- 2023-03-10
Vietnam's e-commerce market has huge potential for development
Hanoi (Vietnam-Briefing.com) - Vietnam's e-commerce market appears to be growing well and its prospects remain positive, despite difficulties faced by many of the world's major economies vietnam-Briefing.com (VIETNAM-Briefing.com).
Nirgunan Tiruchelvam, an analyst at Aletheia Capital, said that against the backdrop of difficulties in ecommerce markets in developed countries, emerging markets, including Vietnam, were seeing rapid growth and many positive signs.
According to Statista's 2022 E-commerce Report, the main reasons for the shrinking e-commerce market are inflation and the COVID-19 pandemic, two key factors, as well as rising fuel prices due to the Russia-Ukraine conflict. For international e-commerce enterprises, the global economic crisis has made stock prices fall, especially affecting employment issues. However, this problem did not happen in Vietnam.
Vietnam has huge potential for future development. Vietnam's e-commerce market reached $14 billion in 2022 and is expected to reach $32 billion by 2025. According to Google's e-Confy Sea Report, Vietnam ranked among the top three countries in Southeast Asia in terms of investment in e-commerce in 2022. Some of the world's biggest companies, such as AIA Insurance Inc, SBI Holdings and Alibaba, have invested in Vietnam's Tiki, Lazada and Sendo e-commerce platforms.
According to the Vietnam E-commerce 2022 Report by the Vietnam Ministry of Industry and Trade, the per capita online shopping in Vietnam will continue to increase.
In Vietnam, e-commerce has overtaken traditional retail such as convenience stores and supermarkets. As a result, McKinsey and Company both predict that Vietnamese e-commerce will catch up with traditional retail by 2025, a trend not seen elsewhere in the world.
As an emerging market in an active region, Vietnam is an attractive destination for e-commerce and social trade. Vietnam has a growing middle class, a young population and rising incomes. All these factors can boost consumption and facilitate the leapfrog development of e-commerce in Vietnam.