Vietnam has overtaken Indonesia as Southeast Asia’s second-largest e-commerce market
The Vietnam E-Commerce Association (VECOM) hosted the Vietnam Online Business Forum (VOBF) 2022 in Ho Chi Minh City on 10 May. The event emphasised the role of e-commerce in boosting post-pandemic economic development, reported VietnamPlus.
The impact of the COVID-19 epidemic, according to VECOM Chairman Nguyen Ngoc Dung, has driven the expansion of e-commerce in many countries, including Vietnam.
E-commerce, according to Lazada Vietnam’s trade director, is one of the channels that helps businesses accelerate digital transformation and grow commercial operations in the current environment.
Apart from this, some analysts projected e-commerce’s continuous expansion and contribution to the country’s steady economic recovery.
In Vietnam, e-commerce is expanding at breakneck speed. As a subset of e-commerce, social commerce is gaining traction as a dynamic and cost-effective platform for businesses and enterprises to communicate with customers.
Vietnam Briefing pointed out that one of the most significant differences between social commerce and e-commerce is that social commerce lacks online ordering capabilities, compared to e-commerce which uses a single platform from start to finish.
Purchases ranging from fruit to household appliances are now made through social commerce, expanding beyond fashion and cosmetics.
Moreover, 55 percent of Vietnamese online customers prefer to shop for fashion on social media platforms while 41 percent favour e-commerce sites.
In 2022, Vietnam’s social commerce industry is predicted to go up by 66 percent annually, according to Business Wire.
Over the last four quarters, the industry has experienced strong growth due to expanding e-commerce penetration and social commerce usage in small cities. A CAGR of 57.4 percent is expected from 2022 to 2028. By 2028, the gross merchandise value (GMV) of social commerce in the country will grow from USD2,153 million in 2022 to USD31,090 million.
Vietnam has overtaken Indonesia as Southeast Asia’s second-largest e-commerce market. Moreover, products priced between USD8.7 and USD217.8 are the simplest to sell on e-commerce platforms, whereas, consumers prefer to buy products with greater values and longer warranties directly from physical shops and showrooms.
The Property Report editors wrote this article. For more information, email: [email protected].
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