Local e-commerce market to be valued at US$52 billion by 2025

VOV.VN - Vietnam’s e-commerce growth rate is predicted to reach an average of 29% annually throughout the 2020 - 2025 period, with the local online market size anticipated to be US$52 billion in 2025.

The figures were released on April 20 by the Vietnam E-Commerce Association (VECOM) at the Vietnam Online Business Forum (VOBF) 2021 taking place in Hanoi.

The 2016 to 2019 period witnessed strong development of the local e-commerce market, obtaining an annual growth rate of approximately 30%, according to a report compiled by Google, Temasek, and Bain&Company. In spite of the low starting point of just over US$4 billion in market value in 2015, the size of the Vietnamese e-commerce market had grown to US$11.5 billion by 2019 and US$15 billion last year.

Nguyen Binh Minh, member of the VECOM’s Executive Board, said the majority of e-commerce activities in the country take place in the two largest cities, Hanoi and Ho Chi Minh City.

Most notably, the domestic e-commerce scene enjoyed robust growth following the emergence of coronavirus outbreaks, he said.

Trinh Khac Toan, representative of Amazon Global Selling Vietnam, noted that the scale of e-commerce retailing is continuing to post strong growth. Indeed, the growth of retail sales on global e-commerce platforms has risen by 22% over the past five years, and the figure is expected to reach over 20% this year.

In reality, an increasing number of domestic enterprises are selling goods through Amazon. Local firms are largely focusing on building brands within the global market, such as Ecoba rice and Trung Nguyen Legend Coffee.

The main advantage is to connect to distributors and gain access to 300 million consumers from around the world, Toan stressed. 

A quick survey conducted by the VECOM in May, 2020, reveals that Vietnamese businesses are more dynamic and show more interest in online business.

The survey also unveils that a growing number of consumers hope to receive products ordered online in order to save time whilst having plenty of choice for favourite products.

According to the VECOM, the digital marketing services have enjoyed strong growth over the years, with their revenue rising from just US$26 million in 2010 to US$820 million in 2020, and predicted to reach US$1 billion this year.