Vietnam's e-commerce is accelerating and is expected to grow 31% to US$21 billion

Recently, according to foreign media reports, VNG announced that it will inject US$22.5 million into Vietnamese B2B e-commerce company Telio. This is a large investment by local investors in Vietnamese start-ups , and the move shows the strong potential of Vietnam's e-commerce in the digital economy.

Jikwang Chung, general manager of Mirae Asset Capital, one of Tiki's investors, said Vietnam's consumption has achieved remarkable growth with technological breakthroughs, especially the continuous development of e-commerce.

According to Tiki, Vietnam's Singles' Day set a growth record and was its most successful event ever. The online platform saw a 9-fold increase in sales on Singles' Day (November 11) 2021, and the number of customers increased by two times compared to weekdays. For another platform , Lazada , revenue and order volume on the day increased by nearly 2 times. The number of brands and sellers increased by 1.5 times compared to last year's single day.

The Southeast Asia e-Economy Report recently released by Google, Temasek and Bain & Company mentioned that the number of new Internet users in Vietnam is increasing, and e-commerce is the driving force of the digital economy. According to the Southeast Asia e-Economy Report, in 2021, Vietnam's digital economy is expected to grow by 31% to US$21 billion due to a year-on-year increase of 53% in e-commerce, and is expected to reach US$57 billion by 2025. If it grows steadily, Vietnam's digital economy is expected to reach a gross merchandise value (GMV) of US$220 billion by 2030, second only to Indonesia in the region.

Not only in Vietnam, e-commerce is expected to drive Southeast Asia’s internet economy forward over the next decade. By the end of 2021, the gross value of e-commerce merchandise could exceed $120 billion (almost double that of 2020), and could reach $234 billion by 2025.

According to the report, Vietnam has added 8 million new online consumers since the start of the COVID-19 pandemic last year to the first half of 2021, more than half of whom are from areas outside major cities. As many as 99% of Vietnamese digital consumers intend to continue using online services, showing a high degree of attachment to digital products and services.

In Vietnam, digital financial services are becoming a significant driver, with 95% of digital businesses now accepting digital payments and 67% accepting digital loans. Seven in ten digital businesses are expected to increase their use of digital marketing tools over the next five years.

Tram Nguyen, Google director for Laos, Cambodia and Vietnam, said: “ As Vietnam accelerates its digital transformation, we are beginning to understand the country’s huge potential . ”

Vietnam

E-commerce