BEST's 100-day strategy targets IPO

BEST Vietnam launches "100-day breakthrough" strategy focusing on operations, cash flow, and technology to achieve break-even point, paving the way for an initial public offering (IPO), according to CEO Gavin Lu.

Gavin Lu, the current CEO of BEST Malaysia, was appointed CEO of BEST Vietnam in late May. At 38, he is the only CEO at BEST Inc. simultaneously managing three key markets: Vietnam, Malaysia, and Yunnan (China). Immediately after taking on the role in Vietnam, he launched the "100-day breakthrough" strategy with the goal of bringing BEST Express to a break-even point by August – a foundational step towards listing on the stock exchange.

In an interview with VnExpress, Lu shared more about the changes in the Vietnamese market and the long-term strategy for sustainable development within the e-commerce ecosystem.

- You helped BEST achieve 90% market share in express delivery in Malaysia in just one year. What was the strategy?

- I was fortunate to witness BEST's growth and development in Malaysia. In January 2024, I was honored to be appointed CEO of BEST Malaysia by BEST Inc., responsible for establishing the express delivery network there. At that time, I was directly involved in the planning and implementation of express delivery operations, gaining hands-on experience in building a market from scratch.

The core of the strategy was successfully building a nationwide express delivery network, including several key transit centers and over 300 post offices, ensuring coverage of both the western and eastern regions. Through a localized franchising model, we quickly completed the network and achieved nationwide coverage of over 90% within a year.

The rapid increase in the number of post offices needed to be accompanied by smooth operations. We continuously optimized the efficiency of main and branch routes, implementing automated sorting systems and digital management, significantly increasing both goods processing capacity and delivery efficiency.

Another advantage of BEST is our collaboration with e-commerce platforms and online sellers, implementing various customized solutions to increase customer engagement and expand market penetration. These approaches have helped the brand expand and can serve as a model for other markets.

- Why did you decide to move to Vietnam?

- Vietnam is one of the fastest-growing e-commerce markets in the region, with a scale exceeding 25 billion USD and projected to grow 18-25% annually over the next 5 years. For me, this is not only an opportunity but also a challenge to apply my experience and work with the team here to develop an efficient logistics ecosystem.

Currently, BEST Vietnam has built a nationwide franchise network with nearly 1,000 post offices operating across the country, ensuring efficient transit and last-mile delivery capabilities. We remain committed to the strategy of "localized operations combined with standardized management," empowering franchisees and improving training and technology support systems to continuously enhance service quality and network coverage.

In the coming period, I hope to work with the team to further promote BEST Vietnam's comprehensive transformation in digitalization, service experience, and operational efficiency, while strengthening cooperation with leading e-commerce platforms, making BEST a trusted logistics partner in the e-commerce ecosystem. This is not only a significant development phase in my personal career but also a strategic step in BEST's development journey in Southeast Asia.

- On a personal level, how do you manage three different markets simultaneously?

- I apply a cross-time and cross-space working method. Every week, I have at least one online meeting with each market. Daily, I have video calls with department heads to stay updated. I travel monthly between the three countries, but I still dedicate 50% of my time to Vietnam, as this is where the highest focus is needed during the IPO phase.

Malaysia values discipline and speed, Vietnam is flexible and creative, and the Chinese team is very technical and meticulous. I build a common foundation of a transparent culture where everyone can contribute. Additionally, I organize monthly online sharing sessions across the three countries to help everyone understand each other better and share success stories.

- You started your role in Vietnam in May. Then, the "100-day breakthrough" campaign was launched. Why 100 days?

- When I arrived in Vietnam in May and saw the market's potential, I proposed the "100-day breakthrough" campaign, hoping to create a strong breakthrough for BEST Vietnam.

I chose the number 100 because it symbolizes prosperity and completeness. I hope we will quickly achieve complete results as expected.

"100-day breakthrough" is the first phase to shift BEST Vietnam away from old operational thinking and focus on service efficiency and customer experience. If we can create significant change within 100 days, then we will have the strength to consider an IPO.

In the second half of 2025, BEST Vietnam will focus on 4 key strategies. First, we aim to make breakthroughs in service quality and customer experience by standardizing receiving and delivery processes and increasing service quality management at each post office. This is the premise for enhancing customer satisfaction.

Next is to enhance the safety and efficiency of cash on delivery (COD) management, ensuring transparent, timely, and accurate cash flow throughout the system. We will also accelerate the expansion of the nationwide franchise network, aiming for 1,000 franchise post offices by the end of 2025, while increasing coverage in remote areas, wards, and communes.

Most importantly, we aim to maintain our position among the top 3 express delivery brands in Vietnam by enhancing our competitiveness in pricing, delivery speed, and customer service.

To achieve this, we will promote smart technology and its deeper application in the operational chain, especially in the stages of sorting and tracking parcels, to optimize goods processing speed, improve management accuracy, and minimize risks.

- Breakthroughs in service quality and enhanced customer experience are the goals of every business. What are the specific challenges in the delivery industry that make this goal more demanding, and how do you address them?

- Service quality and customer experience are always central to all our activities and are also one of BEST Vietnam's most important breakthrough directions in 2025. As CEO, I will concretize this goal through three main aspects.

First and foremost is process standardization. We are redesigning the entire service process chain, from collection and transit to delivery, to establish a unified set of operational standards, ensuring that each touchpoint reflects professionalism and consistency.

The next step is system digitalization, including implementing a smart customer care system, optimizing order tracking features, and feedback mechanisms. This will enhance the customer's intuitive experience, aiming for a service process with "feedback – processing – clear results."

In addition, we will strengthen training for all staff, from operational staff to delivery personnel, so that everyone deeply understands local customer needs and the importance of enhancing service quality to provide the best possible service. Operations need to be tailored to customers in different regions, providing experiences that not only meet but exceed expectations.

Previously, we equipped two core technology systems: DWS (Dimensioning Weighing Scanning) and WCS (Warehouse Control System), integrating artificial intelligence modules for automatic coordination and processing of goods flow. This center can process over 1 million orders per day, shortening the order sorting time. Products reach users in less than 48 hours from order placement.

- The security of COD fees is always a concern for online sellers. What does BEST do to ensure maximum peace of mind for its partners?

- Security in managing COD (cash on delivery) is highly prioritized because it not only directly affects cash flow and profits but also relates to the level of trust partners have in BEST. To address this, BEST Express has implemented several specific solutions to ensure a transparent, secure, and effectively controlled COD process.

First, we have put into operation a fully automated and transparent COD reconciliation system, integrating clear and easy-to-use reporting features directly within the user application. This allows sellers to monitor payment status, order status, and refund times at any time, increasing their proactivity and control over cash flow management.

Collaborating with reputable financial and payment platforms like VNPAY, ZaloPay, Techcombank, and soon Momo, offers a unique method: cashless COD. Upon receiving goods, buyers can pay directly electronically. This is fast, secure, and minimizes risks associated with cash circulation.

In addition, the entire delivery team is thoroughly trained on procedures, required to follow standard operating procedures, and obtain proper signatures. The collection, disbursement, and refund stages are monitored in real-time by the Risk Management Department, ensuring tight and closed-loop control from start to finish.

- What results have these strategies brought to BEST?

- Firstly, we have standardized all operational processes, from goods processing time at the center and delivery completion speed to the ability to manage return orders. Thanks to comprehensive digitalization and real-time coordination, the total processing time for each order has been reduced by 2-3 hours compared to the beginning of the year. The on-time delivery rate has increased by 15%, and the order volume has increased by 20% compared to the same period last year. This achievement is the result of the efforts of the entire operations team.

We aim to reach the milestone of 1,000 franchise post offices nationwide. Achieving this number of franchised post offices will shorten delivery times, enhancing customer experience in both delivery and after-sales care. If we achieve these two objectives, BEST will reach the break-even point by the end of 2025. This is a necessary condition for BEST Vietnam to become an independent company and pursue an IPO.

- Why did you choose the break-even point and IPO for this strategy?

- Only through an IPO can we truly become a transparent, sustainable entity and compete fairly with other major players in the market. An IPO is not just about raising capital; it's a testament to the company's internal strength.

We didn't come to Vietnam just for express delivery. We want to build a sustainable e-commerce logistics ecosystem capable of an IPO and contributing to the development of the digital economy. The "100-day breakthrough" is just the beginning.