VIETNAM E-COMMERCE MARKET SET TO GROW 30 PCT
Vietnam’s e-commerce market is set to maintain its recent growth momentum this year with a 30 percent year-on-year rise to reach $15 billion.
The coronavirus pandemic has prompted a change in Vietnamese consumption habits with many shifting to online shopping after brick and mortar stores had to close during a nationwide social distancing campaign, according to the Vietnam E-commerce Association (VECOM).
Most e-commerce companies have been able to retain their staff during the pandemic and plan to hire more in the second half of the year as they see rising demand from online shopping, the report says.
A VECOM survey of 4,000 businesses found 39 percent using social media for sales last year, up three percentage points from 2018.
Respondents said social media was the most effective advertising medium, followed by search tools, mobile messages, apps and online newspapers.
Businesses have also been paying more attention to mobile shopping, with 50 percent allowing customers to order and pay for products via smartphone, up 7 percentage points from 2018, the report said.
Vietnam has recorded a compound annual growth rate of 30 percent in the 2016-2019 period. Last year, the market grew 32 percent year-on-year to $11.5 billion, a report by VECOM noted.