E-commerce market grows in Vietnam
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Vietnam’s e-commerce market expanded by 18 percent last year to $11.8 billion, the only country in Southeast Asia to record double-digit growth amid the Covid-19 pandemic.
Besides, payment services were strengthened and the largest companies in the manufacturing sector incorporated e-commerce into their long-term strategies, according to a recent report by the Vietnam e-Commerce and Digital Economy Agency.
The country’s Online Friday e-commerce event in early December last year saw the number of transactions rise by 267 percent from the previous year to 3.7 million, it said.
However, though the number of transactions rose last year, revenues fell because most Covid-19 related items were of low value and people’s incomes were hit, it said.
A report last month by market research company GlobalData’s E-Commerce Analytics said Vietnam’s e-commerce is set to see compounded annual growth of 18.8 percent between 2020 and 2024 to reach $26.1 billion.
Questions & Answers
Q.What was the total value of Vietnam’s e-commerce market last year, and how much did it grow?
What was the total value of Vietnam’s e-commerce market last year, and how much did it grow?
Vietnam's e-commerce market reached $11.8 billion last year. This represented an 18 percent expansion, making it the only country in Southeast Asia to achieve double-digit growth during the Covid-19 pandemic.
Q.Why did transaction revenues fall during last year's Online Friday event, despite an increase in transactions?
Why did transaction revenues fall during last year's Online Friday event, despite an increase in transactions?
Revenues fell because most items purchased were low-value Covid-19 related products. Also, people's incomes were negatively affected, which likely influenced spending on higher-value goods.
Q.What is the projected growth for Vietnam's e-commerce market in the coming years?
What is the projected growth for Vietnam's e-commerce market in the coming years?
The e-commerce market is forecast to experience a compounded annual growth of 18.8 percent between 2020 and 2024. This growth is expected to lead to a market value of $26.1 billion.
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