Credit by Retail Asia
Vietnam can be truly called a land of opportunity for domestic and foreign e-commerce companies. Its young population, high Internet penetration rate and rising smartphone penetration rates play the key role here, making the country one of the most promising for e-commerce activities in the region.
South-East Asia’s Surge in E-commerce
Southeast Asia is definitely a new big e-commerce hit, and the region is currently a very attractive market for big players involved globally in the e-commerce sector and smaller local companies. At a reflection point of Internet penetration and mobile devices rapid spread, the population of Southeast Asia is quickly adapting its behaviors to take advantage of new purchasing products and services online opportunities. According to the latest e-Conomy Southeast Asia 2018 report from Google and Singapore-based Temasek, the digital economy in Southeast Asia is on track to hit $240 billion by 2025,which is $40 billion more than previous estimates. The key factors are the most engaged mobile internet users in the world, as well as industries like ecommerce, online media,online travel and ride-sharing, which grew at never-before-seen rates.
There are currently 35.4 million e-commerce users in Vietnam, with an additional 6.6 million users to be shopping online by 2021. These 42 million e-commerce users will represent 58% of the total population. That’s why there is no wonder that throughout the last 5 years Vietnam is showing a constant rise in percentage of online shopping transactions.
E-commerce market value in Vietnam from 2014 to 2020
Little surprise there, as affiliate marketing sales constituted about 15% of the total sales,which sounds quite intriguing. The most popular products sold online included clothing,footwear and domestic , electronic devices , and household appliances , among others,while payment and delivery methods have been used flexibly by enterprises. Moreover,the government has stepped in to try and usher in a new era of commerce. 52 on e-commerce, have played a key role in creating favorable conditions for high growth rate of the retail e-commerce market.
The decree aims to ensure fairness between e-commerce and traditional commerce, of which enterprises operating in e-commerce must comply with laws and regulations in equal to that of traditional one. Local Players Hit It Big Vietnamese e-commerce platforms Tiki, Thegioididong and Sendo entered the list of ten most visited sites in Southeast Asia by iPrice Group. Tiki, Thegioididong and Sendo ranked sixth, seventh and eighth,respectively, by average monthly web traffic. The top two leading positions took international corporations Lazada and Shopee, respectively.
Tiki is the fastest-growing retail company in Vietnam and has all the chances to be an industry winner. No wonder, it’s affiliate program is also one of the most rewarding in terms of revenue for the publishers. With focus on only one product category – electronic devices, the retail company still managed to gain an average of 29 million visits per month, according to the report. Although the leaders of the market are still Lazada and Shopee, which operate successfully in multiple markets, the three Vietnamese e-commerce companies’ inclusion is very remarkable, and is definitely a strong evidence of the size and potential of e-commerce in Vietnam.
Affiliate Marketing Opportunities E-commerce success brings also a bunch of great affiliate-marketing offers. In 2018, Sendo.vn, the e-commerce subsidiary of FPT Corporation, also received $51 million from the Japanese SBI Holdings and other investors. Present in Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam it brings over 135,000 local and international sellers and more than 3000 brands online to serve more than 560 million customers which are increasing by the day.
The burgeoning eCommerce market in Vietnam has attracted major investors from Japan,Germany, the United States, Korea, China, and Singapore. In 2017, Japan invested a total of $9.1 billion in Vietnam, taking over Korea and ranked as the largest foreign direct investment country in Vietnam.
With an explosive 33% compounded annual growth rate over the past two years, Vietnam ranks high among the fastest-growing e-commerce markets in the region. Its market has a great potential and it has already proved it within the last couple of years, so there is definitely no point in being skeptical. This e-commerce surge might be a great opportunity for many international and local players, as well as affiliate marketers.Indoleads.com, one of the leading affiliate platforms in South-East Asia, has an access to 500+ direct affiliate programs from over 60 countries around the globe that opens up a geography for local players to Asian, Brazil, US, UK markets.