Inside Vietnam’s e-commerce market

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Inside Vietnam’s e-commerce market

It is expected that the e-commerce market in Vietnam will reach up to USD 2.08 billion in 2017 as a result of a more competitive landscape.

Vietnam’s largest e-commerce player is currently Lazada Vietnam, accounting for 30 percent of revenue in the domestic e-commerce market. In this regards, many e-commerce retail companies commonly use the GMV index (Gross merchandise volume), which indicates a total sales dollar value for merchandise sold through a particular marketplace over a certain period of time. Lazada’s GMV is leading the marketplace with USD 5.28 million (VND 120 billion).

Other prominent e-commerce players including Tiki.vn, Lingo.vn, Cdiscount.vn and Deca.vn, have a combined figure of over 4.3 million (VND100 billion). Meanwhile, other market players such as Vingroup’s adayroi and Lotte both remain an unknown number.

For Tiki.vn, a leading B2C e-commerce company in Vietnam, 70 percent of its revenue in 2014 was from books. However, the figure dropped to 30 percent, making the remaining 70 percent from other goods. Tiki.vn takes 15,000-20,000 orders a day.

While none of the C2C e-commerce businesses have announced their GMV, there has been more newcomers appearing in the market recently. Chotot.vn of 701 Search, a joint venture between Singapore Press Holdings Ltd, Schibsted ASA and Telenor, is an example. Others include Sendo.vn, VNG’s Zalo, as well as Shopee.

According to a senior executive at Shopee, Vietnam is one of the most important markets for the firm. After two years in Vietnam, Shopee gained 2 million downloads with 10,000 orders a day. It is estimated that the e-commerce retail turnover in the country would reach USD 2.08 billion in 2017, which means a 20 percent per annum growth rate.

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