Vietnam targets 55% of population shopping online by 2025
Hanoi and Ho Chi Minh City would make up half of the country’s e-commerce revenues in the next five years.
The Vietnamese government targets around 55% of the population to shop online with an average spend of US$600 annually by 2025.
According to a government’s plan for the development of e-commerce by 2025 released on May 18, revenue from online sales of business-to-consumer e-commerce, known as B2C e-commerce, is set to grow by 25% per year to US$35 billion, accounting for 10% of total goods retail sales and service revenues.
Meanwhile, the government expects the rate of population using related services, including non-cash payment services, at 50%, and through intermediary payment services at 80%.
The plan aims to keep delivery costs at around 10% of product prices in e-commerce.
By 2025, 80% of e-commerce websites should be integrated with online shopping and 70% providing e-invoices.
Notably, Hanoi and Ho Chi Minh City would make up half of e-commerce revenues in the next five years.
The government envisions half of the country’s small and medium enterprises providing online shopping services (including via social networks); 40% having mobile apps; 70% providers of electricity, water, telecommunications and media services having e-contracts with customers.
Data and analytics firm Global Data forecast Vietnam’s e-commerce market to surpass VND399.5 trillion (US$17.3 billion) in 2023 from VND218.3 trillion (US$9.4 billion) in 2019, representing a compound annual growth rate (CAGR) of 16.3%.
According to GlobalData’s 2019 Banking and Payments Survey, cash is still the most preferred payment mode for e-commerce purchases in Vietnam, accounting for 35.6% in 2019. Alternative payment solutions are gradually gaining ground and accounting for 15.5% share. MoMo is the most preferred alternative payment solution in Vietnam, followed by PayPal.
Meanwhile, such strong growth of the market has prompted global companies to invest in Vietnamese e-commerce businesses. In 2018, Tiki, a local e-commerce company, received US$5.3 million and US$44 million funding from IT firm VNG Corporation and Chinese investor JD.com, respectively. In the same year, another company 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.
- First batch of Vietnamese frozen dracontomelon fruit exported to Australia
- E-commerce to accelerate consumption of Vietnamese farm produce
- Vietnam warned of lagging behind in economic recovery
- US removes anti-dumping duty on Vietnam's OCTGs
- Vietnam expects no trade barrier in export to US: Trade Ministry
- Vietnam exports surge over 25% to US$186 billion in 7-month period
- Exports remain key role in Vietnam's economic growth
- IMF maintains Vietnam GDP forecast at 6.5% in 2021
- Hanoi has over 8,000 essential goods outlets during social distancing period
- Australian consumers enjoy Vietnamese dragon fruit at trade fair
Vietnam welcomes US-Mekong relations for sustainable development
China pledges more Covid-19 vaccines for ASEAN
ASEAN-Japan accelerate cooperation in Covid-19 response
Today’s Covid News: Ho Chi Minh City coronavirus infections surpass 100,000
UK donated Covid-19 vaccine arrives in Vietnam
Vietnam textile industry struggles to keep market share
First batch of Vietnamese frozen dracontomelon fruit exported to Australia
US Vice-President Kamala Harris to visit Vietnam next month
Hanoi restaurants win 2021 TripAdvisor’s Awards