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COVER STORY

In addition, accessibility to e-commerce
is mainly concentrated in major cities like
Hanoi, Ho Chi Minh City, and Da Nang,
and is primarily the domain of young
users, according to Shopee. Sendo, mean-
while, noted the uneven development and
popularity of e-commerce between cities
and provinces. E-commerce remains a
new concept for many manufacturers and
also for customers outside of cities.
The final challenge is long-term capital.
“Building an e-commerce platform requires
long-term financing, to expand markets and
attract customers,” the Tiki representative said.
“In order for an e-commerce business to grow,
it is necessary to have abundant, long-term
capital sources and an appropriate strategy.”

WHAT TOMORROW BRINGS PHOTOS: VIET TUAN
According to the Vietnam E-commerce
Association (VECOM), growth in e-commerce figures from the State Bank of Vietnam Additionally, Tiki’s research found that
was over 20 per cent last year, hitting $16 (SBV), non-cash payments in the first four Vietnam has a large and young population
billion. This is considered not that strong, months of 2022 grew significantly com- with growing incomes, so mobile adoption
however, as the effects of the pandemic linger. pared to the same period of 2021, by 69.7 and internet penetration are expanding, as
Growth is, however, forecast to be much per cent in quantity and 27.5 per cent in is the prevalence of social media. Moreover,
higher this year thanks to ongoing prevention value. Transactions via the internet, mean- during the pandemic, e-commerce became

and control efforts. A report from Google, while, increased 48.39 per cent in quantity a sustainable shopping channel instead of

Temasek, and Bain & Company noted that and 32.76 per cent in value, via mobiles traditional direct selling. “For such reasons,
the scale of Vietnam e-commerce sector is 97.65 per cent and 86.68 per cent, respec- Vietnam in general and Tiki in particular
expected to stand at $57 billion by 2025. tively, and via QR codes 56.52 per cent have great potential to grow further in the
According to the eConomy SEAL 2021 and 111.62 per cent, respectively. The total future,” the representative believes.
report from Google and Temasek, the number of activated e-wallets rose 10.37 Similarly, Mr. Tuan Anh said Vietnam’s
number of new digital consumers in Viet- per cent compared to the end of 2021. large and young population, together with
nam accounted for 41 per cent of the total, The E-commerce in 2021 report from other factors such as rapid technology
ranking its first in Southeast Asia. Vietnam Lazada Vietnam found that people have acquisition, enhanced internet coverage,
added 8 million new digital consumers changed their consumption habits and and the rise of a tech-savvy generation,
from the start of the pandemic to the first behavior. The age of online consumers on have been advantageous to the development
half of 2021, more than half of whom are e-commerce has risen, usage time is longer, of e-commerce in the country.
from non-major cities. Ninety-nine per and orders are larger in both quantity and Meanwhile, for Sendo, a major advan-
cent of its digital consumers intend to value. Notably, 58 per cent of Vietnamese tage is that Vietnam is an agricultural
continue using online services, showing a consumers think they will continue to use country with many specialty products and
very high level of attachment to digital e-commerce because of its convenience, also reputable manufacturers who are
products and services, which will help the and 53 per cent consider online shopping eager to enter into the e-commerce space.
country’s e-commerce sector grow solidly. to have become part of their lives. The A second advantage is that the speed of
Another inevitable trend that will sup- Tiki representative agreed that the pan- technology entering into the lives of Viet-
port e-commerce development is e-pay- demic has changed consumption and shop- namese people is extremely high. And a
ments. For example, Sendo recorded an ping habits. “People are likely to shop third is the support from the government

impressive monthly cashless payment rate online for essential items such as food and and ministries in assisting domestic enter-
of over 50 per cent last year. According to medicine,” the representative said. prises and cities and provinces to quickly
access e-commerce technology. “These
advantages all create favorable conditions
for Sendo to pursue its strategy in the
GMV IN VIETNAM’S INTERNET ECONOMY ($ BILLION) ‘new normal’,” the representative noted.
The Lazada report also makes predictions
about future trends in e-commerce. Social
29%
commerce is to take the throne in 2022,
while user-generated content will boom with
31% 57 the rise of multiple social media platforms.
The omni-channel will become a new form
of retail, customers’ shopping journeys will
21 be personalized, and payment methods will
12 16 be diversified to bring convenience and
safety. Enhancing consumer convenience
even further, e-wallet payments are becoming
2019 2020 2021 2025
more common and are likely to soon domi-
Source: Google, Temasek and Bain & Company nate cash-on-delivery (CoD). %
14 | VIETNAM ECONOMIC TIMES | JUNE 2022 www.en.vneconomy.vn