Vietnam Online Classifieds Market will be Driven by Increasing Number of Property Launches Coupled with Rising Consumer Spending in the Country: Ken Research
“In 2018, Vietnam’s nominal GDP per capita reached USD 2,211, an increase of 5.4% compared to 2017. A solid increase in GDP per capita suggested that an average Vietnamese have more disposable income to spend, which acted as one of the major growth factors for online classifieds market in the country”.
The report titled “Vietnam Online Classifieds Market Outlook to 2023 – By Horizontal and Vertical Classifieds, By Source of Revenue (Listings and Advertising), By Verticals (Automobile, Properties and Recruitment)” by Ken Research (Market Research Company) suggested that the online classifieds market in Vietnam has been increasing due to rising government initiatives, entry of new players with unique business models, value added services, innovative advertising campaigns, introduction of various value added services and enhanced technology features such as 360 degree view and virtual tours coupled with rising interest rate on purchase of new goods through EMI options. The online automotive, property and recruitment classifieds market is expected to register a positive CAGR of 12.3%, 21.8% and 12.5% respectively in terms of revenue during the forecast period 2018-2023E.
Changing Consumer Mindset: As Vietnam started to expeditiously adopt the internet, the migration from print to digital in Vietnam was inevitable and has proven itself to be quite lucrative for digital players. The people in Vietnam have showcased a positive attitude towards online classifieds and shifted their focus from large display ads to online classifieds owning to their cheap running cost. With the current internet penetration and increasing number of smart phone users in the country, it is expected that online classifieds market will continue to exhibit notable growth across various verticals.
Urbanization and Increase in Consumer Spending– Vietnam’s consumer market is constantly evolving, driven by changing consumer lifestyles, income, and behavior. The country has experienced a steady progression of disposable income in recent years, which can be seen in its rapid growth of total consumer expenditure from USD 80 billion to USD 171 billion between 2010 and 2018. The country is also experiencing urbanizing at a rate of 3.4% per year, most of which is in and around Ho Chi Minh City and Hanoi. Urbanization, especially in the two large economic centers, has a central role to play in Vietnam’s economic growth and online classifieds industry as a whole.
Increase in Government Expenditure: The increase in government expenditure after the prolonged housing crisis in 2009 is one of the major drivers for the increase in online listings of residential units in Vietnam. The government provided the real estate market with a USD 1.4 billion stimulus package in 2013, subjected developers to stricter financial requirements, and bought USD 8 billion of non-performing loans especially from the real estate sector. The State Bank of Vietnam (SBV), the country’s central bank, slashed the refinance rate and discount rate several times, and a VND 5 trillion (approximately USD 215 million) credit package was given to homebuyers by the Vietnam Bank for Industry and Trade (Vietinbank).
For more information on the research report, refer to Vietnam Online Classifieds Market