Vietnam’s e-commerce market has significant potential for growth

According to Nirgunan Tiruchelvam, an analyst at Aletheia Capital, while the e-commerce market in developed economies is facing many difficulties, emerging markets such as Vietnam are growing rapidly and not in such a situation. Vietnam has many positive signs in the e-commerce sector.

Statista’s 2022 e-commerce report shows that the global e-commerce market in 2022 is valued at over $3 trillion. The three largest e-commerce markets are China, the United States, and Europe, accounting for a large proportion of the e-commerce market with total revenue of $2.723 trillion. However, despite recording such a large revenue, global e-commerce revenue decreased for the first time in 2022.

A series of factors contribute to the narrowing of the e-commerce market, including two key factors: inflation and the COVID-19 pandemic. In addition, the Russia-Ukraine conflict has also affected fuel prices. For international e-commerce businesses, the global economic crisis has caused stock prices to decline and especially employee layoffs. However, this trend of layoffs does not affect Vietnam much.

Vietnam still has a lot of potential for the market to continue to grow in the future. In 2022, Vietnam’s e-commerce market reached $14 billion and could reach $32 billion by 2025. Google’s e-Conomy SEA (Southeast Asian internet economy) report in 2022 predicts that Vietnam will be one of the top three countries that attract the most investors in e-commerce. AIA Insurance Inc, SBI Holdings, and Alibaba are just a few big names pouring money into Vietnam’s e-commerce markets Tiki, Lazada, and Sendo.

Furthermore, the Vietnam e-commerce report 2022 of the Ministry of Industry and Trade estimates that the value of online shopping per user will continue to increase.

In Vietnam, e-commerce has surpassed traditional retail industries such as supermarkets and convenience stores. Therefore, McKinsey and Company’s prediction that Vietnam’s e-commerce market could be as large as traditional retail by 2025 is understandable. This trend is not seen in other countries around the world.