Vietnam is one of the Asia’s unexplored markets in terms of the compelling potential in E-Commerce.
E-commerce has managed to gain some attention in Vietnam only after 2011. The retail market in Vietnam has been considered as being one of the most dynamic markets in the South East Asia with such a high growth rate. Ha Noi and Ho Chi Minh City were ranked in the top 10 cities in the entire Asia for retail expansion. Ha Noi was ranked third after Beijing and Shanghai as the city with liveliest retail market.
Vietnam is one of the top three countries with the highest rate of growth of internet and mobile phone subscribers in Vietnam, with more than four million people using internet a day, offering great potential for online shopping development. In 2014, Vietnam had a total population of 90.7 million people out of which 35.4 million people have access to internet, making the internet penetration rate of 39%, amongst the highest in the region. Though the E-commerce market is not very old but still the country has many big players such as Lazada, Hotdeals, Vatgia and others which are driving the E-commerce in Vietnam. Vietnam E-Commerce is one of the fastest growing E-commerce markets in South East Asia. Cash on Delivery in Vietnam is the most preferred mode of making payments online.
Vietnam Ecommerce market, refer to the publication on “Vietnam E-Commerce Market Outlook to 2019 – Driven by Internet Penetration and Smartphone Usage” which is comprehensive analysis of the sector created after market mapping several industry veterans of ecommerce companies operating in each category. The report covers various aspects such as market size of E commerce market, online gaming market, segmentation by online retail market, online travel market, online Entertainment and service booking market, regional demand and on the basis of types of Goods sold and performance model. The report also provides competitive landscape and profile of major players operating in E-commerce market of Vietnam. The future analysis of overall E-commerce market and by segments has also been discussed in each of the sub segment. The report is useful for online retailers, large E-commerce companies and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.
Vietnam has a great potential to grow its E-commerce business, especially after the shifted investors attention from China towards Vietnam for the next manufacturing hub in the east. Vietnamese are getting digitally sound, especially in urban parts of the country which is the main targeted audience of the E-commerce players at least in their initial and growing phase.
The online retail market of Vietnam is driven by major players such as Lazada and Amazon along with local players such as tiki, Vatiga, Zalora and others due to their focus on localized content. In 2014, the online retailing market contributed more than 65% in the overall B2C market of Vietnam. Constant innovation, launch of newer brands online, proliferation of affordable smartphones coupled with rise in broadband access have largely propelled the market growth. Online Retail market has been segmented into clothes, shoes & cosmetics, technology Kitchen and home appliances, books and stationary, CD’s & DVD’s, mother & baby products and others.
Vietnam gaming industry is the biggest in the entire South East Asia which gives its online gaming market an edge. Vietnam Online Entertainment & Services booking market has attained small but significant growth in overall e-commerce market. The concept of online entertainment has become prevalent since the rise in internet penetration in Vietnam, owing to the emergence of various websites offering online booking of movie and event tickets as well as booking several professional services online. The rising share of online entertainment and services booking is supported by the fact that more players are entering the market with different business models to tap the major share of customer base.
Source: Ken Research