Vietnam’s e-commerce market to surpass US$17 billion in 2023

The data and analytics company said that the annual growth rate of Vietnam’s e-commerce market is anticipated to reach 16.3%.

Vietnam’s e-commerce market has doubled over the past five years with online spending soaring from US$3.9 billion in 2015 to US$9.4 billion in 2019.

Nikhil Reddy, Banking and Payments Analyst at GlobalData, said that besides traditional instruments of payment for e-commerce such as cash, bank cards and money transfers, other forms of payment are also on the rise in Vietnam. In addition, demand for faster and more convenient methods of payment is increasing.

According to the GlobalData survey, cash remains a popular means of payment, accounting for 35.6% of e-commerce transactions. Several alternative instruments of payment have gradually been dominating the market with a proportion of 15.5%. MoMo is the most preferred alternative payment solution in Vietnam, followed by PayPal.

Global companies have also promoted their investment in Vietnamese e-commerce companies. Tiki received an investment of US$5.3 million from VNG Corporation and US$44 million from China-based investor JD.com.

Sendo also earned investment of US$51 million from Japan-based SBI Group and other investors in 2018. In addition, Chinese e-commerce company Alibaba invested an additional US$2 billion in Lazada, one of the lead ing e-commerce in Vietnam.