EVBN-2018年越南电子商务行业报告（英文）-2019.6-46页_3mb

E-Commerce in Vietnam: 2018 Research Report Summary

Core Content

Vietnam is emerging as a promising market for E-commerce due to its young population, high Internet penetration, and growing smartphone usage. The report provides a comprehensive overview of the E-commerce landscape in Vietnam, focusing on B2C and B2B sectors, market trends, challenges, and the impact of the EU-Vietnam Free Trade Agreement (EVFTA).

Main Points

1. Vietnam Overview

• Geography and Demographics: Vietnam covers 330,972.4 km² with a population of 95.54 million in 2017, projected to reach 98.4 million by 2020. Urbanisation is expected to increase by 37% by 2030.
• Economy: Vietnam's GDP is growing rapidly, with a forecast of 6.7% real GDP growth in 2018. The nominal GDP per capita increased from €2,029 in 2017 to €2,529 in 2020.
• Foreign Direct Investment (FDI): Vietnam received €24 billion in FDI in 2017, with Ho Chi Minh City being the top recipient. Provinces like Binh Duong and Bac Ninh also attracted significant investments.
• Consumption Expenditure: The structure of consumption expenditures indicates a growing demand for services and goods, with a forecasted 9% annual growth rate from 2016 to 2022.

2. E-Commerce Landscape

• Digital Growth: Vietnam's Internet penetration reached 54% in 2017, ranking it 17th globally. Smartphone ownership is high, with 72% of the population using smartphones.
• B2C E-Commerce: Vietnam has one of the fastest-growing B2C E-commerce markets in Southeast Asia, with a CAGR of 32.3% from 2013 to 2017, reaching a market size of €5.5 billion. It is expected to grow at 14% CAGR, accounting for 5.2% of total retail sales.
• E-Commerce Types: B2C E-commerce in Vietnam is classified into four types: E-commerce websites, online auction websites, e-marketplaces, and online promotion websites.
• Payment Methods: Cash-on-delivery (COD) remains the preferred payment method, while credit card usage is low. E-wallets are also not widely used.
• Logistics: The E-commerce logistics market is expected to grow at 42% y-o-y from 2018 to 2022. Companies are investing heavily in logistics infrastructure to support growth, with both local and international players operating in the market.

3. B2B E-Commerce

• Market Growth: B2B E-commerce is growing due to the support of various FTAs, including EVFTA, VKFTA, and VJEPA. In 2016, 32% of businesses in Vietnam used online channels to partner with foreign companies.
• Potential: The market is expected to expand significantly as international players like Alibaba and Amazon enter the market, offering platforms for Vietnamese exporters.

4. Service E-Commerce

• Online Tourism: Online tourism is still in its early stages, with foreign platforms like Agoda and Booking dominating the market.
• Online Entertainment and Gaming: The online gaming market is one of the largest in Southeast Asia, with a total value of €295 million in 2017. However, most games are imported from South Korea and China.
• Online Education: The E-learning market is growing, with a forecasted y-o-y growth rate of 44% from 2013 to 2018. It is segmented into foreign languages, exam preparation, and IT/soft skills.

5. Market Trends and Drivers

• Mobile Commerce: Mobile shopping is increasing, with 72% of E-commerce websites in Southeast Asia accessed via mobile devices in 2017. However, conversion rates are still higher on desktops.
• E-Marketplaces: E-marketplaces are gaining popularity, with usage rising from 19% in 2013 to 41% in 2017. E-commerce websites usage also increased from 57% to 76%.
• Market Drivers: Factors include high Internet and smartphone penetration, increasing disposable income, and supportive government policies.
• Market Barriers: Low trust in online payments, underdeveloped logistics infrastructure, and limited use of e-wallets and credit cards are significant challenges.

6. Regulatory and Legal Framework

• Legal Environment: The E-commerce industry is regulated under Decree 52/2013/ND-CP, which defines E-commerce activities.
• EVFTA Impact: The EU-Vietnam Free Trade Agreement is expected to boost the E-commerce market by reducing trade barriers and enhancing market access.

Key Information

• Young Population: Millennials (30 million people) and Generation Z (approximately 20 million) are the main target demographic for E-commerce.
• Growth Projections: The B2C E-commerce market is forecasted to grow at 14% CAGR, while the logistics sector is expected to grow at 42%.
• Key Players: Major E-commerce platforms include Shopee, Lazada, Tiki, and Sendo. International players like DHL eCommerce and Grab Express are also active.
• Future Outlook: The E-commerce industry in Vietnam is expected to continue booming, with sales projected to reach €8.1 billion in 2020.

Opportunities and Challenges

• Opportunities: High growth potential in both B2C and B2B segments, supported by FTAs and increasing digital adoption.
• Challenges: Low trust in online payments, underdeveloped logistics, and limited use of digital payment methods.

Conclusion

Vietnam's E-commerce market is rapidly evolving, driven by a young and tech-savvy population, high Internet and smartphone penetration, and supportive government policies. However, challenges such as low credit card usage and underdeveloped logistics infrastructure need to be addressed for sustained growth. The impact of the EVFTA is expected to be significant, further enhancing the market's potential.