Develop your Business in Asia - South Asia - APAC

Vietnamese e-Commerce is going to be big

According to the governement, about 53 % of the population in Vietnam shopped online last year. Despite the impact of the pandemic, Vietnam’s e-commerce revenue is booming with a +18 %. the total e-Commerce turnover reach 11.8 billion USD.

Totay, it is 5.5% of total retail sales.

Vietnam’s e-commerce market is expected to grow at a high rate

The economy of Vietnam is expected to slow down in terms of gross domestic product growth. This compares to the 7.1 percent growth year-on year in 2018. 1 Due to this impressive economic performance, Vietnam has a high projected growth rate for ecommerce. The sector is forecast to grow 19 percent annually through 2021.

Although the e-commerce market has not yet become a threat to brick-and-mortar sales, it is a promising opportunity. Merchants who are looking for emerging e-commerce markets should not ignore Vietnam’s young population, which is rapidly adopting mobile commerce. There is also a double-digit growth forecast for 2021.

After a turn in global risk sentiment, liquidity conditions appear to be supportive of macroeconomic stability. This should help capital inflows. After a change in global risk sentiment, liquidity conditions are supportive of macroeconomic stability. This should help capital inflow.

Vietnamese will participate directly in foreign distribution networks by 2030, approved early last week. E-commerce channels will also play an important role in Vietnam’s ability to establish a strategic relationship to foreign distribution networks in order to build a sustainable and stable production-export-distribution model.

source JPmorgan

This project aims to see Vietnamese goods on the shelves of traditional and online distribution channels in all countries with free trade agreements with Vietnam by 2030.

Around 20,000 businesses will receive market information support, and 15,000 enterprises will receive training and consulting to improve their competitiveness and become part of the global value chain. Additionally, support will be given to 5,000 businesses in order to help them build their capacity for cross-border ecommerce.

Parallel to this, 10,000 trade connections will be established to link Vietnamese companies with foreign distribution networks. More than 10,000 products will also be supported to allow them to enter foreign distribution networks.

Vietnam hopes to grow its export and import markets in order to sustain long-term growth. It also encourages Vietnamese companies to be active in global supply and distribution chains.

This project will contribute to the transformation of production thinking and organisation towards a methodical, sustainable director. It will also help to build Vietnam’s image as a country capable of supplying large quantities of quality goods at a high price.

We will develop policies and mechanisms to encourage foreign companies to establish sustainable purchasing strategies with the Vietnamese market.

Vietnam E-Commerce and Digital Economy

Ministry of Industry and Trade, stated that it would organize activities to promote trade in foreign countries and promote made-in-Vietnam goods via foreign e-commerce platforms and online channels. This will help expand markets and speed up cross-border trade.

The department is promoting farm produce sales and works with foreign ecommerce platforms like Amazon, Alibaba and Google. It also provides training and connections about ecommerce knowledge, skills, and especially cross-border trade.

According to the ministry, the ministry will place emphasis on export promotion to create a sustainable and harmonised trade balance. It will also provide support for foreign market entry and expansion.

After achieving US$616 billion in the first nine month of the year, Vietnam is on track to achieve a trade value of US$700billion this year. This represents an increase of 14.1 percent compared to the same period lastyear.

Leave the first comment