Online retail uploads into rapidly expanding Vietnamese market

Vietnam’s e-commerce market climbed to about US$4 billion in 2016 as one of the fastest-growing markets worldwide. 

Revenue from online retail in Vietnam is forecast to hit US$10 billion by 2020, accounting for 5% of the country’s retail market.

“The growth rate of Vietnam’s e-commerce market is estimated at about 35%, which is 2.5 times higher than Japan,” said industry expert Duc Tam at the recently-held Vietnam Online Business Forum 2017.

Online sales in Vietnam have expanded rapidly in recent years, currently accounting for 3.39% of the country’s retail market. The total retail market grew 10.2% last year to US$118 billion, mainly fuelled by a growing middle-class with expanding disposable incomes and an increasing number of internet users.

The World Bank forecasts that Vietnam’s US$200 billion economy is likely to grow to a trillion dollars by 2035. More than half of its population, compared with only 11% today, is expected to join the ranks of the global middle class with consumption of US$15 a day or more.

According to one estimate, about 30% of the population will be buying goods and services over the internet in 2020, with each shopper spending an average of US$350 per year.

Just three years ago Vietnam was ranked the smallest e-commerce market in Southeast Asia in terms of sales. Now its online retail is gaining momentum with more than half of the country's 92 million people increasingly turning to online shopping.

According to Internet World Stats, Vietnam is currently ranked 18th in the world in terms of the number of internet users, with mobile subscription rates as high as 4 out of 10 people.