Vietnam e-commerce: flourishes in silence


The Vietnam E-Business Index 2018, conducted by the Vietnam E-commerce Association (VECOM), surveyed 4,147 enterprises across the country, recognizing thoughtful numbers for policy making. . The market is hoping for a strong trend in cross-border sales in the near future.

The picture “number” reflects the reality of e-commerce in Vietnam

According to the survey results, Vietnam’s e-commerce (e-commerce) in 2017 achieved a growth rate of 25% compared to the previous year, it is forecasted that this growth will continue to be maintained in 2018. The market also recorded a the number of areas with impressive growth in the past year. For example, in the online retail sector, the revenue growth rate in 2017 reached 35%. Some large-scale delivery businesses grew their revenue by 62-200%. Accordingly, the payment sector also increased. Information from Vietnam National Payment Joint Stock Company (NAPAS) shows that in 2017 the number of online domestic card transactions increased by about 50% compared to 2016, while the transaction value increased by 75%. In the online marketing segment, some companies have a growth rate of 100-200% in 2017, marking the strong growth of the group of businesses providing affiliate marketing services.

For the travel industry, the rate of booking through online travel agencies in 2017 accounted for 30% of revenue (up sharply from 20% in 2016). The shared economic model in the tourism sector has clearly begun to take shape and tends to become online exchanges. According to Grand Thornton Chairman, Mr. Kenneth Alkinson, there are about 6,500 Airbnb participating establishments in Vietnam as of June 2017.

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Regarding human resources in charge of e-commerce, the survey shows that businesses always have difficulty in recruiting skilled workers in information technology and e-commerce. If there were 24% of enterprises in 2015 having difficulties, in 2016 it was 29% and in 2017 it was 31%.

Vietnam’s e-commerce in 2017 achieved a growth rate of 25% over the previous year, and is forecasted to continue this growth in 2018. Photo: Thanh Hoa.

Business trends on mobile platforms are showing signs of slowing down. The report cited, 2015, Vietnam e-commerce marked a strong explosion of mobile commerce, businesses investing heavily in business activities on this platform, from upgrading compatible websites. with mobile devices as well as developing mobile applications. But in 2017, the proportion of websites compatible with mobile devices did not increase. Businesses with mobile sales applications in 2017 also only stopped at 15% (equal to 2016).

Maybe many businesses do not really see the efficiency and shopping needs of people on this platform, or that is only suitable for big cities like Hanoi or Ho Chi Minh City. The survey continued to show that, the average time spent on customers’ stay on e-commerce websites on mobile versions or on mobile sales applications of businesses is not high. 45% of businesses say that the average time to stay for a customer when accessing is 5-10 minutes, 30% staying less than 5 minutes, and a very low rate of visits over 10 minutes.

Social networks and search engines are the two most effective forms of advertising for businesses with 46% and 39% respectively. The next positions were in the form of advertising for messages and mobile applications (22%) and electronic newspapers (21%). However, if compared to 2016, the effectiveness of advertising from search engines in 2017 tended to decrease (from 44% to 39%). 60% of enterprises participating in the survey said they used electronic signatures, this rate was unchanged from the previous year.

Social networks and search engines are the two most effective forms of advertising for businesses with 46% and 39% respectively.

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Evaluating the effectiveness of selling via online tools, 39% of businesses vote on social media (highest among online tools), second place is sales through their website. industry, with 35%.

Evaluating the overall picture of Vietnam’s e-commerce in 2017 with the growth rate of 25%, Neilsen research firm thinks that this figure has correctly reflected the market reality. Vietnam e-commerce has a modest starting point compared to other markets, but should also recognize the efforts of the business community. It can be said that from the past three years, the picture of Vietnam’s e-commerce has really flourished, the level of online shopping of people has been changing dramatically.

According to another study by Neilsen just announced, with the advancement of new technology, the Southeast Asian market is greatly affected by the sharing economy, the spread of modern technology infrastructure, big data. and artificial intelligence and cashless payment technology. Accordingly, by 2020, it is predicted that there will be about 4 billion people connected to the Internet; Particularly in Vietnam, in 2017 there are 53.86 million Internet users, this number will increase to 59.48 million people by 2022, accounting for 60% of the population (source statista.com). Cashless payment technology, by 2020, 30% of global retail revenue is expected to make payments through apps or software on machines, while 33% of Vietnamese consumers will do. for transfer transactions when shopping online, 36% use credit / debit cards when shopping online (according to Themerkel.com). The study “What’s Next in Emerging Markets 2018” also predicts that by 2025, Vietnamese people will migrate to second-class cities to live, 49% of the population will live in urban areas.

The “spans” of cross-border sales

The presence of Mr. Gijae Seong, head of global Amazon Singapore sales in Vietnam has recently attracted public attention. However, he did not mention any information about Amazon’s entry into the Vietnamese market. Instead, Mr. Gijae Seong just said he would cooperate with VECOM to organize training courses to help Vietnamese sellers sell goods to the world effectively and easily through the Amazon website.

UMBRELLAng Gijae Seong, Amazon’s Global Sales Manager in Singapore, speaks at the Vietnam E-commerce Forum 2018. Image: VietTimes.

Vietnam currently has about 200 businesses selling overseas through Amazon. According to these enterprises, at first they encountered many difficulties due to problems with legal issues, procedures, foreign language restrictions, confusion in the use of tools and foreign currency payments. … Therefore, it is hoped that the short-term training course held in April will help businesses remove these barriers. On the other hand, Amazon’s FBA (Fulfilled by Amazon) order fulfillment service deployed globally will take care of all the stages from warehouse, delivery to exchange.

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Speaking of cross-border sales opportunities for businesses on large exchanges, we can include Alibaba’s entry into Vietnam since 2009 through its authorized partner OSB. Applying the B2B sales model, Alibaba is also more or less successful in promoting the export of Vietnamese products to the world with a large contract value of enterprises in handicrafts, agricultural products, and construction materials, and other industries.

Recently, the user community began to know more about a B2C cross-border e-commerce platform called Fado.vn, which was founded by Vietnamese people. As a trade promotion platform for both import and export directions, Fado helps Vietnamese SMEs to export directly (B2C) to end users in foreign markets, and at the same time helps users buy goods even more. During the big sale of the year (BlackFriday, Cyber ​​Monday …) is as easy as buying in the host country.

In order to increase overseas sales channels for shop owners, Lazada Vietnam recently revealed that this e-commerce floor is planning to research and develop new tools to help all shop owners sell goods. to countries in Southeast Asia – where Lazada does business.

O Lau
* Source: Saigon Economic Times

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