Insights into the growth of Vietnamese eCommerce

Economy

Vietnam is home to 94.57 million people with a total GDP of 205.28 billion USD and GDP per capita of 2,459 USD, which is expected to reach 3,208 USD by 2022.

Digital User Insights

There are currently 49.79 million online shoppers in Vietnam, who spend $54.90 USD online annually. Four years from now, an expected 54.71 million online shoppers will spend approximately $83.03 USD.

Internet usage

Dividing internet usage into age groups gives a better picture of the Vietnamese eCommerce market – 96% of 16-24 year olds, 91% of 25-34 year-olds and 80% of 35-44 year-olds log on daily. The older generations also log on regularly with 45-54 year-olds and over 55s showing an 85% and 62% daily penetration rate, respectively.

Product Categories

Total Vietnamese eCommerce revenue across all product categories is 2.73 billion USD, and is expected to grow to 4.54 billion USD by 2022. Electronics & Media is currently the leading product category in Vietnam, accounting for 959.5 million USD market share, followed by Toys, Hobby & DIY, which generates 598.1 million USD in sales.

By 2022, Electronics & Media will still be the most purchased online category, with an estimated value of 1.39 billion USD, and second favorite, Toys, Hobby & DIY will have an expected worth of 1.01 billion USD.

Logistics

In 2016, Vietnam was ranked 64th in the World Bank Logistics ranking.

Preferred Online Payments

51% of Vietnamese shoppers like to pay cash on delivery when shopping online.

Where does Vietnam buy from?

China supplies Vietnam with $60 billion USD in imports – ranging from telephones to petroleum. Vietnam’s other key import partners are South Korea ($32.6 billion), Japan ($12.4 billion), Singapore ($11.3 billion) and Other Asia ($9.5 billion).

Internet and Device Usage

Internet penetration in Vietnam is currently 58.2%, and should reach 60.8% by 2022. Smartphone penetration is much less (34.2%), but is projected to grow to 43.6% in the next four years.

71% of online shoppers in Vietnam buy via desktop, a stark contrast to the amount of smartphone (18%) and tablet (4%) shoppers.

Advertising

In 2018, an estimated 20.6% of Vietnamese ad spend will be spent on digital advertising.

Social Media

40.13% of people in Vietnam are active social network users, thanks to Facebook, Messenger and Zalo which are the leading social networks.

For more market insights, check out the eShopWorld series of blogs covering a range of emerging eCommerce markets.