Innovative start-ups in the e-commerce sector
However, safety does not mean success because to succeed in a vibrant developing market requires effort and creative thinking.
Vietnam is considered to have a lot of potential for start-ups in the e-commerce sector, with 72.1 million internet users, accounting for 73.2 per cent of the population, ranking 12th in terms of internet users globally by September last year.
Two years of the COVID-19 pandemic have changed the shopping habits of the majority of consumers, shifting from direct shopping to online shopping.
This is one of the important levers that create the amazing development of Vietnam's e-commerce industry.
A report by the Ministry of Industry and Trade last year showed that the size of Vietnamese retail e-commerce market is estimated at US$16.4 billion, accounting for 7.5 per cent of the country's revenue from consumer goods and services.
The number of online shopping users reached 57-60 million people, accounting for 74.8 per cent of internet users, last year, of which the online shopping value of a Vietnamese person is about $260-285.
In addition, with a growth rate of 20 per cent per year, Vietnam is also ranked by eMarketer, an American market research company, in the group of five countries with the world's leading e-commerce growth rate.
The booming e-commerce market has great potential, creating many opportunities for Vietnamese start-ups.
Starting a business in e-commerce is also in line with the Government's policy of promoting the development of the digital economy.
The legal framework for e-commerce activities is increasingly complete; start-ups are encouraged, and favourable conditions and open mechanisms created for development.
On the other hand, Vietnam's e-commerce market is still quite young, so there is still a lot of room for Vietnamese start-ups.
In addition to many advantages, start-ups in the field of e-commerce also face many obstacles.
There is the high level of competition due to the very early participation of big names such as Shopee, Lazada, Amazon or Tiki and Sendo.
In addition, there are obstacles coming from an underdeveloped payment system, goods infrastructure, packaging, warehousing, goods rotation, customs clearance, and the lack of trust of a part of consumers when buying online.
However, the key point of an innovative start-up is an idea, in which difference is a decisive factor, so the challenge is not small coming from the start-ups themselves, requiring creativity and right-oriented thinking.
At the same time, they must find sustainable solutions to have new users and retain existing users.
Although there is no exact number of start-ups in the field of e-commerce, it is estimated that about 387 start-ups were formed and operated with certain success.
Compared to the development potential of Vietnam's e-commerce, it is thought that this number is still quite modest.
Therefore, it is necessary to continue promoting start-ups, creating a vibrant market with healthy competition, contributing to making this field one of the key areas of the digital economy.