Vietnam"s e-commerce forecast to continue booming

Illustrative photo (Source: thoibaonganhang.vn)

Vietnam’s e-commerce is projected to continue booming in 2023 and developing firmly in the following years, aided by a series of growth drivers such as the wave of digital transformation, consumers’ trust, technological infrastructure, and favourable mechanisms and policies issued by the Government.

Boasting some 100 cross-border e-commerce platforms, Vietnam has been ranked among the top five nations with regard to the sector’s growth of 20% a year by eMarketer. Last year, the country’s top four platforms – Shopee, Lazada, Tiki, and Sendo – generated 135 trillion VND (5.73 billion USD) in revenues.

Meanwhile, the scale of the country’s retail e-commerce market was estimated to reach 16.4 billion USD last year, accounting for 7.5% of the country’s goods and service revenues. There were approximately 57-60 million Vietnamese people shopping online, with their spending averaging 260-285 USD.

According to the White Book on Vietnamese E-Business 2022, up to 74.8% of Vietnamese internet users purchased goods and services online, with the most consumed commodities named apparel and cosmetics, household items, and technological and electronic devices.

Nguyen Thanh Hung from the Vietnam E-commerce Association (VECOM) assessed that the market sees extensive room for growth as it obtained significant attention from the Government for related institutions, policies, human resources training, and cashless payments.

Nguyen Thi Minh Huyen, Deputy Director of the Vietnam E-commerce and Digital Economy Agency, said the Government targets pushing the rate of e-commerce in the country’s total retail to over 20%. The local retail market is now worth some 250 billion USD.

Tran Trong Tuyen, General Director of Sapo Technology JSC, highlighted advantages of the Vietnamese market such as foreign capital inflows, domestic technology development, and a comprehensive and convenient e-commerce ecosystem, among others. He also forecast a quick and firm growth for the sector in the time to come./.