Vietnam to be Fastest-Growing E-Commerce Market in Southeast Asia: Report

Vietnam added 4 million digital consumers last year, and its e-commerce is expected to growth at the fastest pace in the region, to hit $40 billion by 2027.

Rosy Huong

huongthhd@gmail.com October 15, 2022 | 09:58

Vietnam to be Fastest-Growing E-Commerce Market in Southeast Asia: Report

Vietnam added 4 million digital consumers last year. Photo: VnEconomy

According to Bain & Company and Meta ’s SYNC Southeast Asia report which looks at the digital economy and the future of e-commerce in the region, the Vietnamese e-commerce market has bloomed over the past five years.

The market is forecast to grow about 28% by 2027, the highest in the region, to reach $40 billion USD, the report said.

Khoi Le, Country Director - Meta Vietnam, said Vietnam added 4 million digital consumers last year, and that every eight out of 10 Vietnamese people at the working age are digital consumers.

Vietnamese people use the internet for studying, watching movies or listening to music, and online shopping. Photo: Aba-france.com

“This means Vietnam now counts 60 million digital consumers,” he said, noting that up to 84% of Vietnamese consumers search for items they want to buy online.

The number of online platforms used by Vietnamese consumers increased from eight in 2021 to 16 this year.

Vietnam was also among the top markets in terms of adoption rate of future technologies like Fintech and Metaverse, apart from Indonesia and the Philippines, as 58% of digital consumers in Vietnam used Fintech solutions last year, and seven out of 10 used Metaverse-related technologies.

The figures show that Vietnam is very ready for new technologies, Khoi said, describing this a great opportunity for the development of digital economy and new sectors in the country in the time ahead.

The digital consumer population in Southeast Asia is still growing steadily and is forecast to reach 370 million by end-2022, accounting for 82% of the total population of 15-year-olds and above. This figure is projected to rise further to 402 million by 2027, accounting for 88% by the end of the forecast period./.

The Vietnamese e-commerce market has bloomed over the past five years. Photo: VnEconomy

A total 22% of Vietnamese use the internet for more than nine hours a day studying, entertainment and shopping, with the majority on their smartphones, according to the Vietnam Ecommerce 2022 report by the Vietnam e-Commerce and Digital Economy Agency (iDEA).

This is a surge from 2020 when only 9% of respondents used the internet for more than nine hours a day.

As many as 27% say they use the internet from three to five hours a day, compared to 31% in 2020.

Besides, 23% log five to seven hours, against 27% in 2020.

Analysts at financial holding Robocash Group also showed that the Fintech market in Vietnam is expected to grow to $18 billion by 2024.

Vietnam is one of the leaders among ASEAN in terms of the volume of financing for FinTech, second only to Singapore.

93% of all venture investments in the country is directed at e-wallets and the e-money segment.

Transaction volume has seen a 152.8% growth since 2016, with 29.5 million new Fintech users.

Vietnam to Become Fastest-growing E-commerce Market in Southeast Asia by 2026: Report

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