Vietnam is one of the fastest growing e-commerce countries in the world, heard the Vietnam Business Forum 2017 themed “E-commerce Solutions for the Success of Businesses” organized in Hanoi on December 12.

According to Do Kim Lang, deputy director of the Vietnam Trade Promotion Agency (Vietrade), which held the forum, the country’s e-commerce market grows 35% a year, 2.5 times faster than in Japan.

Vietnamese businesses capable of taking advantage of the internet and technology grow 2.1 times faster than others. Small and medium enterprises that spend more than 30% of their budget on technological innovation grow nine times faster than those spending less than 10%.

Lang said Vietnam’s e-commerce retail sales growth in 2016-2020 is estimated at 20% per year, and the country’s total retail e-commerce sales would reach US$10 billion by 2020.

In 2017, e-commerce retail sales have expanded 25% and would become an important part of Vietnam’s e-commerce sector.

However, there are still some barriers that threaten the sustainable development of e-commerce, including low consumer trust in the real products and online payment security.

Besides, most Vietnamese e-commerce websites provide basic services only, such as information about products and modes of payment. They should have added services like digital marketing optimization and connecting online with offline sales.

Lang said retailers cannot gain success on the e-commerce market by simply creating and operating a website. They have to develop a thorough and well-integrated strategy for all aspects of operation, including production, marketing, product sources, order management, and transport and delivery services.

Source: Saigon Times