Credit from Chandler Nguyen
Following the previous post about Vietnam digital marketing landscape, today post will look at e-commerce landscape in Vietnam, in comparison with other countries in the region for better context.
1. Total retail sales in Vietnam is expected to be $154B in 2019
The above countries are ranked based on their population. It gives us a sense of scale in different markets. Next is expected growth rate in 2020.
2. Vietnam expected retail growth rate is 8.5% in 2020, much higher than growth rate in many other countries
Japan is the outliner given the much older population vs the rest.
Retail in Vietnam is benefited from a good economy growth rate, expected to be 6.6% in 2019
3. Retail e-commerce in Vietnam in 2019 is expected to be lower than $3B
4. E-commerce in Vietnam still has a huge potential to grow as its penetration is tiny (less than 2%)
5. Given the smaller size, Vietnam e-commerce growth rate is underwhelming in comparison to other countries
eMarketer also forecasts the growth rate to decelerate in Vietnam in the next few years to about 10% in 2023.
6. About half of the total retail e-commerce in Vietnam happens on mobile devices, on par with other countries
7. Unlike the retail e-commerce, digital travel sales in Vietnam is expected to triple in the next 6 years or about 14.4% compound annual growth rate (CAGR)
This is normal in comparison to other developing economies i.e. larger number of people in the middle income bracket often lead to more travel. If the country has good internet infrastructure then online booking (flight, hotel etc.) should naturally increase.