The percentage of internet users who make online shopping in Vietnam is 71%, which is higher than the Philippines (68%). Of the 8 million new entrants to the digital economy, nearly 100% said they would continue to shop online in the future.
The Covid-19 pandemic has caused many disruptions and difficulties, but it also created many opportunities, especially opportunities for e-commerce market. According to experts, Covid-19 helps the development of e-commerce in Vietnam grow 2-3 years faster than without the epidemic.
Market size has doubled
The Vietnam E-commerce White Paper 2021 by the Department of E-commerce and Digital Economy (Ministry of Industry and Trade) informed that the percentage of people using the Internet, the number of consumers shopping online and B2C e-commerce revenue have increased sharply and continuously in the past 5 years.
While in 2016, revenue from e-commerce reached 5 billion USD, in 2019 this figure doubled, reaching more than 10 billion USD and in 2020 it was 11.8 billion USD, with an increase of 18% compared to the previous year.
The latest reports from Google Temasek and Bain & Company also showed that the size of Vietnam's e-commerce market will continue to maintain a growth rate of 29% from now to 2025. In 2025, revenue from this field is expected to reach 57 billion USD compared to 21 billion USD in 2021.
Meanwhile, as reflected by the Ministry of Information and Communications of Vietnam, the proportion of the digital economy in 2020 reached 8.2% of GDP, and it is expected to reach 20% of the country's GDP in 2025.
On top of that, the percentage of people who shop online will increase in the future. Vietnam has 8 million more people participating in the digital economy. For those who have purchased online once, nearly 100% said they would continue to shop online in the future. This proves that the number of people making online transactions as well as the number of people shopping and continuing to shop will experience good growth in the next 4-5 years.
"Revenge shopping" will rise
The pandemic has reshaped consumers' shopping behavior, and the reluctance to shop online has decreased. In Southeast Asia, Vietnam ranks second in the online consumer growth index, increasing by 8% compared to 2020. According to a report in the third quarter of 2021 by Lazada Vietnam, the number of orders on Lazada was twice as much as that in the same period in 2020.
Moreover, up to 76% of e-commerce sellers are optimistic about Vietnam's digital economy in the fourth quarter of 2021 as well as 2022. The number of new sellers on e-commerce platforms has increased by 1.5 times over the same period last year.
It is predicted that within the next 6 months, there will be a particularly big change in consumer behavior, shifting from traditional shopping to digital shopping. There will also be a wave of "revenge shopping”.
According to a Lazada representative, in the near future, there will be three new consumer groups in the Vietnamese market.
The first group consists of people who have good income and continue to have shopping needs. During the pandemic, especially the 4th outbreak, they still had income. After the social-distancing period, they will spend a lot on non-essential needs such as entertainment, beauty care.
Group two is of people with lower income due to the impact of the epidemic. It may take them 6 months - 1 year to return to the same consumption demand as before the pandemic.
The other group is those who will maintain the shopping behavior after the pandemic but focus on shopping for things that are really necessary, and limit the consumption of products that adversely affects the environment for more sustainable development.
Source: VietnamCredit
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