Percentage of enterprises participating in e-commerce market over the years
Source: Vietnam E-commerce Indicators Report 2018
With 53 per cent of the population using the internet and nearly 50 million people using smartphones, Vietnam is considered to have high potential for e-commerce market development. The advent of a series of big e-commerce brands in Vietnam is considered a great opportunity for exporters in market integration and expansion.
16 Vietnam started providing public internet services 20 years ago, opening up room for e- commerce development. In 2006, the E-commerce Decree and many other decrees guiding the enforcement of the E-transaction Law marked e- officially commerce prolongation in 10 years (2006 - 2015).
Vietnam's e-commerce market was worth US$4 billion in 2016 and was projected to reach US$10 billion in the ensuing four years.
The country's e-commerce growth was 25 per cent 2017; and the same growth is predicted for the period between 2018 and 2020, said the Vietnam E-commerce Association (VECOM) in its Vietnam E-Commerce Index Report 2018.
The report also showed that growth was spectacular in some areas. As for online retailers, information from thousands of e-commerce websites revealed that revenue growth was 35 per cent in 2017. Direct surveys by some leading delivery companies indicated that delivery service revenue grew from 62 per cent to 200 per cent.
According to data from Vietnam National Payment Joint Stock
Company (NAPAS), in 2017, domestic online card-based deals rose by about 50 per cent while the value expanded by 75 per cent. In online marketing, some affiliate marketing companies reported growth ranging from 100 per cent to 200 per cent in 2017. The e- commerce platform is a useful tool for small and medium businesses. In 2017, 11 per cent of respondents deployed their businesses on e- commerce platforms.
In addition to domestic firms, the market advent of many big Vietnamese e-commerce witnessed th e- commerce brands in the world. In March 2018, Amazon officially arrived in Vietnam. Earlier, Alibaba made inroads into Vietnam by acquiring Lazada. Three Japanese companies namely SBI Holdings, Econtext ASIA and BEENOS, bought into 33 per cent of Sendo Joint Stock Company, affiliate to FPT Corporation.
About shopping habits in Vietnam, with a series of e-commerce websites such as Lazada, Tiki, Shopee, Sendo and Adayroi blaunched, online shopping is no longer strange to Vietnamese consumers. A 2018 survey conducted by the Vietnam Association of High Quality Goods Enterprises showed that the number of online shoppers in 2018 increased by three folds (2.7 per cent) over 2017 (0.9 per cent). 2018 will be the boom time for e-commerce, when people are familiar with online shopping.
Among businesses that have websites for mobile experiences or shopping applications, 42 per cent allow buyers to do the shopping on mobile devices, 29 per cent offer promotions for mobile users and 47 per cent get orders through mobile applications
E-commerce as an effective export channel
The boom of world and local e- the together with commerce, presence of many big firms, has had a great impact on local exporters.
E-commerce is now revolutionary factor to secure an export breakthrough and exporters to gain analysed by experts. Specifically, commerce helps businesses improve efficiency at all stages, from marketing and trade promotion to contract signing and enforcement, payment, customs and other administrative procedures. help more advantage, as e- At present, many microbusinesses are deploying social networking and e-commerce to sell their products to many countries, helping to reduce intermediaries and costs, deliver goods directly to consumers and get the highest profitability.
Furthermore, the advent of a series of big e-commerce brands in Vietnam is considered a great opportunity for exporters in market integration and Vietnamese More expansion. exporters participate in online export through e-commerce platforms
According to VECOM's report, many companies have actively utilised e-commerce benefits to exchange and search for information. In 2017, 32 per cent of businesses established business relationships with foreign partners through online channels, 11 per cent joined e-commerce sites and 49 per cent had their own websites.
Also in 2017, the Vietnam Export Support Association (VESA) was officially launched, providing online connectivity for enterprises. When importers and exporters become VESA members, they will be given better assistance from e-commerce- logistic-banking -insurance alliance to form a direct, inclusive and effective support chain.
In early 2018, Amazon also officially launched a cooperation programme with the Vietnam E- commerce Association to support SMES to sell and export their products through Through this programme, Vietnamese SMES will know how to place their products on Amazon, as well as export them to international markets Amazon's ecosystem.
Needless to say, one of the keys to export growth in the current context of the technological boom is e commerce. But, to effectively apply the e-commerce channel to boost export, enterprises need to select an appropriate approach to optimise costs in order to achieve the highest efficiency. At the same time, companies also need to invest in e-commerce personnel training.