Vietnam…The Rising Star of E-Commerce

Even though Vietnam entered the E-Commerce world later than other Asian countries like Singapore, Malaysia, Indonesia, and Thailand, its E-Commerce market is considered a fast-growing country in the world. Vietnam government has given top priority to E-Commerce business and launched the Master plan 2016-2020 to support it with a goal to extend 30% online shopping and services to Vietnamese. The government started backing up E-Commerce in 2017. Vietnam E-Commerce and Information Technology Agency (VECITA) under the Ministry of Industry and Commerce set a goal in 2020 to add 30% of import & export value for B2B (Business to Business) E-Commerce, and 5% of domestic retail value for B2C (Business to Consumer).

After Vietnam is a member of the World Trade Organization (WTO) in 2007, the country has become a significant part of the global supply chain. Vietnam has an open door to foreigners to invest more in telecommunication networks. The government accelerated development in infrastructures and legal framework to support E-Commerce, to increase economics proficiency and competitive advantages of the country.

With the population over 90 million, most are young people and in working-age group. They are the middle class who represent the high internet and mobile users and have high purchasing power so E-Commerce can easily penetrate this group. In the near future, E-Wallet, an online transaction in Vietnam, will be more active and prevailing and that can drive a complete cycle of online shopping to big growth.

The battle of online marketing in Vietnam is tremendously competitive among various competitors including new investors of local brands and foreign investors who aim to extend their businesses. As a result, E-Commerce in Vietnam is now in a fierce war. We’re going to introduce you to 

 5 giant platforms in Vietnam online market referring to the survey by Vietnam Insider.

Shopee

The leading E-Commerce online shopping platform from Singapore under Sea Group gained the highest number of users in Vietnam at an average of 33.6 million people per month in 2019. Shopee’s strategy has tempted customers with non-stop, and hot promotions with a good value for money.


Thegioididong

Vietnam E-Commerce focuses on selling leading IT accessories and has penetrated new generations with a Tech-Savvy lifestyle. Thegioididong gained 29.3 million users per month in 2020.


Sendo

A big Vietnamese technology company who raised Series C funding (great fundraising of Startup with a huge amount of capital to speed up the company growth). Sendo is the first E-Commerce market that received E-Wallet License Approval. Sendo uses “Senpay” as a name for an online payment service. The factor that drives strength to Sendo is to create partners within the Ecosystem with equal treatment of all parties such as businessmen, shipping companies, and financial institutions. Sendo sells all goods except cars and fresh food and gained 26.9 million users per month in 2019.


Tiki

The fast-growing Vietnamese retail company established in 2010. Their first launch was booked, following by cosmetics and IT accessories. The distinctive service is to provide product delivery to customers within 2 hours. In 2019, Tiki bought Ticketbox business, an online ticketing service that generated high sales volume, and gained 24.4 million users per month in 2019.


Lazada

A giant Chinese company back up by Alibaba that has made E-Commerce market bustle in Vietnam. Lazada offers varieties of products and after-sales services, fast delivery service, and attractive promotions. Lazada gained 23.8 million users per month in 2019. 


Even though the E-Commerce market in Vietnam is highly growing but Vietnamese lack confidence in making an online payment. Most people prefer Cash on Delivery. The government has encouraged people to use E-Wallet more and set a goal to reduce using cash 10% of all financial transactions within 2020. 

The E-Commerce trend in Vietnam has a sign of exponential growth as a majority of people are in working age and familiar with technology and have high purchasing potential. E-Commerce easily reaches consumers so Thai entrepreneurs have both opportunities and challenges to enter to Vietnamese market where everything is all set. 


Consumers who are interested in running the business in CLMV or GMS (Great Mekong Subregion) comprising Cambodia, Laos, Myanmar, and Vietnam, Siam Commercial Bank has international branches and we’re ready to service you. For more information, please visit https://www.scb.co.th/en/corporate-banking/international-network.html



Source: Siam Commercial Bank, Ho Chi Minh City branch 


ข้อมูลอ้างอิง

1. Datareportal. “Digital 2019 sportlight : Ecomerce in Vietnam.”

https://datareportal.com/reports/digital-2019-ecommerce-in-vietnam (19/9/2020)

2.Eurasia Review News & Analysis. “Vietnam’s Booming E-Commerce Market-Analysis.”

https://www.eurasiareview.com/30012020-vietnams-booming-e-commerce-market-analysis/ (19/5/2020)

3.ปิยะขวัญ ชมชื่น. “Law for Asean ธุรกิจพาณิชย์อิเล็กทรอนิกส์ (E-Commerce) ในเวียดนาม.”

https://lawforasean.krisdika.go.th/File/files/Final%20E%20Commerce%20%E0%B9%80%E0%B8%A7%E0%B8%B5%E0%B8%A2%E0%B8%94%E0%B8%99%E0%B8%B2%E0%B8%A1%20.pdf (20/5/2020)

4. DITP. “ตลาดอีคอมเมิร์ซ (E-Commerce) ในเวียดนาม.”

https://www.ditp.go.th/contents_attach/232072/232072.pdf (22/5/2020)

5. Kantar Worldpanel. “Covid-19 Vietnam’s consumer changes & retail movements.”

https://www.kantarworldpanel.com/global/News/COVID-19-Consumer-changes-and-retail-movements (22/5/2020)

6. Vietnam Insider. “What e-commerce marketplaces in Vietnam look like in 2020?.”

https://vietnaminsider.vn/what-e-commerce-marketplaces-in-vietnam-look-like-in-2020/ (25/5/2020)

7. Techsauce. “Vietnam Startup Ecosystem เผย Startup Landscape เวียดนามครบทุกมุมที่คนอยากเข้าต้องรู้”

https://techsauce.co/tech-and-biz/vietnam-startup-ecosystem-2018 (25/5/2020)

8. Techsauce. “Sendo E-Commerce จากเวียดนามระดมทุน Series C ไปกว่า 61 ล้านดอลลาร์ โดยมีกสิกรไทยเข้าร่วมลงทุน.”

https://techsauce.co/news/sendo-e-commerce-series-c-funding (25/5/2020)

9.Thumbs up. “มาเรียนรู้กับ Startup Funding ในแต่ละระดับให้ดีกันยิ่งขึ้น.”

https://www.thumbsup.in.th/how-funding-rounds-differ-seed-series (26/5/2020)

10. Techsauce. “Tiki เว็บ E-Commerce ชั้นนำของเวียดนามซื้อกิจการ Ticketbox.”

https://techsauce.co/news/tiki-e-commerce-in-vietnam-acquires-ticketbox (26/5/2020)

11.  RYT9. “เกร็ดการเงินระหว่างประเทศ: เวียดนามกับการปรับเปลี่ยนพฤติกรรมสู่การชำระเงินแบบ e-Payment.”

https://www.ryt9.com/s/exim/2880983 (26/5/2020)

12.  Globthailand.com.”E-Commerce เวียดนามมุ่งสู่มูลค่า 13,000 ล้านดอลลาร์สหรัฐในปี 2563.” https://globthailand.com/vietnam-07022020/ (30/6/2020)