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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
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