South China Morning Post puts forward Vietnam as promising market for e-commerce
VOV.VN - Featuring a developing economy coupled with a population of over 97 million, Vietnam is viewed as an increasing promising market for e-commerce despite the negative impact of the COVID-19) pandemic, according an article published on June 1 by the South China Morning Post.
The article cites a report published in January by the country’s Ministry of Industry and Trade’s Department of E-commerce and Digital Economy which states that 53% of the Vietnamese population have already engaged in online retail activities.
It went on to note that the “E-conomy SEA 2020” report compiled by Google, Temasek, and Bain & Company show that Vietnamese e-commerce grew by 46% last year, alongside strong growth recorded across the majority of sectors, with the exception of travel. Looking ahead to 2025, the report suggests that the local economy will reach US$52 billion in value, ranking third in Southeast Asia.
According to details stated in the article, the country’s fast-growing middle class is driving the sector’s increasing expenditure, with its number reaching 33 million in 2020, a climb from 12 million in 2012. With the expansion of the local middle class, there’s also a growing interest in top luxury brands, according to the author.
Furthermore, the second most popular channel for shopping for luxury brands is through social media, with Vietnamese people spending roughly seven hours per day on average on the internet, with the majority of this time being spend on Facebook, YouTube, Zalo, and Instagram.
The report therefore concludes that the country can be a gold mine for individual small sellers through private online shops. Fashion and beauty are the two most common searches and purchases made online too, accounting for 55% and 30%, respectively, according to the Asia Plus survey.
During the COVID-19 pandemic, e-commerce continued to surge, with the article citing a report conducted by iPrice Group and App Annie which shows that the total number of visits to Vietnamese online shopping applications in the second quarter of 2020 reached 12.7 billion, its highest ever figure. Indeed, this marks a rise of 43% compared to the first quarter. During the initial six months of 2020, the average spending on online shopping of Vietnamese people increased by 31% over the same period compared to the previous year.