The Vietnam E-commerce White Paper 2022 showed that online retail sales accounted for 7% of the total retail sales of consumer goods and services nationwide in 2021, increasing two percentage points year-on-year.
Compared to the US$6.2 billion figure in 2017, the online retail market doubled in size in just five years. It is estimated that Vietnam’s online retail sales will soar to US$16.4 billion this year.
The number of online transactions increased from 33.6 million in 2017 to 54.6 million in 2021. Some 58.2% of internet users bought a product or service online on a weekly basis in Vietnam, almost equal to the global average of 58.4%.
Cash on delivery was still the most common payment method for online purchases in 2021, followed by e-wallets, domestic debit cards and credit cards.
Within 11 years, the rate of cash payment for online purchases slightly declined from 78% to 73%. E-wallet payments increased from 23% to 37%, while payments via domestic debit cards fell to 27%.
Retailer reputation, delivery time, promotion programs, price comparison with brick-and-mortar stores, the variety of products and quality are among the most important evaluation criteria when an online consumer makes a purchase decision.
However, consumers have still faced difficulties with online shopping, including the lower-than-expected quality of products, personal information leaks, high delivery costs, poor customer service and bad delivery service.
According to the Vietnam e-Commerce and Digital Economy Agency, Vietnam’s internet economy was equal to that of Malaysia, exceeding the Philippines and Singapore in 2021.
Revenue of Vietnam’s internet economy reached US$21 billion in 2021 and is expected to shoot up to US$57 billion in 2025, ranking second in Southeast Asia.
Source: Saigon Times