E-commerce market achieves major breakthrough

More and more consumers are choosing to shop online

Double-digit growth

Vietnam’s e-commerce market is predicted to record 28 percent growth, the highest rate among Southeast Asian nations, and reach US$40 billion by 2027. The average contribution of e-commerce to total retail has continued to increase at 15 percent, accounting for six percent of Vietnam’s total retail value.

Khoi Le, Meta's Vietnam Country Director, said Southeast Asia's e-commerce market has many opportunities in terms of userbase. Vietnam recorded an increase of four million digital consumers in 2022. Eight out of ten individuals of working age are digital consumers. This means there are 60 million active digital consumers in Vietnam.

According to the White Book on Vietnamese E-Business 2022 released by the Ministry of Industry and Trade’s Vietnam e-Commerce and Digital Economy Agency, the size of Vietnam's e-commerce retail sector was expected to increase by 20 percent in 2022, reaching approximately US$16.4 billion. In addition, it is anticipated that between 57 and 60 million Vietnamese engage in online shopping, spending US$260-285 per capita.

This outcome is a result of Vietnam's utilization of the e-commerce development trend and the completion of a progressive regulatory framework governing online buying activities. Since the issuance of Government Decree 52/2013/ND-CP on e-commerce, revenues from retail e-commerce have climbed from US$2.2 billion in 2013 to US$16.4 billion in 2022.

E-commerce promotes the development of cashless payments

Completing the payment system

According to the Vietnam e-Commerce and Digital Economy Agency, e-commerce promotes the growth of electronic payments because 90 percent of goods and products purchased on e-commerce floors are paid for online using bank cards. Despite the pandemic, internet and mobile phone transactions in Vietnam increased by 238 percent.

In its forecast for Vietnam's e-commerce business, the professional team of e-commerce portal iPrice emphasized the relevance of e-commerce in the future. In addition, the iPrice expert team identified several major trends. These include tailoring the shopper experience as consumers become increasingly reliant on e-commerce companies to help them find the things they need while also streamlining the supply chain to reduce delivery time and improve product quality.

The second trend is the development of cashless transactions. According to a survey by Facebook and Bain & Company, the rate of cash payments (Cash on Delivery) in Vietnam declined from 60 percent in 2020 to 42 percent in 2021, while e-wallet usage increased by up to 82 percent, compared to an 18 percent rise in bank transfers.

Implementing the 2021-2025 National E-commerce Development Master Plan, Vietnam's industry and trade sector will continue to collaborate with banks to develop e-commerce in the next years, creating favorable conditions for e-commerce platforms.

Specifically, the Ministry of Industry and Trade will continue to improve the legal framework; promulgate policies, regulations, and implement comprehensive solutions to increase the rate of e-payment on mobile platforms and reduce the use of cash; develop infrastructure and solutions to support electronic transactions and integrate payments in e-commerce; and concentrate on the development of payment utilities on mobile platforms.

To create more favorable conditions for e-commerce, the ministry will continue to improve the legal framework and issue policies to increase the rate of electronic payments; provide infrastructure and solutions to support electronic transactions; and develop payment facilities such as e-wallets, QR code, NFC, and POS.