Why Are People Talking About E-Commerce In Vietnam?

The internet revolution has disrupted the way people do their shopping. 

Lining up in a store and waiting to pay for goods at the checkout is seemingly becoming a thing of the past thanks to the booming e-commerce industry.

The number of goods purchased online has risen every year. Data collected across 66 countries shows the number of people making purchases online grew to 60% between 2020 and 2021 as a result of the COVID-19 pandemic. The number of e-commerce shoppers is expected to grow to around 71 million by 2025.

Revenue generated by the industry is projected to hit close to $15 billion in 2022, and reach a market valuation of around $24 billion by 2025. Companies that own large slices of the e-commerce pie include Amazon.com Inc. AMZN, Shopify Inc. SHOP and Etsy Inc. ETSY.

Some of the drivers fueling the growth of the industry include the rise of mobile subscribers, the growth of social media users, and the increasing popularity of mobile shopping.

Countries in the South Asia-Pacific region and South America are among the countries experiencing the fastest growth in e-commerce. This is reportedly due in part to an increasing adoption of new technologies and the population structure of these countries. The younger generation prefers to buy things online over a physical store.

E-Commerce In Vietnam

Vietnam ranks fifth on the list of top 10 countries with the most e-commerce sales in the world. Its e-commerce market grew at an annual rate of 30% between 2015 and 2019, reaching a value of $5 billion. By 2025, the industry is expected to reach $25 billion.

The government’s policies aimed at promoting a cashless society are arguably one of the key factors driving the success of e-commerce in the country. For instance, the government passed resolution number 02/NQ-CP in 2019 to encourage the use of non-cash payments for public services such as school fees, energy, taxes and water bills.

Vietnam’s internet penetration increased sharply owing to the growing use of mobile phones. According to a report by Statista, the number of internet users in the country was around 73 million in 2021, and the figure is projected to reach almost 83 million by 2025.

Those statistics might be among the reasons Western companies and investors are seemingly attracted to Vietnam, a country that ranked No. 70 on the 2019 World Bank Ease of Doing Business — up 20 places from 2015.

The Next Amazon Of Southeast Asia?

Examples of e-commerce players like Society Pass Inc. SOPA, an acquisition-focused e-commerce company with operations in Southeast Asia and South Asia, could be indicative of the future of the market in the region. The company says its strategy of forming subsidiary companies is similar to that of Alphabet Inc.’s GOOGL Google.

Society Pass acquires companies in six verticals: loyalty, lifestyle, food and beverage, telecoms, digital media and travel.

Society Pass operates Thoughtful Media Group, a Thailand-based, social commerce-focused, premium digital video multi-platform network; NusaTrip, a leading Indonesia-based Online Travel Agency; Gorilla Networks, a Singapore-based, web3-enabled mobile blockchain network operator; Leflair.com, Vietnam’s leading lifestyle e-commerce platform; Pushkart.ph, a popular grocery delivery company in the Philippines; Handycart.vn, a leading online restaurant delivery service based in Vietnam; and Mangan, a leading local restaurant delivery service in the Philippines. 

Since its inception, SoPa has amassed over 3.3 million registered consumers and over 200,000 registered merchants/brands into its ecosystem.

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