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COVER STORY
GMV ($ BILLION) BY SECTOR
34%
E-commerce Transport and Food
34%
29
7
46% 50%
0.4 5 7 0.2 1.1 1.6
2015 2019 2020 2025 2015 2019 2020 2025
25%
Online Tourism Online Media 15%
9
-28% 18% 7
2 4
3 0.6 2.8 3.3
2015 2019 2020 2025 2015 2019 2020 2025
Source: The e-Conomy SEA 2020 Report
There are a few other trends being seen and are smarter when shopping online, in real time, which are services that can
as growth drivers for e-commerce. In the they tend to compare and look for products help reduce inefficiencies that create bot-
internet economy as a whole, Google antic- with more transparency, convenience, and tlenecks or delays.
ipates continued high growth in e-commerce reliability, to save money in the new normal. Mr. Duy agreed that e-commerce plat-
for transportation and food, and online Mr. Duy said this makes the competition forms are experiencing challenges relating
media (including gaming and entertainment), between e-commerce platforms increasingly to infrastructure development from order
while travel will make a slow recovery from fierce as they try to attract the attention of processing systems and warehouse capacity
Covid-19 and border restrictions. Ms. Phan customers, so e-commerce businesses are to shipping speed. “Creating a solid link
noted the convenience of goods being deliv- also constantly updating and changing to between technology and engineering and
ered to your doorstep as quickly as logistically provide a seamless shopping experience an efficient transport and delivery service
possible. With Covid-19 and restrictions on across platforms. “The personalization of network can ensure that goods are transported
movements, this is currently challenging, the user experience may be one of the quickly and cost-effectively,” he explained.
but such convenience has been made all the missing elements for a complete online “It not only helps promote e-commerce in
more essential for safety reasons. shopping experience, as consumers increas- the country but is also a premise to help
Over recent years, most major e-com- ingly expect mobile-integrated shopping expand cross-border transactions. Closer
merce platforms, such as Shopee, Lazada, experiences,” he added. An iPrice Group and more harmonized coordination between
and Tiki, have invested in logistics systems and AppsFlyer report shows that the app relevant State management agencies, busi-
and since then the number of orders has removal rate in Vietnam is the highest in nesses, consumers, and professional organ-
also increased. Mr. Binh agrees that as Southeast Asia, at up to 49 per cent during izations is important in improving Vietnam’s
shopping habits have changed the delivery the second quarter of 2020 - the beginning e-commerce environment.”
industry has had the opportunity to grow of the pandemic. This proves that con- It can be seen that the online shopping
further. “With regulations restricting going sumers are more loyal to their choices, needs of Vietnamese consumers are huge
out, the delivery industry is increasingly and tend to delete inappropriate apps after and boast potential. Most people tend to
booming,” he added. “Though there are trying them out. look for online sales sites with diverse
some regulations restricting shippers in designs, high quality, prestige, and trans-
the short term, they have not hampered OVERCOMING OBSTACLES parency, especially young people in urban
growth in the industry.” There are a number of challenges facing areas. In the Vietnam E-commerce White
Fintech (financial technology) has also the e-commerce market. Ms. Phan touched Book 2021, 36 per cent of consumers bought
become more popular. “Because digital on logistics as an infrastructure barrier goods through foreign websites. “E-com-
payments don’t have borders, there’s an for e-commerce overall. There are a host merce businesses should therefore consider
opportunity for startups to serve domestic of inefficiencies in the logistics sector, such focusing on gaining the trust of consumers
and international consumer needs for as manual paperwork for merchants book- instead of focusing on promotions,” Mr.
transactions,” Ms. Phan said. “Online pay- ing delivery services with trucking com- Duy said. “Providing products of clear origin
ments, after all, enable e-commerce. Within panies and transport vendors. There are a and controlling counterfeits and shoddy
e-commerce itself, ease of payments is one few emerging startups, such as EcoTruck goods should also be the priority.”
reason for growth, with the other being and Logivan, that are resolving these chal- A more fundamental challenge is help-
the wide selection of goods offered online lenges with technology to help coordinate ing traditional retailers move to e-com-
through direct retailers and marketplaces.” between retailers and transport companies, merce, where they can sell their products
And as consumers have more choice dispatching deliveries and tracking them and reach even more customers, according -

SEPTEMBER 2021 | VIETNAM ECONOMIC TIMES | 9