Vietnam e-business index 2019

According to the "Vietnam E-Business Index 2019" reportof Vietnam E-Commerce Association,  Vietnam E-Business starting point of about 4 billion USD in 2015 but average growth rate for three consecutive years, the scale of the e-commerce market in 2018 was about 7.8 billion USD. If the growth rate of 2019 and 2020 continues to be at 30%, by 2020 the market size will have reached 13 billion USD. This market included online retailing, online travelling, online marketing, online entertainment and online shopping for other digitized services and products.

Social networks have a prominent role in connecting consumers with each other and with sellers. 4 out of 5 connected consumers will rely on product reviews on online channels (83%) and especially they will search for comments from social networks (74%) before
deciding to buy that product or not. The rate of enterprises assessing sales via social networks was 45%, while this rate for sales
via website was 32% and via mobile application was 22%.

Along with the high growth rate of e-commerce, 2018 witnessed a strong development of logistics services, last mile delivery service and order fulfillment. According to a survey of the E-Commerce Association, Vietnam National Post Corporation (Vietnam Post) is a delivery service provider, which is leased by 1% of online sales units, followed by Viettel Post Company (Viettel Post) with a
rate of 25%. Corresponding rates for EMS, Giao Hang Nhanh and Giao Hang Tiet Kiem are 5%, 1%, and 1%. Other delivery units only account for 13%. 

The situation of outsourcing delivery services has changes in two E- commerce centers, Ha Noi and Ho Chi Minh City started using outsourcing delivery services. VNPost and Viettel Post are still the most leased companies, but the rate has decreased significantly. Specifically, in Ha Noi, the number of VNPost tenants is 20%, Viettel Post is 52%, EMS is 4%, Giao Hang Nhanh is 10%, Giao Hang Tiet Kiem is 9%, while that number of other delivery enterprises are 20%. The respective ratios in Ho Chi Minh City are 15%, 28%, 10%, 5%, 7% and 43%.

Report has conducted an in-depth survey with 14 delivery enterprises on different levels of attachment to e-commerce. The results show that the 10 most popular products purchased online are: 1) Clothes, Footwears; 2) Electronics and Refrigeration; 3) Mother and Baby caring products; 4) Books and Stationery; 5) Crafts and Fine Arts; 6) Accessories; 7) Cosmetic chemicals; 8) Furniture; 9) Food
and Drink; 10) Fast food.

The average growth rate in 2018 compared to 2017 of surveyed delivery enterprises is 70%, the lowest growth rate of enterprises is still 30% and there are 3 businesses have achieved the growth rates of above 100%.