Opportunities Preloader

Please Wait.....

Report

Vietnam E-commerce Market - Growth, Trends, COVID -19 Impact, and Forecasts (2022 - 2027)

Market Report I 2022-06-01 I 95 Pages I Mordor Intelligence

Key Highlights
In Vietnam, E-Commerce revenue continues to surge with the formation of new markets and the opportunities for growth for established markets. With their growing middle classes and lagging offline shopping infrastructure, East and Southeast Asia are expected to drive this trend.
The Vietnamese government is actively promoting a cashless society to lower cash transactions to less than 10% of total payments and reach 70% of the banking population. The Vietnamese government approved a national e-Commerce growth master plan in May 2020. This master plan is perfectly aligned with current Vietnamese Fourth Industrial Revolution strategies and policies, with the overarching goal of establishing a digital economy and fostering national digital transformation.
Moreover, the plan intends to encourage enterprises and consumers to use e-commerce, close the gap between major cities and localities, create a sustainable virtual market, and increase cross-border online trading. The Vietnamese government, in particular, is actively promoting a cashless society, intending to reach a cashless payment rate of over 50% by 2025.
Vietnam has one of the most favorable legal environments in the ASEAN region. Five of the six legislation intended to regulate e-commerce activity have been passed in the country. The e-commerce sector has dominated the recent development of the country's ecosystem of transportation, distribution, and fulfillment services. Vietnam is a member of thirteen free trade agreements (FTAs) that allow goods to be imported and exported with reduced or zero customs tariffs as of 2020.


Key Market Trends

Rise of Digital Payments Across the Vietnam


The growth of Vietnam's digital payments sector is fueled by the expansion of e-commerce as an alternative to traditional brick-and-mortar sales. Increased desire for contact-free and cashless transactions has been facilitated by improved acceptance of digital financial technology (fintech) and the COVID-19 pandemic. Cash payments presently account for about a significant share of all e-commerce transactions in Vietnam. Still, this figure is anticipated to decline by 2025 with increasing interest in digital payment modes.
Moreover, the increasing use of digital payment mechanisms in Vietnam is fueled by the country's burgeoning e-commerce economy and positive regulatory reforms. E-wallets have the most significant growth estimates of all payment modes over the forecasted period compared to other digital payment methods.
The rapid expansion of Vietnam's 4G infrastructure has reduced mobile internet costs. The country's mobile phone base has grown to over 100 million registered subscriptions because of affordable mobile internet access. One of the pillars for the quick adoption of e-commerce and digital payments in Vietnam has been many internet users and cheap internet connections.
For Instance, in September 2020, the Indonesian ride-hailing company Gojek recently purchased the controlling share in WePay, a Vietnamese payments startup. Gojek will be able to receive an e-wallet license as a result of this agreement, allowing it to expand its digital enterprises in the region. Gojek has obtained partnerships with 24 local banks, 1000 retailers, and four international card issuers with this acquisition.


Rise in Regional E-commerce Platforms


Vietnam's ability to foster e-commerce is demonstrated by the success of various Vietnamese-origin e-commerce platforms, such as Tiki, Sendo, and Thegioididong. These platforms have grown into big e-commerce powerhouses thanks to investments from Japan, Germany, the United States, South Korea, China, and Singapore.
For Instance, in December 2020, Tiki raised USD 130.0 million from NorthStar Group, in addition to majority ownership from China's JD.com. Another example of these investments is Sendo.vn's acquisition by Japan's SBI Holdings for USD 51.0 million. Grab and Gojek, the two most valuable startups in the region, are weighing the pros and cons of a possible merger. This transaction has the potential to change the e-commerce landscape in Southeast Asia.
Furthermore, merchants should prioritize mobile commerce to beat the domestic competition: only 19 percent of local merchants' websites are mobile-friendly. According to JP Morgan, apps are preferred over browsers for making online purchases in Vietnam, accounting for 62% of all transactions.
Shopee, Lazada, and Tiki.vn are the leading shopping applications for monthly active users in Vietnam. Shopee and Lazada are fighting it out for a market share in Southeast Asia. On the other hand, Amazon does not have a significant market share in the country.


Competitive Landscape

Thegioididong.com is one of the key players in the Vietnamese e- commerce market. Other major players include fptshop.com.vn, and shopee.vn.. The studied market is dominated by these major three players. These are popular sites to decide which ones would be the best fit for users' items in terms of visitor volume, competition, and the types of e-commerce consumers they attract.


February 2022 - Vietnamese cross-border eCommerce company OpenCommerce Group (OCG) has raised USD 7.0 million in Series A funding round led by VNG, a media company that is Vietnam's first unicorn. OCG says its products also support sellers with offerings that include order management, shipping, marketing, and payments. The company says it has helped more than 86,700 sellers in 195 countries set up their stores, generating USD 670.0 million in gross merchandise volume.
April 2022 - Tiki has launched Shop2Earn, a new blockchain-based rewards program that allows customers to gain more financial benefits from their bonus points. Tiki users will be rewarded with Astra instead, which can be traded on Tiki Exchange. As such, the value of Astra fluctuates and is currently pegged to Tiki Coin - one Tiki Coin is equivalent to one Vietnamese dong.


Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness-Porter's Five Force Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Key market trends and share of E-Commerce of Total Retail sector
4.4 Impact of COVID-19 on the E-Commerce sales

5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Formal E-Commerce Platforms Grow alongside Social Commerce
5.1.2 Consumers are Driven to Online Platforms for Grocery needs by Wider Assortment and Fast Delivery
5.2 Market Challenges
5.2.1 Low Non-cash Payment Usage
5.2.2 Security Risks and Concerns over Electronic Payment
5.3 Analysis of key demographic trends and patterns related to the E-Commerce industry in Vietnam (Coverage to include Population, Internet Penetration, E-Commerce Penetration, Age & Income etc.)
5.4 Analysis of the key modes of transaction in the E-Commerce industry in Vietnam (coverage to include prevalent modes of payment such as cash, card, bank transfer, wallets, etc.)
5.5 Analysis of cross-border E-Commerce industry in Vietnam (Current market value of cross-border & key trends)
5.6 Current positioning of Vietnam in the E-Commerce Industry in Asia-Pacific

6 MARKET SEGMENTATION
6.1 By B2C E-Commerce
6.1.1 Market size (GMV) for the period of 2017-2027
6.1.2 Market Segmentation - By Application
6.1.2.1 Beauty & Personal Care
6.1.2.2 Consumer Electronics
6.1.2.3 Fashion & Apparel
6.1.2.4 Food & Beverage
6.1.2.5 Furniture & Home
6.1.2.6 Others (Toys, DIY, Media, etc.)
6.2 By B2B E-Commerce
6.2.1 Market size for the period of 2017-2027

7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Shopee Pte. Ltd.
7.1.2 Lazada Vietnam
7.1.3 TiKi Corporation
7.1.4 Cho Tot
7.1.5 Sendo Vietnam
7.1.6 The Gioi Di Dong
7.1.7 Dien May Xanh
7.1.8 FPT Shop
7.1.9 Cellphone S
7.1.10 Bach Hoa Xanh
7.1.11 Dien May Cho Lon
7.1.12 Hoang Ha Mobile
7.1.13 Meta
7.1.14 Nguyen Kim
7.1.15 Mediamart
7.1.16 Viettel Store

8 INVESTMENT ANALYSIS

9 FUTURE OUTLOOK OF THE MARKET

  • Not Sure / Need Reassuring
    • Confirm Content
      • Content is provided by our partners and every effort is made to make Market Report details as clear as possible. If you are not sure the exact content you require is included in this study you can Contact us to double check. To do this you can:

        Use the ‘? ASK A QUESTION’ below the license / prices and to the right of this box. This will come directly to our team who will work on dealing with your request as soon as possible.

        Write to directly on support@scotts-international.com with details. Please include as much information as possible including the name of report or link so our staff will be able to work on you request.

        Telephone us directly on 0048 603 394 346 and an experienced member of team will be on hand to answer.

    • Sample Pages
      • With the vast majority of our partners we can obtain Sample Pages to support your decision. This is something we can arrange without revealing your personal details.

        It is important to note that we will not be able to provide you the exact data or statistics such as Market Size and Forecasts. Sample pages usually confirm the layout or the Categories included in Charts and Graphs, excluding specific data.

        To ask for Sample Pages by contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.

    • Check for Alternatives
      • Whilst we try to make our online platform as easy to use as possible there is always the possibility that a better alternative has not been found in your search.

        To avoid this possibility Contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346 and a Senior Team Member can review your requirements and send a list of possibilities with opinions and recommendations.

  • Prices / Formats / Delivery
    • Prices
      • All prices are set by our partners and should be exactly the same as those listed on their own websites. We work on a Revenue share basis ensuring that you never pay more than what is offered elsewhere.

        Should you find the price cheaper on another platform we recommend you to Contact us as we should be able to match this price. You can Contact us though through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.

    • Discounts
      • As we work in close partnership with our Partners from time to time we can secure discounts and assist with negotiations, this is part of our personalised service to you.

        Discounts can sometimes be arranged for speedily placed orders; multiple report purchases or Higher License purchases.

        To check if a Discount is possible please Contact our experienced team through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.

    • Available Currencies
      • Most Market Reports on our platform are listed in USD or EURO based on the wishes of our Partners. To avoid currency fluctuations and potential price differentiations we do not offer the possibility to change the currency online.

        Should you wish to pay in a different currency to that advertised online we do accept payments in USD, EURO, GBP and PLN. The price will be calculated based on the relevant exchange rate taken from our National Bank.

        To pay in a different above currency to that advertised online please Contact our team and a quotation will be sent within a couple of hours with payment details.

    • Licenses
      • License options vary from Partner to Partner as is usually based on the number of Users that will benefitting from the report. It is very important that License ordered is not breached as this could have potential negative consequences for you individually or your employer.

        If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.

    • Global Site License
      • The Global Site License is the most comprehensive license available. By selecting this license, the Market Report can be shared with other ‘Allowed Users’ and any other member of staff from the same organisation regardless of geographic location.

        It is important to note that this may exclude Parent Companies or Subsidiaries.

        If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.

    • Formats
      • The most common format is PDF, however in certain circumstances data may be present in Excel format or Online, especially in the case of Database or Directories. In addition, for certain higher license options a CD may also be provided.

        If you have questions or need clarification about the specific formats we recommend you to Contact us and a detailed explanation will be provided.

    • Delivery
      • Delivery is fulfilled by our partners directly. Once an order has been placed we inform the partner by sharing the delivery email details given in the order process.

        Delivery is usually made within 24 hours of an order being placed, however it may take longer should your order be placed prior to the weekend or if otherwise specified on the Market Report details page. Additionally, if details have been not fully completed in the Order process a delay in delivery is possible.

        If a delay in delivery is expected you will be informed about it immediately.

    • Shipping Charges
      • As most Market Reports are delivered in PDF format we almost never have to add additional Shipping Charges. If, however you are ordering a Higher License service or a specific delivery format (e.g. CD version) charges may apply.

        If you are concerned about additional Shipping Charges we recommend you to Contact us to double check.

  • Ordering
    • By Credit Card
      • We work in Partnership with PayU to ensure payments are made securely in a fast and effortless way. PayU is the e-payments division of Naspers.

        Naspers operates in over 133 International Markets and ranks 3rd Globally in terms of the number of e-commerce customers served.

        For more information on PayU please visit: https://www.payu.pl/en/about-us

    • By Money Transfer
      • If you require an invoice prior to payment, this is possible. To ensure a speedy delivery of the Market Report we require all relevant company details and you agree to maximum payment terms of 30 days from receipt of order.

        With our regular clients deliver of the Market Report can be made prior to receiving payment, however in some circumstances we may ask for payment to be received before arranging for the Market Report to be delivered.

  • Security
    • Website security
      • We have specifically partnered with leading International companies to protect your privacy by using different technologies and processes to ensure security.

        Everything submitted to Scotts International is encrypted via SSL (Secure Socket Layer) and all personal information provided to Scotts International is stored on computer systems with limited access in controlled environments.

    • Credit Card Security
      • We partner with PayU (https://www.payu.pl/en/about-us) to ensure all credit card payments are made securely in a fast and effortless way.

        PayU offers 250+ various payment channels and eWallet services across 4 continents allowing buyers to pay electronically, whether on a computer or a mobile device.

PLEASE SELECT LICENSE
  • $4750.00
  • $5250.00
  • $6500.00
  • $8750.00
  • ADD TO BASKET
  • BUY NOW