VIETNAM POST'S IPP APPROACHING TO MARKET - VIETNAM POST

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VIETNAM POST'S IPP APPROACHING TO MARKET - VIETNAM POST
EC 2018 Doc 19
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VIETNAM POST

       VIETNAM POST’S IPP
     APPROACHING TO MARKET
VIETNAM POST'S IPP APPROACHING TO MARKET - VIETNAM POST
VIETNAM POST                                          2

PART 1 – E.commerce in global vision and in Vietnam

PART 2 – Business Strategy and Vietnam Post’s IPP
approaching to market.

PART 3 – Challenges.
VIETNAM POST'S IPP APPROACHING TO MARKET - VIETNAM POST
VIETNAM POST                                              3

     PART 1: E.commerce in global vision and in Vietnam
VIETNAM POST'S IPP APPROACHING TO MARKET - VIETNAM POST
VIETNAM POST                                                                       4

         PART 1 – E-COMMERCE in global vision

                                               9,7% retail revenue in 2017
                                               was from online shopping
                                               website

                                                      * According to Google and Temasek,
      Include:          - Countries in APPU:          global ecommerce market in
      -UK: 14%          + China: 11%                  Southeast Asia reached 11 billion
      -USA: 11%         + India: > 5%                 USD in 2017, increased 41%
                        + SG, NZ: ~5%                 compared to 2015.
                        + HK: ~ 3%                    * Vietnam is one of the market with
                        + TH: ~2%                     highest speed in Southeast Asia,
                                                      gaining 33%.
Source: POC C3
VIETNAM POST'S IPP APPROACHING TO MARKET - VIETNAM POST
VIETNAM POST                                                                                       5

         PART 1 – E-COMMERCE in global vision
                        Top 4 retailers: Amazon, Ebay,
                          Alibaba, and Wish are the
                      retailers accounted for 2/3 cross                             Top couriers
                                                                     Others
                          border e-commerce trade.

                                                                                    14%

                            Other                  Amazon
                                                    25%                                       70%
                            31%
                                                                              16%                   Posts
                                                              DHL: 4%
                                                              UPS: 2%
                                                              DPD:1%
                                                              GLS: 1%
                 ASOS                                        Fedex: 1%
                  1%                                         Other: 7%
                                                      Ebay
                  Apple                               18%
                   1%          Wish
                                      Alibaba/Al
                  Zalando      8%
                                       iExpress
                    2%                   14%

Source: POC C3
VIETNAM POST'S IPP APPROACHING TO MARKET - VIETNAM POST
VIETNAM POST                                                                                     6

        PART 1 –E-COMMERCE in Vietnam
         • In 2017, Alibaba invested 1 billion USD in Lazada,
           increased total capital of 83% Alibaba owned at                  Top fanpage with most like
           Lazada.
         • JD - competitor of Alibaba at China market invested
           44 million USD in Tiki,. The new wind brought the
           electronic payment Alipay, through the corporate
           with NAPAS Vietnam.
         • DHL eCom join the e-commerce delivery market of
           Vietnam since 2017.
         • 2017 is also the year that many big name in e-
           commerce “gone away”
                •   Ebay has not officially appear in Vietnam market yet.
                •   Zalora officially changed the name to Robins Vietnam.

            The opportunity for courier enterprises to provide logistic
           service, including Vietnam Post for e-commerce enterprises to
           reach the international market.
Source: VECOM
VIETNAM POST'S IPP APPROACHING TO MARKET - VIETNAM POST
VIETNAM POST                                             7

                   PART 2 – Business Strategy
          and Vietnam Post’s IPP approaching to Market
VIETNAM POST'S IPP APPROACHING TO MARKET - VIETNAM POST
VIETNAM POST                                                                                       8

         PART 2 – 1. BUSINESS STRATEGY
            Period 2018-2020 of Postal service + Postal finance serrvice + Distribution

                                                                     2020
                 Revenue: ~ 886 million USD,                    MIC’S APPROVAL:
                                                                Revenue: ~ 1 billion USD,
                 in which Postal Service takes up 38,3%.
                                                                in which Postal Service takes up 52,5%
                 Target to complete revenue target
                 before 2020 deadline approved by MIC           TARGET OF VNPOST:
                                                                Revenue: ~1,3 billion USD in which Postal
                                  2018
                                                                Service takes up 52,5%

Source: VNPost
VIETNAM POST'S IPP APPROACHING TO MARKET - VIETNAM POST
VIETNAM POST                                                                                     9

         PART 2 – 2. MARKET ORDER
                                Customer                 Need of customers                     Service

                               C2C          - Expecting to drop off, cheap rate, delivery   USO
                                            standard not so strict.                         Letter Post
                                            - Sending with plenty goods                     Parcel Post
                                            - Hard to approach order app.

                               B2B – SMEs   - Expecting to pick up at customers’ address,   Express
                                            favorable rate, strict and short delivery       service
                                            standard, tracking events, after sale.
                                            - Sending with standard goods
                                            - Approach order app, creating bill.

                               B2C –        - Expecting to pick up at customers’ address,   Letter Post
                               Ecommerce    favorable rate to save cost , clear delivery    Parcel Post
                               customers    standard , tracking events, after sale          Express
                                            - Sending with plentiful goods                  Ecommerce
                                            - Approach order app, creating bill.            Product?
                                            -Particular product for ecommerce.
Source: VNPost Market Survey
VIETNAM POST'S IPP APPROACHING TO MARKET - VIETNAM POST
VIETNAM POST                                              10

PART 2 – 2. PRODUCT ORDER

                 C2C –Letter Post,Parcel Post
                                 B2B-EMS

                           B2C-Letter Post+Parcel +EMS

                                      Ecommerce product
VIETNAM POST                                                                                                    11

    PART 2 – 3. INTERNAL LEGAL SUPPORT IN VIETNAM
                                                                        Chapter I- Article 3.2: “Shipments include
                                                                        letters, packages, shipments accepted,
                                                                        transported & delivered legally via postal
                                                                        networks”.

                                                                        Chapter I – Article 3.4: “Public postal services
                                                                        refer to postal services provided upon
                                                                        request by the State, icld common postal
                                                                        services, postal services for national defense,
-Postal Law No 49/2010/QH12 – issued in                                 security, and other special purposes”
2010 provides for postal operations;           Postal Law is open and
organizations and individual’s rights and                               Chapter 1 – Article 4.3: “Protect the
responsibilities    relating    to    postal                            confidentiality of correspondence under
operations and postal management of the        support to Vietnam       applicable laws”
state.                                         Post to deploy IPP
- Apply to organization and individuals                                 Chapter 1- Article 4.4: “Ensure the regular,
involved in postal operations in Vietnam                                stable provision of public postal services”
VIETNAM POST                                                                                                                                                                        12

     PART 2 – 3. IPP ON MARKET ORDER
                                                                                  INTERNATIONAL POSTAL SERVICE

                                               DOCUMENT                                                                                            NON DOC

                         Economy                                                 EXPRESS                                   Economy                                       EXPRESS

                                                                           UPU                                   Small
             Untrack                            Track                                      Priority                                         Parcel
                                                                           EMS                                   Packet                                        UPU EMS             Priority

Ordinary
           Ordinary               Registered     Registered
 Letter,   Printed     Ordinary                               Registered
                                    Letter       Printed                                              Ordinary     R                 Traditional
  Doc,     matter      M bag
                                     Doc,        matter
                                                                M bag
Postcard                           Postcard                                                                               Epacket                    Ecompro
VIETNAM POST                                                                                                                                                                13

                PART 2 – 4. Solutions to support IPP implementation
                                                         INTERNATIONAL POSTAL SERVICE

                                                                                                                                                   EAD transmission & launch UPU projects in
                                                                                                                                                             VN (ORE, SECUREX).
                              DOCUMENT                                                                      NON DOC

                                                                                                                                                   Modernize & Automize all Hubs as sorting
                 Economy                              EXPRES
                                                         S
                                                                                          Economy                             EXPRESS                         mail centers & OEs

       Untrac
         k                    Track
                                                UPU
                                                EMS            Priority
                                                                                  Small
                                                                                 Packet
                                                                                                       Parcel                                         Renovate and upgrade IT application
                                                                                                                        UPU
                                                                                                                                        Priority
                                                                                                                        EMS

       Or
Ordi   din             Reg      Reg
nary   ary      Or     iste     iste     Regi
Lett   Pri      din    red      red      ster                                                       Tradi
       nt       ary    Lett                                               Ordi
 er,
Doc,
Post
       ed
       ma
                M
                ba
                        er
                       Doc
                                Prin
                                ted
                                mat
                                          ed
                                          M
                                         bag
                                                                          nary
                                                                                   R
                                                                                          Epac
                                                                                           ket
                                                                                                    tiona
                                                                                                    l           Ecomp
                                                                                                                  ro
                                                                                                                                                         Standardize human resources
card   tte      g        ,      ter
       r               Pos
                       tcar
                         d
VIETNAM POST                                       14

PART 2 – 4.1. Full EDI Implementation in Vietnam
VIETNAM POST                                       15

PART 2 – 4.1. Full EDI Implementation in Vietnam
VIETNAM POST                                       16

PART 2 – 4.1. Full EDI Implementation in Vietnam
VIETNAM POST                                               17

PART 2 – 4.2. Quality Control & Monitor in Vietnam
Monitoring of Postal System (MPS) – http://mps.vnpost.vn
Real-Time event monitoring
VIETNAM POST                                                           18

      PART 2 – 4.2. Quality Control & Monitor in Vietnam
      Monitoring of Postal System (MPS) – http://mps.vnpost.vn
      Volume & Revenue Statistics
                                  Volume + Revenue

Volume +                                                             Volume +
Revenue day                                                          Revenue of
13 June                                                              15 nearest
                                                                     days

Monthly
                                                                 Quarterly
Volume +
                                                                 Volume +
Revenue
                                                                 Revenue
VIETNAM POST                                               19

PART 2 – 4.2. Quality Control & Monitor in Vietnam
Monitoring of Postal System (MPS) – http://mps.vnpost.vn
Item event Monitoring for Domestic
VIETNAM POST                                                                           20

 PART 2 – 4.2. Quality Control & Monitor in Vietnam
iQCS (Quality Control System for International Postal Services) http://iqcs.vnpost.vn
Item last event monitoring in Real-Time (based on EMSEVT v3.0 events)
VIETNAM POST                                                                           21

 PART 2 – 4.2. Quality Control & Monitor in Vietnam
iQCS (Quality Control System for International Postal Services) http://iqcs.vnpost.vn
Backlog Items Statistics
VIETNAM POST                                                                           22

 PART 2 – 4.2. Quality Control & Monitor in Vietnam

iQCS (Quality Control System for International Postal Services) http://iqcs.vnpost.vn
Delivery Standards & Target Statistics
VIETNAM POST                                                                            23

PART 2 – 4.2. Quality Control & Monitor in Vietnam
iQCS (Quality Control System for International Postal Services) http://iqcs.vnpost.vn
LEG 2 Monitoring (based on CARDIT/RESDIT msg)
VIETNAM POST                                                                            24

PART 2 – 4.2. Quality Control & Monitor in Vietnam
iQCS (Quality Control System for International Postal Services) http://iqcs.vnpost.vn
LEG 2 Monitoring (based on CARDIT/RESDIT msg)
VIETNAM POST                        25

PART 2 – 4.3 NETWORK REFORM

                   Before   After
VIETNAM POST                                                                                         26
PART 2 – 4.3 NETWORK REFORM
                                                                 PARCEL SORTING SYSTEM
                                                                            Advantage

                                                               Fast scanning
                                                                                           Less broken
                                                                      Easy to maintain

Total Area of sorting center: Min: 20.000m2, Max:
50.000m2
Equipped by semi-auto sorting technique

Each sorting center for provinces/Cities PO of each region.
Average Capacity: 9.000 - 18.000 items/per hour
VIETNAM POST                         27

               PART 3 – CHALLENGES
VIETNAM POST                                                                                          28

PART 3 – CHALLENGES

                    • The need to set up a particular product for ecommerce market is so urgent.
          Service

                 • In term of IRP, it’s mandatory to set up remuneration for particular product for
         Remunera E.commerce which is competitive in the market
           tion

                    • It is suggested to set up strategy approved by UPU & WCO for the electronic
          Customs     customs clearance based on CDS for next step.
           issues

                    • It is recommended UPU & IATA to give support in renovating the picking up
                      process btw posts and airlines, using CN38 (as MAWB) to check data, enhancing
          Airline
                      awareness to handle DG goods
          issues
Vietnam Post: Delivering more
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