Vietnam’s e-commerce market is on track for a staggering 25% increase, hitting the $20 billion mark by the end of 2023, according to a Vietnam E-commerce Association (VECOM) report based on the Vietnam E-Business Index (EBI) 2023.
The EBI 2023 showcases a significant disparity between Hanoi and HCM City – Vietnam’s two economic powerhouses – and other localities. With HCM City leading the ranking at 89.2 points and Hanoi following closely with 85.7 points, the gap becomes evident when compared to Đà Nẵng’s 39.5 points.
Contributing factors to the e-commerce boom include digital transformation, consumer trust, technological infrastructure, and supportive government policies. Despite challenges in the global economy and domestic factors negatively impacting Vietnam’s economy and trade in 2022, the e-commerce sector continues to grow at an impressive rate.
Industry experts anticipate a bright future for e-commerce in Vietnam, with thousands of businesses nationwide driving a growth rate of around 25% until 2025. Currently, e-commerce accounts for 8.5% of the total retail sales of consumer goods and services in the country.
E-commerce platforms and social networks played a significant role in the sector’s growth in 2022 and the first quarter of 2023, with 65% of businesses conducting operations on social networks. Platforms such as Zalo, WhatsApp, Viber, and Facebook Messenger are increasingly popular among enterprise employees.
Social network sales have proven highly effective, outpacing other methods like business websites or applications. Tiktok Shop, in particular, has seen massive growth and appeal for Vietnamese traders.
- Steady growth has also been observed on e-commerce platforms, with 23% of businesses selling products online in 2022. The combined sales of top platforms Shopee, Lazada, Tiki, Sendo, and Tiktok Shop reached an estimated $6 billion.
- Though the number of businesses with websites and mobile apps has remained stable, many still prioritize social networks and e-commerce platforms for conducting business. Websites with integrated customer interaction features reached 78%, with half utilizing chatbots.
- The number of mobile-friendly websites increased to 22% in 2022, indicating improved website quality. However, businesses still find social networks and e-commerce platforms more efficient for sales.
VECOM’s sustainable e-commerce development program, proposed in 2019, continues to actively support the digital economy and e-commerce growth. In 2023-2025, VECOM aims to assist state management agencies in developing policies and laws to ensure sustainable progress within the industry.
Vietnam Sourcing