E-commerce given substantial boost

Covid-19 has promoted the already ongoing shift from traditional consumer shopping to e-commerce in Vietnam, with the country’s e-commerce market posting the fastest growth rate in Southeast Asia.

When the pandemic first broke out, figures show, the need for online purchases through e-commerce platforms began to rise sharply. More than 70 per cent of Vietnam’s population have access to the internet, nearly 50 per cent have tried online shopping, and 53 per cent have used e-wallets or online payments. Consumer habits also changed, with spending on non-essential activities being cut while outlays on essentials such as food, health, and household appliances increased.

“It is clear that shopping habits completely changed during the Covid pandemic, contributing to promoting new shopping trends,” said Ms. Nguyen Thi Thanh Thuy, Head of the E-commerce Department at e-commerce platform Voso.

But there are still challenges to overcome, with concerns including customer trust, delivery and payment methods, information security, transport infrastructure, and broken supply chains. Logistics, especially delivery times and service, is also a key factor as it can affect consumer decisions to purchase and therefore the revenue of retailers.

Ms. Le Thi Mai Anh, Head of the E-commerce Postal Sales Department at Vietnam Post, said the rapid growth of the market is forecast to continue into the future. This growth presents major opportunities but also challenges for the development of a logistics platform to meet the significant demands of customers and the market.

Another challenge is the absence of a legal framework for e-commerce logistics, Ms. Anh added. For Ms. Thuy, the issue of data security is a concern, as is the prevalence of counterfeit goods.