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Vietnamese e-commerce market is projected to experience robust growth

• E-commerce platforms function as intermediaries, facilitating stakeholder transactions and delivering products from manufacturers to end consumers.
• In 2024, Vietnamese e-commerce market is estimated to reach a Gross Merchandise Value (GMV) of USD 22 billion, ranking third among the six largest economies in Southeast Asia. Vietnam is also forecasted to record the second-highest average annual growth rate in GMV for 2024–2030, at 18.7%, trailing only the Philippines.
• Supporting factors for the growth of Vietnam e-commerce market:
o Internet and smartphone adoption rates in Vietnam are high and continue to grow.
o Vietnam's per capita income is projected to grow at a solid annual rate of 7.0% for 2024–2030.
o The completion rate of major transportation projects, based on total investment value, is expected to rise.
o The value of electronic payment transactions is projected to increase at a robust annual rate of 14.5% through 2030.
o The Covid-19 pandemic changes consumer habits.
o Supportive government policies.
• Challenges to the growth of vietnam's e-commerce market:
o Underdeveloped transportation and digital infrastructure.
o High competition in the industry.
o Concerns about the safety and security of online transactions impact consumer’s demand for e-commerce services.
o Shortage of high-quality human resources.
• We believe that e-commerce will gradually capture traditional commerce and retail market share. However, with their unique advantages, traditional commerce and retail still maintain a presence and continue to grow. Opportunities exist for businesses that can integrate and leverage the strengths of both models.