Vietnam ranks 2nd in Southeast Asia on online spending

The “Vietnam E-Commerce White Paper 2022,” published by the Ministry of Industry and Trade on Sept. 15, cites a forecast by Google, Temasek and Bain & Company that Southeast Asia’s e-commerce revenue will reach 234 billion by 2025 US dollars, almost double that of 2021 (US$120 billion).

Indonesia, the Philippines, Thailand, Malaysia and Vietnam are the leading countries in the region in terms of the size of the internet-based economy.

It is predicted that by 2025, Indonesia will rank first in the region with around US$104 billion spent through e-commerce channels.

The figure is similar to Singapore and Vietnam at $39 billion; followed by Thailand ($35bn); the Philippines ($26 billion); and Malaysia ($19 billion).

In terms of total Internet economic revenue (e-commerce; transportation and groceries; online tourism; online audiovisual media), Indonesia will still take the lead with $146 billion in revenue, followed by Vietnam with $57 billion dollars, Thailand with 56 billion US dollars and then the Philippines, Malaysia and Singapore.

For Vietnam, revenue from the internet-based economy was US$21 billion in 2021, which will grow to US$57 billion by 2025, an increase of about 271%.

According to the “Vietnam E-Commerce White Paper 2022”, B2C (business to consumer) e-commerce sales will reach US$16.4 billion in 2022, an increase of US$2.7 billion compared to 2021. Five ago Years ago, in 2017, that number was only $6.2 billion.

Along with rising e-commerce revenue, the number of consumers shopping online in Vietnam has grown sharply over the past 5 years, from 33.6 million in 2017 to 60 million in 2022. According to surveys, the percentage of internet users reached who shop online, 74.8%.

Average online shopping value of Vietnam is expected to increase from $186/person in 2017 to $260-285/person in 2022; The proportion of B2C e-commerce revenue compared to total retail sales of goods and services would reach around 7.2-7.8%.

The report also shows that clothing, shoes and cosmetics account for 69% of the share of goods selected by Vietnamese online shoppers, followed by equipment and home appliances at 64%; and engineering and electronics 51%.

In 2021, e-commerce websites dominated with 78% of online consumers, followed by mobile shopping applications (47%), forums – social networks (42%). The growth rate of e-commerce has greatly increased, the proportion of people who choose to pay in cash is still high, up to 73%; Payment by e-wallet 37%; Payment by bank card, debit/credit card approx. 25%.

The most important criterion that Vietnamese consumers are interested in when shopping online is the reputation of websites and applications (74%); fast and flexible delivery (57%); Promotions 56%; cheaper than in store 54%; real quality goods (47%).

According to the Ministry of E-Commerce and Digital Economy, the Covid-19 epidemic in 2021 has seriously affected the trade and service activities of Vietnam in particular and the world in general. The negative growth of some large service sectors reduced the overall growth of the service sector and the economy as a whole.

In 2021, Vietnam’s economic growth was just 2.58%, the lowest in the last 30 years. In this context, Vietnam’s e-commerce has still maintained a stable growth rate of 16% with retail revenue of US$13.7 billion. The share of e-commerce retail sales in total retail sales of consumer goods and services reached 7% nationwide, up 27% from the same period in 2020.

Tran Chung

Source

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