E-commerce industry on road to meeting US$35 billion revenue target in 2025
  • | VOV | June 11, 2024 09:03 PM
The market size of Vietnamese e-commerce hit US$20.5 billion last year, marking an increase of about US$4 billion compared to 2022, and the industry is likely to achieve the US$35 billion revenue target ahead in 2025.

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With the rapid growth recorded in recent years, the e-commerce industry is likely to meet the US$35 billion revenue target in 2025.

Over the past four years, Vietnamese e-commerce has recorded an average growth rate of between 16% to 30% per year, the highest in the world, according to the E-Commerce and Digital Economy Agency under the Ministry of Industry and Trade (MoIT).

The first quarter of the year alone saw total sales on the five largest e-commerce platforms in the country - of Shopee, Lazada, Tiki, Sendo, and Tiktok Shop - reach approximately US$3 billion, growing by 78.69% compared to the same period from 2023. This growth rate therefore far exceeded expectations, because e-commerce market sales were forecast to only increase by about 35% this year compared to 2023.

At the same time, a total of 766.7 million products were successfully delivered to consumers over the past three months, marking an annual increase of 83.21%.

With many domestic consumption stimulation programmes on offer, consumers are tending to spend more freely in the post-COVID-19 period, with online shopping increasingly becoming an indispensable part of spending habits. In addition to the general recovery of the economy, local firms are increasingly confident in the development of the online retail market.

The ongoing development of digital infrastructure coupled with the emergence of new technologies therefore contributes to helping businesses operate more effectively while simultaneously promoting stronger growth within the industry. Furthermore, the Government’s policies aimed at encouraging increased development and perfecting the legal framework are also creating many advantages for businesses operating in the industry to develop sustainably.

Nguyen Thi Minh Huyen, deputy head of the E-Commerce and Digital Economy Agency, points out that the two Government decisions - Decision No. 645/2020/QD-TTg on the national e-commerce development for the 2021 - 2025 period, along with Decision No. 749/QD-TTg on the national digital transformation programme until 2025 with a vision towards 2030 - serve as the backbone in the ongoing development of e-commerce and digital economy in the country.

In her opinion, the legal framework of the country’s e-commerce industry is increasingly being improved as a means of ensuring the benefits and protection of users and businesses through the Law on Electronic Transactions 2023 and the Law on Protection of Consumer Rights 2023. To encourage businesses to engage in the economy, the Government has introduced support policies on taxes and finance, the development of digital trade infrastructure, the promotion of cross-border e-commerce, and further research and development.

Amid the rapid growth of e-ecommerce services, the Ministry of Industry and Trade has set an ambitious target for the industry moving forward to 2025. Accordingly, e-commerce will bring in US$35 billion in revenue, 55% of the population will engage in online shopping, whilst 50% will make non-cash payments.

In order to create a fair competitive environment in the e-commerce industry, the MoIT has deployed level four public services as a way of managing e-commerce firms. It is also drafting a national trade development strategy for the 2026 - 2030 period, with a specific focus on improving the overall competitiveness of businesses and developing green e-commerce.

Most recently the E-Commerce and Digital Economy Agency signed a co-operation document with Amazon Global Selling aimed at promoting the cross-border e-commerce activities of Vietnamese businesses, while training and improving business services in international trade development.

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