Trends of E-Commerce
in Vietnam
Vietnamese e-commerce market showed quite rapid growth and isn’t expected to slow down. This progress was facilitated by foreign investments, expanded access to the Internet, and good regulatory framework. According to forecasts, by 2025 online orders will reach about a tenth of all products and services sold in the country.
In this article, we want to explain how developing e-commerce in Vietnam and strong digital economy in general make the country attractive for foreign businesses which want to establish their presence here.
In this article, we want to explain how developing e-commerce in Vietnam and strong digital economy in general make the country attractive for foreign businesses which want to establish their presence here.
E-commerce in Vietnam in 2021
Lazada published a report that concluded that 2021 was prosperous for digital economy not particularly in Vietnam, but in the whole Southeast Asia, where e-commerce mainly provided the growth. This progress was driven by Covid-19, the subsequent trend of grocery shopping on e-commerce platforms, and by increased number of sellers there. For example, number of online retailers increased by 40% in 2021, which results in a 1.5-fold rise in total online retail sales.
58% of Vietnamese consumers claim that due to the convenience of online shopping they are going continue buy groceries on e-commerce platforms. 53% of them say that online grocery shopping has become an alienable part of their everyday lives.
In 2021, the quantity of products bought by Vietnamese on online platforms increased by nearly 50% in comparison to 2020. Besides, consumers in Vietnam started to spend more money online. Statistics show that the percentage of people that spend on online shopping more than 5 million VND in 2021 increased significantly compared to 2019 and 2020.
The Ministry of Industry and Trade in Vietnam issued Vietnam E-commerce White Paper 2021. It showed that the country’s e-commerce market has grown over the past 5 years. Its value has risen from 5 billion USD in 2016 to more than 10 billion USD in 2021.
58% of Vietnamese consumers claim that due to the convenience of online shopping they are going continue buy groceries on e-commerce platforms. 53% of them say that online grocery shopping has become an alienable part of their everyday lives.
In 2021, the quantity of products bought by Vietnamese on online platforms increased by nearly 50% in comparison to 2020. Besides, consumers in Vietnam started to spend more money online. Statistics show that the percentage of people that spend on online shopping more than 5 million VND in 2021 increased significantly compared to 2019 and 2020.
The Ministry of Industry and Trade in Vietnam issued Vietnam E-commerce White Paper 2021. It showed that the country’s e-commerce market has grown over the past 5 years. Its value has risen from 5 billion USD in 2016 to more than 10 billion USD in 2021.
How technologies promote e-commerce
Here we are talking mostly about information technology (IT) and logistic processes.
Vietnamese government is currently focusing on the development of digital economy. It takes measure to encourage IT sphere and digital transformation in operation, management, and growth of e-commerce platforms. Particularly, the Ministry of Information Technology of Vietnam is trying to increase consumer trust in e-commerce, improve the capacity of e-commerce infrastructure systems, and develop its supporting services.
Technologies also contribute to logistics in Vietnam. Talking specifically, delivery business in the country can use information in database to get an idea of hot-selling products in order to help sellers in the process of purchasing goods.
To offer quick delivery, Vietnam’s logistics firms have to upgrade warehouse automation strategy. The technologies are supposed to help shippers in assessment of commodities they will receive and finding the most efficient way to transport them.
Vietnamese government is currently focusing on the development of digital economy. It takes measure to encourage IT sphere and digital transformation in operation, management, and growth of e-commerce platforms. Particularly, the Ministry of Information Technology of Vietnam is trying to increase consumer trust in e-commerce, improve the capacity of e-commerce infrastructure systems, and develop its supporting services.
Technologies also contribute to logistics in Vietnam. Talking specifically, delivery business in the country can use information in database to get an idea of hot-selling products in order to help sellers in the process of purchasing goods.
To offer quick delivery, Vietnam’s logistics firms have to upgrade warehouse automation strategy. The technologies are supposed to help shippers in assessment of commodities they will receive and finding the most efficient way to transport them.
The future of e-commerce in Vietnam: expected trends and forecasts
Facebook and Bain & Company jointly conducted a research which claimed that Vietnam is going be the fastest-growing e-commerce market in Southeast Asia by the year of 2026. E-commerce Gross Merchandise Value will equal USD 56 billion, which is 4.5 times more than in 2021.
Lazada forecasts numerous new trends that will take place in Vietnamese e-commerce. One of them is the continuing rise of social commerce in 2022 and later. Hence, to boost sales companies will use interactive content, virtual booth experience, livestreams, and many other methods to interact with potential customers.
Another trend to observe in the nearest future is multi-channel, which will be a new type of retail. More and more companies will probably use both traditional and online channels by using e-commerce platforms as one of the marketing tools.
Personalization of customer journey. Brands will consider it to be the key to attract and retain cusomers’ attention. There are already many investment projects aimed at implementation of AI and Big Data into the e-commerce platforms. It will provide more effective collection and processing information and lead to creating personal experiences.
E-wallet payments will likely to dominate over payment on delivery (CoD) in the near future. Diversification of payment types makes customers feel convenient and safe.
Vietnam is one of the best performers with rapidly developing digital economy and e-commerce opportunities in Southeast Asia. If you want to enter Vietnamese market or establish your business' presence here, Awesome Products Co. can help you with it. Awesome Products Co. is a Vietnamese distributor that has years of experience selling number of brands not only in Vietnam, but at major marketplaces in Southeast Asia such as Lazada, Shopee, Tiki, and Sendo. Contact us for possible cooperation and inquiries!
Lazada forecasts numerous new trends that will take place in Vietnamese e-commerce. One of them is the continuing rise of social commerce in 2022 and later. Hence, to boost sales companies will use interactive content, virtual booth experience, livestreams, and many other methods to interact with potential customers.
Another trend to observe in the nearest future is multi-channel, which will be a new type of retail. More and more companies will probably use both traditional and online channels by using e-commerce platforms as one of the marketing tools.
Personalization of customer journey. Brands will consider it to be the key to attract and retain cusomers’ attention. There are already many investment projects aimed at implementation of AI and Big Data into the e-commerce platforms. It will provide more effective collection and processing information and lead to creating personal experiences.
E-wallet payments will likely to dominate over payment on delivery (CoD) in the near future. Diversification of payment types makes customers feel convenient and safe.
Vietnam is one of the best performers with rapidly developing digital economy and e-commerce opportunities in Southeast Asia. If you want to enter Vietnamese market or establish your business' presence here, Awesome Products Co. can help you with it. Awesome Products Co. is a Vietnamese distributor that has years of experience selling number of brands not only in Vietnam, but at major marketplaces in Southeast Asia such as Lazada, Shopee, Tiki, and Sendo. Contact us for possible cooperation and inquiries!
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