The region has also seen strong development of e-commerce logistics , helping create breakthroughs in cross-border e-commerce. The "E-Commerce Logistics Market by Service and Geography - Forecast and Analysis 2021-2025" report by Technavio expects the market size to grow to 355.79 USD billion between 2020 and 2025.
Although the increase in cross-border e-commerce activities, rise in social commerce, and the growth of e-commerce startups will offer immense growth opportunities, high logistics costs, infrastructural issues in emerging economies, and stringent regulations for e-commerce logistics will challenge the growth of the market participants, according to the report.
To make the most of the opportunities, market vendors should focus more on growth prospects in fast-growing segments, while maintaining their positions in the slow-growing segments, it said.
Pham Binh, Director of J&T Express Vietnam, noted that delivery and shipping firms should be competitive enough to conquer cross-border e-commerce.
That is the reason why J&T Express has invested in technology and its workforce, and worked to enrich its international delivery experience, he said. In Southeast Asia, cross-border e-commerce has experienced outstanding developments, and is expected to rake in nearly 90 billion USD this year, doubling that in 2021.
Mordor Intelligence that provides market research estimated that the Southeast Asian cross-border e-commerce market will reach 12 billion USD in 2023, accounting for more than 40% of the region’s market value. In order to deploy added value services, express delivery businesses need an infrastructure platform - transit centres - across Vietnam./.
