Vietnam's e-commerce is booming, with 83% of best-selling products coming from abroad!

Affected by the epidemic, Vietnamese people's consumption habits have gradually changed, and more and more people have turned to online shopping.

According to statistics , about 49.3 million consumers in Vietnam participated in online shopping in 2020 , and the proportion of netizens participating in online shopping also increased from 77% in 2019 to 88% in 2020.

According to iPrice's research report, since last year, among the nearly 1,200 most popular products on Vietnamese e-commerce platforms, 83% are imported products, while Vietnamese local products account for 17%. Until the first half of this year, the proportion of Vietnamese products dropped to 14%.

Nevertheless, amid the pandemic, consumer demand for grocery products has surged, with Vietnamese goods dominating the grocery category.

In general , in Vietnam's e-commerce market , daily necessities such as food and household appliances are still the largest consumer items of buyers, while shoes, clothing, and cosmetics account for 43%, and household appliances account for 33%.

After local platforms cooperated with the Ministry of Industry and Trade of Vietnam to introduce Vietnamese products to e-commerce platforms, they also attracted many retailers. Agricultural products and other products are increasingly available on the two major local e-commerce platforms Sendo and Tiki. The overall e-commerce market in Vietnam is also on an upward trend and is unstoppable.

Among them, data from Amazon Vietnam showed that Vietnamese sellers’ sales on Amazon exceeded US$1 million in 2020, a three-fold increase from 2019.

According to a report by the E-Commerce and Digital Economy Agency (iDEA) of the Ministry of Industry and Trade, Vietnam's e-commerce market grew 18% to US$11.8 billion in 2020, accounting for 5.5% of the country's total retail sales of goods and services.

According to the Vietnam E-Commerce Association (VECOM), Vietnam's e-commerce market has grown at an average annual rate of 25%-30% over the past five years. If this growth rate is maintained, Vietnam's e-commerce market is expected to grow to around US$9 billion by 2025. Vietnam's e-commerce market size will also rank third in Southeast Asia, second only to Indonesia and Thailand.

It is worth mentioning that in terms of problems with online shopping, as many as 44% of users believe that price is the biggest problem with purchases; 42% of users believe that the quality of online purchases is poorer than offline; and 33% of users are worried about the leakage of personal information. In addition, transportation, delivery and customer service are also important factors. Therefore , sellers who want to enter the Vietnamese e-commerce market should also refer to the above-mentioned issues .

Vietnam

E-commerce