Insights into the growth of Vietnam ecommerce profiling payment methods, target audiences, marketing, social media, economy and logistics
Vietnam is home to 96.4 million people with a total GDP of US$194 billion. GDP per capita is currently US$3,943 and is expected to reach US$5873 by 2025. Vietnam is ranked 141st by the World Bank GDP per capita rankings.
Digital User Insights
There are currently 51.8 million ecommerce users in Vietnam, with an additional 18 million users to be shopping online by 2025. These 70 million ecommerce users will represent 58% of the total population. The average user spends US$135 online.
In 2020, 31.5% of users are 25-34 years old.
Total ecommerce revenue across all product categories is US$7 billion, expected to reach US$8.7 billion by 2025. Electronics and Media is currently the leading product category, accounting for US$1.8 billion market share. Fashion is second, accounting for US$1.6 billion.
By 2025, Electronics and Media will still lead, valued at US$2.4 billion. Fashion will also remain in second place, reaching US$2.1 billion.
Preferred Online Payments
A significant number of payments for online purchases are made offline via Cash on Delivery (30% of Vietnamese shoppers chose this method in 2021). Alternate payment methods include: bank transfers, payment cards, eWallets or scratched cards.
Where does Vietnam buy from?
China supplies Vietnam with US$83.3 billion in imports. Other key import partners are South Korea (US$48.6 billion), Japan (US$15.6 billion), Thailand (US$13 billion), and Singapore (US$11.8 billion).
Internet and Device Usage
Vietnamese online shoppers mainly divide their purchasing between smartphones and desktops. 18% made their most recent online purchase via smartphone, while 71% made their most recent purchase via desktop.
Marketing spend in Vietnam reached US$1.2 billion in 2018 (latest data) and is predicted to reach US$1.43 billion by 2022. TV advertising has been growing constnatly in Vietnam although digital advertising is steadily increasing and reached 20.5% share of total media advertising in 2018, predicted to reach over 24% by 2022. Mobile advertising is also increasing, with reached 55% share of total digtial advertising spend in 2018, predicted to reach 68.4% by 2022.
For more market insights, check out the ESW series of blogs covering a range of emerging ecommerce markets.
*Insights derived from ESW data, Statista, WorldBank, OECD and other industry sources.