Vietnam e-commerce key facts and trends (updated Apr 2019)

Following the previous post about Vietnam digital marketing landscape, today post will look at e-commerce landscape in Vietnam, in comparison with other countries in the region for better context.

1. Total retail sales in Vietnam is expected to be $154B in 2019

Expected total retail sales by country in 2019 in Vietnam and other countries (in $B)

The above countries are ranked based on their population. It gives us a sense of scale in different markets. Next is expected growth rate in 2020.

2. Vietnam expected retail growth rate is 8.5% in 2020, much higher than growth rate in many other countries

Total retail sales expected growth rate in 2020 for Vietnam and other countries

Japan is the outliner given the much older population vs the rest.

Retail in Vietnam is benefited from a good economy growth rate, expected to be 6.6% in 2019

2019 expected economy growth rate from World Bank v2

3. Retail e-commerce in Vietnam in 2019 is expected to be lower than $3B

Retail e-commerce sales in 2019 Vietnam and other countries($B)

4. E-commerce in Vietnam still has a huge potential to grow as its penetration is tiny (less than 2%)

Retail e-commerce sales penetration 2019 Vietnam and other countries

5. Given the smaller size, Vietnam e-commerce growth rate is underwhelming in comparison to other countries

Retail e-commerce growth rate 2019 for Vietnam and other countries

eMarketer also forecasts the growth rate to decelerate in Vietnam in the next few years to about 10% in 2023.

6. About half of the total retail e-commerce in Vietnam happens on mobile devices, on par with other countries

Retail Mobile e-commerce as percentage of e-commerce 2019 in Vietnam and other countries

7. Unlike the retail e-commerce, digital travel sales in Vietnam is expected to triple in the next 6 years or about 14.4% compound annual growth rate (CAGR)

digital travel sales in vietnam and other southeast asia countries 2018 2025

This is normal in comparison to other developing economies i.e. larger number of people in the middle income bracket often lead to more travel. If the country has good internet infrastructure then online booking (flight, hotel etc.) should naturally increase.

8. There are a good mix of local and international e-commerce players amongst the top 10 in Vietnam by visit

top e-commerce players in vietnam by visit q4 2018

That’s all from me. Do you have anything to add?

Cheers,

Chandler

  2 comments for “Vietnam e-commerce key facts and trends (updated Apr 2019)

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.