Vietnam's online retail sales will more than double by 2020
The Vietnam E-Commerce Association said online retailers in the country will continue to rake in huge revenues in the next five years with sales expected to hit US$10 billion in 2020.
Nguyen Thanh Hung, vice chairman of the industry group, said the market has finished its first stage of development, creating technology infrastructure, legal frameworks and a workforce ready for the next phase of growth.
“It now has enough momentum for a new stage,” Hung said, as cited by the news website Saigon Times Online.
He said the industry will grow by more than 30% a year possibly until 2025, compared to the current 25%.
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| E-commerce in Vietnam is forecast to grow at more than 30% a year until 2025 |
Online retailers posted sales of US$4 billion last year and they are going to make US$10 billion in 2020, accounting for 5% of Vietnam's total retail sales, Hung said. In 2014 that ratio was around 2.1%.
Tran Trong Tuyen, CEO of Hanoi-based DKT, which offers online technical support for around 15,000 retailers in Vietnam, said Vietnam’s e-commerce market now centralizes on Hanoi and Ho Chi Minh City.
The two biggest cities make up for 75% of the total online retail sales, Tuyen said.
Once the industry starts to expand to other cities and provinces, it will see a major boom and become five times as big, he said.
