Vietnam's e-commerce market expecting substantial revenue and profit this year with hundreds of millions of dollars being invested in the sector.
Revenue in Vietnam’s e-commerce market is expected to reach $4 billion this year and record annual growth of 25 per cent annually to stand at $10 billion in 2020, with an online shopping value of $400 per person. The potential of the market is substantial as there are 40 million internet users in the country at the moment with 20 million new users expected over the next five years.
Hundreds of millions of dollars have been poured into the sector but it hasn’t been a case of larger players consuming smaller players, as faster and smarter operations have been key. “There is no dominant e-commerce enterprise in Vietnam; just a few holding on to their leading positions,” Mr. Christopher Beselin, former CEO of Lazada Vietnam, told an e-commerce seminar held in Hanoi recently.
Mr. Tran Huu Linh, Director General of the Vietnam E-commerce and Information Technology Agency under the Ministry of Industry and Trade (MoIT), forecast that by the end of this year there would be a total of 300,000 enterprises with commercial websites accessed daily and 60 per cent of these would have e-commerce functions.
There has been a change in perceptions among enterprises, he went on, about using websites for sales, promotions, and branding. Some even have a few different websites and mobile sites, which are not only an effective sales channel but are also a tool for businesses to differentiate themselves from one another.