How attractive is Vietnam’s e-commerce market? Shopee and Lazada are vying for it!

The pace of digital transformation of Vietnamese companies is accelerating. Data shows that despite the impact of the epidemic, Vietnam's business revenue has increased by 18% to US$11.8 billion.

The development of Vietnam's e-commerce market is driven by a government that supports innovation. It is understood that among many digital economy goals, Vietnam's National E-commerce Development Plan will enable the online market to grow at a rate of 25% per year .

In addition, Vietnam's digital economy can also be seen in other aspects. For example, from exploring the implementation of smart cities in urban centers to studying sustainable energy output and realizing commercial 5G applications , other Southeast Asian countries have also seen and quickly accepted Vietnam's series of transformative initiatives.

In addition, Vietnam has a large population of young people who prefer online shopping and a mobile penetration rate of 70 percent, which provides e-commerce platforms with a huge consumer base and website visits.

E-commerce in Vietnam is expected to account for 10% of total retail sales of goods and services in Vietnam in the next five years .

Perhaps inspired by the strong development of Vietnam's e-commerce market, other small and medium-sized enterprises and retailers in Southeast Asia have also entered this industry.

The Financial Times reported that in the online battle among many competitors, Southeast Asia's two e-commerce giants, Shopee and Lazada, are scrambling for a piece of the pie.

It is understood that Shopee has expanded rapidly in Vietnam through free delivery and low-price sales during the epidemic.

Data shows that in the third quarter of 2020, Shopee 's monthly net visits in Vietnam reached 62 million, an increase of more than 80% over the same period last year.

However, Shopee's rapid pace in seizing Vietnam's e-commerce market has also attracted the attention of Lazada.

As a major e-commerce player in Southeast Asia, Lazada is also an important pillar of Southeast Asia's digital economy.

Recently, Lazada also partnered with Grab, the region’s leading ride-hailing service provider , to boost its e-commerce profile in Vietnam.

Lazada will leverage Grab’s services to support its customer and driver network, thereby directing users to Grab’s food delivery service.

It will also use Grab's parcel delivery service to transport products and complete last-mile delivery .

It is worth noting that there are more than 100,000 Vietnamese sellers on Amazon , and Vietnam’s 40 million online shoppers spend an average of US$210 per year . Judging from the current development speed, Vietnam’s e-commerce will continue to grow .

Shopee Platform

Lazada Platform

Vietnam