Vietnam’s e-commerce is expected to keep growing in 2023 and rise steadily in the years to follow, supported by several growth drivers, including the wave of digital transformation, consumer trust, technological infrastructure, and advantageous processes and laws issued by the Government.
The event has been organized annually by the Vietnam E-commerce Association (VECOM) from 2017 to the present. With the theme “Smart E-commerce”, this year’s event attracts more than 2,500 individuals and businesses operating in the field of e-commerce in Vietnam and internationally.
Speaking at the opening of the forum, Mr. Nguyen Ngoc Dung, Chairman of the Vietnam E-commerce Association shared: In the context of the post-epidemic economy and affected by the wave of the world economic crisis, the e-commerce industry has been and is one of the industries with the fastest and strongest changes to adapt to the new situation in Vietnam. Exploiting the “smart” perspective in e-commerce, the forum focuses deeply on current and future e-commerce trends, business models, and solutions for e-commerce in the world.
“Smart e-commerce will be a prominent trend in 2023 when AI is considered an inevitable development trend. AI applications will completely change the e-commerce industry not only in Vietnam. Because Therefore, “Smart E-commerce will be a long story that many experts and big brands in the field of e-commerce… will share at this year’s Vietnam E-commerce Panorama Forum,” Mr. Nguyen Ngoc Dung emphasized.
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The numbers tell the truth
With over 100 cross-border e-commerce platforms, Vietnam is one of the top five countries in the world in terms of the 20 per cent annual growth of the industry, according to eMarketer. The top four platforms in the nation, Shopee, Lazada, Tiki, and Sendo, generated 135 trillion VND (US$5.73 billion) in sales last year.
The size of the nation’s retail e-commerce market was estimated to be US$16.4 billion in size last year, or 7.5 per cent of the nation’s income from the sale of products and services. Vietnamese consumers spent an average of US$260–285 online purchasing, numbering 57–60 million.
Up to 74.8 per cent of Vietnamese internet users purchased goods and services online, according to the White Book on Vietnamese E-Business 2022, with clothes and cosmetics, household goods, and technological and electrical devices being the most popular products.
Business on e-commerce and social networks is on the throne
According to the Vietnam E-commerce Association, business activities on e-commerce platforms and social networks are the highlights of Vietnam’s e-commerce industry in 2022 and the first quarter of 2023. Survey results show that up to 65 per cent of businesses have implemented business activities on social networks.
In addition, the number of employees in enterprises who regularly use tools such as Zalo, WhatsApp, Viber, or Facebook Messenger has also continuously increased year by year.
Selling on social networks is also considered to be the most effective, surpassing other forms such as business websites or applications as well as e-commerce platforms. The most prominent is the birth and strong growth of TikTok Shop. Doing business on this platform is creating a great attraction for a large number of traders across the country.
Besides retail e-commerce platforms have emerged B2B data technology platforms that connect small-scale traditional retailers with manufacturers or wholesalers on a centralized platform. By aggregating demand, platforms can provide small retailers with more choices, better prices, and more efficient logistics.
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Competition is expected to continue to be fierce
The total revenue and output of the entire e-commerce market in the first quarter of 2023 both increased by about 22 per cent compared to the same period in 2022, but the number of homes for sale decreased sharply by 17 per cent.
At the same time, the revenue share of retail and non-professional retailers in the first quarter of 2023 decreased by 0.46 per cent compared to the same period in 2022, while the genuine stores — Shop Mall increased both market share and market share revenue.
It can be seen that amateur retailers are being left in the game and gradually withdrawing from the market. This means that profits go to really professional sellers who have invested in selling on e-commerce platforms. According to Metric’s forecast, the shift to the Shop Mall model will be a trend for sellers to increase their reputation and revenue on e-commerce.
In addition, before the rapid development of logistics, domestic sellers also face stiff competition from foreign sellers. To be able to survive and develop, business people on the e-commerce floor need to prepare carefully for all factors, starting right from the step of analyzing the market and developing an effective business strategy.
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