Ecommerce in Vietnam is booming. The country is among the fastest-growing online economies in Southeast Asia.
According to the International Trade Administration (ITA), the market value of Vietnamese eCommerce will reach US$23 billion in 2025.
This is due to a booming middle-class, and a tech-savvy population. Plus, Vietnam is also working hard to create a solid internet economy.
Such growth offers fertile selling ground for international sellers. That’s why today, we’re checking out the unique opportunities for ecommerce in Vietnam.
Let’s dive right in.
The Ecommerce Situation in Vietnam
Vietnam is quickly embracing online technologies. COVID-19 took a toll on traditional retail in Vietnam. But the pandemic also thrusted online selling into an unexpected growth for the country.
In 2021, the nation became the 25th largest eCommerce market, according to ecommerceDB. That same year, eCommerce in Vietnam saw a 24% increase in its market. This contributed to 15% of the worldwide ecommerce growth rate.
Vietnam’s government is also working to drive internet usage among the population, as stated by the ITA. For example, their goal is to keep cash payments under 10%, among 70% of banking Vietnamese.
There’s also a notable surge in mobile and internet users. Statista reports that smartphone penetration in Vietnam reached 43% in 2022. Plus, the internet economy size in Vietnam amounts to US$21 billion.
Thanks to these changes, the population has come to embrace eCommerce in Vietnam. So, let’s see how international sellers can join in.
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Opportunities for Ecommerce in Vietnam
ecommerceDB also states that Vietnam’ top product category is electronics & media. These types of products represent 28% of the Vietnam eCommerce revenue. Some other high-selling categories:
- Fashion – 22%
- Personal Care & Food – 18%
- Appliances & Furniture – 17%
- Hobbies, Toys & DIY – 15%
Here’s is another look at the panorama, from the eyes of JP Morgan:
Note that Vietnamese are price-conscious. 74% of Vietnamese think long and hard before committing to a sale. But eCommerce’s rise is also an opportunity to delight new customers.
International sellers should invest in great listings to attract their attention. Also, share positive reviews from previous buyers so you can build trust among users.
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Social Ecommerce in Vietnam
There’s a lot of sales happening inside Vietnamese social media sites. If fact, 65% of Vietnamese used social media channels to buy products in 2021.
Facebook is still the most used platform in Vietnam. However, sites like Zalo, TikTok and Instagram also show increasing growth.
The key is for sellers to facilitate various payment options for users. Plus, social media and the B2C market in Vietnam facilitate interaction between sellers and customers.
This represents a great opportunity to drive engagement. It’s also a key tactic to nurture loyal followers in Vietnam.
Top sites for Ecommerce in Vietnam
Most Vietnamese ecommerce sales happen within the country. However, many Vietnamese also shop overseas, in markets like China, Japan and South Korea.
Plus, many international players are taking notice of the potential for eCommerce in Vietnam. For example, Amazon partnered with the Vietnam E-commerce Association in 2018.
But Vietnam already has some great eCommerce players. The top 3 online stores hold 10% of online revenue.
Let’s look at some of the top eCommerce stores in Vietnam.
This store is the top eCommerce player in Vietnam. In 2021, thegioididong.com generated US$335 million in sales. It’s operated by Mobile World Investment, JSC. It focuses on consumer electronics. Most of its sales are generated within the country.
fptshop.com.vn also focuses on electronics & media products. It’s run by FPT Digital Retail, JSC. As with the last case, most of its sales occur within Vietnam. The store generated US$254 million in 2021.
This is a fashion-focused eCommerce store. However, they also offer consumer electronics, toys, hobbies and DIY products. Back in 2021, shopee.vn generated US$234 million in revenue.
Also in 2021, shoppee.vn registered $0.2 billion in online net sales. This represented a 130% revenue growth from 2020.
Also operated by Mobile World Investment, JSC. The store generated over US$193 million in 2021. dienmayxanh.com specializes in electronics, but they also sell furniture and home appliances.
As the name states, this online store offers smartphones and consumer electronics. It’s operated by Minh Nguyet Trading and Technical Services Co. Its 2021 revenue was US$184 million.
Vietnam Ecommerce & Shipping
One of the key e challenges for the country is shipping. Vietnam has many mountainous and rural regions, with dificult access to transport.
This translates to high logistic costs, which makes it tougher for sellers to reach the whole country. JP Morgan states that, in 2019, logistics took up 30% of revenue for online sellers.
The good news is that eCommerce in Vietnam’s infrastructure is improving each day. Plus, the country already has some trusted shipping services.
For example, Viettel Post handles transport for 33% of online sellers in Vietnam. Two other great shippers are EMS and Tin Thanh. Each one accounts for 18% and 9% of shipments, respectively.
These companies can turn into great allies for foreign brands. We recommend that you partner up with one of these service providers. They’ll surely help you drive your shipping services across Vietnam.
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There’s a promising eCommerce situation in Vietnam. 41% of the country’s population shopped online in 2021, according to Statista.
Vietnamese people are embracing online sales, and mobile use is increasing. There’s also high demand for clothing, house appliances, electronics, and footwear.
Plus, it’s predicted that the country will have a CAGR of 7% until 2025. In short, everything points to eCommerce in Vietnam as fertile ground for sellers.
So, if you’re looking to expand into Southeast Asia, Vietnam might be the gateway you’re looking for.
Esteban Muñoz is a content writer at AMZ Advisers, with several years’ experience in digital marketing and e-commerce. Esteban and the AMZ Advisers team have been able to achieve incredible growth on Amazon for their clients by optimizing and managing their accounts, and creating in-depth content marketing strategies.