VIETTEL POST

A. ABSTRACT

The logistics industry is undergoing dynamic transformation, with Viettel

Post leading the way in innovation, cutting-edge technologies, and a robust

network to meet evolving market needs. This report explores various facets of

Viettel Post's logistics operations, highlighting key features, strategic initiatives,

and an unwavering commitment to customer satisfaction.

Throughout this report, readers will gain a comprehensive understanding

of Viettel Post's logistics capabilities, ranging from advanced warehousing

solutions to state-of-the-art transportation services. The goal is not only to

showcase Viettel Post's current prowess but also to provide insight into the

future direction of its logistics endeavors. Key points cover the company's

journey since 1997, its vision to be a tech-driven logistics leader by 2025, and a

detailed overview of services, historical milestones, strengths, weaknesses,

opportunities, and threats. The future direction involves smart logistics

infrastructure for efficiency, increased capacity, and support for Vietnam's e-

commerce growth. Overall, Viettel Post's commitment to innovation positions it

as a crucial player in Vietnam's logistics sector.

This report aims to serve as a valuable resource for businesses seeking

reliable logistics partners and individuals interested in the transformative

journey of Viettel Post within the logistics landscape.

B. CONTENT

I. Introduction about the company

- ViettelPost is a member unit of Military Telecommunications Group
(Viettel), specializing in the business of services: Domestic and
international express delivery, many different services such as: Courier
service / express delivery ( VCN), Express Delivery Service (VHT),
Economy Delivery Service/Economy Delivery (VTK), Add-on Service,
Cash on Delivery Courier Service/Ship COD, Logistic Service, E-
Commerce Services,…
1.1 The publishment:
- Viettel Post Joint Stock Corporation known widely as Viettel Post
(UpCOM VTP), the predecessor from the Press Distribution Center, was
established on July 1, 1997. With the initial mission of serving the Army
agencies in the Ministry of Defense.
- In 2006, Viettel Post changed from a dependent accounting model to an
independent accounting model into Viettel Post Office 1 Member State
Company Limited.
- In 2009, Viettel Post officially operated as a Joint Stock Company after
successfully implementing the equitization plan through the initial public
offering.
- On April 13, 2012, Hanoi Department of Planning and Investment issued
a business registration certificate to Viettel Post Corporation, enterprise
code 0104093672. With this license, Viettel Post is the main Formed as
the first Corporation in the model of Military Telecommunications
Group.
- The stock code: VTP
1.2 The vision and mission:
- VISION
- To become a leading technology-driven logistics company, ranked among
the top 5 enterprises in Vietnam by 2025.
- Efforts are being made to bring services closer to customers not only in
the domestic market but also in the international market.
- For Viettel Post, sustainable development is the key. As the fastest-
growing enterprise in the postal industry, Viettel Post consistently
pioneers the application of advanced and modern technology in the era of
Industry 4.0.
- Viettel Post directs significant technological investments into the delivery
sector. Furthermore, the company cultivates a professional and modern
working environment that maximizes the rights of employees, fostering
dedication, development, and honoring the workforce, while maintaining
a harmonious balance between the interests of the business and the well-
being of its staff.
- MISSION
- Bring customers peace of mind and the best experience when using the
delivery service.
- Continuously innovate service delivery methods, enhance quality
standards, and maximize resource utilization based on a digital platform
to ensure the most efficient provision of logistics services for the entire
society.
- Simultaneously, persistently improve the quality of the workforce and
expand the network. Throughout the years, Viettel Post has remained
committed to its customer service philosophy:

1. CUSTOMER-CENTRIC APPROACH:
 - Treating each customer as a unique individual, deserving respect,
attention, and understanding. To serve them individually, Viettel Post
continuously innovates and collaborates with customers to create
increasingly perfect products and services.
2. CONDUCTING BUSINESS WITH ELEGANCE:

- Thoughtful management philosophy.

- Elegant products and services.
- Courteous employees.

1.3 Here are the historical milestones.

● 1/7/1997: The press distribution center, the predecessor of Viettel Post,
was established with 1 post office and 5 employees.
● 1997 - 2000: Provide express delivery service Hanoi - Ho Chi Minh City
and receive a certificate to open an international delivery network.
● 2001-2005: Develop delivery network in 63 provinces/cities.
● 2006 - 2008: Commercial business throughout the internal network.
● 2009 - 2012: Apply management software to most stages of the delivery
process. Establish a branch in Cambodia.
● 2013 - 2016: Wide network: 4 member companies with 860 post offices,
1200 stores and more than 9000 employees.
● 2017 - Now: Launching many applications and integrated technologies
marking a transformation in the 4.0 era Maintaining the position of Top 1
reputable Logistics company in the express delivery industry.

1.4 The services of Viettel Post:

- Domestic services include MyGo intra-provincial delivery, Express
delivery, 60-hour express delivery, Express delivery by box, Economical
 express delivery by box, Express delivery by air, Cash-on-delivery
express delivery, etc.
- International services include designated carrier international express
delivery, International express delivery.
- Logistics services include Customs services, Whole trip transportation
services, Forwarding services, Cargo consolidation transportation
services, Warehouse services.
II. Logistics activities of Viettel Post

2.1 The network system:

- Viettel Post has covered 100% of the delivery network including island
districts throughout the territory of Vietnam.
- Post offices (points to receive mail by express delivery): there are nearly
680 post offices, in which:

+ 300 level 1 post offices

+ 380 level 2 and 3 post offices

- There are 300 mail delivery agents nationwide.

- There are nearly 1000 vehicles with full tonnage, trailers, and container
trucks to ensure timely, fast and safe customer service.
- Supporting facility: The delivery network of Viettel Post encompasses
all 63 provinces and cities in Vietnam. Besides, Viettel Post is also
capable of transporting 200 to 300 tons per day using a variety of vehicles
ranging from small trucks to huge trucks, with four routes: The Central
route, Western route, Southern route, and Northern route.
- The company owns a high-quality warehouse system in Hanoi, Da Nang,
Ho Chi Minh, Dong Nai, Can Tho with a total area of more than
 100,000m2, a convenient location for storing and transporting goods all
over the country.
- Facilitating goods: Including domestic services, International service,
Logistics service, in particular.

2.2 Domestic Service:

- E-Commerce delivery: Evolved from a cash-on-delivery business, will

accept, ship, and express items on time, collect delivery money and
reimburse consumers if delivery is successful.
- Express delivery: This service receives, transports, and expresses
documentation of commodities and products by road and air at
predetermined times computed by the hour.
- Same-day Delivery: As a service of receiving, shipping, transporting, and
couriering documentation of products and things with the greatest priority
in delivery services, with a 24-hour standard for the whole process.
- Cost-Effective Delivery: The delivery time for a service that saves
paperwork of products and things by road is measured in days (Suitable
for goods that are not too urgent).

2.3 International service:

- Fast international delivery: A service provided by Viettel Post in

collaboration with TNT global delivery firm

- DHL ( Designated International Shipping ) : Viettel Post collects and

connects consumers' requests for overseas delivery businesses.

2.4 Logistics service:

- Package Transport Service: A service that transports packages from

one location to another.
 - A fixed-route quick freight service: Customers in need can use the
partner MyGo to request pickup/delivery at their address.

- Full-time Transportation Service: As a mode of transportation, it can

move between 200 and 300 tons each day using a range of vehicles
ranging from tiny trucks to huge trucks.

- Fulfillment of Warehouse Services: A warehouse leasing business

that transports items in order to reduce the cost of manufacturing,
transportation, and distribution.

- Freight Forwarding Service: A service that collects and transports

items by road using Viettel Post's mail routes.

- Forwarding Service: Viettel Post coordinates the receipt and rotation

of items from the manufacturer to the endpoint for clients in need as a
service.

- Customs Service: Viettel Post's responsibility is to carry out

import/export processes on behalf of the owner of the goods at the
customs clearing stations specified by the owner of the goods (domestic
or foreign).

-The company's large trucking partner is ISUZU, the model handed over
is a truck model designed specifically for Viettel Post to help highlight
the company's brand, and at the same time evaluate the cooperation of the
two units.

III. SWOT analysis

3.1 Strengths:

- Great resources from parent group Viettel:

● Viettel is a pioneering state-owned enterprise (SOE) in
implementing national strategies in the fields of
telecommunications - IT and high-tech defense industry. Always
the most efficient enterprise, Viettel's pre-tax profit in recent years
has always maintained over 40 trillion/year, pre-tax profit/k ratio
has always remained over 25%.
● After more than 30 years of formation and development, Viettel
has now become the leading state-owned economic group in
Vietnam. Viettel's main business lines currently include:
Telecommunications; IT solutions and digital services; High-tech
production research; E-commerce and Logistics such as:
● MyGo:
- With the mission of "socializing" freight forwarding and
"digitizing" the transportation industry, MyGo has upgraded
its features and launched 3 new services providing large
freight solutions based on technology. includes:
transportation of whole goods, transportation of goods in
batches, transportation of goods in packages.
- Up to now, MyGo is getting closer to the goal of becoming a
"Multi-modal transportation platform", bringing 4,751
trucks, 2,072 logistics drivers and 53 partners to the floor,
changing the connection method from 1-N moving to the
country to help optimize costs and create a premise for
ViettelPost to transform itself into a Logistics company.
Thereby turning MyGo into a multimodal transport platform.
● VoSo:
- On October 30, 2020, Viettel Post and E-commerce One
Member Limited Liability Company officially signed a
strategic cooperation agreement with the Central New Rural
 Coordination Office in the implementation of the National
Program One Commune One Product (OCOP). The main
goal is that the two sides will work together, coordinate and
accompany in trade promotion of OCOP products on the
distribution channel network of the Voso.vn e- commerce
platform.
- Over the past year, VoSo has launched an App for buyers;
actively approach and accompany local people, supporting
nearly 1000 suppliers in all provinces and cities in
improving sales knowledge and skills; and successfully put
1,600 OCOP products on the floor.

=> VoSo is the only e-commerce platform that integrates the Scan QR feature to
provide a solution to trace the origin of goods for customers, enhance the
effectiveness of trade defense, and protect the interests of consumers and
Vietnamese brands. VoSo marks the e- commerce floor of Make in Vietnam.

- High growth rate:

● In the last 5 years (2015-2019), Viettel Post has an average revenue
growth rate of 43.3%/year. Revenue has increased nearly 4 times
over the past 5 years and is a business that always maintains a high
and stable growth rate.
- Wide network coverage throughout the country equivalent to the
post office:
● Established in 1997, Viettel Post Corporation - Viettel Post (VTP)
is an enterprise operating in the delivery field under Viettel Group.
After more than 20 years of establishment, from a newspaper
distribution center, Viettel Post has now risen to become Vietnam's
leading enterprise in the field of delivery.
 ● Viettel Post has a network covering 63 provinces and cities across
the country, from urban areas to rural areas and islands with 2,200
post offices, 6,000 transaction points, and 22,000 employees,
ensuring goods can be transported smoothly to all destinations. all
regions of the country.
● Regarding means of transportation, Viettel Post currently has
nearly 600 trucks of all types to serve the needs of transporting
goods to all provinces and cities across the country. In addition, the
company also owns 12/22 cars of the Yen Vien - Song Than fast
container train, helping to shorten North - South transport time by
rail by about 30% and save about 20% compared to transport by
road.

3.2 Weakness:

- High collection fee, minimum 15,000 VND.

- The customer care switchboard has a fee and is often in a state where
operators are busy and cannot be reached.
- Support and customer care on the website are not good. There is no
manager regularly, responding to customer complaints.
- Collection payments are time-limited.
- Viettel Post's shipping fees are higher than other shipping units.

3.3 Opportunities:

- Economic Environment:
● viettel is The potential of a large market and the expansion of the Internet
business sector.
● Vietnam joining the WTO opens up new opportunities for companies to
penetrate the international market. The global trend of information
society and international cooperation between countries opens up a large
 market not only within national borders but also regionally and
internationally. The trend of international cooperation, especially in the
Telecommunications - Internet sector, provides opportunities for
Vietnamese businesses to learn management experiences, transfer
advanced technologies, train high-tech labor, and upgrade infrastructure.
The industry has opportunities for business expansion as the economy
gradually recovers, and the demand for mobile and wireless internet
remains high.
● The government has adopted many policies and measures to create
favorable conditions for the development of service activities.
Particularly in tourism, finance-banking, remittances, on-site sales, postal
and telecommunications services, air and sea transport, etc.
● Customs barriers are being eliminated, and information infrastructure is
developing rapidly.
● Information infrastructure is increasingly being developed strongly. The
demand for communication is growing. Although the telecommunications
industry has developed significantly, there are still many opportunities for
Viettel, especially in some less developed countries that have close
cooperation with Vietnam, such as Laos and Cambodia.
- The Technological Environment:
● The technology market serving the Internet is developing and
transforming rapidly. Rapid technological transformation is an
opportunity for new businesses to enter the industry and a challenge for
established businesses. Furthermore, as the technological environment
undergoes changes, there is a demand for training and developing the
workforce to enable quick development, offer numerous services, shorten
business cycles, and streamline product life cycles to achieve greater
efficiency in business.
 ● Information technology is increasingly being widely applied, especially
in the fields of education and healthcare. Currently, nearly 100% of
universities and colleges have implemented internet connectivity through
various forms, and many basic hospitals have incorporated information
and communication technology (ICT) for diagnosis and treatment of
patients.
● The Vietnamese National Assembly considers education and science and
technology as top priorities, with the development of information
technology and communication playing a particularly vital and crucial
role in this regard.

3.4 Threats:

- Intense Competition and Business Strategies for Viettel:

● The telecommunications industry faces increasing fierce
competition. Domestically, Viettel contends with strong
competition from local enterprises such as Vinaphone and
Mobifone. Internationally, as a newcomer, Viettel encounters
challenges in integrating globally into the mobile
telecommunications market. Viettel also has some weaknesses
compared to established enterprises in their respective countries.
- Adapting an Appropriate Business Strategy:
● Adapting and satisfying customers in a foreign country while
competing with local players poses a significant challenge in
Viettel's SWOT matrix. Viettel must reduce costs to compete for
market share, especially duâring the initial phase of entering a new
country. Additionally, launching promotional campaigns and
ensuring product quality are crucial.
- Legal System Challenges:
 ● State-owned enterprises face challenges due to the complex legal
systems with numerous laws and regulations. This complexity
diminishes the competitiveness of these enterprises. Moreover, the
cultural practices of the local population and foreign business
regulations present major challenges.
- Diversification of Services:
● Consumer demands for diverse and high-quality services are
increasing. Viettel must continually improve service quality to
meet these demands. Simultaneously, reducing product costs to
compete for market share, especially during the initial phase of
entering a new country, is essential. Creating product
differentiation, offering favorable pricing, and captivating
consumers are also important aspects of Viettel's strategy.
IV. Viettel Post in the future:

4.1 The process of building smart logistics infrastructure:

- According to updated information on January 17, Viettel Posts and

Telecommunications Joint Stock Company inaugurated Vietnam's first
smart sorting technology complex, affirming Viettel's strategy and
commitment to becoming an industrial enterprise. Vietnam's leading
logistics technology.
- The article highlights several key points that underscore the potential of
Viettel Post:
● Innovative Sorting Technology: Viettel Post has inaugurated
Vietnam's first smart sorting technology complex, showcasing the
company's commitment to becoming a leading technology logistics
enterprise. The intelligent sorting system, featuring self-driving
robots (AGV robots), a large-scale sorting system (Wheel Sorter
Matrix), and a conveyor belt sorting system (Cross-belt Sorter),
 positions Viettel Post as a pioneer in deploying advanced logistics
technologies in Vietnam.
● Increased Processing Capacity: With over 40 cargo entry/exit
gates and nearly 1,200 sorting gates, Viettel Post's system boasts a
processing capacity of up to 1,400,000 parcels per day, marking a
40% increase compared to the previous capacity. This
enhancement brings the overall handling capacity of the Viettel
Post system to 4,000,000 parcels per day, meeting 50% of the e-
commerce capacity in Vietnam.
● Efficiency and Error Reduction: The system's nearly zero error
rate contributes to reducing overall delivery time to 8-10 hours, a
significant 3.5-fold increase in productivity. Through automation,
the system also optimizes 60% of personnel costs, showcasing the
efficiency gains achieved through technological integration.
● Advanced Monitoring and Management: Viettel Post employs a
real-time NOC (Network Operations Center) system for the
management and monitoring of the integrated complex. This
system utilizes Digital Twin technology, AI cameras, and monitors
to track the journey of each order, detect unusual behaviors, and
facilitate timely issue resolution.
● Comprehensive Logistics Ecosystem: The logistics ecosystem
includes warehouse management software, app/web systems, and a
chain of technology solutions for various purposes. Notably, these
solutions have been developed by a 100% Vietnamese team of
engineers and specialists, demonstrating Viettel Post's capacity for
domestic technological innovation. The development timeline of
these systems, completed in over 6 months, is notably shorter than
the timelines typically associated with similar systems deployed by
large global enterprises.
=> In conclusion, Viettel Post's investment in advanced sorting technology,
increased processing capacity, efficiency gains, and a comprehensive logistics
ecosystem positions the company as a significant player in the Vietnamese
logistics landscape, with the potential to contribute significantly to the growth
of e-commerce in the country.

4.2 The significance of establishing:

- The establishment of Viettel Post's first smart technology system in

Vietnam carries significant implications both economically and
industrially, especially in the fields of logistics and e-commerce. Here are
some key meanings:
● Enhanced Efficiency and Processing Capacity:
+ The integration of smart technology helps Viettel Post boost
efficiency in sorting and transporting goods. This automated
system reduces delivery times and significantly enhances
processing capacity.
+ The use of self-driving robots and intelligent sorting systems brings
accuracy and efficiency in goods classification, reducing the risk of
errors and improving the overall accuracy of the logistics process.
● Contributing to E-commerce Development:
+ With the ability to process millions of parcels daily, Viettel Post
plays a crucial role in meeting the growing demands of e-
commerce in Vietnam. The system helps reduce delivery times,
increase responsiveness, and enhance the overall customer
experience.
● Boosting National Logistics Capability:
+ The deployment of smart technology places Viettel Post at the
forefront of applying advanced logistics solutions in Vietnam. This
 enhances Vietnam's position in the international logistics landscape
and promotes the development of the industry in the country.
● Optimizing Costs and Enhancing Sustainability:
+ Automation helps Viettel Post optimize personnel costs and
enhance sustainability in the transportation process. This translates
into reduced resource consumption and waste, contributing to a
more sustainable environment.
- In summary, Viettel Post's inauguration of the first smart technology
system in Vietnam not only sets a new standard in the logistics field but
also reflects the company's commitment to the development and
modernization of the logistics industry in Vietnam.

C. Conclusion

In conclusion, Viettel Post's commitment to innovation and technology

positions it as a key player in Vietnam's logistics sector. The company's
dedication to providing cutting-edge services, embracing advanced
technologies, and its strategic vision for the future set a benchmark for the
industry.

We extend our gratitude to the readers for their time and attention to this
report. As we navigate the dynamic landscape of logistics, Viettel Post remains
at the forefront, shaping the industry's future. We appreciate your interest in
understanding Viettel Post's transformative journey and its pivotal role in
advancing the logistics landscape in Vietnam.

Thank you for your readership.

Suggestions
References