E-COMMERCE SERVICES IN VIETNAM

E-COMMERCE SERVICES IN VIETNAM

 

1.The Market Overview

  • The e-commerce (EC) market in Vietnam is expanding year by year. According to a report conducted by Vietnam E-Commerce Association, the country’s market size reached $9 billion USD in 2018 and is expected to attain $33 billion USD by 2025.
  • From 2015 to 2018 , the domestic e-commerce market’s average growth rate (CAGR) was 25%.

 

 

2. Noticeable Trends

  • EC services in Vietnam are widely utilized in Hanoi and Ho Chi Minh, their surrounding regions such as Bac Ninh, Binh Duong, Dong Nai, etc. as well as other major regional cities, namely Da Nang, Hai Phong and Can Tho.
  • The population of the two main cities (Hanoi and Ho Chi Minh) constitutes about 70% of Vietnam’s total EC service usage.
  • The pace at which EC services are utilized in the countryside is currently low, due to roughly 70% of the population still residing in such rural areas. As a result, it is necessary to expand the aforementioned services and products to people living in those regions.

3. Major E-commerce Websites

Various EC websites developed by companies in and out of Vietnam have been fully operated. The following table’s main focus is listing those sites (B to C), which have obtained a particularly high usage rate in the country.

 

Service name Summary
Lazada This is Vietnam’s largest e-commerce site, managed by a Singapore company called Lazada Group. The number of monthly visitors exceeds 30 million in total. Alibaba GROUP has acquired its business rights, and the current CEO is also dispatched from Alibaba GROUP.

*Website (Lazada Vietnam): https://www.lazada.vn/

Adayroi The site is operated by Vietnam’s largest conglomerate company (Vingroup). It sells a wide variety of products such as clothes, home appliances, tickets for events and planes, and insurance.

* Website (Adayroi): https://www.adayroi.com/

Tiki The site is operated by a Vietnamese corporation called Tiki. It handles a wide range of products such as furniture, home appliances, clothes, books, motorcycles, and cosmetics. Until now, VNG, Alibaba, JD.com, Seedcom, and CyberAgents Ventures etc. have invested heavily in Tiki.

* Website (Tiki): https://www.tiki.vn/

Sendo The site is managed by Sen Do Joint Stock Company (a subsidiary of FPT Corporation). SBI Holdings, Econtext Asia, and BEENOS hold 33% stake of the company while FPT retained the remaining 67%.

* Website (Sendo):  https://www.sendo.vn/

HOTDEAL.VN The site is developed by MekongCom Company. It handles products ranging from food, beverage services, beauty services (spa), fitness to books, medical care, and hotels. In 2015, a business alliance was formed with a Japanese corporation called Transcosmos Inc. 

* Website (HOTDEAL.vn)  https://www.hotdeal.vn/

Chotot The site handles products such as real estate, automobiles, furniture, home appliances, clothes, plants, musical instruments, and watches. It’s managed by MekongCom Company. Telenor Telecommunication Group (Norway) acquired the company in 2016.

* Website (Chotot)  https://www.chotot.com/

Shopee The site is operated by a Singaporean company (Shopee). It handles fashion, home appliances, clothes, motorcycles, cosmetics, food, tickets, books, etc, and got Listed on NASDAQ. Tencent (China) is its largest stock.

* Website (Shopee): https://www.shopee.vn/

Thegioididong.com The site is operated by Vietnam’s largest digital device sales company called The Gioi Di Dong Investment (Mobile World Investment). It handles products such as smartphones, PCs, smart watches, and headphones.

* Website (Thegioididong.com): https://www. thegioididong.com /

 

4. Changes in the number of visitors to each EC site in Vietnam (January – October 2018)

 

・From January to October in 2018, the EC site with the largest number of visitors was “Lazada Vietnam”, managed by Lazada, a Singaporean company. The 2nd and 3rd positions respectively are “Shopee Vietnam”, also operated by a Singaporean company (Shopee) and “Thegioididong.com”, developed by The Gioi Di Dong Investment company (Vietnam’s biggest digital device sales company).

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