Vietnam’s E-Commerce Industry Booms In 2021 With No Sign of Slowing Down

With increased FDI, a positive regulatory environment, and improved internet connectivity, Vietnam's E-Commerce Industry is booming in 2021

Due to increased foreign investments, a favorable regulatory environment, and improved internet connectivity, Vietnam’s E-Commerce Industry is rising rapidly in 2021 with no signs of slowing down. By 2025, online sales are expected to account for roughly a tenth of all goods and services sales in the country. This article discusses how Vietnam’s thriving digital economy and booming e-commerce market make it an ideal location for tapping into new business prospects.

Setting up your own E-commerce business in Vietnam? Check out Cekindo’s Incorporation Services

An Outlook of Vietnam’s E-Commerce Growth

To begin with, the demand for online commerce and entertainment in Vietnam has increased considerably in 2021 as a result of the country’s digital revolution. Throughout 2020, online shopping increased penetration, and transaction volumes, resulting in a whopping 54% gain in e-commerce sales in Vietnam, which is predicted to surpass the contemporary trade share of sales in 2028.

Moreover, working from home has expedited delivery and ride-sharing, as well as the desire to avoid contact with shops and food and beverage outlets. This, combined with the meteoric rise of e-commerce, has also boosted demand for delivery and ride-sharing services, as well as the expansion of established companies and the arrival of new ones.

Furthermore, e-wallets have benefited since the use of cash-on-delivery has decreased marginally, allowing mobile payments to take their place. While still in their outset, online education platforms have also been handed a boost in their efforts to reach consumer homes.

RELATED: New Regulations Regarding E-commerce in Vietnam for Foreigners 

Consequently, Vietnam’s e-commerce business grew by 18% to $11.8 billion in 2020, making it the only country in Southeast Asia to see double-digit growth during the Covid-19 pandemic, presenting itself to be an opportune sector to invest in.

Reasons to Invest in Vietnam’s E-Commerce Industry 

In Vietnam, e-commerce is on the rise, increasing from roughly 28% in 2017 to nearly half of the population by 2020. United Nations claims Vietnam is going to be a huge e-commerce transaction by 2025. According to Statista, the country’s e-commerce sales will be nearing US$32.3 billion by 2025.

The success of various Vietnamese-originated e-commerce platforms, like Tiki, Shopee, Lazada, or Thegioididong, demonstrates Vietnam’s ability to nurture e-commerce. Moreover, received a US$51 million investment from Japan’s SBI Holdings. Grab and Gojek, the region’s two most valued companies, are also weighing the pros and cons of a possible merger. This merger has the potential to develop market dynamics in Southeast Asia’s e-commerce sector.

Vietnam provides one of the most favorable regulatory conditions in the ASEAN area for starting e-commerce. As of 2022, Vietnam is a signatory to 14 free trade agreements (FTAs), which allow the import and export of commodities with reduced or zero customs tariffs.

RELATED: A Summary of All of Vietnam’s 14 Free Trade Agreements

By 2030, Vietnam’s digital economy might be worth $220 billion, garnering the attention of major brand names such as Goldman Sachs and By 2025, eCommerce might account for 10% of Vietnam’s retail sales. Online purchasing in Ho Chi Minh City and Hanoi might reach 50%.

The Vietnamese government’s dedication to the digital transformation of the economy has actively fueled the development of the country’s e-commerce. Foreign investment in this sector is a profitable opportunity that also has the potential to support the sector’s growth.

How Can Cekindo Help?

Setting up an e-commerce business in Vietnam can be a time-consuming process. Cekindo’s comprehensive business solution services will not only assist you with registering your company but will also ensure that you stay on top of all legal compliances. Following incorporation, we also provide HR and accounting services.

Contact Our Consultant

Tomas Svoboda - Cekindo - Vietnam Country Manager

Verified by:​

Ing. Tomas Svoboda

Tomas is the co-founder & Chief Business Development Officer responsible for Vietnam. His role is to define the key potential of the Vietnamese market and to ensure that Incorp's branch in Vietnam provides its clients with smooth and hassle-free market entry solutions.