What should businesses and professionals in Vietnam expect in 2022? As part of a new insight series, YCP Solidiance will be releasing several in-depth articles that feature emerging business trends in Vietnam, guided by research and analysis from YCP Solidiance Director, Dennis Lien.
Read the fourth installment below as we report what trends businesses and investors alike may potentially capitalize on within Vietnam’s e-commerce landscape. To read future installments of this series, subscribe to our newsletter here.
According to a recent report, the Vietnamese e-commerce industry recorded a total value of approximately 11.8 billion USD in 2020, while also registering 18% growth when compared to the same period in 2019. Additionally, early forecasts suggest that the industry will only continue to grow; eventually registering a 30% annual growth rate within the period of 2021 – 2025,
While this data is impressive, the current e-commerce landscape in Vietnam reflects that the sector has not yet reached its full potential, especially when considering that 18 million additional users will be added by 2025. As such, expect further growth from Vietnam’s e-commerce market as involved stakeholders and related industries will likely spearhead development in 2022.
Bolstering Growth Across Vietnam
The growth of Vietnam’s e-commerce industry has been driven by several factors, such as foreign investment, internet penetration, and increased spending power of citizens. Further, this growth amid such difficult circumstances gives us a glimpse of e-commerce’s immense staying power in a post-pandemic world, a development that bodes well for other industries within Vietnam.
E-commerce can seamlessly connect businesses and consumers with one another, and such a benefit extends to other industries as well. Thus, the growth of the e-commerce sector will be complementary to other markets that are still developing themselves. For instance, as per an article by Open Gov Asia, the Vietnamese government plans on boosting the agricultural sector through e-commerce platforms wherein products straight from farming households and rural areas will be sold directly online.
Investors, businesses, and stakeholders operating in other industries should pay close attention to how one can potentially leverage e-commerce to their benefit. Whether it is to drive economic growth via B2C transactions or to digitally activate businesses to adapt to modern times, expect e-commerce to play a significant role in stimulating growth in other industries.
Collaborating With Fintech
Like e-commerce, the financial technology sector in Vietnam has grown drastically because of the pandemic. As per data from Statista, the fintech transaction value totaled 14.37 billion USD in 2021 and this is expected to reach approximately 23 billion USD by 2025.
Although the growth of financial technology in Vietnam can be traced to several factors, perhaps the most significant is the success achieved by the e-commerce industry. Given that both fintech and e-commerce operate under similar circumstances that entail accessibility and minimized contact, it can be said that these industries are not only complementary but also intersecting.
Therefore, it is likely that advancements made in the fintech sector will only stand to bolster the growth of the e-commerce market. It is important for investors to keep in mind that these industries overlap because it could present promising business opportunities in several areas, such as integrated functionality between e-commerce and fintech platforms, scalability of fintech, expansion of e-wallets, digital payments systems, etc.
This 2022 expect stakeholders to increase efforts to leverage the benefits provided by e-commerce. In addition, expect the e-commerce industry to not only grow and mature further but also to spearhead development in the coming years as Vietnam moves toward the digital age.
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