The Hanoitimes - E-commerce sales are forecast to reach US$10 billion by 2020, accounting for 5% of total retail and services revenue, while 30% of the population will shop online, spending an average of US$350 per person annually.
Vietnam's e-commerce market has witnessed high growth rate since 2013, with online sales increasing from US$2.2 billion in 2013 to US$6.2 billion in 2017, averaging annual growth rate of 20%, the government portal reported.
In the 2013 - 2018 period, e-commerce has been vital in transforming and modernizing the distribution system in particular, and Vietnam's commerce market in general, stated Cao Quoc Hung, vice minister of Industry and Trade, in a conference on September 14.
Vietnam currently has 50 million internet users, accounting for 54% of the population and higher than the world's average of 46.64%, Hung informed.
In 2017, around 33 million people shopped online at least once a year, while the retail e-commerce sale increased from US$2.2 billion in 2013 to US$6.2 billion in 2018, contributing 3.8% to the total retail and services revenue.
Le Thi Ha, head of the policy office of the Department of E-Commerce and Digital Economy, said e-commerce sales are forecast to reach US$10 billion by 2020, accounting for 5% of total retail and services revenue, while 30% of the population will shop online, spending an average of US$350 per capita annually.
Additionally, e-commerce activities have become more diversified, not only via the computer, but also in other devices such as smartphones and tablets.
Moreover, Vietnam's legal framework and policies, especially Decree No.52 on e-commerce, have played a key role in creating favorable conditions for high growth rate of the retail e-commerce market.
The decree aims to ensure fairness between e-commerce and traditional commerce, of which enterprises operating in e-commerce must comply with laws and regulations in equal to that of traditional one.
From 2013 to date, the most popular products sold online included clothing, footwear and domestic (59%), electronic devices (47%), and household appliances (47%), among others, while payment and delivery methods have been used flexibly by enterprises.
Satisfaction of customers when shopping online increased from 29% in 2013 to 54% in 2017, according to the ministry.
However, the rapid advancement of technologies in the context of the Fourth Industrial Revolution has made an significant impact on e-commerce activities, but at the same time created opportunities for change.
Hung pointed to new models of e-commerce which have not been covered in the current legal framework, especially the issue of managing cross-border e-commerce activities and tax collection that should be in the focus of the government in the coming time.