Promising Future of Ecommerce in Vietnam
July 4 2023
Vietnam's e-commerce market is projected to reach $39B by 2025. Not well understood, here is a handy guide about Vietnam's e-commerce potential
The Vietnam e-commerce market is poised for significant growth in the next 3 to 5 years. With a young population that embraces technology, the country offers immense potential for e-commerce growth. Ngân Pham, a Vietnam based digitalisation expert who also writes a newsletter on the Digital landscape in Vietnam, shared her insights on the future of Vietnam's e-commerce ecosystem and the opportunities it presents for brands, software solution providers, and infrastructure players, in the Ecommerce in Vietnam episode of Excel at Commerce podcast.
Digitalization in Vietnam has witnessed remarkable growth in recent years, and the trend has accelerated further due to the impact of the pandemic. The country has also seen a significant shift towards cashless behavior, with people adapting to digital payment methods. According to Statista, Vietnam's e-commerce market value is projected to reach 39 billion US dollars by 2025, ranking second in Southeast Asia.
Although Vietnam's e-commerce ecosystem is still in its early stages, it offers a multitude of opportunities for various key sectors to expand. These sectors include logistics, fullfilment centers in vietnam for ecommerce, digital payments, social commerce, live-streaming, infrastructure, fintech, and robotics. The country benefits from its favorable geographical location, close proximity to Singapore and Southeast Asia, and excellent connectivity via airports and seaports. The logistics sector, in particular, is well-advanced, with businesses seeking fulfillment services from e-commerce brands and online sellers.
Vietnam has also quickly embraced emerging trends such as TikTok and live streaming, creating new avenues for e-commerce sales and marketing. The country's familiarity with digital payments, such as Pay Vi-Va, facilitates seamless transactions in the e-commerce space. Infrastructure development, including technology adoption and robotics for warehouses, is essential for expanding e-commerce businesses. The government and Vietnamese organizations have taken steps to support e-commerce development, creating a favorable environment for growth.
Vietnam's potential as a key Southeast Asian market is attracting brands looking to sell in the country. It also presents opportunities for software solution providers to cater to the growing demands of businesses. Infrastructure-level players, including third-party logistics providers, can enter the market and capitalize on the e-commerce boom. Additionally, Vietnam's proximity to Singapore makes it an ideal trial market for big brands looking to introduce new models.
Despite being a relatively small country, Vietnam's young population's tech-savviness and widespread availability of free Wi-Fi contribute to its e-commerce potential. The government and organizations continue to take gradual steps to support e-commerce development.
In conclusion, Vietnam's e-commerce ecosystem is set to experience significant growth in the next few years. With its rapidly digitalizing landscape, young population, and supportive government initiatives, Vietnam presents abundant opportunities for brands, software solution providers, and infrastructure players. By tapping into this dynamic market, businesses can leverage Vietnam's potential as a thriving hub for e-commerce in Southeast Asia.