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At your door

Released at: 16:19, 04/02/2018

At your door

Photo: Viet Tuan

ShipChung.vn has won over vendors and shoppers alike with its goods delivery options.

by Hai Van

It was a Tuesday at VinMec International Hospital and Ms. Nguyen Thuy Nhung was taking delivery of clothes she’d bought from ShipChung.vn. A cash-on-delivery (CoD) purchase, rather than fiddling with money she simply used a card to pay by Mobile Point of Sale (mPOS). “It’s convenient because there’s no need to get the cash ready, and it avoids any mistakes by myself or the shippers,” she said. 

CoD services with mPOS payment is a new breakthrough measure from ShipChung.vn. Along with the development of logistics in recent years, ShipChung.vn’s nationwide shipment and delivery services have won favor among online shoppers. 

Initial difficulties

ShipChung.vn was established when Vietnam’s e-commerce sector was truly in its infancy. CEO Han Van Loi remembers the first time he researched logistics in Vietnam for the e-commerce sector and found how low online sales revenue was. He then decided to build the technological infrastructure needed to connect shipping companies and provide deliveries for online customers.

“The biggest problem has been the different quality among carriers, so ShipChung.vn became an intermediary managing uneven quality but offering the best option to vendors,” he explained. “There are challenges that must be continually resolved.” 

Perseverance as well as experience from case studies helped Mr. Loi achieve success. Compared to traditional transport providers, ShipChung.vn holds advantages in linking with many domestic and international carriers and saving customers time and cost.

He told VET that early on he was confused by the range of challenges, but his passion for technology and his determination saw him through. Five years after its establishment, ShipChung.vn’s revenue is growing 200 per cent annually, with 300,000 deliveries made every month. It is currently the only company in Vietnam that works with more than 12 domestic and international carriers to transport goods to all countries in the world.

Going global

The positive results drive Mr. Loi and the ShipChung team to improve further and launch new products. In order to catch up global developments in the sector, he believes, Vietnamese transport companies must make improvements to meet international standards. “Boxme.vn, the latest product of ShipChung, has been launched in keeping with the continuous development in the logistics sector,” he said. “It is a professional platform, from storage to delivery.”

Two years after being launched, Boxme has two warehouses in Vietnam and eight in Thailand, Indonesia, Malaysia, Singapore, the Philippines, and the US. Some 100 domestic partners use Boxme services in Vietnam and about 100 international partners use its warehouses.

As the startup target is to become the largest transport provider in Vietnam and go global, a strategic plan is in place. “We want to offer solutions to our Vietnamese customers, including enterprises and individuals, and those in the region, especially within ASEAN, as this is the fastest-growing bloc in the world, with growth of 30 to 40 per cent each year,” he said. 
Mr. Loi has not established a transport company, but “provides technological solutions for transport companies.” It will not be necessary, he added, to open more warehouses in Vietnam as its two in Hanoi and Ho Chi Minh City can already meet demand, as 70 per cent of orders come from the two cities.

Despite ongoing issues, Vietnam’s logistics sector is undoubtedly developing, standing in 64th place worldwide in the Logistics in 2016 report, and fourth in ASEAN (after Singapore, Thailand and Malaysia), according to the World Bank. But logistics costs in Vietnam remain high and service quality is often lower than the international standards. This remains a challenge but also an opportunity for companies like ShipChung.     

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