APAC, the Asia Pacific region of Southeast Asia and Oceania, is becoming an increasingly popular destination for global e-commerce brands for a variety of reasons.
Rapidly developing digital infrastructure and new middle-class affluence across the area drives sales. A desire for western brands encourages cross-border purchases. Meanwhile, favourable low fees charged by local marketplaces help to make expansion into APAC financially rewarding.
Vietnam in particular represents an exciting opportunity for online retailers seeking cross-border growth. In this article, we reveal some of the crucial facts underpinning the prosperity of Vietnam’s e-commerce market.
Vietnamese consumers spend 3.5 hours online each day
Kantar research shows that online shoppers in Vietnam are spending more time online. Lockdowns resulting from the COVID-19 pandemic drove average internet use up from 3.1 hours to 4.2 hours each day. As some semblance of normality returned, internet usage dropped back to 3.5 hours per day, which still shows an impressive upward trend from 2019 levels. In simple terms, more time online for consumers means more chances to scroll, see, search, find, like, click and buy products.
41% of digital service users in Vietnam are new
Digital engagement in Vietnam is still very much following an upward trend, as shown by the fact that 41% of all digital users in 2020 were newcomers (Euromonitor). Lockdowns helped to fuel this digital adoption but the good news is that recently formed digital habits look set to endure. 94% of all new digital consumers reported that they would continue using digital services after the pandemic.
Vietnam has 47 million internet users… and counting
Smartphone adoption and internet penetration in the country is soaring amongst Vietnam’s increasingly tech-savvy consumers but there is still plenty of room for growth in the market. Of all the internet users in the country, only 55% currently use a smartphone to access the internet. With access to mobile devices rising rapidly, uptake in e-commerce platforms will continue to thrive for many years to come.
Social media use in Vietnam is set to hit 52.8 million by 2023
96% of Vietnamese consumers use YouTube. 95% use Facebook. Zalo, Instagram and Twitter are also popular platforms amongst the local population. Interestingly, according to Statista, Facebook is primarily used to make enquiries about brands.
Vietnamese e-commerce is expected to be worth $10.15 billion by 2024
From a base of approximately US$6.5 billion in 2020, Vietnam’s e-commerce market is expected to grow very rapidly over the next 5 years or so. As we have already mentioned, digital adoption and increased online retail during the pandemic have helped to accelerate growth, but Vietnam’s general economic prosperity is another key factor.
Vietnam’s GDP rose by $77.8 billion between 2017 and 2021
GDP has risen steadily and rapidly for years in Vietnam (EIU). The country is one of Southeast Asia’s fastest growing economies and COVID-19 appears to have done little to derail this trend. This means that Vietnamese consumers will have more money to spend online, as reflected in the forecasted e-commerce market growth in the coming decade.
Grow your e-commerce business in Vietnam with Asendia
If you’re keen to learn more about the e-commerce market in Vietnam, Asendia can help. We are experts in global e-commerce logistics, have strong partnerships with the region’s leading last mile delivery companies and a range of products to meet the needs of you and your customers.
Our e-book, Vietnam, your perfect e-commerce destination, contains more insights and guidance on the local economy, infrastructure and consumers. Download it free today.