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Dear readers,

E-commerce has become an inexorable trend worldwide amid Industry 4.0, and in Vietnam has
grown at an unprecedented pace in recent times.

According to the Vietnam E-commerce White Book 2021, compiled from an official survey conducted
in 2020 by the Ministry of Industry and Trade on more than 8,000 businesses and 1,000 consumers
nationwide and released by the ministry’s Vietnam E-Commerce and Digital Economy Agency (IDEA),
revenue from e-commerce activities surged from $5 billion in 2016 to over $10 billion in 2019.

Vietnam has seen positive changes in online shopping, with both consumers and companies moving
online over the past two years as the pandemic limited movement. Growth in retail e-commerce in
2020 was an impressive 18 per cent, with revenue higher than in the previous year and totaling $11.8
billion, while 2021 revenue is estimated at $13.7 billion, a further increase of 16 per cent and
accounting for approximately 6.5 per cent of the country’s total retail sales of goods.

The country has also continually posted strong growth in internet users, online shoppers, and
purchase value.

According to the E-commerce White Book 2021, it has the highest number of people shopping on
e-commerce platforms in Southeast Asia, at some 49.3 million.

Figures from the White Book also show that the rate of new internet users shopping online increased
from 77 per cent in 2019 to 88 per cent in 2020.

The e-commerce boom in Vietnam has been supported by improvements in electronic payment
methods, thanks to the government’s policy encouraging cashless payments.

The country’s e-commerce market remains dominated by foreign players or local companies with
foreign capital, which account for more than half of the total. Of the four largest e-commerce
platforms in Vietnam today, three have foreign investment.

According to reports from Google, Temasek, and Bain & Company, the total value of Vietnam’s
e-commerce market now stands at $21 billion and is expected to rise to $56 billion by 2026.

The market is tipped to develop in leaps and bounds post-pandemic, becoming one of the fastest-growing
and most attractive in Southeast Asia.

Our Cover Story in this June issue therefore takes a closer look at the potential in and prospects for
the country’s e-commerce market. Our analyses are based on the business results of the largest
e-commerce platforms in the country, such as Lazada, Shopee, Tiki, Sendo, and others.

We trust you find it worthwhile reading.

DR. CHU VAN LAM
Editor-in-Chief