Log in
Business

Vietnam targets 55% of population shopping online by 2025

Hanoi and Ho Chi Minh City would make up half of the country’s e-commerce revenues in the next five years.

The Vietnamese government targets around 55% of the population to shop online with an average spend of US$600 annually by 2025.

 Illustrative photo. 

According to a government’s plan for the development of e-commerce by 2025 released on May 18, revenue from online sales of business-to-consumer e-commerce, known as B2C e-commerce, is set to grow by 25% per year to US$35 billion, accounting for 10% of total goods retail sales and service revenues.

Meanwhile, the government expects the rate of population using related services, including non-cash payment services, at 50%, and through intermediary payment services at 80%.

The plan aims to keep delivery costs at around 10% of product prices in e-commerce.

By 2025, 80% of e-commerce websites should be integrated with online shopping and 70% providing e-invoices.

Notably, Hanoi and Ho Chi Minh City would make up half of e-commerce revenues in the next five years.

The government envisions half of the country’s small and medium enterprises providing online shopping services (including via social networks); 40% having mobile apps; 70% providers of electricity, water, telecommunications and media services having e-contracts with customers.

Data and analytics firm Global Data forecast Vietnam’s e-commerce market to surpass VND399.5 trillion (US$17.3 billion) in 2023 from VND218.3 trillion (US$9.4 billion) in 2019, representing a compound annual growth rate (CAGR) of 16.3%.

According to GlobalData’s 2019 Banking and Payments Survey, cash is still the most preferred payment mode for e-commerce purchases in Vietnam, accounting for 35.6% in 2019. Alternative payment solutions are gradually gaining ground and accounting for 15.5% share. MoMo is the most preferred alternative payment solution in Vietnam, followed by PayPal.

Meanwhile, such strong growth of the market has prompted global companies to invest in Vietnamese e-commerce businesses. In 2018, Tiki, a local e-commerce company, received US$5.3 million and US$44 million funding from IT firm VNG Corporation and Chinese investor JD.com, respectively. In the same year, another company Sendo secured US$51 million from SBI Group (a Japan-based financial services company) and other investors. Furthermore, Chinese e-commerce giant Alibaba invested an additional US$2 billion in Lazada, one of the leading e-commerce companies in the country.  

Reactions:
Share:
Trending
Most Viewed
Related news
Vietnam manufacturing poised for positive growth in Q3

Vietnam manufacturing poised for positive growth in Q3

Nearly 80% of manufacturing and processing firms expect business conditions in the third quarter to remain stable or improve compared to the previous quarter.

Brazilian giants JBS and FS seek deeper ties with Vietnam

Brazilian giants JBS and FS seek deeper ties with Vietnam

The prime minister held meetings with leaders of major Brazilian corporations to promote cooperation in various sectors including aviation, biofuel production, agriculture, and food processing and distribution.

Vietnam, Brazil enterprises boost ties

Vietnam, Brazil enterprises boost ties

Enterprises from Vietnam and Brazil have expressed a strong desire to seek investment opportunities in each other's countries, thus strengthening bilateral economic relations.

Vietnam OCOPEX 2025 to take place in August

Vietnam OCOPEX 2025 to take place in August

OCOP Export Products Fair 2025 (Vietnam OCOPEX 2025) will feature 300 booths from over 150 enterprises.

Vietnam, Laos strengthen science and technology partnership

Vietnam, Laos strengthen science and technology partnership

A memorandum of understanding between the two countries outlines their joint efforts in funding scientific research, training scientific and management personnel, developing support programs, and sharing technical expertise.

Erex seeks to convert Vietnam’s coal plants to biomass in clean energy shift

Erex seeks to convert Vietnam’s coal plants to biomass in clean energy shift

Such projects will positively impact the energy sector and bilateral cooperation.

Hanoi's district transforms itself through people-driven digitization

Hanoi's district transforms itself through people-driven digitization

The communes of the former Phu Xuyen District will continue to serve as models for digital transformation and e-commerce in Hanoi.

Vietnam to offer STEM scholarships to ease talent shortage

Vietnam to offer STEM scholarships to ease talent shortage

Expanding STEM education matters for Vietnam in building a skilled workforce for an innovation-driven, digital economy.