Vietnam’s e-commerce is valued at USD5bn and may reach USD10bn in the next four years, according to the Vietnam E-commerce Association (Vecom)
According to Vecom, Vietnam experienced over 25% growth in e-commerce last year and may have the same growth for 2018-2020 period. Revenue growth of retail e-commerce alone last year was 35%. The revenue growth rate of many delivery companies was from 62% to 200%.
Statistics from the National Payment Corporation of Vietnam show that the number of domestic transactions had a growth rate of 50% last year and growth rate of the total values was 75%. The affiliate marketing also experienced impressive growth as high as 200%.
A recent survey by the BSA centre showed that more people are shopping online, especially young people who are familiar with numerous shopping sites such as Lazada, Shopee and Tiki. Only 0.9% of asked people chose online shopping last year but the figure went up to 2.7% in the 2018 survey.
According to Nielsen, 23 million Vietnamese people often go online shopping and this number will continue to rise.
Vietnam still has many potential markets. Two biggest cities which are Hanoi and HCM City have 154,221 and 159,379 websites with .vn domain respectively. Other cities have much fewer websites. Danang has 7,685 and Thanh Hoa has 3,324 websites.
Nguyen Ngoc Dung, Vice President of Vecom, said it was because citizens in Hanoi and HCM City can access the internet and online-shopping more easily.
Dang Thuy Ha, Director of Consumer Insight of Nielsen Vietnam, said many people were still worried about the quality of the products and delivery time. The interfaces of many websites are also not user-friendly.
Both Alibaba and Amazon have launched their services in Vietnam, showing a positive to the customers and the developing market. However, domestic companies must also shape up for competition.
“The sellers must be honest when advertising. The websites must look beautiful. They must be user-friendly and easy to use to keep customers,” she said.