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Over the last four years, Vietnam has received approximately US$1 billion in funds for its e-commerce sector and is considered the fastest-growing digital economy in the region. How then, does Vietnam’s e-commerce scene measure up against other Southeast Asian economies?
This week, we continued our series on the state of e-commerce around the world. Let us take a look at some interesting insights we found in Vietnam:
- During holiday seasons in Vietnam (Tet Holiday’20, Nov’19, Dec’19, and Jan’20), there was an increase of 50% in parcel volume.
- Ho Chi Minh City and Hanoi only make up 23% of the entire population, yet they are responsible for 78% of parcels in Vietnam. In last week’s infographic, we found that the volume of shipments in non-capital cities’ shipment rates were growing 12-15% faster than in the capital cities during the pandemic. Whilst this study covered Indonesia, Thailand, and Malaysia, it’s possible that Vietnam has also seen similar growth patterns boost in e-commerce during the lockdown.
- Shipments from China, the US, and South Korea account for 40% of all international shipments arriving into Vietnam. As in our previous e-commerce studies done in Southeast Asia, China again appears in the top 3 countries for international shipments.
- Amazon only entered Vietnam in 2019 but is already within the top 10 most used e-commerce platforms in Vietnam. The younger generation in Vietnam prefers foreign e-commerce websites like Amazon and eBay, posing a threat to homegrown e-commerce platforms like Tiki, Thegioididong, and Sendo.
- This is the first time we are seeing South Korea in the top 3 countries for international shipments. Lotte’s mobile shopping app, launched by South Korean conglomerate Lotte Group, is one of the top 10 e-commerce mobile apps used in Vietnam. Lotte Group has invested US$390 million in the Vietnam retail market from 2008 to 2019 and also has 14 shopping malls, one department store, and 2 duty-free shops in Vietnam.
Vietnam’s growth is an opportunity for e-commerce and logistics organisations looking to expand their presence into Southeast Asia. As more players enter an increasingly competitive e-commerce scene, time will tell if the “big four” players – Shopee, Lazada, Tiki, and Sendo, continue to dominate.
Research methodology: Parcel Monitor’s team analysed representative domestic and international parcel shipment data in Vietnam (2019).