Vietnam’s e-commerce market to surpass US$17 bln in 2023

Vietnam’s e-commerce market is projected to grow 16.3% from US$9.4 billion last year to US$17.3 billion in 2023, according to GlobalData. (Photo: VietnamPlus)

Singapore-based Business Times on March 10 cited a GlobalData report saying Vietnam's e-commerce market has doubled over the past five years, with total online spending expanding from US$3.9 billion in 2015 to US$9.4 billion in 2019.

“While the traditional payment instruments such as cash, cards and bank transfers are widely used for e-commerce purchases, consumer preference for alternative payments is on the rise,” said Nikhil Reddy, a banking and payments analyst at GlobalData. “There is a growing demand for faster and convenient payment means, especially among tech-savvy millennials.”

According to a GlobalData survey, cash is still the most preferred payment mode, making up 35.6% of e-commerce purchases. Alternative payment solutions are gradually gaining ground, accounting for 15.5%. MoMo is the most preferred alternative payment in Vietnam, followed by PayPal.

Meanwhile, global firms are investing in Vietnamese e-commerce companies, looking to ride on the strong growth.

In 2018, Tiki received US$5.3 million and US$44. million funding from VNG Corporation and Chinese investor JD.com, respectively. In the same year, Sendo secured US$51 million from SBI Group (a Japan-based financial services company) and other investors. Furthermore, Chinese e-commerce giant Alibaba invested an additional US$2 billion in Lazada, one of the leading e-commerce companies in the country.