DHL eCommerce has launched nationwide domestic delivery operations in Vietnam to address growing e-commerce demand.

“The Vietnamese e-commerce market represents a huge and relatively untapped potential for local retailers, e-tailers and marketplaces: in 2016, total e-commerce spending hit US$1 billion despite barely over 50% of the population being online,” said Charles Brewer, CEO of DHL eCommerce. “With e-commerce spending expected to grow at around 23% per year between now and 2020, local e-tailers need scalable, high-quality logistics solutions with nationwide coverage more than ever before.”

According to DHL eCommerce Vietnam, it now offers domestic delivery across the country, managed by various hubs and depots. DHL eCommerce’s  fleet of vans and motorbikes, coupled with regular air and road connections between its hubs, will support next-day delivery in Ho Chi Minh, Hanoi and other primary markets.

“Our new domestic delivery service brings to Vietnam DHL’s extensive experience in designing comprehensive logistics networks, coupled with tailored e-commerce solutions to tackle some of the most pressing roadblocks to e-commerce growth,” said Brewer. “With e-commerce, consumers are increasingly expecting greater choice, convenience and control in their delivery experience and we aim to deliver a smile in the last mile by providing an amazing and customer-centric delivery solution.”

Local e-tailers can assign shipments requiring cash on delivery service through DHL eCommerce’s online portal, allowing for faster remittance and simpler management of shipment information. DHL’s Open Box Delivery Service will also allow consumers to open, check and return goods at the point of receipt.

“Only 15% of Vietnam’s e-commerce shoppers paid online in 2016, making cash on delivery a must-have feature for e-commerce to succeed,” said Thomas Harris, managing director of DHL eCommerce Vietnam. “That, combined with concerns about the hassle of returns and refunds, has made growth an uphill battle for many local e-tailers. We recognize that having a fast and reliable delivery service won’t solve these issues alone, which is why we’ve tailored our nationwide network to seamlessly handle cash payments with next-day cash remittance and returns to take the burden off local e-tailers so they can fully focus on growth and customer experience.”

Electric motorbikes are already being rolled out across the country, in line with the Deutsche Post DHL Group’s 2050 Zero Emissions commitment.

“Practical innovation lies at the core of our domestic delivery networks all around Southeast Asia, and Vietnam is no exception with its fleet of environmentally friendly electric motorbikes already in action on the streets,” said Harris. “Coupled with advances in technology, we are optimistic that environmentally friendly delivery methods such as electric vehicles will be the future of domestic B2C delivery and we’re pleased to be able to introduce this into Vietnam.”

DHL has been present in Vietnam since 1988 through its Express, Global Forwarding and Supply Chain divisions.