Germany-based secondary market research firm yStats.com has released a new report titled “Vietnam B2C E-Commerce Market 2019”. The publication cites E-Commerce sales projections through 2025 and covers current challenges. Among the key findings of the report is the high penetration rate of Internet connectivity and the growing importance of mobile shopping and social commerce. The report also discusses the fierce competition on the retail E-Commerce market scene in Vietnam.
B2C E-Commerce market in Vietnam is projected to experience annual double-digit growth through 2025
Vietnam has one of the fastest growing B2C E-Commerce markets in Southeast Asia, according to the yStats.com report. Online retail sales are projected to maintain strong annual double-digit growth through the middle of the next decade, driven by a young generation open to the digital era of shopping and high Internet and smartphone connectivity. At the same time, the country is still facing some challenges to quicker adoption of online retail. These include immature logistics infrastructure, lack of trust in the quality of products and sellers, leading to cash on delivery being the dominant payment method for online purchases in Vietnam in 2018.
Mobile shopping and social commerce drive the online retail market in Vietnam
Soaring Internet penetration rates play a key role in the growing importance of online retail in Vietnam. In addition, the importance of smartphones in online shopping is mirrored in the significant increase of online shoppers who made digital purchases via apps, according to a 2018 survey cited in the yStats.com report. Another important market trend is social commerce, with more than four out of ten social media users in Vietnam making purchases via this channel in 2018.
Competition in Vietnamese B2C E-Commerce is becoming intense, with leading players fighting for top market positions
Competition in Vietnam’s B2C E-Commerce is becoming more and more intense. In Q2 2019, Shopee, Tiki and Lazada VN were the most visited B2C E-Commerce websites in Vietnam, according to a source cited by yStats.com in its newest publication. Other prominent local E-Commerce players include Sendo and Thegioididong.com. Alibaba-backed Lazada has been struggling with the number of monthly visitors on its E-Commerce website, which led to losing its leader position. At the same time, its major competitor, Tiki.vn, received further investment from Chinese E-Commerce giant JD.com, becoming its biggest shareholder. With the growing importance of social commerce, Facebook is becoming widely popular for online shopping.