Will e-commerce boom continue in 2021?
Will e-commerce boom continue in 2021?
E-commerce is forecast to continue booming in 2021 with revenue surpassing last year’s figure of US$11.8 billion, offering opportunities for domestic businesses to build new business strategies and approach modern distribution channels.
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High growth
According to the Vietnam E-commerce and Digital Economy Agency under the Ministry of Industry and Trade, with 53 percent of the population participating in online shopping, the Vietnamese e-commerce market grew 18 percent in 2020, reaching US$11.8 billion, accounting for 5.5 percent of total retail sales of goods and services nationwide.
Nguyen The Quang, deputy director of the Vietnam E-commerce and Digital Economy Agency, said e-commerce saw impressive growth last year and will continue booming this year.
According to the national master plan on e-commerce development in the 2021-2025 period, up to 55 percent of the population will participate in online shopping by 2025, with the average online purchasing value reaching US$600 per person annually. The revenue of the B2C e-commerce model is set to increase by 25 percent each year, reaching US$35 billion, accounting for 10 percent of total retail sales of goods and services nationwide.
Vietnam is among the top three countries in the region in the growth rate of retail market share. Since 2015, the growth rates of the three largest internet economies in the region has averaged 35-36 percent, with Vietnam growing by 36 percent, Indonesia 41 percent and the Philippines 30 percent.
A Nielsen study shows that the demand for shopping on e-commerce floors has increased sharply since the outbreak of the Covid-19 pandemic. In 2020, 70 percent of Vietnamese people accessed the internet and 53 percent of e-wallet users made payments when buying online, an increase of 28 percent compared to 2019. In particular, in Hanoi and Ho Chi Minh City, e-commerce activities accounted for 70 percent of total e-commerce transactions nationwide.
According to Amazon Global Selling Vietnam, Vietnamese sellers exceeded US$1 million in sales on Amazon last year, a three-fold increase from 2019.
Driving towards digital transformation
E-commerce is expected to create a new driving force for economic growth in 2021, offering opportunities for domestic businesses to build new business strategies and approach modern distribution channels, helping them expand markets and promote post-pandemic recovery.
The Vietnam E-commerce and Digital Economy Agency has implemented the Online Vietnamese Store program on three major e-commerce floors in Vietnam, including Tiki, Sendo and Voso, creating a new platform for manufacturers to develop distribution systems with digital transformation solutions and apply e-commerce and digital technologies in connecting the domestic market.
Dang Hoang Hai, director of the Vietnam E-commerce and Digital Economy Agency, said the agency will implement the GoOnline program to support businesses in the e-commerce application process, along with telecommunications groups, technology units and e-commerce systems nationwide.
| Promoting e-commerce, perfecting the e-payment system and enhancing quality of shipping activities will create an exciting shopping and trading environment. |
