Insights into the growth of Vietnam eCommerce with payment methods, target audiences, marketing, social media, economy and logistics all profiled
Vietnam is home to 92 million people with a total GDP of 194 billion USD. GDP per capita is currently 2,327 USD and expected to reach 3,105 USD by 2021. Vietnam is ranked 164th by the World Bank GDP per capita rankings.
Digital User Insights
There are currently 35.4 million eCommerce users in Vietnam, with an additional 6.6 million users to be shopping online by 2021. These 42 million eCommerce users will represent 58% of the total population. The average user spends 62 USD online, which will grow to 96 USD by 2021.
Dividing internet usage into age groups, gives a better picture of the Vietnam eCommerce market. 96% of 16-24 year olds use the internet, and 91% of 25-34 year olds, with 80% of 35-44 year olds logging on. The older generations log on regularly with 45-54 year olds showing 85% internet penetration, and 62% of those over 55 logging on.
Total eCommerce revenue across all product categories is 2.2 billion USD, expected to reach 4 billion USD by 2021. Electronics is currently the leading product category, accounting for 842 million USD market share. Toys, Hobby & DIY is second, accounting for 387 million USD.
By 2021, Electronics will still lead the charge, valued at 1.3 billion USD. Fashion will move into second place, reaching 900 million USD.
Preferred Online Payments
A significant number of payments for online purchases are made offline via Cash on Delivery (91% of Vietnamese chose this method). Alternate payment methods include: bank transfers, payment cards, eWallets or scratched cards.
Where does Vietnam buy from?
China supplies Vietnam with 49.8 billion USD in imports. Other key import partners are South Korea (26.6 billion USD), Japan (13.1 billion USD), Other Asia (9.9 billion USD) and Thailand (8.5 billion USD).
Internet and Device Usage
Internet penetration in Vietnam is currently at 56%, and should reach 69% by 2021. Smartphone penetration is 31% and is projected to grow to 42% by 2021.
Vietnamese online shoppers mainly divide their purchasing between smartphones and desktops. 18% made their most recent online purchase via smartphone, while 71% made their most recent purchase via desktop.
Marketing spend in Vietnam is spread across a range of platforms, with TV leading the charge. TV advertising is expected to continue to grow reaching 1.3 billion USD in 2018. Digital advertising also sees continual growth reaching 35 million USD by 2018. Newspapers have the second highest marketing spend (52 million USD) followed by outdoor advertising (38.5 million USD).
Vietnam’s Social Media Penetration is just 44% of the total population, this is expected to reach 53% by 2021. Facebook, ZING Me, Blogger, WordPress, and DIENDANBACLIEU.NET are the leading social networks.
For more market insights, check out the eShopWorld series of blogs covering a range of emerging eCommerce markets.
*Insights derived from eShopWorld data, Statista, WorldBank, OECD and other industry sources.