E-commerce anticipated to record stellar growth in 2021
VOV.VN - With a population of over 95 million people, coupled with young demographics and high levels of Internet access, the local e-commerce market is set to enjoy growth in the future thanks to these solid foundations, according to the Ministry of Industry and Trade (MoIT).
Following the growth of e-commerce over previous years, in addition to the growth of electronic payment methods, the Ministry of Industry and Trade are set to focus on developing e-commerce infrastructure in the year ahead. This is in addition to fine-tuning institutions and legal frameworks for e-commerce in order to create a transparent, clear, and favourable legal environment for Vietnamese businesses and consumers.
The nation is currently considered one of the fastest growing e-commerce markets throughout Southeast Asia. Therefore, this year will see the MoIT accelerate the implementation of the National E-commerce Development Master Plan for the 2021 to 2025 period, which has been adopted by Prime Minister Nguyen Xuan Phuc.
Furthermore, the MoIT will continue to promote the increased use of information technology and digital transformation in management and administration, while also perfecting the foundations for e-Government development.
Last year e-commerce activities were largely considered, renewed, and focused on creating a new and stronger driving force for national commerce development moving forward.
The MoIT has managed to digitise the market information system and upgrade the export support platform of Vietnam ECVN.com. This marks the country’s first e-commerce platform to operate under the B2B model, with ECVN aiding many domestic enterprises to successfully export their products whilst becoming a reliable address for firms that need to export and seek international customers.
Last year saw approximately 53% of the population engage in online shopping. Despite suffering the impact of the novel coronavirus (COVID-19) pandemic, the nation’s e-commerce revenue grew by 18%, on from 25% growth in 2019, reaching US$11.8 billion and accounting for 5.5% of total retail sales and consumer service revenue nationwide.
Domestically, e-commerce represents a popular business form for enterprises and has enjoyed strong spread throughout the consumer community. Compared to other markets in Southeast Asia, the country boasts retail market share growth that is in the top three in the region.
Most notably, since 2015 the growth rates of the three largest Internet economies in Southeast Asia averaged between 35% to 36%, of which Indonesia ranked first at 41%, trailed by Vietnam at 36%, and the Philippines at 30%.