E-com to stay fastest growing, most stable sector in 2023 in Vietnam

21 Apr '23

2 min read

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E-commerce will be the fastest growing and most stable economic sector this year in Vietnam, a conference was told.
E-commerce grew by over 22 per cent year on year in Q1 2023 and could still reach over 25 per cent for the whole year, the Vietnam E-commerce Association said.
The economy's big difficulties from mid-2022 have extended to Q1 2023.

E-commerce will stay the fastest growing and most stable economic sector this year in Vietnam, the Vietnam Online Business Forum 2023 held recently in Hanoi was told. According to the Vietnam E-commerce Association (VECOM), e-commerce grew by over 22 per cent year on year in the first quarter (Q1) this year and could still reach over 25 per cent for the whole year.

Global and domestic economic challenges had adversely affected trade, but domestic e-commerce is still predicted to grow at a rate of more than 25 per cent, reaching a scale of over $20 billion USD, VECOM said.

Last year, the retail e-commerce transaction scale comprised about 8.5 per cent of the total retail sales of consumer goods and services of 5,680 trillion VND ($240.5 billion), it said.

The proportion of online retail sales of goods compared to the total retail sales of goods was about 7.2 per cent last year, higher than 6.7 per cent in 2021.

The economy's big difficulties from mid-2022 have extended to the first quarter and possibly will extend until the end of the year, the conference was told.

More and more businesses were choosing to do business on social networks, especially TikTok Shop, VECOM said.

A VECOM survey found 23 per cent of businesses sold products on e-commerce floors last year, a Vietnamese media outlet reported.

Another survey showed up to 65 per cent of Vietnamese businesses have implemented business activities on social networks. The number of employees at enterprises who regularly use tools like Zalo, Whatsapp, Viber and Facebook Messenger has continuously grown.

Selling on social networks is also considered the most effective, surpassing other forms such as websites or business applications, as well as e-commerce.

Tiktok Shop, which started operating in the country in mid-2022, has now become the third largest retail e-commerce platform in the country.

Fibre2Fashion News Desk (DS)

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