E-commerce has taken off in Vietnam with a booming amount of internet usage and smartphone ownership. The percentage of e-commerce shoppers grew from 5.4 % to 8.8% in Vietnam’s major cities.

Vietnam’s e-commerce market grew by 25 percent last year and is expected to maintain its steady growth in the next 5  years. The market has climbed to US $4 billion in 2016 and is still one of the fastest growing e-commerce market in the world. Revenue from e-commerce retail amounts to US $2.6 million in 2018 and forecasts to a revenue growth of 26.8% in 2019, with the retail market of media and electronic goods the highest. The country is ambitious in reaching a revenue totaling to US $10 billion by 2020.

It is now a critical time for investors to enter this promising market while retail corporations are gradually relocating their operations into Vietnam. American giant, Amazon, announced their plan to open up its platform on the Vietnamese market. It will provide a platform for local enterprises to exporting Vietnam’s manufactured goods. Amazon, is estimated to have a net worth of US $150 billion and is expected to sign a deal with the Vietnam E-commerce Association in Hanoi this month. Its implementation strategy is to be announced in the next few days.

Amazon’s rival, Alibaba, has already signed an agreement with the National Payment Corporation of Vietnam which will allow its users to use its online payment platform in Vietnam.

“Although the size of Vietnam’s e-commerce market is still small compared to other countries, it holds a strong potential, as the value growth of FMCG (fast moving consumer goods) is up by 69%,” said David Anjoubault, general manager of Kantar Worldpanel Vietnam.

 Source: Statista, VNexpress, VNexpress, Asia Nikkei