Vietnam revamps postal system, introduces digital addresses
All Vietnam households and businesses will get digital addresses by 2025, the country’s national post service Vietnam Post announced in accordance with the government’s “National Postal Development Strategy” on May 30.
The “drastic change” in the postal and e-commerce market, along with the development of digital technology, has been transforming the ways of doing business and opening up new opportunities for the development of the postal industry, Duong Ton Bao from the Department of Posts under Vietnam’s Ministry of Information and Communications, said.
The department has developed the so-called “Vpostcode” which consists of a set of 12 digits and letters, of which the five first characters are national post codes and the seven following characters are location codes on digital maps.
Because the postal address codes are determined by coordinates on a digital map and not based on administrative geography, they ensure high accuracy and stability, Bao said.
Higher efficiency
The solution would be optimising the transportation and delivery of goods from senders to recipients for postal, transportation, logistics and e-commerce businesses in order to improve production efficiency, reduce costs and enhance competitiveness.
The digital post code also has a lot of practical functions for users such as searching, generating, locating and sharing address codes, as well as finding directions, managing location information and also allowing users to update the address data information for themself and the community, he added.
The strategy targets that by 2025 all households across the country would have digital addresses, and all farmer households would participate in e-commerce platforms developed by postal companies.
According to Bao, the postal industry in Vietnam has huge resources with a network of over 21,600 distribution points covering 63 provinces and cities together with nearly 800 enterprises operating in the industry.
Huge annual growth rate due to e-commerce
The new strategy aims to develop the postal industry into an “essential element of the country’s infrastructure,” he noted, highlighting that the postal and delivery industry in Vietnam is forecast to reach annual revenue of $10 billion by 2030, given the current growth rate of around 20 to 30 per cent per year.
The huge volume of goods being traded via online channels has led to an “explosive demand for delivery services,” resulting in a large potential for the postal industry to transform from simply delivering mail and parcels into a backbone of the country’s e-commerce industry, Bai said, adding that most traditional postal companies were slow to transform and thus were losing market share to logistics start-ups and technology.
He said this drove Vietnam’s postal industry to become a digital supply network since there was “no other way.”
All Vietnam households and businesses will get digital addresses by 2025, the country’s national post service Vietnam Post announced in accordance with the government's “National Postal Development Strategy” on May 30. The “drastic change” in the postal and e-commerce market, along with the development of digital technology, has been transforming the ways of doing business and opening up new opportunities for the development of the postal industry, Duong Ton Bao from the Department of Posts under Vietnam’s Ministry of Information and Communications, said. The department has developed the so-called “Vpostcode” which consists of a set of 12 digits and letters,...
All Vietnam households and businesses will get digital addresses by 2025, the country’s national post service Vietnam Post announced in accordance with the government’s “National Postal Development Strategy” on May 30.
The “drastic change” in the postal and e-commerce market, along with the development of digital technology, has been transforming the ways of doing business and opening up new opportunities for the development of the postal industry, Duong Ton Bao from the Department of Posts under Vietnam’s Ministry of Information and Communications, said.
The department has developed the so-called “Vpostcode” which consists of a set of 12 digits and letters, of which the five first characters are national post codes and the seven following characters are location codes on digital maps.
Because the postal address codes are determined by coordinates on a digital map and not based on administrative geography, they ensure high accuracy and stability, Bao said.
Higher efficiency
The solution would be optimising the transportation and delivery of goods from senders to recipients for postal, transportation, logistics and e-commerce businesses in order to improve production efficiency, reduce costs and enhance competitiveness.
The digital post code also has a lot of practical functions for users such as searching, generating, locating and sharing address codes, as well as finding directions, managing location information and also allowing users to update the address data information for themself and the community, he added.
The strategy targets that by 2025 all households across the country would have digital addresses, and all farmer households would participate in e-commerce platforms developed by postal companies.
According to Bao, the postal industry in Vietnam has huge resources with a network of over 21,600 distribution points covering 63 provinces and cities together with nearly 800 enterprises operating in the industry.
Huge annual growth rate due to e-commerce
The new strategy aims to develop the postal industry into an “essential element of the country’s infrastructure,” he noted, highlighting that the postal and delivery industry in Vietnam is forecast to reach annual revenue of $10 billion by 2030, given the current growth rate of around 20 to 30 per cent per year.
The huge volume of goods being traded via online channels has led to an “explosive demand for delivery services,” resulting in a large potential for the postal industry to transform from simply delivering mail and parcels into a backbone of the country’s e-commerce industry, Bai said, adding that most traditional postal companies were slow to transform and thus were losing market share to logistics start-ups and technology.
He said this drove Vietnam’s postal industry to become a digital supply network since there was “no other way.”
