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COVER STORY

- to Ms. Phan. Google has teamed up with PURCHASE METHOD
VECOM in a program called Retail Uni-
versity, where retailers are trained on how
to build an effective e-commerce website, NETT: Online 44
set up e-commerce infrastructure (such as
payments and logistics), and reach more
customers with performance advertising Of!cial brand website of app 23
and branding.
Vietnam’s e-commerce market saw E-commerce websites or apps 20
strong growth in the 2020-2021 period
amid the pandemic. Market revenue
reached $11.8 billion and growth was sta- Using another online method 1
ble at 18 per cent. The e-Conomy SEA Source: Kantar Shopper Pulse, April and June 2021
2020 Report forecast growth of 34 per
cent and $29 billion in revenue by 2025.
According to the Vietnam E-commerce of the country,” said Ms. Phan. For example, where there are ongoing discussions about
White Book 2021, B2C e-commerce rev- the government’s National Plan on E-com- ensuring consumer protection and data
enue in the country has continuously merce Development 2021-2025 has specific storage. A study commissioned by the Asia

increased over the last five years. Other and measurable goals, and having 55 per Internet Coalition (AIC) and published
positive figures include there being 49.3 cent of the population engaged in e-com- with The Economist highlighted that reg-

million online shoppers with average pur- merce and enabling 80 per cent of payments ulations on data localization could inhibit
chases of about $240 each, and e-com- through online payment providers by 2025 the expansion of Vietnam’s tech players,

merce websites and platforms increasing are strong indicators of the government’s decreasing economies of scale and poten-
the proportion of buyers from 52 to 74 commitment to growing e-commerce. tially limiting the opportunities for local

per cent. This shows that Vietnam’s e- According to Google, there are three enterprises to take advantage of them. As

commerce market has a bright future and areas where the government could consider Vietnam is drafting a personal data pro-
is expected to continue to boom. “Pre- policy action to further grow the digital tection regulation, it has an opportunity

dicting the e-commerce market in the ecosystem, digital connectivity, and digital to follow best practices to help enable a

next period will depend a lot on the gov- skills. First is to continue to provide access conducive business environment.
ernment’s pandemic control,” said Mr. to high-speed broadband services. While Last but not least is continuing to

Binh. “However, challenges always come Vietnam is the tenth cheapest country in invest in training in digital skills for Viet-

with opportunities, and the e-commerce the world for purchasing mobile data and nam to accelerate towards Industry 4.0.
sector is no exception.” its internet penetration had reached about The government has made digital

70 per cent of the population as of January upskilling a priority in recent years, sup-

GOVERNMENT SUPPORT 2021, slow connectivity remains an issue. porting systemic education programs for
Vietnam’s internet economy is on a The average broadband speed in the country the future workforce that help enhance

promising trajectory. “I think the govern- is 78.43 Mbps, significantly slower than in digital skills for micro and small businesses

ment is heading in the right direction, with Singapore (256.03 Mbps), Thailand (216.16 in e-commerce. “Going forward, I think

a focus on accelerating the local e-commerce Mbps), and Malaysia (100.94 Mbps). we should continue to upskill talent at all

market together with developing e-com- Second is supporting the free flow of levels of skills development,” Ms. Phan
merce for exports, and encouraging sector data. Data privacy is important everywhere said. “One segment is micro and small
growth, especially in less developed parts in the world, including in Southeast Asia, businesses, helping them adopt e-com-
merce and digital solutions.”
Mr. Binh said the government, especially
ALL TOUCHPOINTS MENTIONED the Ministry of Industry and Trade (MoiT),
is making major efforts to develop policies
NETT: Online 94 to support and promote e-commerce, but

these are not always supported by other
Online search engine 45 ministries because of different management
Ads on the internet 34 regulations and different perspectives. That
is also one of the difficulties facing e-com-

Ofcial product/brand websites/apps 33 merce businesses, especially during the
Online comparison/reviews/ratings 29 pandemic in areas with large outbreaks,
such as Ho Chi Minh City. Support policies
E-commerce websites/apps 28 on e-commerce taxes and bank payment
Social media apps or websites 28 fees have also had a great impact on the
development of the industry and especially
Online video apps or websites 24 on promoting the development of payments,
Online forums/blogs & articles 18 according to VECOM. “E-commerce can
be a lifeline for other commercial industries

TV streaming services platforms 17 during the pandemic, or can help them
Chatting apps 16 when the pandemic ends,” Mr. Binh added.
“It is necessary to have consistent support
Email (offers, promotions, newsletters) 10 from the government, so that help from
one agency does not become ‘entangled’
Source: Kantar Shopper Pulse, April and June 2021
with the regulations of another.” %

10 | VIETNAM ECONOMIC TIMES | SEPTEMBER 2021