Vietnam has set a target that the e-commerce industry would grow by 25% per year to reach US$35 billion USD, and that more than half of the population will be shopping online on a regular basis by the end of 2025.
These goals are in the Vietnamese government’s master plan for national e-commerce development in 2021 ~ 2025, which received approval late last week.
The plan would focus on accelerating the development of e-commerce towards a healthy, competitive and sustainable market as well as narrowing the gaps in e-commerce development between localities.
The government’s plan also includes a focus on expanding the export markets for Vietnamese goods through the development of e-commerce, especially cross-border e-commerce transactions.
The government’s goals are that 55% of the country’s population will shop online on a regular basis by the end of 2025 and that the average person will spend $600 USD each year online.
Business-to-consumer (B2C) e-commerce of goods and services are projected to grow 25% year, to reach US$35 billion and will account for 10% of the country’s total retail sales of goods and services.
Cashless payments for e-commerce transactions are also forecast to grow exponentially and would account for 50% of payments.
It’s also estimated that 70% of transactions on e-commerce platforms will be able to generate electronic invoices for customers. For businesses, this is especially important as the government also is stressing that tax reports and payments be made electronically.
The government expects that Hanoi and Ho Chi Minh City will account for 50% of the country’s B2C e-commerce translation value by 2025, and that half of the communes throughout the country would see the presence of online sellers and will be able to buy goods through seller platforms.
Other goals that the government expects to be implemented by 2020 include 70% of electric, water and telecommunications service providers generating electronic contracts for their customers and that 50% of higher education and vocational education institutions will be providing educational training on e-commerce.
To achieve the government targets, the plan will need to focus on completing the legal framework for e-commerce in the context of Industry 4.0.
According to the e-Commerce White Book 2019, that was published by the Vietnam e-Commerce and Digital Economy Agency, under the Ministry of Industry and Trade, e-commerce revenue increased by 30% from $6.2 billion USD in 2017 to $8.06 billion USD in 2018. In 2020, the size of the local e-commerce market is expected to reach $13 billion USD.
The “e-Conomy SEA 2019 “report that was published last year by Google and Temasek, predicted that e-commerce in Vietnam would expand at an average rate of 43% per year in the 2015 ~ 2025 period, making Vietnam the fastest growing e-commerce market in Southeast Asia.