Vietnam ranks 2nd in Southeast Asia for online spending

The “White Paper 2022 on E-commerce in Vietnam” released by the Ministry of Industry and Commerce on September 15 cites a forecast by Google, Temasek and Bain & Company that by 2025, e-commerce revenue in Southeast Asia will reach $234 billion, nearly double that of 2021 ($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 approximately $104 billion spent through e-commerce channels.

The figure is similar in Singapore and Vietnam, with $39 billion; followed by Thailand ($35 billion); the Philippines ($26 billion); and Malaysia ($19 billion).

For total Internet economic revenue (e-commerce; transportation and food; online tourism; online audiovisual), Indonesia will still lead with revenue of $146 billion, followed by Vietnam with $57 billion, from Thailand with 56 billion dollars, then from the Philippines, Malaysia and Singapore.

For Vietnam, in 2021, revenue from the Internet-based economy was $21 billion, and is expected to reach $57 billion by 2025, up about 271%.

According to “Vietnam E-commerce White Paper 2022”, B2C (Business to Consumer) e-commerce revenue will reach $16.4 billion in 2022, an increase of $2.7 billion from 2021. There are five years ago, in 2017, that figure was just $6.2 billion.

Along with skyrocketing e-commerce revenue, the number of consumers shopping online in Vietnam has risen sharply over the past 5 years, from 33.6 million in 2017 to 60 million by 2022. surveys, the percentage of Internet users making online purchases reached 74.8%.

The average value of online purchases in Vietnam is also expected to increase from $186/person in 2017 to $260-285/person in 2022; the proportion of B2C e-commerce revenue to total retail sales consumption of goods and services would reach about 7.2-7.8%.

The report also shows that clothing, footwear and cosmetic items account for 69% of the percentage of goods chosen by Vietnamese online shoppers, followed by equipment, home appliances with 64%; and technology and electronics 51%.

In 2021, e-commerce sites dominate with 78% of online consumers choosing them, followed by mobile shopping applications (47%), forums – social networks (42%). The growth rate of e-commerce has increased sharply, the percentage of people who choose to pay in cash is still high, up to 73%; payment via electronic purse 37%; payment by bank card, debit/credit card approximately 25%.

The main 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 stores 54%; authentic and quality products (47%).

According to the Department of E-Commerce and Digital Economy, in 2021, the Covid-19 epidemic severely affected the trade and service activities of Vietnam in particular and the world in general. Negative growth in some major service sectors reduced overall growth in the service sector and the economy as a whole.

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

Tran Chung

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