Vietnam’s Postal Infrastructure Poised to Drive National Digital Transformation and Enhance Logistics Capabilities

Vietnam is charting a course towards a robust and modern digital future with the strategic development of its information and communication technology (ICT) infrastructure. This ambitious plan aims to foster a comprehensive, sustainable, and harmonious logistics network across the nation, creating new avenues for growth and laying essential groundwork for the development of governance, economy, and society. The overarching national plan for ICT infrastructure is recognized as critically important for the holistic development of Vietnam’s economy and society. VietNamNet presents an in-depth analysis of the current state and future trajectory of Vietnam’s ICT infrastructure.

Driving National Digital Transformation Through ICT Infrastructure

The strategic blueprint for Vietnam’s ICT infrastructure is designed to catalyze a nationwide digital transformation, fostering a dynamic and integrated ecosystem. This initiative is not merely about upgrading technology; it’s about fundamentally reshaping how the nation operates, enhances its economic competitiveness, and improves the quality of life for its citizens. The vision is to create a digital backbone that supports advanced services, facilitates seamless connectivity, and empowers all sectors of society.

The Crucial Role of ICT Infrastructure in National Development

ICT infrastructure serves as the bedrock for economic and social progress. The rapid advancements in technology are profoundly impacting the evolution of ICT infrastructure, with the postal network playing an increasingly integral role. This network is becoming deeply involved in the emerging field of digital logistics, a sector critical for streamlining supply chains and enhancing economic efficiency.

While Vietnam has established a nationwide postal service network with over 21,600 service points as of 2020, boasting a coverage radius that exceeds the global average, a significant challenge remains: the postal network’s current spatial distribution is not optimally geared to serve the demands of modern digital logistics. Postal enterprises are actively developing their independent networks, but there’s a recognized need for these networks to be better integrated to support the broader business objectives of their downstream entities.

The current landscape of the postal sector up to 2020 reveals a lack of robust integration between the postal network and the wider logistics ecosystem. While postal service points are extensive, their connectivity with the broader logistics framework is still nascent. For Vietnam’s logistics sector, this connectivity is primarily limited to business cooperation and partnerships with international transport companies, often aimed at reducing shipping costs, but a clear strategic direction for domestic network integration is still under development.

A Foundation for a Connected Nation

The ICT infrastructure plan is a pivotal component of Vietnam’s national development strategy, aiming to create a modern, efficient, and secure digital environment. This includes the development of a strong postal network that is not only extensive but also strategically positioned to support the burgeoning digital economy and the complex demands of modern logistics.

Modernizing Postal Services for Digital Logistics

The postal infrastructure, and more specifically the postal network, plays a vital role in Vietnam’s national economic and social development strategy. Technological advancements are driving significant changes in ICT infrastructure, with the postal network becoming increasingly integrated into the digital logistics domain.

While Vietnam has established a comprehensive nationwide postal service network, with over 21,600 service points as of 2020, and a service coverage radius exceeding the global average, a key limitation of the Vietnamese postal network is its suboptimal spatial distribution for serving modern digital logistics. Postal enterprises are independently developing their networks, but these are not yet fully integrated to support the broader business objectives of their downstream partners.

A snapshot of the postal sector leading up to 2020 indicates a lack of strong linkage between the postal network and the overall logistics ecosystem. While postal service points are numerous, their integration with the broader logistics framework is still developing. For Vietnam’s logistics sector, this integration often manifests as cooperation and partnerships with international shipping companies to reduce shipping costs, but a clear strategic direction for domestic network linkage is still being defined.

The ICT infrastructure development plan addresses these challenges by strategically positioning the postal network as a crucial hub within the broader national logistics framework. This involves not only expanding its physical reach but also enhancing its technological capabilities to meet the demands of e-commerce, digital services, and efficient supply chain management. The goal is to transform the postal network into a critical component of the national economy, facilitating the smooth flow of goods and information.

Addressing Gaps in Postal Network Integration for Logistics

To address the existing gaps in the development of Vietnam’s postal network, the ICT infrastructure plan prioritizes its strategic integration with other key components of the national ICT ecosystem. The postal network is identified as one of five key components essential for ensuring the smooth and sustainable flow of material and data within the context of the digital economy.

The plan aims to resolve existing issues in the development of Vietnam’s postal network. In the new phase of development, the postal network will play a significant role in ensuring stability and connectivity for the flow of goods. The network is being designed with the vision of expanding its service reach to encompass modern digital logistics, thereby becoming a vital hub for the national economy.

According to the ICT Infrastructure Development Plan, the core objective is the development of a postal network that is robust, modern, and interconnected with the global digital space. This will establish it as an indispensable element of the national economy and the digital economy. The postal network development plan incorporates foresight, aiming to ensure supply chain stability and prevent bottlenecks in areas of potential scarcity.

Strategic Network Expansion and Modernization

The ICT infrastructure plan, with a focus on the period from 2021 to 2030, emphasizes the strategic development of the postal network. This includes the establishment of 3-5 regional postal centers across the country by 2030. These centers are envisioned to act as vital nodes in the national logistics network, enhancing efficiency and reducing transit times.

A representative from Vietnam Post acknowledged the significance of the recently approved ICT Infrastructure Plan for the 2021-2030 period, particularly its inclusion of postal network development. This directive is not only significant for upgrading and enhancing the efficiency of the public postal network but also for providing postal enterprises with favorable conditions to adapt and thrive in the era of technological innovation. Furthermore, it underscores the indispensable role of the postal network within the overall ICT infrastructure, ensuring the material flow and determining the ultimate outcome of the digital economy’s contribution to societal well-being and national development.

Ensuring Quality Service with Competitive Pricing

The postal network is not only interconnected with other components of the ICT infrastructure but also maintains its efficiency in the flow of goods, connecting the material flow of the postal network with the data flow of information.

In alignment with the Postal Development Strategy until 2025 and its outlook towards 2030, the ICT infrastructure plan sets ambitious targets for postal network development, encompassing both the KT1 (basic) postal network and the public postal network.

The development of the postal network aims to create a comprehensive and detailed analysis and segmentation of postal data. This will inform the development of both domestic and international postal networks, optimizing resource utilization and reducing operational costs.

The Ministry of Information and Communications (MIC) emphasizes that the development targets and requirements for the postal network are geared towards creating a more efficient service ecosystem, opening up new operational spaces. Specifically, it aims to ensure that every citizen across the country has the right to access stable, quality postal services at competitive and affordable prices.

A Vital Component of the Digital Economy

The postal network’s strategic development is crucial for building a robust digital economy. The plan outlines specific targets for the postal network by 2025, including an increase in daily parcel handling capacity to 93,000 parcels, with inter-provincial delivery times within national hubs to be a maximum of 5 days. Inner-city delivery times are targeted to be within 2 days. Additionally, the plan includes the establishment of 3 regional postal centers with an average handling capacity of over 11,000 parcels per day, serving a radius of 350 km, and 14 regional postal centers with an average handling capacity exceeding 4,500 parcels per day, serving a radius of 115 km.

Creating New Frontiers for Economic and Social Development

The overarching goal of the ICT infrastructure plan, extending to 2030 with a vision towards 2050, is to achieve ambitious targets for creating an ICT infrastructure that supports national digital transformation and opens up new avenues for economic and social development. This includes developing an ICT infrastructure that facilitates national digital transformation and simultaneously creates new spaces for socio-economic development.

Fostering a "Make in Vietnam" Digital Ecosystem

The initiative to build a "Make in Vietnam" digital ecosystem is a critical component of the national strategy. This involves not only developing advanced ICT infrastructure but also encouraging domestic innovation and production of digital technologies and services. The aim is to reduce reliance on foreign technologies and foster a self-sufficient and competitive Vietnamese digital industry.

The development of the postal network is a cornerstone of this strategy. By modernizing postal services and integrating them with advanced technologies, Vietnam aims to create a more efficient and cost-effective logistics system. This, in turn, will support the growth of e-commerce and other digital services, further stimulating the "Make in Vietnam" digital ecosystem.

The plan emphasizes the need for businesses to invest in postal infrastructure development and build national digital infrastructure platforms. This includes the application of advanced technologies in the postal network, such as IoT, to optimize resource utilization and reduce operational costs.

The strategic vision for Vietnam’s ICT infrastructure underscores a commitment to building a connected, innovative, and prosperous nation. The modernization of the postal network is a vital step in this journey, promising to unlock new opportunities for economic growth, enhance societal well-being, and solidify Vietnam’s position in the global digital landscape. The ongoing development of this infrastructure signifies a proactive approach to embracing the digital future and harnessing its transformative potential for the benefit of all.