Vietnam’s e-commerce market to surpass $17 billion in 2023

This represents a compound annual growth rate of 16.3 per cent. 

GlobalData further found that Vietnam's e-commerce market has doubled during the past five years, with total online spending increasing from $3.9bn in 2015 to $9.4bn in 2019. 

Nikhil Reddy, Banking and Payments Analyst at GlobalData, said: “While the traditional payment instruments such as cash, cards and bank transfers are widely used for e-commerce purchases, consumer preference for alternative payments is on the rise. There is a growing demand for faster and convenient payment means, especially among tech-savvy millennials.”

According to GlobalData’s 2019 Banking and Payments Survey, cash is still the most preferred payment mode (35.6 percent) for e-commerce purchases in Vietnam in 2019. Alternative payment solutions are gradually gaining ground and accounted for 15.5 percent.

MoMo is the most preferred alternative payment solution in Vietnam, followed by PayPal. 

Meanwhile, global companies are investing in Vietnamese e-commerce companies, looking to ride on the strong growth. 

In 2018, Tiki received $5.3m and $44.0m funding from VNG Corporation and Chinese investor JD.com, respectively.

In the same year, Sendo secured $51m from SBI Group (a Japan-based financial services company) and other investors. Furthermore, Chinese e-commerce giant Alibaba invested an additional $2bn in Lazada, one of the leading e-commerce companies in the country. 

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Source: Business Times