Shopee and TikTok Shop Are Reshaping Vietnam Logistics
Recent reports indicate that after years of rapid growth, Vietnam's e-commerce logistics industry is eRecent reports indicate that after years of rapid growth, Vietnam's e-commerce logistics industry is entering a challenging consolidation phase. Within just six months, two prominent logistics companies have exited the market. Singapore-based Ninja Van ceased its delivery services in Vietnam last September, and Flex Speed, formerly part of Lazada, recently announced its withdrawal from last-mile delivery services.
Market Dominance and Structural Changes
Both companies have ties to Alibaba, highlighting significant shifts within the industry. The primary catalyst for these changes is the rapid evolution of Vietnam's e-commerce market into a duopoly. According to Metric, by 2025, the combined revenue of Vietnam's top four e-commerce platforms — Shopee, TikTok Shop, Lazada, and Tiki — is projected to reach 429.7 trillion VND (approximately 209 billion SGD), marking a nearly 35% year-on-year growth. Shopee and TikTok Shop alone are expected to control about 97% of the market share, becoming the main source of parcel demand.
Logistics Models in Vietnam
This power dynamic is reshaping the logistics industry's survival strategies, leading to two primary models in Vietnam's e-commerce logistics market:
- Platform-Integrated Logistics: Companies like SPX, backed by Shopee, and LEX, supported by Lazada, benefit from stable order sources and operational synergy. However, their success is heavily dependent on the size of their parent platforms. As Lazada's market share falls below 3%, its logistics network struggles to operate effectively.
- Neutral Multi-Platform Logistics: Represented by companies like J&T and Ninja Van, these businesses build scale by serving multiple e-commerce platforms. However, maintaining neutrality is becoming increasingly challenging as the market consolidates, especially if TikTok Shop develops its own delivery department.
Related reading: How to Become a Cross-border Shopee Seller
Profitability and Market Risks
Despite the competitive and capital-intensive environment, profitability in Vietnam's e-commerce logistics market is achievable. J&T's parcel volume in Southeast Asia reached 4.56 billion in 2024, up 40.8% year on year, with the company posting its first full-year net profit of $110 million. This success stems from cost optimization through business density rather than price increases.
However, platform-driven demand, while providing scale, also carries risks. Industry insiders note that tightening tax policies, the misuse of return mechanisms, and high platform commissions are prompting more local merchants to reduce their reliance on e-commerce platforms. Consequently, logistics companies focusing solely on platform orders may soon reach a growth ceiling.
Exploring New Avenues
Recognizing these challenges, leading logistics companies are seeking growth opportunities beyond platforms. SPX is expanding outside Shopee, offering competitive prices to attract large orders from non-platform sellers. SPX excels not only in pricing but also in delivery efficiency, a crucial factor for sellers when choosing logistics partners.
Ninja Van is taking a different approach by shifting towards B2B contracts and cross-border logistics. These areas offer higher profit margins, stronger customer loyalty, and align well with Vietnam's growing manufacturing demand. Although Ninja Van retains some e-commerce business in Vietnam, it has effectively exited the B2C e-commerce sector, which once served as its primary revenue source.
Final Thoughts
Vietnam's e-commerce logistics market is rapidly evolving, with diversification becoming an inevitable trend. The courier and parcel market is projected to reach $2.53 billion by 2030, but only players who expand beyond platform dependency are likely to capture that growth. As the market consolidates, logistics companies must adapt by exploring new business models and expanding beyond traditional platform-based operations.
