VietNamNet Bridge - E-commerce revenue in Vietnam in 2017 is forecast to reach $2.08 billion as the market becomes more competitive. 

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After Lazada Vietnam announced its GMV index (gross merchandise volume), which indicates a total sales dollar value for merchandise sold through a particular marketplace over a certain time, Tiki.vn confirmed its index number and sent a message that the race in e-commerce had not concluded.

With 30 percent of revenue in the domestic e-commerce market, Lazada Vietnam is leading in the marketplace (businesses provide trading floors for themselves and other businesses to sell goods). Lazada’s GMV is VND120 billion.

Meanwhile, the figure is over VND100 billion for Tiki.vn. Lingo.vn, Cdiscount.vn and Deca.vn, while Vingroup’s adayroi still cannot make a breakthrough and Lotte remains an unknown. Tiki.vn is the best known name among B2C.

E-commerce revenue in Vietnam in 2017 is forecast to reach $2.08 billion as the market becomes more competitive. 
According to Tran Ngoc Thai Son, CEO of Tiki.vn, about 70 percent of its revenue was from books in 2014. However, the figure has dropped to 30 percent, and the other 70 percent is from other goods. Tiki.vn takes 15,000-20,000 orders a day.

None of the C2C businesses have announced their GMV. However, a lot of new faces have appeared recently. Chotot.vn of 701 Search, a joint venture between Singapore Press Holdings Ltd, Schibsted ASA and Telenor, is the most familiar name.

It appears that information connection is not enough. Some businesses have connected third parties such as deliverymen and payment service providers. The group of businesses provides a platform for e-commerce.

Sendo.vn of FPT is a typical example. Meanwhile, VNG’s Zalo has just joined the market. Shopee, the newcomer, has also become more familiar. 

Tran Tuan Anh, a senior executive of Shopee, said Vietnam is one of the important markets of the firm. After two years in Vietnam, it has 2 million downloads with 10,000 orders a day.

Analysts believe that e-commerce firms’ revenue comes from ads, commissions from successful transactions and additional services. 

However, the source of revenue is not enough to cover the expenses for ads and operation, though eMarketer, a market analysis firm, predicted that e-commerce retail turnover would reach $2.08 billion in 2017, which means a 20 percent per annum growth rate.

The majority of e-commerce firms operate while taking losses in order to retain market share, while the market is led by investment funds with powerful financial capability.

Since Lazada Group was taken over by Chinese Alibaba, capital shortages and experience in market development are no longer concerns. It hopes it can attract 10,000 businesses in 2017, or triple the current number.

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Nam Thanh