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Vietnam Post makes effort to become a technology enterprise

In the context of the world strong technology development, the decline in the volume of traditional postal services urges domestic postal operators to focus on IT applications in their postal operation and provision of postal services, as well as fully engaging in e-commerce supply chain to create digital postal services.

Vietnam Post invested a modern sorting machine with a capacity of 18,000 parcels/hour to sort parcels quickly

According to Mr. Le Quoc Anh, Executive Vice President of Vietnam Post, information technology is becoming a platform and a tool to increase capacity and service quality of Vietnam Post network. Now, Vietnam Post is managing its large network with about 20,000 computers connected online with over 10,000 service points to update customer’s delivery bills. Vietnam Post has also invested a sorting machine with capacity of 18,000 parcels per hour to sort parcels quickly, ensure service quality, and automatically update information for timely postal operation.

Other postal operators have also applied information technology to improve productivity, business efficiency and service quality. However, many new business models are developed to create strong competition in traditional postal market.

In a review report on postal revenue in 2019, Postal Services Department of Vietnam Ministry of Information and Communication (MIC) revealed that the gap in postal revenue and total revenue became bigger. MIC leaders also requested postal operators to change their business models to become technology enterprises, especially to serve more individuals and households.

In this development trend, Mr. Chu Quang Hao, President and CEO of Vietnam Post said that among digital transformation projects, Vietnam Post placed a special focus on the digital service development project and the digital and physical service ecology development project.  With the advantages of postal address database, conducting resident database system, Vietnam Post is developing e-commerce services to serve households with the first step in such big cities as Hanoi.

In the move to provide e-commerce services, Mrs. Nguyen Vu Hong Thanh, Director of Postal Services Department, MIC said that doing business on social network and smartphone platform was a trend, especially for small and medium size enterprises, individuals and households. Such large enterprises as Vietnam Post not only play an important role in retailing national network but also develop their multi-service ecology to increase business efficiency and earn new incomes.