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Tracking the Growth of Vietnam's Ecommerce Sector

Many sellers in Vietnam receive less than 50% of their revenue from online

May 31, 2016 | Retail & Ecommerce

As noted earlier this year, a small but growing number of businesses in Vietnam are taking the plunge into digital commerce. Still, the share of revenue and orders coming from online commerce is small, and many consumers in the country remain suspicious about making digital purchases.

Methods of Selling Online Among Businesses in Vietnam, 2015 (% of respondents)

Data from the Vietnam Ecommerce and Information Technology Agency (VECITA) highlights the scale and sophistication of ecommerce initiatives among businesses in Vietnam. One signal of the current progress with ecommerce is the method the country’s businesses use to sell online. While more than 75% had adopted email as a selling tool as of 2015, less than half had their built their own ecommerce-ready website, used social media or distributed their wares using ecommerce marketplaces.

Even for those companies that have moved into the realm of digital commerce, the channel’s share of company orders and revenue remains small. Some 80% of the businesses in VECITA’s research received 50% or less of their revenue from website or email transactions.

Website/Email Share of Orders vs. Revenues According to Businesses in Vietnam, 2015 (% of respondents)

As more companies in Vietnam consider adopting digital channels to sell goods and services, they will also need to address an issue of lingering mistrust among the country’s digital buyers. VECITA research found that 73% of the country’s consumers believed the quality of products and services was worse than what was promised in online advertisements, which may be hindering more wide-scale adoption.

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