General information about Vietnam
Population: 96,491,146Number of Internet Users: 49,063,762
Internet Penetration: 52.00%
Mobile Phone Users: 25,162,000
Mobile Phone Penetration: 26.40%
Language Spoken: German
Overview of Vietnam e-commerce market
According to surveys, more than half of Vietnam’s Internet users are online shoppers. Vietnam consumers are the most likely to purchase products after browsing online, which is 30% higher than the average level in southeast Asia and with the highest conversion rate in southeast Asia.
Vietnam is home to 92 million people with a total GDP of 194 billion USD. GDP per capita is currently 2,327 USD and expected to reach 3,105 USD by 2021. Vietnam is ranked 164th by the World Bank GDP per capita rankings.
Internet & Digital User Insights
Vietnam is a land of opportunity for foreign and domestic e-commerce companies because of its young population, high Internet penetration rate (ranked 17th in the world), and rising mobile phone penetration rates.
There are currently 35.4 million e-commerce users in Vietnam, with an additional 6.6 million users to be shopping online by 2021. These 42 million e-commerce users will represent 58% of the total population. The average user spends 62 USD online, which will grow to 96 USD by 2021.
Total e-commerce revenue across all product categories is 2.2 billion USD, expected to reach 4 billion USD by 2021. Electronics is currently the leading product category, accounting for 842 million USD market share. Toys, Hobby & DIY is second, accounting for 387 million USD.
By 2021, Electronics will still lead the charge, valued at 1.3 billion USD. Fashion will move into second place, reaching 900 million USD.
In 2016, Vietnam was ranked 64th in the World Bank Logistics ranking. 34% of Vietnam’s population reside in urban areas.
Although there are many international logistics service providers in Vietnam, local ones are in many cases better choices because they have nationwide coverage, industry understanding and experience, as well as cheaper delivery cost. Delivery by motorbikes is the most popular means of delivery thanks to its flexibility and convenience in Vietnam’s narrow streets, small alleyways and dense traffic.
Preferred Online Payments
A significant number of payments for online purchases are made offline via Cash on Delivery (85% of Vietnamese chose this method). Alternate payment methods include: bank transfers, payment cards, e-wallets.
Top 10 E-commerce Sites in Vietnam
LAZADA is a part of Alibaba Group shopping site, which serves the southeast Asian market. It is also Vietnam’s leading e-commerce site. The website sells thousands of goods online at preferential prices, including electronics, clothing, furniture and food etc., and offers many promotions sometimes.
Chotot.com is a classified information website, part of 701Search. 701 Search is a joint venture between Singapore Newspaper Holdings, Schibsted Media Group and Telenor Group. Users can quickly post classified information on this site, including property, electronics, motorcycles, animals and so on.
As a Vietnam’s B2C website, Tiki.vn was founded in March 2010. Initially, the site sold books, then sell books/electronics & accessories/gifts/fashion/beauty & health products. Tiki.vn was founded by Huan Dinh, one of the founders of Vietnam’s largest digital retail chain. Tiki.vn recently received about $20 million from Sumitomo.
Thegioididong.com is Vietnam’s largest digital & household electrical appliance retail chain. The company operates more than 1,000 chain stores, including grocery and green grocery stores. Initially, Thegioididong.com sold mobile & removable digital products, then started selling household appliances, and mainly selling groceries now. According to Euromonitor, Thegioididong.com is one of the Vietnam’s largest e-commerce site for five consecutive years.
Sendo.vn sells fashion and cosmetics products. Sendo is the e-commerce department of FPT (one of Vietnam’s largest telecommunications companies, which owns many products and services such as retail, software outsourcing, and Internet service providers). FPT also owns VnExpress.net, one of Vietnam’s largest online news sites.
5giay is also a classified information website of Vietnam. It was originally as a forum, which was created by a computer store owner to allow customers to discuss computer equipment issues, then this forum grew into a classified information site.
Vatgia.com is Vietnam’s leading e-commerce site, offering hundreds of thousands of products from thousands of different suppliers.
Based in Singapore and part of Sea Group (formerly known as Garena), Shopee was founded in 2009 by Forrest Li. Shopee was first launched in Singapore in 2015, currently it has expanded to Malaysia, Thailand, Indonesia, Vietnam and Philippines.
Adayroi.com is a Vietnam B2C website run by Vin group, which has opened several large shopping centers in Hanoi and Ho Chi Minh City and now investing $100 million in online sales.
Fptshop.com.vn is an e-commerce site in Vietnam that sells mobile phones, laptops, tablets and original accessories at special prices.
Highlights in the future
Revenue in the e-commerce market amounts to US$2,709m in 2019.
Revenue is expected to show an annual growth rate (Compound Annual Growth Rate 2019-2023) of 13.8%, resulting in a market volume of US$4,537million by 2023.
The market’s largest segment is Electronics & Media with a market volume of US$685m in 2019.
User penetration is 52.4% in 2019 and is expected to hit 55.3% by 2023.
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