the most commonly asked questions about last-mile delivery in Vietnam.
What is last-mile delivery in Vietnam?
Last-mile delivery refers to the final stage of the logistics process, where goods are transported from a distribution hub to the end customer.
In Vietnam, this typically involves motorbikes, vans, and increasingly electric vehicles navigating dense urban areas.
Why is last-mile delivery important in Vietnam?
Rapid growth in e-commerce and urban consumption has made fast, reliable delivery a key competitive factor for retailers and platforms.
Customer expectations around same-day or next-day delivery continue to rise, particularly in major cities.
Who are the main players in Vietnam’s last-mile market?
The sector includes domestic logistics firms, e-commerce platforms with in-house delivery networks, and foreign-invested courier companies.
Major platforms often combine their own fleets with third-party contractors.
What challenges does last-mile delivery face?
Urban congestion, narrow streets, address inconsistencies, and traffic regulations complicate delivery operations.
High cash on delivery usage also adds operational and financial risk.
How is the sector evolving?
Companies are investing in route optimisation software, warehouse automation, parcel lockers, and electric motorbikes to improve efficiency.
Consolidation and professionalisation are increasing as margins remain tight.
What’s next?
The last-mile delivery sector in Vietnam is undergoing rapid transformation driven by the e-commerce boom and evolving consumer expectations.
Despite challenges such as infrastructure limitations, high costs, and logistical complexities in rural areas, the industry is poised for growth through technological innovation and strategic partnerships.
Emerging trends like AI-driven optimisation, micro-fulfilment centres, and alternative delivery methods are shaping the future of last-mile delivery in the country.
As the sector continues to evolve, investment in infrastructure, digital transformation, and sustainability will be key to unlocking its full potential and meeting the demands of the modern Vietnamese consumer.
That said, the business environment in Vietnam is dynamic and can change quickly. With this in mind, foreign firms looking to enter Vietnam’s last-mile delivery market can keep up to date with the latest developments by subscribing to the-shiv.
First published September 21, 2024. Last updated March 2, 2026.