The E-Commerce Pivot in Vietnam: Industry Report

Industry report:
The e-commerce
pivot in Vietnam.
2022
A Market Insight Report by Acclime
Vietnam, supported by Kantar Worldpanel.
01. 02.
E-commerce in Vietnam overview &
Vietnam - an business environment
awakening dragon pg7
pg4
03. 04.
Outlook of the digital Market structure and
landscape the story behind the
pg12 numbers
C O N T E N T S .
pg18
05. 06.
E-commerce models, Unlocking the digital
segments and key payment potential
participants pg35
pg29
07. 08.
Logistics – the back- Deciphering the digital
bone of e-commerce consumer’s portrait
pg38 pg46
09. 10.
Regulatory Conclusion
framework - barrier pg59
or opportunity?
pg52
11.
References &
engagement team
pg61
2
3
Breakthrough potential
In the last few years, Southeast Asia’s
dynamic and vibrant economies have been
growing significantly faster than other
developed nations, a growth sustained
in part by a consistent investment in
digitization and in the e-economy cross-
border frameworks. These dynamic
factors present for foreign investors
a major opportunity to tap into new
business opportunities in the region,
especially in the e-commerce sector, which
is experiencing a breakthrough investment
potential.
Vietnam is considered an
‘awakening dragon’ in the
e-commerce space, alongside
other major Southeast Asian
economies such as Indonesia,
Malaysia, and Thailand. Vietnam’s
1
e-commerce potential is
supported by its young, tech-
savvy population, high internet
penetration, rising income and
progressive government policies
which promote the digital
economy.
E-commerce in
Vietnam - a dragon
awakening.
4
A report by Vietnam Ministry of Industry and
Trade’s E-Commerce and Digital Economy
Department showed that Vietnam’s E-commerce
Estimated value of market recorded an estimated value of 13 billion
USD in 2021, surpassing 5 billion USD in 2020.
Vietnam’s e-commerce The e-commerce market volume is projected to
market in 2021. continue to be a major pivot in the next years,
where Vietnam may overtake its regional peers
13
such as Thailand, Philippines, Malaysia and
Singapore.
billion USD E-COMMERCE MARKET VOLUME IN SOUTHEAST ASIA,

2019 - 2021, FORECAST FOR 2025, BY COUNTRY
billion USD
1.9
Singapore 4.9
7.1
9.8 2019
3 2020
Vietnam’s transformation into a Malaysia 8
14
19 2021
digital savvy economy Philippines
3
5 2025(F)
12
26
5
In May 2020, the Vietnamese authorities approved Thailand 12
21
35
the master plan for national e-commerce
5
development for the period of 2021 to 2025, Vietnam 8
13
designed to promote the broad application of 39
21
e-commerce in all of the key economical pillars, Indonesia 35
53
targeting official institutions, private businesses 104
and individual consumers alike. Some of their (Source: Statista)
immediate goals are to narrow the digital usage
gap between the major cities and other localities,
build a sustainable virtual market as a holder for a
multitude of digital marketplaces, and significantly
increase cross-border online trading.
Annual Gross
Merchandise Volume
(GMV) in 2021 of
Vietnam’s internet
economy
E-commerce: crucial pillar

21.0
billion USD
of Vietnam’s economic
development?
Vietnam’s internet economy has experienced With a supportive legal environment, a
significant growth in recent times, with the annual considerable market size, high smartphone
Gross Merchandise Volume (GMV) reaching 21 adoption and internet penetration, Vietnam’s
billion USD in 2021, bolstered by a 53% growth year- commitment to the economy’s digital
on-year in e-commerce. It is projected to record 220 transformation creates a major opportunity for
billion USD in Gross Merchandise Volume by 2030, large participants in e-commerce space to take
placing Vietnam second in Southeast Asia only after advantage of these favorable assets, alongside
Indonesia, according to the e-Conomy SEA 2021 proven success stories from Vietnamese local
Report recently published by Temasek, Google, and e-commerce platforms such as Tiki, Bach Hoa
Bain & Company. Xanh, and Sendo.
There are four notable pillars of the digital It is essential for international
economy which represent the foundation of
the future growth of the sector: online media, investors to gain an in-depth
transport & food, online travel, and e-commerce. insight about local e-commerce
environment, the substantial
The e-commerce pillar achieved 13 billion USD
market value in 2021, accounting for more than opportunities to capture and create
60% of the total internet economy volume and value in the digital economy, the
highest among the four key pillars and was regulatory framework governing
boosted by an increase in online grocery purchases
and experience goods. the digital cross-border trade and
potential challenges ahead, in order
to reach vietnam’s consumers and
ANNUAL GROSS MERCHANDISE VOLUME (GMV) OF THE
INTERNET ECONOMY IN 2021, BY SECTOR
win in an increasingly competitive
billion USD marketplace.
Online travel 1.4
Transport and food 2.4
Online media 3.9
Ecommerce 13
Vlad Savin
0 (Source: Statista)
5 10 15
Head of Business Development,
Acclime Vietnam
6
Vietnam has emerged as one of Asia’s great
success stories, backed by a stable political
system, commitment to sustainable growth,
relatively low inflation, strong FDI inflows,
youthful and digital population, and a strong
manufacturing sector. In addition, the
country has a large domestic market and a
growing middle class. These dynamic factors
have created an extraordinary opportunity
for international investors to take advantage
of regional growth and focus their attention
on Vietnam, particularly in key sectors
such as production, trade, services and
2
e-commerce.
Vietnam overview
& business
environment.
7
Vietnam story. GDP GROWTH RATE & CPI 2012-2021
10%
(Source: Vietnam General Statistics Office data) 8%
6%
98.51
4%
2%
million people, 2021. 0%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
68% is working
GDP Growth Rate Annual CPI
force
GDP PER CAPITA 2012-2021
3,000
2,500
GDP growth, 2021 2,000
2.58%
1,500
1,000
500
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
7.72%
5.22% 5.03% GDP per Capita in USD
VIETNAM IMPORTS AND EXPORTS 2012-2021 (BILLION USD)

Q3/2021 Q4/2021 Q1/2022 Q2/2022
400
300
-6.02% 200
100
0
-100
-200
-300
CPI growth, 2021 -400
1.84%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Exports Imports Surplus/(Deficit)
2.96%
TOP 10 IMPORTS SECTORS, 2021 (BILLION USD)
2.51%
Chemical products
1.89% 1.92% Plastic products
Other base metals
Iron, Steel
Q3/2021 Q4/2021 Q1/2022 Q2/2022 Plastic materials
Textile fibers and fibers of all kinds
Other products
Telephones and parts
Other Machinery, instruments and accessories
Computers, electronical products and parts
0 10 20 30 40 50 60 70 80
INTERNET
ECONOMY SIZE, 2021
TOP 10 EXPORT SECTORS, 2021
21 million
USD
TOP 10 EXPORT SECTORS,
Others 25.98%
2021
Phones &
accessories
17.11%
E-COMMERCE Textile fibers and

fibers of all kinds
SHARE OF TOTAL 1.67%
RETAIL, 2021 Seafood Computer, electronic
5.5%
2.64% products & accessories
15.11%
Means of transport
& spare parts
3.16%
Iron & Steel
3.51% Other Machinery,
instrument, &
Wood & accessory
Wood Products Computer, electronic products & accessories Other Machinery,
Phones and accessories 11.4%
instrument, accessory
Textile and sewing products 4.4% Footwear
Footwear
Textile & sewing
Wood & wooden products
Iron and steel 5.28%
Means
products
of transport and spare parts Seafood
9.74%
8
Textile fibers and fibers of all kinds Others
RETAIL SALES & GROWTH 2012-2021
Vietnam’s economy -
250 15%
resilient amidst headwinds
200 10%
150 5% The fourth wave of the Covid pandemic

100 0% in 2021 severely impacted the Vietnam
50 -5% economy, with lockdowns, suspension of
0 -10% business, travel restrictions, and disruptions
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
in supply chains. However, the authorities’
Retail Sales (Billion USD) Growth Rate actions facilitated the weathering of
the storm, particularly with stimulus
TOP 10 EXPORT MARKETS, 2021 (BILLION USD) packages designed to help the most
affected individuals and businesses through
120
a combination of tax breaks and cash
100
transfers.
80
60
Consequently, Vietnam’s economy remained
40
resilient, expanding by 2.58% in 2021 and
20
was one of the few countries in the world
0
which recorded positive economic growth
in 2020 and 2021, a noteworthy feat
considering the GDP of neighboring Thailand
contracted by 2.2% in 2021.
TOP 10 IMPORT MARKETS, 2021 (BILLION USD)
120 Recently, Vietnam’s GDP grew by 5.0%

100 year-on-year (YoY) in Quarter 1, 2022 alone,
80 according to the General Statistics Office
60
(GSO). The World Bank predicts Vietnam’s
40
economy to grow at 5.5% in 2022 while the
IMF projects a higher 6.6%, followed by
20
Philippines (6.3%) and Malaysia (6%).
0
China South Japan Taiwan USA Thailand Malaysia Australia Indonesia India
Korea
Over the last decades Vietnam has
TOP 10 FOREIGN INVESTORS BY COUNTRY, LIFETIME experienced an impressive level of global
integration coming from a low base, the
70 country being the signatory of 16 free
60 trade agreements with organizations and
50 nations such as WTO, ASEAN and European
40
Union, Japan, United Kingdom amongst
30
others. On 30 of June 2019, Vietnam and
20
European Union signed the European Union
10
– Vietnam Free Trade Agreement (EVFTA),
0
South
Korea
Japan Singapore Taiwan Hong
Kong
British
Virgin
China Thailand Malaysia Netherlands which is described as “the most ambitious
Islands free trade deal ever concluded with a
Total Registered Capital (Billion USD) developing country.” After the signing of the
historical treaty, trade between Vietnam
TOP 10 FOREIGN INVESTMENT SECTORS (BILLION USD), LIFETIME and the EU rose 14.8% in 2021 to 63.6 billion
USD, reported by the Vietnamese General
250
Department of Customs.
200
150
With the latest Regional Comprehensive
100
50
Economic Partnership (RCEP) coming
0
into effect on 1 January 2022, the trading
tur
ing
tiv
itie
s
ut
ing ing
rib ion
n & ies
tio ivit ructi
on e; les
rad yc
il t torc sto
rag
e
rry
ing
rai
nin
g
ica
tio
n
relations between Vietnam and global
fac c ist ndit da act a ua dt un
u ea o st t o d q n m
markets will continue to improve, enabling
an d e n e m n d na
at & co mm vic Co dr na an tio om
1. M est ing air co ser 5. an les & tio ng ca dC
al uc ter, Ac ale hic rta ini an
Re od 4. food les r ve po .M du
on
Pr s, wa .E
2. .
3 a
y, g 6. f m
h
W oto
o
7. T
ra n s 8 9
for
ma
t i
Vietnam to consolidate its growth in the
icit ir o . In
e l e ctr
R e pa 10
region.
9
Vietnam remains a highly
attractive destination for
foreign investors
Vietnam is considered a safe shelter from
rising geopolitical tensions in the region, due Vietnam
VIETNAM
Vietnam foreign
FOREIGN
foreign direct direct investment
DIRECT INVESTMENT
investment (Billion
2016-2021,
2016-2021 (billion USD)
BILLION USD USD)
to its economic resiliency, political stability and
demographic growth factors. Despite the negative Registered Disbursed
socio-economic consequences of COVID-19, the 40 35.9 35.5
38.0
inflow of foreign direct investment into Vietnam 35 31.2

28.5
30
still rose 9.2% annually in 2021. FDI into Vietnam 25 20.4 20.0
19.1 19.7
totaled 31.15 billion USD based on the data released 20
15.215.8
17.5
15
by the General Statistics Office of Vietnam for
10
2021. Ho Chi Minh city, Hanoi and Binh Duong 5 dự
Xây
were locations receiving the largest of FDI flows in

ng Ho
0
ạt đ
ộn
Vietnam.
Ho gc
2016 2017 2018 2019 2020 2021
ạt đ hu
Cô ộn yên
ng gk mô
ngh inhd n, k
(Source: General Statistics Office of Vietnam)
iệp o an ho
hb ah
The country-wide development mechanism and
chế ọc
biế ất cô n
n, c độ
ng gn
Vietnam’s participation in free trade agreements
hế sản ghệ
Oth tạo
ers
VIETNAM FOREIGN DIRECT INVESTMENT,
enabled investors to take advantage of the Vietnam foreign direct investment 2016-2021 (billion USD)
Vậ
nt
BY SECTOR, 2021
ải k
B án ho
market’s opportunities, even during Covid-19 bu bãi
Sả ôn
và
Energy and natural
conditions.
nx bán
uấ
resources
t, p lẻ;
hâ sửa
np
hố
chữ
aô 15.1%
iđ tô,
iện
In terms of FDI sources, investors from Asia
,k mô
h í, tô,
nư
Real estate
xe
represent the majority of Vietnam’s capital inflows,
ớc má
,đ
8.3%
iều y
Singapore ranked first with over 10.7 billion USD

hò
a
Wholesale and retail, car &
(which makes up 34.4% of total investment value), motorbike repair
3.1%
ahead of the Republic of Korea with around 5 billion Science, technology and other
specialised activities 2.7%
USD and Japan nearly 3.9 billion USD. Among the Manufacturing Warehousing & transportation, 2.2%
most popular sectors for international investors, 59.3%
Ch Construction 1.4%
manufacturing and processing account for 48% itle
art
Otherss 3.26%
T
of total registered investment capital, followed by
(Source: General Statistics Office of Vietnam)
real estate, electricity production and distribution,
accommodation and food services.
FOREIGN DIRECT
Vietnam foreign INVESTMENT
direct investment BY COUNTRY,
2016-2021 (billion USD)
BY VALUE, 2021
Singapore South Korea Japan

10.7 billion USD 5 billion USD 3.9 billion USD
China Hong Kong Taiwan

2.9 billion USD 2.3 billion USD 1.3 billion USD
(Source: Statista)
10
The extensive lockdowns due to Covid-19
experienced in 2021 emboldened the manufacturing
sector in Vietnam to speed up its advancements
in productivity improvements and digital
transformation. This shift towards digitalization
has aligned the production sector in Vietnam with
the active, agile cross- border e-commerce sector,
leveraging each other’s assets and opportunities
to enable a synergistic growth in both. Although
Vietnam is less developed than many other
e-commerce markets in SEA, it is the region’s
fastest-growing online economy.
The Covid-19 pandemic has had an adverse impact

on industries and a large number of enterprises
have ceased operating. Recent statistics from the
Vietnamese authorities showed that in 2021, about
90,300 firms closed, up 15.3% over the same period
of last year.
However, although the pandemic caused major

supply chain disruptions, it has enhanced dynamism
in the Vietnamese e-commerce landscape with
increasing numbers of digital buyers.
Based on a survey by Kantar Worldpanel,
Over 51% respondents are

shopping online, creating a strong
foundation for the e-commerce
consumer base in Vietnam and its
potential of growth.
11
E-commerce: new engine for
growth in Asia
When it comes to e-commerce, Asia is a
fascinating region and it will come as no
surprise that this region is the world’s largest
marketplace, predicted to account for more
than 60% of the total global market value by
2024.
2019 2020 2024
Worldwide Worldwide Worldwide

57% 60% 61%
USD1.94 tn USD2.28 tn USD3.12 tn
Asia World ex Asia
The emergence of a growing middle-class in

line with increased levels of income, internet
penetration and smartphone ownership, social
media usage have been a potent force in
3
stimulating the expansion of the e-commerce
sector in the Asia-Pacific region.
Outlook of the
digital landscape.
12
As a result of the explosion of social media apps, E-COMMERCE USERS
IN ASIA, 2021
consumers are connected to online retailers more
readily than ever before. Enabled by an increasingly
efficient last-mile delivery infrastructure,
e-commerce has become a cornerstone economic
2.35people
million
pillar seamlessly connecting consumers and retailers E-COMMERCE USERS

IN ASIA, 2025, ESTIMATED
across Asia. Based on an analysis, the number of
people who actively used e-commerce in 2021 in
Asia was approximately 2.35 billion people, and it is 3.13million
people
estimated to grow to 3.13 billion people by 2025.
According to Weforum, China continues to account TOP 5 COUNTRIES, RANKED BY RETAIL E-COMMERCE
for more than half of all e-commerce globally at SALES SHARE, 2021
% of total worldwide retail e-commerce
52.1%, propelled by a rapidly expanding consumer
market and the development of digital technologies,
the dominance of livestreaming, eye-catching CHINA
52.1%
short videos as well as the proliferation of mobile
payments. According to Global Data Banking
and Payments Intelligence Center in 2022, China 19.0% US
e-commerce sales have reached 15.5 CNY trillion,
with an expected annual growth rate of 12.4%
between 2021 and 2025. 4.8% UK
3.0% JAPAN
China’s big e-commerce names such as Alibaba,
JD.com, and Pinduoduo have revealed an ambitious SOUTH KOREA
2.5%
vision to grow their e-commerce business in the
region and particularly in Southeast Asia, due to
its consistent consumer base development, rising (Source: Statista)
digital retail penetration and online usage.
13
Advanced technologies are
Asia’s e-commerce shaping the e-commerce
market value in 2021. landscape
1,365
Technological innovation is making the online
shopping experience as convenient as possible.
Blockchain technology, machine learning, artificial
trillion USD intelligence, the internet of things, and 5G wireless
systems are spreading across Asia and shaping
the future of e-commerce. In essence, advanced
technology lowers transaction costs and improves
customer experience by leveraging on innovation
and digitisation. Large firms like Alibaba in China,
Rakuten in Japan or Shopee in Southeast Asia
Which segments attract more utilise AI for image recognition to automatically
revenue? categorize objects by using visual cues and machine
learning.
In term of revenue, Asia’s e-commerce market
represented 1,365 trillion USD in 2021 and is
There is no doubt that the technological
projected to reach 2,093 trillion USD in 2022.
transformation is one of the key factors enabling
Fashion generated the largest revenue in the
e-marketplace growth in the Asia Pacific region.
e-commerce market in 2020 at over 428 billion USD,
By adopting cutting-edge technologies and
followed by toys, hobbies & leisure, DIY market at
implementing them within e-commerce platforms
404 billion USD and the electronics, media segment
and back-end supply chain frameworks, investors
at 335 billion USD.
can take the advantage of chance to maximise
profits as well as increase business efficiency and
consumer satisfaction.
INTERNET USERS AND E-COMMERCE

IN SOUTHEAST ASIA, 2021
440
million
80%
internet users in Internet users have

Southest Asia, bought at least one
2021 online service.
E-commerce is a major pillar in Southeast Asia’s

economy and benefits from the region’s structural
growth drivers such as a rising income, internet
penetration and youthful population. The region
now has more than 440 million internet users, and
more significantly, 350 million of them, or about
80%, are digital consumers who have bought at
least one online service.
14
Advanced technologies are
shaping the e- commerce
landscape
The pandemic was a strong catalyst for the increase
in consumption of digital services and this trend
will likely be predominant in post Covid-19 world. It
estimated that 60 million new digital consumers
joined the internet economy since the pandemic
started. Groceries and online food delivery have
witnessed significant growth amid the pandemic
with the total regional online food delivery Gross
Merchandise Value (GMV) is expected to more than
triple from 9 billion USD in 2020 to 28 Billion USD in
2025.
In Vietnam, the growth of delivery services has

also pivoted. According to data from Kantar
Worldpanel, 3 in 4 Saigonese were already using
Food Delivery services at home even before
COVID, but during the pandemic, 1 out of 5 non-
users in Ho Chi Minh City started using Food
and delivery services triggered by the Covid-19
lockdowns.
Based on the ‘e-Conomy in Southeast Asia 2021’ Indonesia had the largest e-commerce market
study, e-commerce is expected to significantly among the tiger club economies in the region in
boost Southeast Asia economies in following 2021, with Gross Merchandise Value valued at
years. E-commerce Gross Merchandise Value approximately 53 billion USD, an increase of 52%
exceeded 120 billion USD by end 2021 which compared with the previous year. The country
grew more than 62% YoY and it is predicted to is closely followed by other emerging markets
reach 234 billion USD by 2025. The driving forces including Malaysia, Philippines, Thailand, and
behind the double digit growth are consumer Vietnam. In term of the top online marketplace
behavior shift, increased in the number of participants, Shopee, Lazada, Tokopedia and
digital merchants and the convenience of digital Bukalapak are the key participants in the region
services. with hundreds of million of visits per month. Many
of these are backed by notable investors like
E-COMMERCE GMV, BY YEAR, BILLION USD Lazada, some are owned by giants like Alibaba or
Shopee, and others have received strong financial
support from Sea Limited.
Therefore, it is obvious that Southeast Asia is

+18% CAGR not only an advanced digital economy, but also
234
nurtures a vibrant and competitive e-commerce
sector. With a continuous flow of direct foreign
+62% CAGR
investments, the region aggregates cutting-edge
120 technological innovation with state driven digital
74 initiatives, thus laying the underpinning for the rise
38 of e-commerce.
2019 2020 2021 2025
(Source: e-Conomy in Southeast Asia 2021)
15
Vietnam e-commerce positioning -
a successful growth story
Although Vietnam is less developed than many
other e-commerce markets in Southeast Asia, THE DEVELOPMENT OF VIETNAM’S ONLINE INDUSTRY
it is one of the region’s fastest-growing online AND E-COMMERCE
economies. The country ranked fourth largest in
Southeast Asia with total online Gross Merchandise
Value of 13 billion USD in 2021. 1997 – 2005:
Vietnam becomes
According to the Foreign Investment Agency in connected to the Internet
Vietnam, 29.3% of the Vietnamese population has and establishes the first
yet to participate in the digital economy, compared ever internet infrastructure.
to only 10.1% in Thailand. This metric is extremely
relevant because it signifies a strong growth
potential, as Vietnam is likely to surpass Malaysia
and Thailand and take second place behind 1998 – 1999:
Indonesia by 2025, based on a forecast by Google, The Ministry of Trade
Temasek and Bain & Company. launched an awareness
campaign about
Vietnam’s e-commerce market is diverse and E-commerce.
competitive, nurturing hundreds of local and
foreign participants striving to create value and win
consumer market share. Ho Chi Minh city and Hanoi
2006 – 2015:
are the main e-commerce hubs in Vietnam offering
The growth of the internet
strategic location, supportive infrastructure, with
with the number of internet
an increasing number of logistic providers having
users in Vietnam accounting
invested in large-scale warehouses and logistics
for 45% of population.
centers. In the latest report released on April 2021
by the Vietnam E-commerce Association (VECOM),
Ho Chi Minh City leads the e-commerce index with
a total score of 67.6 points, followed by Hanoi with 2016 – Present
55.7 points. Further expansion. There
were 72.53 million Internet
In Ho Chi Minh City alone, there are currently 567 users in Vietnam in 2021,
active e-commerce platforms. accounting for 70.3% of the
total population in Vietnam.
The market gap between the two largest cities
(Hanoi and Ho Chi Minh City) and other provinces is
being narrowed, with many online services related
to e-commerce sector being launched at the local
level, reaching out a large, untapped customer base.
16
Vietnam’s e-commerce cements
dominant position in Southeast Asia
In recent years, the internet penetration in The consistent growth of online shopping in
Southeast Asia is on the rise, supported by the high Vietnam in Quarter 3, 2021 matches what was
rate of smartphone ownership and rising middle observed in the entire Southeast Asia region: over
class. In 2021, Vietnam had 73.2% internet users 50% increase, which in most part was due to Covid
while Philippines, Malaysia and Thailand also have related lockdowns and social distancing measures.
similar percentages, respectively 74.2%, 88.56%
and 79%. Despite ranking the sixth place for Vietnam was home for 5 of the 10 most visited
internet users, Vietnam has the highest rate of the e-commerce platforms in Southeast Asia in 2020.
population shopping on e-commerce platforms in Homegrown e-commerce platforms such as Mobile
Southeast Asia, with 49.3 million people, equivalent World, Tiki, FPT Shop, Sendo and Bach Hoa Xanh
78.7%. Therefore, it is no surprise that Vietnam is had the highest monthly traffic with an average
predicted to increase its Gross Merchandise Value of 81.6 million monthly visits. Therefore, when it
from 13 billion USD in 2021 to 39 billion USD by comes to online traffic numbers, Vietnam was the
2025. second highest in the region, only after Indonesia.
This strongly affirms the development potential of
Vietnam’s e-Commerce market in competing with
GROSS MERCHANDISE VALUE OF E-COMMERCE, 2021, other countries in the region.
2025
100% 40 ONLINE RETAILERS IN SOUTHEAST ASIA IN 2020,

80% 32 BY MONTHLY VISITS, IN MILLIONS
60% 24
40% 16
FPTshop.com.vn 7.28
20% 8
Back hoa xanh 8.83
0% 0
Vietnam Philippines Malaysia Thailand sendo.vn 14.35
blili.com 19.25
The internet penetration (% of the total population)
Tiki 22.49
Gross merchandise value of e-commerce, 2021, billion USD
The gioi di dong 28.65
Gross merchandise value of e-commerce, 2025, estimated, billion Bukalapak 35.73
USD
Tokopedia 88.89
(Source: Statista)
Lazada 137.15
Shopee 281.39
THE DEVELOPMENT OF VIETNAM’S ONLINE INDUSTRY
0 50 100 150 200 250 300
AND E-COMMERCE, 2021
(Source: Statista)
70%
60% Vietnam’s E-commerce is well placed to pivot its
50% growth in the Asia region supported by a tech-savvy
40% population, progressive online policy framework
30% development and rising consumer spending.
20%
10% With this strong foundation, Vietnam is seen as one
Hyper- Super-
0% market market of the most exciting e-commerce markets in the
-10% Traditional Online Minitores region, offering untapped potential to international
trade
investors seeking to expand their digital ecosystems
-20%
and create value in the digital economy.
Southest Asia’s MAT Q2’21 vs YA
Vietnam’s MAT Q3’21 vs YA
(Source: Kantar | Worldpanel Division | SEA

countries | Household Panel | FMCG | MAT Q2)
17
E-commerce pivots from Covid-19
to new opportunities
Covid 19 has significantly transformed the
shopping experience for consumers in Vietnam,
with digital channels becoming the norm for
accessing essential goods rather than the physical
stores.
According to Kantar Worldpanel, in 2021 Vietnam

experienced 65% more online shopping trips
compared to the previous year, with e-commerce
accounting for 6% of total FMCG market,
compared to Thailand at 4%. China and South
Korea are leading the way with approximately
30% of their FMCG market value being generated
by e-commerce, which signals strong opportunities
for growth in developing economies such as
Vietnam, with a dynamic digital consumer base.
% GROWTH OF ONLINE SHOPPING TRIPS BY MARKET

FMCG, 2021 VS YA, AND % VALUE SHARE OF
E-COMMERCE IN TOTAL FMCG BY MARKETS
Malaysia 118% 6%
India (urban) 103% 1%
Vietam (urban) 65% 6%

(4 cities)
4
Chinese Mainland 37% 27%
Taiwan 37% 16%
Thailand 26% 4%
South Korea 17% 33%
0% 50% 100%% Value

150%share of e-commerce
(Source: Asia Pulse #1 2022) in total FMCG by markets
Market structure
and the story
behind the
numbers.
18
Delivery services have also generated a notable Digital payment services, the financial sector’s
growth, in sync with the e-commerce development key segment which enables the e-commerce
post pandemic. According to Kantar Worldpanel, ecosystem, has the potential to become
mainstream in 2022. Covid-19 also created
momentum for the trend of cashless payments
3 in 4 Saigonese were already using in Vietnam, with many traditional stores now
Food Delivery services at home accepting payments via e-wallets among primary
options such as cash, card. Fueled by new digital
even before the pandemic, and
support programs and from the Vietnamese
1 out of 5 non-users commenced authorities, non-cash payments are projected to
using delivery services amid the account for 50% of all e-commerce transactions.
The strong support signal from Vietnam’s
pandemic, reaching 86% monthly government and the market’s growth potential
users. represent a golden opportunity for fintech investors
to establish collaborations with e-commerce
Food delivery apps are extremely popular amongst platforms and provide a wide range of innovative
digitally native Gen Z, Gen Y who use their phones financial solutions for the online consumers in
consistently for everything from social interactions Vietnam.
to work and fun. It is no surprise that these
consumer classes are leading the way when it
comes to food delivery app usage as well.
For e-commerce platforms operating in

Vietnam, the pandemic generated a plethora
of opportunities in creating effective business
models, adapted to the local consumer behavior
towards digital shopping. Apart from mega sales
from key participants such as Lazada, Shopee or
Tiki which boost the overall consumption levels in
the e-economy, cooperatives or farmers selling
their products online such as lychees, plums, and
other specialties are also driving the e-commerce
expansion and spicing up the competition.
19
Where there are opportunities,
challenges arise
The Vietnam digital
Due to its regional and commercial
interconnectivity, the e-commerce sector was not
economy in 2021
exempted from the effects of the pandemic in the reached a GMV of
last two years. The pandemic generated a whiplash
within global supply chains, and in particular those
linked with e-commerce platforms during the peak
of pandemic.
21.0
billion USD
Manufacturing reduction
The complexity of customer behavior

(The demand for fast, low-cost delivery and
for high-quality service)
E-commerce fraud, customer Growth drivers and flourishing

complaints, information security
digital economy
Manufacturing reduction posed significant Vietnam is entering the digital revolution as
challenges as hundreds of thousands of primary the internet economy becomes an essential
materials and products were out of stock or part of consumers’ daily lives. They prefer using
impossible to deliver due to supply chain disruptions, digital services such as online shopping, online
regardless of the significant spike in orders. In media, online travel, and online payments due to
addition, the extended lockdowns in Vietnam forced convenience and attractive sale promotions.
both logistics and e-commerce participants to
rethink their local strategies in order to improve Based on “e-Conomy in Vietnam 2021” report, the
the delivery process and cope with the imposed digital economy reached a GMV (Gross Merchandise
restrictions. Volume) of 21 billion USD in 2021, underpinned
by a 53% growth in e-commerce. Recently, the
Another obstacle e-commerce providers need to Vietnam’s government is advocating for the
overcome if they desire to succeed in Vietnam is rapid development of its digital infrastructure
understanding and most importantly accepting the and technological advancement with the aim of
complexity of customer behavior. The demand for becoming one of the world’s leading nations in
fast, low-cost delivery and for high-quality service digitalisation.
has risen sharply as online shoppers become more
agile, informed and tech savvy. The multitude of E-commerce participants should leverage the
choices, diversity of products across dozens of potential growth opportunity of the sector and
different online channels, enable consumers to the government support to scale their operations,
leverage the ‘power of the buyer’, thus requiring capture market share and enhance their service
market participants compete against each- quality to the consumers.
other and also constantly adapt their technology
and customer experience strategies to meet the
requirements of the modern consumer.
In addition to the challenges mentioned

above, e-commerce businesses must deal with
e-commerce fraud, customer complaints and create
organizational policies which address concerns
about information security and data protection,
which need to be fully aligned the with government
regulatory policies as well.
20
The rise of the middle class High internet penetration
72.53 ~
After 30 years of Doi Moi reform, Vietnam has
experienced significant achievements which 77.4%
has driven the country’s growth to new heights,
million
transforming it into a medium-income country. The internet users in of the Vietnam
Vietnamese middle-class population is growing Vietnam, 2021 population
rapidly, and is expected to reach 21 million by 2030,
World Data Lab projects. Hanoi and Ho Chi Minh
Vietnam first accessed the internet in November
City are the two locations concentrating most of
1997 as a part of the national economic
Vietnam’s middle class demographics, alongside
development. In the last 20 years, the country
emerging provinces such as Danang, Can Tho and
has seen a tremendous increase in the number of
Hai Phong.
internet users. According to Statista, in 2021, the
number of internet users in Vietnam amounted to
According to a study from McKinsey, the
an estimated 72.53 million people, approximately
Vietnamese consumer can spend at least 11 USD
77.4% of the population, while Indonesia stands
per day in purchasing and according to the same
at 76.8% as a comparison. With the increasing
report, Vietnam was predicted to have the highest
accessibility of the internet and mobile devices,
CAGR (Compound Annual Growth Rate) in terms
more and more people will have the opportunity
of middle-income population, with 10.1% within the
to connect with and use e-commerce services on
ASEAN region. It is undeniable that Vietnam’s fast-
daily basis.
growing middle class and dynamic consumer class
are key indicators signaling the consumption pivot
within the e-commerce and retail ecosystem.
21
The government’s digital advancement Big offers from top marketplaces
Vietnam’s e-commerce has made a remarkable To thrive in the intensifying competition and gain
transition since 1986. In the early years, Vietnam’s more market share, e-commerce enablers and
e-commerce has had a long-term roadmap major brands are using campaigns to promote
to develop as traditional marketplaces and ‘super shopping days’ throughout year such as Black
supermarket chains maintained their prevalence Friday, ShopFest, 11.11, 12.12 and occasions. These
wildly popular in Vietnam. As of 2018, many global initiatives not only have significantly helped retailers
e-commerce participants entered the local market break records on sales and product views, but also
and created a great deal of buzz and excitement benefited shoppers to high-quality products from
in the industry by using smart, consistent online famous global brands at market-beating prices.
advertisements and promotion techniques. This
was picked up by the Vietnamese authorities Apart from B2C participants, D2C enablers
who began to understand the depth of value and also participate in these events to strengthen
enormous potential of the e-commerce market online marketing and sales, as well as bring new
segment, and consequently started to put in place experiences to customers.
policies to develop it as a key pillar of the digital
economic development. For instance, since January 2022, ShopBack
welcomed more D2C (Direct to consumer) websites
such as: Samsung, Innisfree, Lancôme, Kiehl’s and
The government expects that 55%
others to provide a diversified rewarding shopping
of the population will be shopping experience for their user base.
online by 2025, with an average
During ShopFest 12.12 last year, ShopBack
consumer spending rising to
managed to drive a 13x increase in revenue to their
US$300 in 2022 from US$170 in merchants and brand partners compared to an
2016. average day in December.
Initiatives such as Super Brand Days, ShopFest,

Black Friday, Single Day not only help customers
shop safely and conveniently but also accelerate
the growth of e-commerce and support brands in
developing their online customer bases.
22
What trends stand out?
User generated content (UGC) is growing
User generated content (UGC) is one of the

dominant trends in Vietnam as well as the Asia
region, linked directly with the pivot of social media.
This humanised approach towards marketing not
only enables customer loyalty because they trust
real shoppers’ reviews rather than brands’ content,
but it also drives sales and traffics for brands.
According to Global Retail Path to Purchase Study
2021, 37% of Tiktok users discovered a product on
TikTok and immediately went to buy it. This is 1.5x
more likely to happen than the competitive average
Emergence of digital payments
The growth of digital payments has been one

of the leading driving forces behind Vietnam’s
move toward becoming a cashless society, serving
an affluent population with a highly urbanized
demographics. Vietnam, home for over 30
providers with approximative 20 of these offering
e-wallet modules, has nurtured two unicorns in
the e-wallets space: Momo and VNPay. Leading
providers such as Momo, VNPay, Moca, and ZaloPay
dominate the market with their vast customer
base and strong financial backing. At the moment,
each platform tends to offer exclusive products
and services to attract new users and retain more
customers.
According to the State Bank of Vietnam,
It is estimated there are 4.2 million

authenticated e-wallet users
out of the country’s nearly 100
million people, which leaves more
than sufficient opportunities for
newcomers with innovative ideas
and exciting value propositions.
23
Cross-border e-commerce: the next big
opportunity
Within the mainstream of economic integration In addition, supported by a favorable geographical

coupled with the advancement of the digital position, cross-border e-commerce from China and
transformation, Vietnam has significant into Thailand, Cambodia, and Laos will often require
opportunities to grow its cross-border e-commerce. transit and transport through Vietnam. Vietnam’s
The E-commerce and Digital Economy Agency’s access to multiple ports and coastline provides
(IDEA) Deputy Director said that the country has suitable alternatives for businesses looking to
the highest cross-border e-commerce growth rate distribute out of or into Vietnam. Fashion, Food
in the world at 3.7%. The number of Vietnamese and Beverage, and Toys are top product categories
sellers on the global platforms such as Shopify, are purchased cross-border which brings endless
Amazon achieved outstanding records in 2020. For opportunities for brands operating within these
example, in accordance with Amazon Global Selling categories.
Vietnam, amid the Covid-19 pandemic in 2020,
there were over 100.000 Vietnamese sellers which However, foreign investors must be mindful of
have successfully debuted on Amazon. Although one of the most prevalent hurdles in growing an
the cross-border e-commerce segment is expanding e-commerce business is the product description
consistently, Vietnamese sellers need to make translation. As stated by TMX - a leading supply
improvements to reach more customers, educate chain and logistics consultancy service in Asia
themselves on e-commerce scaling and incentive Pacific region, it is imperative that brands use
models, study foreign customers’ preferences and accurate translations in order to capture attention
overcome language barriers. and the interest can be converted into a buying
action.
Shoppertainment is on the throne
The pandemic has impacted how we shop and

how we consume entertainment, due to months
of ‘stay-at-home’ and travel restrictions. As
consumers could not shop at the brick and mortar,
online shopping became the best option to buy and
to lower infection risk. In line with the e-commerce
growth, shoppertainment is the new star in
Vietnam. It reflects the way brands entertain
consumers while promoting their products. In
addition, the prevalence of short-form videos ‘reels’
on social media platforms like TikTok, Instagram
reels is a strong catalyst for this trend.
In a TikTok’s survey, one in three respondents said

they felt good and wanted to purchase through
reviews from KOLs (key opinion leaders) or KOCs
(key opinion consumers). Another key trend is
livestreaming, where influential sellers host
online product demonstrations to interact with
customers. According to Lazada Vietnam, LazLive
recorded a significant growth in the peak of the
fourth Covid-19 wave, where LazLive’s revenue
increased 5 fold and livestream views doubled every
day.
24
M-commerce is taking off
The high mobile ownership and rapid internet

development have boosted the mobile commerce
segment in Vietnam. According to Statista,
Vietnam had one of the highest

mobile penetration rates in the
world in 2021, with 68,2% of the
population, ranked first and followed
by Indonesia and Thailand with
61,7%, 59,3% respectively.
41%
people choose mobile as the top choice
for browsing online
Based on Bazaarvoice’s latest global research,

mobile is the top choice for browsing online for
almost half of the consumer pool – 41%, thanks
to its convenience, variety of choices and relevant
reviews. These factors drive a major shift in
customer behavior and shopping patterns, and
enable a pivot in the moblie eletronic commerce
in Vietnam within the next few years. To leverage
mobile commerce, investors need to capitalise
in state-of-the-art platforms fully optimized
for mobile usage, in order to create a seamless
shopping experience for mobile customers.
25
Cashback – the emerging trend drawing
customers to e-commerce
In the last two years of the pandemic, widespread

job losses and wage cuts in Vietnam led to a sharp
decrease in disposable income for spending and
shopping. Therefore, people’s tendencies were to
save more and rethink what is really essential.
According to the ShopBack’s internal data, after the

lockdown (from Oct 2021 - May 2022), the average
expense of ShopBack’s users was 2.2x compared
to the lockdown’s period from Jan 2021 - Sep 2021,
and the frequency orders also increased 30% with
the top categories are Beauty, Moms & Babies and
Home Appliances.
Jacky Ha
Jacky Ha, Co-founder and General Manager of Co-founder & General Manager
ShopBack Vietnam commented: at ShopBack Vietnam
Cashback is the new rising star in the Jacky continued: “ShopBack is on a mission to
‘super shopper’ revolution in Vietnam. innovate the everyday shopping experience by
helping users to save both time and money.
It offers a small percentage back to ShopBack earns a commission for each purchase
the shoppers in the form of cashback made via Shopback on partner platforms, and this
or rewards per each transaction. Over amount is returned to customers in the form of
cashback. In Vietnam, more than 350 e-commerce
the past few years, discounts and platforms, OTAs, brand.com are Shopback
voucher help with attracting customers partners, including Lazada, Shopee, Tiki, Agoda,
Traveloka, Dien May Xanh, Adidas,Samsung...And,
to the platform and cashback helps
we also have some cool features to enable users to
with retaining these clients and staying earn more such as: Challenges – the small simple
ahead of the competition. As large tasks that you can complete via the ShopBack app
and earn extra bonus cashback, or “Watchlist”
retailers utilize cashbacks to rope in
allows you to follow the offers of your favorite
the larger market share, SMEs can stores to get the upsized cashback notification
also take advantage of this channel to everyday.”
increase brand recognition and extend
In recent years, cashback for travel has grown
their coverage to a newer audience for considerably. Top travel merchants such as
their products. Traveloka, Booking or Agoda show a large uplift
on e-commerce platforms. Since December 2021,
ShopBack observed an interesting #revengetravel
trend, which increased the redirects from the
ShopBack application to the travel merchant’s
platforms by 71% and the revenue of Travel
category was 2.2x in May compared to March 2022.
ShopBack is an Asia-Pacific shopping and rewards

platform, serving over 30 million shoppers
across ten markets, partnering with over 10,000
e-commerce and shopping platforms.
26
The value in numbers -
outstanding prospects
Vietnam’s online shopping has witnessed a
ONLINE SHOPPING USERS & INTERNET USERS, 2021
remarkable development in terms of growth rate
as well as scale and has become one of the fastest (Million) (%)
60 80%
growing market segments in Southeast Asia.
70%
50
60%
In parallel with the fast pace of the economic 40
50%
growth, the scale of Vietnam’s e-commerce market 30 40%
progressed from a low starting point of about 4 30%
20
billion USD in 2015 to about 13 billion USD in 2021. 20%
According to the Ministry of Industry and Trade,

10
10%
since 2016, the growth rate of e-commerce in 0 0%

2016 2017 2018 2019 2020
Vietnam averages 25 to 30% per year.
Number of customers shopping online (million)
Percentage of population using internet
Therefore, Vietnam’s dynamic e-commerce market (Source: Vietnam e-commerce White Book 2021)
is unlocking new business opportunities and
receiving great attention from both domestic and
AVERAGE ONLINE PURCHASED VALUE OF A PERSON,
foreign investors. PROPORTION OF E-COMMERCE ON TOTAL RETAIL
SALES, 2021
Scalability potential (USD) (%)

300 6%
250 5%
The proportion of new internet users which are
200 4%
shopping online increased from 77% in 2019 to 88%
in 2020 due to the extended lockdowns during the 150 3%
pandemic. 100 2%
50 1%
0 0%
2016 2017 2018 2019 2020
88%
77% Value of online purchased goods/service of each person (USD)
Percentage
Percentage
of users Percentage of ecommerce B2C on total retail sales of goods & services
of users
participating in
participating in
online shopping
online shopping (Source: Vietnam e-commerce White Book 2021)
in 2020
in 2019
In 2020, the proportion of enterprises selling
(Source: Vietnam e-commerce White Book 2021) goods on social networks made up 41% while
the proportion of enterprises doing business on
e-commerce marketplaces increased by 5% within
During the five-year period from 2016 to 2020, the one year from 2019 to 2020.
number of online shoppers in Vietnam increased
by 16.6 million, thanks to the increasing number of PROPORTION OF ONLINE SHOPPING CHANNELS,
internet users in 2020 which was approximative BY YEAR
70% of the population.
2020 22%
41%
2019 17%
39%
Businesses selling on e-commerce platform

Businesses selling on social media
(Source: Vietnam e-commerce White Book 2021)
27
Pre-pandemic, the digital consumer penetration Based on research from Kantar Worldpanel,
in Vietnam was at 60.5%. However, Covid-19 was the percentage of online buyers in FMCG was
a noteworthy catalyst for the increase in the new significantly different between urban and rural
digital consumer numbers in 2020 and 2021, with a areas in Vietnam. To be more specific, FMCG for
growth of 6.2%. in-home consumption in metro areas skyrocketed
over the years and was accelerated dramatically by
EXPONENTIAL GROWTH IN DIGITAL CONSUMERS the fourth wave of Covid-19 from May to November
2021 and subsequent lockdown nationwide. For
29.3% Non users non-metro areas, the sector has witnessed a
New digital
consistent growth reaching the latest point at
consumers 7.4% New digital consumers
2020: 2.9% 2021 (H1) 10.6%.
60.5%
Pre-pandemic consumers
% ONLINE BUYERS OVER THE YEAR - FMCG FOR IN-
HOME CONSUMPTION
(Source: Google, Tamasek, Bain & Company)
Urban 4 cities
Rural
NEW DIGITAL SERVICES CONSUMED OVER TIME
10 8.5
8 6.7
+1.8
6 4.7 +2.2 +2.2
4
2
0
Prepandemic 2020 pandemic 2021 Prepandemic
(Source: Kantar | Worldpanel Division | Households
(Source: Google, Tamasek, Bain & Company) Panel | Urban 4 Key Cities & Rural Vietnam)
In terms of online shopping channels, e-commerce From a transactional perspective, ‘cash is king’ and
platforms are predominant, amounting to around remains a significant part of the payment culture in
74%. Forums and social commerce channels Vietnam, accounting for 78% in 2020. However, the
witnessed a sharp decrease from 57% in 2019 to development of 4G/5G infrastructure and the vast
33% in 2020. number of mobile users have laid the foundation
for the emergence of e-wallets, which experienced
PROPORTION OF ONLINE SHOPPING USERS, BY significant growth in 2020/2021 and will continue
ONLINE SHOPPING CHANNELS, BY YEAR to evolve and expand together with the entire
e-commerce ecosystem in Vietnam.
80%
60% PROPORTION OF ONLINE SHOPPING USERS, BY
PAYMENT METHOD
40%
20% 100%
0% 90% 86%
78%
E-commerce
1 Forums2and social 80%
platforms commerce channels 70%
60%
2019 2020
50%
39%39%
(Source: Vietnam e-commerce White Book 2020) 40%
30% 23%
20% 18%
17%
20%
10% 6%
2%
0%
Cash upon Local ATM Credit card E-wallet Scratchcard
receipt (COD)
2019 2020
28
Three pillars of e-commerce
E-commerce is thriving and playing a

crucial role in the future of Vietnam’s digital
economy. Based on Decree 52/2013/ND-
CP, the e-commerce is “the conduction of
a part or the whole process of commercial
activities by electronic means connected to
the Internet, mobile telecommunications
network or other open networks.” Within the
electronic commerce business foundation,
the models which investors use to create
value are represented by the three main
5
e-commerce pillars: Business-to-Consumer
(B2C), Business-to business (B2B) and Social
Commerce.
E-commerce
models,
segments and key
participants.
29
29
Business-to-Consumer (B2C)
- the major pivot of Vietnam’s
e-commerce
B2C e-commerce landscape in Vietnam is
represented by an intense competition among REVENUE AND GROWTH OF VIETNAM E-COMMERCE
MARKET, BY YEAR
domestic and international participants who have
been investing large sums into promotional and PR 14 100%
campaigns, designed to quickly acquire and retain 12
80%
market share. 10
8 60%
Consumer behavior changes in the digital era, 6 40%

together with successful strategies from investors 4
20%
who managed to tap into a strong customer base 2
have boosted the e-commerce revenue in Vietnam 0 0%

2016 2017 2018 2019 2020
to 13 billion USD in 2021, with a growth rate of 62%
Revenue (billion USD) Growth (%)
year on year.
Furthermore,
In the intense race to attract customers, despite

The ratio of B2C revenue accounted having strong financial resources, several
for only 5.5% compared to the total participants decided to give up and leave the sector.
Robins, Adayroi, and Lotte are some of the large
retail sales. Identifying the gap and enterprises which exited the online market because
opportunity in the market, numerous they weren’t able to sustain the significant losses
international investors have invested at the front-end generated by expensive campaigns
designed to build and sustain their customer bases.
significantly into fast-growing
e-commerce start-ups to leverage on In order to secure a strong competitive position in
the Vietnamese market, apart from building a solid
the first-mover advantage. financial foundation, an effective strategy and in-
depth insight about local regulations and consumer
culture are of paramount importance.
When it comes to monthly visits, Vietnamese

homegrown platforms achieved breakthrough
records compared to regional participants. As of
the third quarter of 2021, The Gioi Di Dong was the
most visited domestic B2C e-commerce website
in Vietnam, with approximately 60 million website
visits per month, followed by Dien May Xanh, Tiki,
Bach Hoa Xanh and others. The top 5 most chosen
platforms in 2021 for urban online shopping -
FMCG, Shopee, Facebook, Lazada, Bach Hoa Xanh,
and Tiki are dominating the market share based on
the number of transactions.
30
Business-to business (B2B) - Social commerce - Transforming
Infancy opportunity the online shopping experience
In contrast to the prevalence and success of B2C, There is no doubt that social networks are
B2B e-commerce remains relatively new in Vietnam increasingly popular and widely used by the
but presents an attractive value proposition for Vietnamese consumers. From conversational
investors, as its potential to thrive is considerable. channels for connecting with friends and family to
First and foremost, Vietnam is well known for being shopping sites for embedded in the social networks,
a regional hub for manufacturing goods and is social media is considered one of the most popular
seen as one of the key locations for the “China plus shopping online channel in Vietnam alongside major
one” supply chain diversification strategy in recent B2C e-commerce platforms. It serves both city
years. shoppers and non-metro citizens.
Electronics, footwear and lifestyle items are According to Statista, the number of active social
the major items produced in Vietnam, and B2B network users in Vietnam as of January 2021
platforms can tap into the manufacturing base amounted around 77 million people, accounting for
and growth to provide a wide range of goods with over 78% of the population.
affordable prices. However, the number of B2B
enterprises accounts for only a small percentage Based on a study from Bain & Company,
compared to B2C companies in the e-commerce
marketplace.
Vietnam’s social commerce
Another substantial driver for the B2B e-commerce accounted for 65% of the entire
potential in Vietnam is represented by the country’s
free trade agreements, including the European- e-commerce market size, leading
Vietnam Free Trade Agreement (EVFTA), the the Southeast Asia region
Regional Comprehensive Economic Partnership
(RECEP), the Vietnam-Japan Economic Partnership
and representing a significant
Agreement (VJEPA) and other important FTAs, opportunity for investors.
which offer major benefits for cross-border
e-trading by leveraging on preferential customs
Global social media companies own the largest
tariffs.
portion of the Vietnamese social media users:
Facebook is still on the throne with 93.8% of the
Consequently, under the umbrella number of users aged 14 to 64, followed by Zalo
(91.3%), TikTok (75.6%), and Instagram (59.7%). In
of these FTAs, B2B e-commerce particular, TikTok promotes TikTok Shop, which gives
in Vietnam is expected to bloom businesses the opportunity to tap into the power of
e-commerce on this popular social platform which
in the following years, building
has captured significant attention in Vietnam.
on the foundation of trade Apart from international platforms, Vietnam is also
internationalization and foreign the home of numerous small social networks, such
as Otofun, Tinh te which have great significance
invested manufacturing growth. within the e-commerce shopping component.
31
Mapping the e-commerce market
Annual Gross in Vietnam
Merchandise Volume
(GMV) in 2021 of In 2021, Vietnam’s e-commerce
Vietnam’s internet market grew 24% compared with
economy previous year. In accordance with the
21.0
Vietnam E-Commerce Association
(VECOM), online shopping traffic
in Vietnam in 2021 grew by 150%
billion USD compared with the previous year,
with daily visits to e-commerce sites
reaching 3.5 million. This signals
not just consistency in the market
According to our research, Vietnamese consumers progression patterns year on year,
prefer conversational commerce, with user- but an actual transformation in
friendly experiences and more direct, personal
communication. Most of the actions happen within the way Vietnamese users are
the inbox and consumers tend to make purchases undertaking shopping, shifting their
via direct messages, therefore brands can take habits towards online and social
advantage of this personal connection with the
customers to build trust and loyalty in their value platforms with priority.
proposition. Additionally, it is essential to implement
feedback verification features to boost consumer
confidence when buying on social platforms, as
users can often be discouraged if security and
client support are not effective within the social
commerce ecosystem.
Vietnam is a promising market for social commerce Vlad Savin

in Southeast Asia, benefitting from underserved Head of Business Development,
internet users in the rural areas, high urbanization
Acclime Vietnam
rate as well as unique social and consumer
behaviors for online shopping.
As a result, social commerce industry in Vietnam

is expected to grow by 66% on annual basis to
reach over US$2 billion in 2022, which indicates a
strong sector dynamics. Investors who can seize
this opportunity and tap into dedicated consumer
niches in the social commerce space and build trust
in their value proposition will gain significant, long
term rewards.
32
Numerous foreign investors expanded their digital
commerce footprint in Vietnam, predominantly
from China, Japan, United States, and South
Korea. Notably, Vietnam is home of five key
successful Southeast Asian e-commerce platforms,
namely Shopee, Lazada, The Gioi Di Dong , Tiki and
Sendo. According to our research, Shopee’s market
share has increased exponentially in Vietnam,
with approximately 73.5 million website visits in
the last 6 months of 2021 (from March to August)
and occupies the number one place on the map of
e-commerce in Vietnam.
Within the domestic B2C e-commerce platforms

in Vietnam, The Gioi Di Dong holds the dominant
position, with approximately 50 million website
visits per month, accounting for 29% of the market.
Other Vietnamsese e-commerce platforms such as
Tiki, Sendo, Bach Hoa Xanh are also in the top of
most visited e-commerce platforms in Southeast
Asia, which represents concrete evidence of the
major potential of e-commerce in Vietnam.
It is obvious that B2C and social

commerce models constitute the
majority of the activity within the
e-commerce ecosystem in Vietnam,
although B2B or C2C are gaining
popularity. Investors interested in the
market can reap significant rewards
if they are able to understand and
leverage on culture alignment,
branding, competitive positioning
and marketing strategies to convince
Vietnamese consumers of their
value proposition.
33
In logistics terms, most platforms have their own It is obvious that B2C and social commerce models
in-house logistics with complete control over constitute the majority of the activity within the
order fulfillment. This provides more flexibility in e-commerce ecosystem in Vietnam, although B2B
managing the customer’s experience, ensures the or C2C are gaining popularity. Investors interested
shortest order processing time and delivery time in the market can reap significant rewards if they
with the lowest cost, optimizes the use of resources, are able to understand and leverage on culture
and reduces fraud. However, developing and alignment, branding, competitive positioning and
maintaining in house logistics requires investors to marketing strategies to convince Vietnamese
have a large resource pool of supply chain experts, consumers of their value proposition.
financial capacity as well as technology. This is a
reason why many e-commerce participants choose
to combine both in-house logistics and third-party
providers to ensure they maintain their ability to
manage customer expectations in a timely manner.
TOP E-COMMERCE WEBSITES BY VISITS IN VIETNAM, Q4/2021
Name Local/ Busi- Product Ownership Logistics Visits in Q4

foreign ness categories 2021 (million)
owned model
B2C, In house,
General retail Sea, Tencent 88,956,700
C2C 3rd party
Mobile World
Electronic
B2C Investment In house 59,590,000
devices
Corporation
Consumer
Mobile World
electronics,
Home
Corporation
appliances
B2C, In house,
General retail Alibaba 20,633,300
C2C 3rd party
General retail,
B2C Tourism, JD.com In house 17,866,700
Transportation
Electronic
B2C FPT Corporation In house 9,310,000
devices
Mobile World
Grocery, fresh
food
Corporation
B2C,
General retail FPT Corporation 3rd party 4,946,700
C2C
(Source: Statista)
34
Cashless payments - the gateway
into the Vietnamese economy
According to Vietnam e-commerce White
Book 2021, Vietnam has traditionally
been a cash-dominated economy, with
cash accounting for 78% of payments in
e-commerce transactions. However, in recent
years, authorities have been facilitating
cashless payments in the country through a
policy framework designed to boost non-cash
payments in Vietnam within the 2021-2025
period.
Digital payment models will fastly integrate

within the economic fabric of all major
industry segments in Vietnam, and one
of the first ones to enable a true synergy
with cashless payments is obviously the
e-commerce sector.
86%
78%
6
39%39%
23%
20% 18%
17%
6%
2%
Cash upon Local ATM Credit card E-wallet Scratchcard

receipt
(COD)
(Source: Vietnam e-commerce
Unlocking the
White Book 2021)
digital payment
potential.
35
35
Vietnam - an ideal nurturing
3.38
ground for the development of
super apps?
billion USD
With a large tech-savvy consumer base and
consistent push by the government to boost value transacted
digital payments and e-commerce initiatives, the using e-wallets
Vietnamese economy is preparing for the move
- reported by the State Bank of
towards a cashless model. Over the past years,
Vietnam
fierce competition among online payment providers
has led to a ‘survival of the fittest’ situation,
where e-payment providers have developed with
new initiatives to attract more customers as
well as retain them. Furthermore, the spending
within digital commerce was estimated at nearly A survey from VISA found that 76% of respondents
US$250 per capita in 2021 and it is likely to grow have used e-wallet apps for shopping since the
significantly in 2022 and beyond thanks to the pandemic started, leaving plenty of opportunities
introduction of 5G and high smartphone adoption. for new entrants and active market participants to
capture this potential market. Furthermore, latest
Momo, VNPay, Zalopay, Viettle Pay, Shopeepay and data from the State Bank of Vietnam showed that
Moca are the six of the most popular digital wallets during the early months of 2021, an estimated 200
in Vietnam’s two main cities, Hanoi and Ho Chi million transactions worth 3.38 billion USD were
Minh City, collectively covering over 90% of online made using e-wallets.
payments. Momo is the leading digital payment
service provider with over 25 million customers. The The rise of the digital payments is also supported
platform grew with 2.27 billion USD market value by the consistent growth trend of the internet
last year and became one of the famous “unicorns” economy and the increasing middle-income class
in Vietnam together with VNPay. population. Millennials and Gen Z are leading the
charge towards a cashless future, and platforms
such as Momo, ZaloPay and Shopee Pay are their
go-to payment ecosystems due to their super app
functionality and exclusive services for customers.
MOST USED E-WALLETS IN VIETNAM 2021 BY

GENERATION
1%
6% 2% 6%
6% 8% 6%
13% VNPT Pay
13% 13%
Moca
24% 16%
27% ViettelPay
ZaloPay
1%
ShopeePay (Airpay)
54% 59% 47% MoMo(Airpay)
Gen Z Millennials Gen X
(Source: Statista.com)
36
The digital payment ecosystem Integration with e-commerce -
synergy and mutual benefits
Electronic Payment Gateway Services The trend of digital wallets has taken the
e-commerce ecosystem and multitude of platforms
Electronic Payment Gateway Services are by storm, offering excellent benefits to both sellers
services providing technical infrastructure to and buyers. For merchants, e-wallets keep vendors
connect between the payment acceptance units safe against fraud and ensure customers are
(the Sellers) and banks (where the Purchasers genuine. Payments are instant, at the exact time of
have owned their payment account), assisting the purchase so that there are no delay or payment
customers make payments in e-commerce issues in case of last-minute cancellations due to
transactions, electronic bill payments and other external, subjective reasons. From the customer’s
electronic payments. The platforms act as a bridge perspective, e-wallets allow them to pay quickly
between the purchaser and the seller in electronic and efficient with a single click. Furthermore,
transactions, enabling clients to make non-cash digital payments offer numerous rewards to
payments quickly and conveniently, and keep their shoppers which also help companies increase their
personal information secure. engagement level.
In Vietnam, some of the more popular electronic

payment gateway service providers include:
To stand out from the crowd, it
is essential for digital payment
providers to balance the growth
of their user base and create a
sustainable, solid business model,
but planning in the same time
future innovations and fintech
services such as lending, wealth
management and insurance, taking
Electronic wallet services (e-Wallet service)
as an example from the path laid by
Pursuant to Decree 101/2012/ND-CP of the Alipay in China.
Vietnamese Government, an e-wallet service
is regulated as a situation where “a provider
of payment intermediary services provides a
client with a nominal electronic account on an
information carrier (such as electronic chip, mobile
phone sim, computer, etc.) that enables the client
to store a sum of money in the form of deposit
equivalent to the sum of money transferred from
the customer’s payment account at a bank to a
secured payment account of the provider of digital
wallet service with the ratio of 1:1.
E-wallets in Vietnam are growing widely and are

used to pay for goods and services at supermarkets,
convenience stores, e-commerce websites such as
Shopee, Lazada, Tiki, or other applications such as
Grab, Spotify, Delivery Now. E-wallet proviers are
maintain their growth trajectory and competitive
position by incentivising users with frequent
promotions, discounts and points accumulation.
37
E-commerce: new engine for
growth in Asia
The emergence of Vietnam as a manufacturing
hub and the rapid adoption of e-commerce by
the country’s young demographic have created
a strong foundation for the development of the
logistics sector within economy. For e-commerce
platforms which are under immense pressure to
service customers as fast as possible, the logistics
ecosystem gives companies a competitive edge.
For this reason, e-commerce giants are investing
considerably to improve their inhouse logistics
systems to address two of the most important
needs of their customers: speed of delivery and
flexibility.
Vietnam’s freight and logistics

market is expected to contribute
5-6 % to the country’s GDP,
recording a growth rate of 15-20%
by 2025. Consequently, there
are favorable opportunities for
international investors to tap into
the logistics market’s potential,
7
particularlly in segments such
as express delivery and logistic
services which address the
growing e-commerce needs in
Vietnam.
Logistics - the
backbone of
e-commerce.
38
38
Building a sustainable
e-commerce logistics ecosystem
According to Asia Pacific’s leading business
transformation consultancy, TMX, a comprehensive
supply chain strategy needs to be in place to build a
sustainable system with flexibility and scalability.
“Businesses also need to constantly evaluate their

supply chain strategy against KPIs, data, and any
other changes in the market, and adjust their
strategy accordingly.
To ensure this, businesses need to engage

with their strategy regularly through monthly
contingency planning meetings. This instils the
habit of anticipating external challenges, and helps
businesses adapt accordingly to ride them out with
minimal disruption. Having such organised and
routine supply chain planning sessions is imperative
to business success – on top of helping businesses
weather potential volatilities, these sessions can
also positively impact sales, and optimise inventory
and manufacturing”
TMX is a leading Asia-Pacific business transformation

consultancy, creating the digital and supply chain solutions
of tomorrow. TMX specialists bring deep industry experience
to optimise the entire value chain, from top-of-the-funnel
demand generation right through to final fulfilment.
Stable climate for foreign investors

Vietnam’s economic and political stability is seen as Recognising the logistics industry is critical to spur
key advantage of the country compared to other economic growth, being linked with important
nations. Therefore, several notable companies have development pillars such as manufacturing, trade,
begun investing in the logistics sector in Vietnam industrial real estate and infrastructure, the
to seize development opportunities, addressing the Vietnamese authorities adopted an Action Plan to
increasing demand for warehousing and delivery improve the Competitiveness and Development of
services. Vietnam’s Logistics Services by 2025. This decision
supports foreign investors to secure a place in
TMX stated that, Vietnam’s logistics sector. For instance, CapitaLand
Development build its first logistics and industrial
With the economy restarting across the urban project in Vietnam, worth 1 billion USD and
country, many logistics players are now Best Express Vietnam has invested 20 million USD
in developing commodity sorting centers in Bac
looking at how they can better serve Ninh and Ho Chi Minh City.
their customers. To do so, many are
investing in digital systems which create Despite the prolonged COVID-19 pandemic and
its complicated developments, Vietnam’s logistics
better visibility across the business and
sector gained nearly 3 billion USD in 2021 from
allow these players to better manage international investors - a clear sign of commitment
their labour to cope with the huge peaks to the future growth of the sector.
experienced in e-commerce logistics.
39
In-house logistics, a significant
asset for e-commerce providers
E-commerce giants in Vietnam Tiki, Lazada,
and Shopee have developed their own logistics
ecosystems such as Shopee Express, Tiki Now and
Lazada Express, in order to optimize their storage,
pick up, delivery and return times during peak
seasons. In-house systems help business control
quality, speed and performance. Cost is another
benefit for managing internal logistics systems,
as e-commerce providers can take advantage
of internal staff flexibility to deliver products
efficiently to metro areas with a lower Cost Per
Unit than Third Party Logistics (3PLs).
Tiki is leading the market in applying in-house Thomas Harris

logistics with TikiNow Smart Logistics which can Vice President of Fulfilment
deliver over 200.000 packages per day across the at Tiki Corporation
country thanks to state-of-the-art automation and
large fulfillment centers. Furthermore, its unique
TikiNow 2-Hour Delivery service and 1-hour for Thomas Harris - Vice President of Fulfilment at
fresh produce are pushing the boundaries of what Tiki Corporation provided insight about in-house
fast delivery means, enabled by innovation and logistics, and how it works efficiently at Tiki.
consumer demands for speed. Thomas said,
Within e-commerce, the logistics

frameworks gives companies a
competitive edge. Every day, it’s
becoming more and more obvious
that e-commerce giants are investing
considerably to improve their in-house
logistics. One of the major aspects is
speed and the quicker the delivery, the
greater the likelihood of conversion.
The clearer the information about
payment and delivery time, the more
your customers will convert. Therefore,
to improve these areas, companies
are looking into innovation such
automation be it fulfilment, sortation
or delivery and using tech to further
improve visibility to the customer and
speed of delivery and flexibility.
40
He commented, “One example is the TikiNOW
Smart Logistics (TNSL) team worked with the Ho
Chi Minh City People’s Committee and Department
of Industry and Trade to set up a cold chain
solution over a weekend, so Tiki could offer fresh
fruit and vegetable and to help support the people
of Ho Chi Minh due the most severe lock down.
The Department of Industry and Trade worked
on mobilizing trading and logistics companies to
support goods distribution in Ho Chi Minh City
during the emergency response to the Covid-19
pandemic. During that time the distribution and
consumption of essential agricultural and food
products on e-commerce platforms was considered
one of the crucial and effective solutions to supply
necessities to the City’s people.”
He continued, “Tiki aims to build a magical

experience for consumers and farmers by opening
mini warehouses aiming to develop a new
integrated cold chain e-commerce solution which
is unique in Vietnam market. Supplying every kind
of every essential item people need, fresh, frozen
& aqua products. Guarantee best price by sourcing
directly from farms and from operating the end-
to-end supply chain from farm to fork. Commit to
deliver at door within 60 minutes right after placing
the order.
We are really passionate about 60 mins fast

delivery. From a user’s point of view, why do I
even need to waste a few hours of my life to go
somewhere if I can have everything delivered in 60
mins.”
41
The art of logistics optimisation -
3PLs, TMS, WMS
Applying in-house logistics, third-party logistics

(3PLs) or a hybrid system to an e-commerce
operator requires appropriate analysis and
strategy. Mr. James Christopher, Delivery Director -
Asia at TMX, who has comprehensive experience in
the supply chain and logistics industry, has provided
valuable insight and analysis of solutions.
According to James,
“E-commerce has raised Vietnamese consumer’s

expectations of efficiency and convenience, leading
to traditional store-front sales losing value. As
a result, companies are required to invest in James Christopher
technology to ensure their last mile logistics runs as Delivery Director - Asia
efficiently as possible. TMX
We are seeing an increasing number of companies James said,

in Vietnam looking to invest in logistics software
such as Warehouse Management System (WMS) With their in-depth knowledge of the
and Transportation Management System (TMS), market, 3PLs can drive value, particularly
as well as automation solutions to keep up with
where volumes are lower or when
the increase in orders. Some are incorporating
this visibility into a control tower to manage costs, businesses do not have a complete
improve customer service, and drive continuous picture of their growth forecasts. Such
improvement. information may not necessarily be
Companies need to benchmark the decision of
available to one business and hence,
in-housing and outsourcing against their current working with a 3PL provides companies
business model, while keeping in mind that there is with access to key information. However,
no one-size-fits-all solution. Generally, businesses
at the beginning of their maturity would be more this may also mean that they could lose
likely to out-source, while more mature companies a bit of control and visibility over their
may benefit from in-sourcing some logistics
activities, but again that is on a case-by-case basis. logistics function.
It is therefore important to understand where the
growth is, as well as the operational maturity of the He continued, “Companies can also explore a
company within Vietnam. hybrid system in which the company retains certain
aspects of the business such as the building lease,
The benefit of in-house systems is the ability to fitout (i.e. racking, etc.) and WMS or TMS system
better control the customer experience. However,
capabilities, but at the same time, outsources
companies may have challenges with in-sourcing,
as it is never purely just in-sourcing a truck or the warehouse operations and transport to third
warehouse – the business operations around it also parties.
need to be supported.”
TMX’s on-ground experts across the region,
including in Vietnam, can provide the necessary
expertise and insight in freight strategy, optimised
fleet utilisation and transport procurement to
support businesses in choosing the right solutions”.
42
Challenges faced by e-commerce
logistics
Like any other industry which combines a complex
set of requirements, processes and technologies,
the e-commerce logistics in Vietnam has its own
challenges as well.
One of the biggest hurdles delivery service providers

are currently facing is cash on delivery, as the
majority transactions in Vietnam are still conducted
using cash as the main payment method, which
leads to higher operational costs and lower
efficiency within the supply-chain ecosystem.
In addition, the complexity of legal

framework and regulations covering
the logistics sector and permitted
activities can often be a barrier for
market entry for international investors
who seek to operate logistics business
lines. As per the current statutory
requirements, foreign investors are
permitted to undertake storage and
warehousing activities - services
auxiliary to all modes of transport, Cross-border supply chain disruptions due to
the pandemic have also adversely impacted the
however for road freight transport logistics and e-commerce industries. According
activities, foreign investors cannot hold to Tiki, to maintain fast delivery times during the
more than 51% of shares in a logistics peak of pandemic in 2021, they have set up a cold
chain solution over a weekend to be able to offer
enterprise operating in Vietnam. fresh fruits and vegetables to the people of Ho
Chi Minh City, under the most severe lockdown in
the city which last for a few months. This model
was considered one of the most effective solutions
used to maintain the delivery of goods in the peak
season as well.
Even though the logistics sector in Vietnam

Phuong Vo maintains an outstanding growth trajectory, in
Head of Incorporation, line with the development of the e-commerce and
Licensing and Secretarial Services, manufacturing ecosystems, overseas participants
Acclime Vietnam should have a clear understanding of the challenges
inherent to the Vietnamese market and find
creative and cost-effective ways to provide
solutions to these potential roadblocks.
43
The trends shifting the status-quo?
Green logistics Blockchain Innovation and technology
Green logistics is on the map Despite Blockchain being The future of logistics is paved
to become one of the most a concept relatively new in with innovation and technology.
prevalent trends in the logistics Vietnam, it can bring a myriad AI, Machine Learning,
ecosystems. Electric and of benefits for operators Warehouse robotics, cloud
solar vehicles, biodegradable and e-commerce platforms, computering are predicted
packaging, environmentally including helping ease many of to dominate Vietnam’s
friendly warehouses and carbon the interactions in global trade logistics transformation in
emission reduction will be logistics, improving supply chain the following years. LogTech
the top priorities for logistics transparency and optimizing will enable stakeholders cope
companies in upcoming years. costs and time. In the near with the fast-growing of
future, it is considered to online shopping, cross-border
become an integral part of the commerce and changing
logistics ecosystem. demands of customers.
The impact of trade openness on

Vietnam’s e-commerce
International trade integration is one of the integral priorities since
the start of Doi Moi reform when Vietnam became a country with a
high level of international economic integration. 1995 marked a first
important milestone when Vietnam became a member of ASEAN,
then the country built solid relationship with other nations by signing
a multitude of treaties with partners inside as well as outside ASEAN
(i.e. Vietnam’s participation in the UK - Vietnam FTA and CPTPP).
As of 2021, Vietnam has signed 15 Free Trade Agreements, and the
total number of Vietnam’s trading partners in FTAs is 56 economies,
including 55 countries and 1 territory, a testament to the nation’s
efforts to further integrate into the world economy.
EU-Vietnam Free Trade Agreement (EVFTA) is one of the historical

treaties that Vietnam signed with EU on the 30th of June 2019,
boosting trade and investment on both sides, and helping the country
to further integrate into the international community. Within the
treaty terms, Vietnam has increased its benefits in terms of market
access granted to EU service providers, with additional sectors will
be opened up for EU investors in specific timeframes for the next
10 years. The Ministry of Industry and Trade revealed that Vietnam
exported goods worth 45.8 billion USD to the EU in 2021, up 14.2%
year-on-year, thanks to the EVFTA.
44
Internationalization poses
opportunities and challenges for
cross- border commerce
It is estimated that the EVFTA could The benefits of the free trade agreements will
enable Vietnam’s cross-border commerce to take
boost Vietnam’s imports from the off rapidly by taking advantage of the reduced
EU by 33.06% by 2025 and 36.7% tariffs to attract potential investors to produce
high quality products in Vietnam and export them
by 2030. This brings tremendous to different parts of the world. In comparison with
opportunities for businesses and other countries in the region, Vietnam possess
a fantastic growth potential for cross-border
consumers on both sides. e-commerce.
As mentioned the previous chapter, Vietnam has

KEY AGREEMENTS / ORGANISATIONS THAT VIETNAM the highest cross-border e-commerce growth rate
HAS SIGNED / JOINED in the world at 3.7% and it is developing in the
early stages in the form of importing goods via
orders on e-commerce platforms such as Amazon
2020 and Alibaba.
signed to world’s largest
commercial treaty: RCEP Recognizing this trend, the authorities have
launched various initiatives such as the program
named “Viet Nam National Pavilion” on the
2019 Chinese JD.com e-commerce platform to promote
EU
signed the EVFTA Vietnamese products and connect Vietnamese
with European Union businesses with international customers.
The challenges that Vietnamese businesses,
especially SMEs have to face are fierce competition
2018 with local giants and foreign e-commerce rivals,
couple with the underdeveloped e-commerce
signed the CPTPP
(Comprehensive and Progressive infrastructure and systems management. While
Agreement for Trans-Pacific
Partnership)
foreign companies in the e-commerce sector have
a strong competitive advantage, with efficient
processes, good service quality, skilled human
2007
resources and advanced technology, the smaller,
joined the World Trade local participants need to improve their operations
Organisation (WTO) and systems to become truly competitive. Quality
investments into Vietnamese firms will accelerate
their transformation and enable them to be
2000
competitive in a growing but highly competitive
signed a free trade e-commerce market.
agreement with the US
1995
joined the ASEAN
free trade area
45
Understanding changes in
consumer behaviors
Like many other countries, Vietnam

experienced several lockdowns and a
daunting economic downturn to deal with the
coronavirus pandemic over the past two years,
which significantly impacted key sectors, with
retail no exception.
Covid-19 created a fundamental shift in

the consumer’s behavior in Vietnam, which
generated high demand for consumer goods,
especially during peak season. Nevertheless,
social distancing and lockdowns forced people
to shop online to avoid infection. Thus, the
digitalization of the shopping experience has
changed consumer behaviors across different
touch points, from offline to online, from
wants to needs, with a greater focus on health
and a shift toward e-commerce. In order to
succeed and thrive in the new normal, market
participants need to entail a mindset shift and
redefine the consumer experience to thrive in
the new normal.
8
Deciphering the
digital consumer’s
portrait.
46
46
Change is inevitable - habits and trends
in online shopping post Covid
Based on the data from Kantar Worldpanel on According to iDEA, 88% of online shopping users,
consumer habit changes in FMCG consumption mostly between 18 and 45 years old, made online
2021, 48% respondents switched from offline purchases at least once in 2020, most of whom
channels to online due to the impact of Covid-19 access online shops using mobile devices, which
and more than 50% of online sales were account for 87% of sales compared to 38% of
incremental. This means that the retail movement desktop users.
boosted by the pandemic made a huge contribution
to the growth of the online shopping channel in ONLINE SHOPPERS, BY DEVICE, BY YEAR
Vietnam. 90% 87%
switching from more than 50% of online

offline channels sales are incremental
36% 38%
Online 48% 52%
20% 40% 60% 80% 100%
Mobile device Laptop/computer

Panel | Urban 4 Key Cities) (Source:Vietnam E-commerce White Book 2021)
In Vietnam, the majority of digital consumers come

According to research from Kantar Worldpanel,
from urban areas with approximately 74% while
personal care products are leading as the most
Indonesia, Thailand, and Malaysia accounts for 44%,
popular online goods purchases. Covid-19 also was
41% and 46% respectively. This figure shows the
the trigger which convinced more consumers in
rapid urbanization rate in Vietnam is one of the key
Vietnam to start shopping online for packaged
factors driving the growth of the market.
foods and household products as well.
NEW DIGITAL CONSUMERS TO CONSUMER, BY

GEOGRAPHY (%)
% PENETRATION IN ONLINE CHANNEL
26%
43%
56% 59% 54%
74%
57%
44% 41% 46%
Indonesia Malaysia Phillippines Thailand Vietnam
Metro Non-metro
(Source: e-Conomy 2020)

Panel | Urban 4 Key Cities)
Notwithstanding the several changes which

converted the generic base of offline consumers
into online, there are significant generational
variations in the frequency of purchased goods.
47
Consumer needs transforming the
shopping experience
Generation Z and Millennials are likely to buy The key factors driving consumers towards online,
fashion items or accessories while Generation thus choosing e-commerce platforms to satisfy
X- and middle-aged groups prefer to purchase their shopping habits are: reputation, promotional
electronics and home appliances. These shopping campaigns & vouchers, free shipping, authenticity of
behaviors make up the cornerstone of an effective products, originality and wide variety of items.
product development and promotion plan tailored
for each consumer bracket and their specific needs. On the other hand, online fraud, lack of test and
trial options, shortage of sellers, communications
issues, information security are the most significant
Fresh food has become the biggest
hesitating factors for consumers when choosing to
shopping category since the make an online purchase.
Covid-19 pandemic has started,
Young, digital savvy population with strong mobile
experiencing consistent high growth. online shopping habits have enabled the growth
To address this need, several online of one of the pivotal online shopping segments in
Vietnam - livestreaming. It has emerged as one of
shopping platforms launched the
the most attractive ways to introduce products
fresh category on their e-commerce across a multitude of channels, with major benefits
marketplaces in Vietnam, with Tiki for both e-commerce and social media investors,
who can leverage each-others platforms to
Ngon, and Nowfresh leading the way. generate new revenue and brand loyalty.
In addition, the average of products
per capita was from 5 to 15 products
and services, this number was
accelerated by the pandemic due to Sustainability in online shopping -
lockdowns. a new trend in consumer behavior
With regard to Vietnam’s consumers spending Based on Kantar’s data, Vietnam ranks 4th
on online shopping, the average online spending largest marine plastics polluter in the world. The
in 2020 was US$240 per person, higher than the government and manufacturers are doing their part
$225 spending of 2019. In 2022, it is projected to in the sustainability and environmentally friendly
increase to approximative $270 per person, boosted movement, and the shoppers do their part too.
by the recovery of the economy and the consistent About 60% of consumers agreed that they are
development of the e-commerce sector. personally affected by environmental problems
and 57% stopped buying some products or services
2016 2017 2018 2019 2020 because of their impact on the environment or
Online shoppers society. This figure demonstrates Vietnamese
32.7 33.6 39.9 44.8 49.3 buyers have a strong desire for sustainable
(million)
Online purchased shopping, worry about plastic waste and evaluate
170 186 202 225 240 the responsibility of companies and governments
each person (USD)
% e-commerce B2C
alike in regard to environmental concerns.
on total retail sales 3% 3.6% 4.2% 4.9% 5.5%
% population using
internet 54% 58% 60% 66% 70%
48
“Super shoppers” portrait in E-commerce and women
digital era empowerment
Highly active buyers who are consistent in their Vietnam’s ratio of female-to-male labor-force
e-commerce spending habits represent a incredibly participation was 87% in 2020 according to World
dynamic user segment worthy of consideration. Bank, a reality which presents large opportunities
Also called “smart users”, the super shoppers usually for c-commerce providers, as women are the ones
search for deals with no shipping fee (“freeship”) who hold the purchasing power in the household in
and always choose the best offer amongst several Vietnam. Women spend more time daily than men
e-commerce marketplaces in Vietnam, such as taking economic decisions for their families, and the
direct discounts, vouchers or free gifts. power of the female consumer is likely to grow in
the short term and long term in Vietnam’s shopping
environment. As more women become educated
AVERAGE EXPENSE OF SHOPBACK’S USERS & ORDER
FREQUENCY OF CATEGORIES, IN AND AFTER LOCKDOWN and continue to make more informed and strategic
decisions for themselves and their families, the
importance of appealing to this demographic is
paramount. In addition to that, based on a research
1x 2x from iPrice, Vietnam’s women e-commerce
leadership ratio ranks second in Southeast
Asia, accounting for 46%, a figure higher than in
Mid-lockdown After-lockdown
Thailand, Philippines, and other countries in the
region. Therefore, e-commerce investors are advised
+30% to include in their offerings and market strategies
frequency products and services that meet the needs of those
clicking the purchase button.
Based on the ShopBack’s internal

data, after the lockdown in Vietnam
ended (from October 2021 - May
2022), the average expense of
ShopBack’s users on the platform
was more than twice compared to
their spending in the lockdown period
(from January 2021 - September
2021). In addition, the frequency of
the orders also increased with 30%
for the top categories Beauty, Moms
& Babies and Home Appliances.
49
Key trends - consumer behavior in 2022
According to Kantar Worldpanel, there are five emerging trends in

consumer shopping behaviors this year.
Firstly, customers will Secondly, home will be Third, digitalized innovation

continue to rationalize their the new store because offers new shopping
expenditure by spending on more categories try to experience for buyers with
essential items such as food, communicate and shift new services, and new ways
healthcare products and toward in-home occasions. to interact with the brands.
deprioritizing a list of non-
essential categories.
The pandemic has undoubtedly

accelerated many digital
behaviors and encouraged the
greater adoption of e-commerce
Embracing the rise of Well-being and a sustainable
in Vietnam, enabled in its
‘convenience driven retail’ is lifestyle are the preferred
fundamental structure by a
the next trend with the high trends by young consumers,
growing middle class and swift
demand across the country. and it is the hot topic in the
demographic and technological
following years.
developments. To win over the
market, e-commerce market
participants and investors should
be ready to think outside of the
box to adapt their entire strategy
and market positioning to the
local needs and specific behaviors
of the Vietnamese population.
Online shopping - significant growth
for the last 7 years
Everyone will agree that Vietnam has been a

development success story. Economic reforms,
coupled with beneficial global trends, have helped
propel Vietnam from being one of the world’s
poorest nations to a middle-income economy in one
generation. With growth forecasted to continue, it is
a very exciting country to be in right now.
Another indicator for the huge progression Vietnam

has experienced is the number of smartphone
subscribers and we now have over three quarters Peter Christou
of Vietnam connected to the internet. Once General Manager, Worldpanel Division,
having a smart phone in hand, connected to Kantar Vietnam
the internet, that opens the user to many new
potential experiences and ways to shop. Today One of the other most talked about phenomena
71% of internet users in Vietnam have made at from the pandemic is the rise of Rapid Grocery
least one purchase online, and the average number Delivery (RGD) apps and with lower labour costs
of categories people shop online for is increasing Vietnam is a country where this has really been
meaning that the value of the internet economy is developing, another space to watch out for is the
expected to continue to grow and there remains circular economy, for second hand sales.
plenty of opportunities in this space.
Before the pandemic, shoppers chose e-commerce
According to Peter Christou - General Manager, because its prices were competitive compared to
Worldpanel Division, at Kantar Vietnam, physical stores. During the pandemic, e-commerce
grew further thanks to expanded fulfilment
capabilities, including rapid grocery delivery services.
The pandemic has changed the Now, what makes shoppers click ‘buy’ in their online
way people shop around the world shopping baskets? Price and promotion are still the
top reasons for shoppers choosing online retailers
and Vietnam is no different. It with brand and product assortment and product
has motivated more shoppers to quality closely following price-related motives.
go online and challenged online In Vietnam for Grocery shopping – which is

retailers to improve their service. considered by many as e-commerce’s last frontier to
penetrate properly, we have seen significant growth
Older consumers, who were more in the past 7 years. Online has increased 10 times in
traditional in their shopping habits shopper base and 20 times in value share in for In
Home FMCG with now over half of household’s in
were forced online as the world shut in Urban 4 Key Cities shopping online for FMCG at
down. Now, familiar, and comfortable least once in a year. In HCMC that’s higher, almost
60%.
with technology, Digital Seniors are
empowered to make purchases and Social commerce is a very important part of online
shopping in Vietnam however it is being squeezed
use services through this channel. in with the enormous development of E-Commerce
sites and bricks and mortar retailers making the
transition to online which was sparked significantly
by the COVID-19 outbreak.
In the next five years, 8 in 10 merchants anticipate

more than half of their sales to come from online
sources, are you ready for a fiercer competition?
51
Although the e-commerce market is dynamic,
the industry still presents challenges due to a
lack of clarity within the legal and investment
framework governing the sector in Vietnam.
In order to enter the Vietnamese e-commerce
market, investors should consider conducting
a comprehensive analysis of the regulatory
8
requirements required to leverage on the
market’s opportunities, before planning their
commercial and promotional strategy.
Regulatory
framework - barrier
or opportunity?
52
5252
Forms of e-commerce activities in Vietnam
E-commerce activities are represented in different forms and electronic means. According to the
Vietnamese laws, investors in the sector can operate under three types of e-commerce platforms:
(1) (2) (3)
E-commerce activities E-commerce activities E-commerce activities

conducted via a conducted via an conducted via mobile
website (Web) application installed on an telecommunication
electronic device (App) networks
At present, it has no specific

E-commerce activities conducted via a Web or App
regulations for this kind.
have many points of similarity, discussions and general Therefore, this Chapter will
information regarding an E-commerce Web can be only focus on the former
interpreted interchangeably with App. activities.
In terms of the operation nature, an e-commerce Web/App in Vietnam can be mainly

classified into 2 different forms:
a. E-commerce Sales Web/App. However, an e-commerce Web/App can

Referring to where a company in Vietnam integrate different E-commerce forms.
sales its own goods/products or provides For example:
its own services online, and the mentioned
goods are required to be owned by the • https://www.lazada.vn is an
company. e-commerce platform having the
functions of (i) E-Commerce Sales
b. E-commerce Services Web/App, includes: Web, (ii) E-Commerce Trading Floor,
(i). E-commerce Web/App as a Trading and (iii) Online Promotion Web.
Floor; • https://www.foody.vn is an
(ii). Online Promotion Web/App; and e-commerce platform having the
(iii). Online Auction Web/App. It refers to an functions of (i) E-Commerce Trading
e-commerce ecosystem for 3rd parties Floor; and (ii) Online Promotion Web.
(traders, organizations and individuals)
to carry out trade promotion, sale of
goods or supply of services.
53
Taxation for e-commerce offshore
providers
On September 29th, 2021, the Ministry of Finance
issued Circular 80/2021/TT-BTC to provide
implementation guidelines on the Law on Tax
Administration and Government Decree No.
126/2020/ND-CP. One of the important provisions
under Circular 80 is tax administration provisions
concerning e-commerce, digital-based businesses
and other services of overseas suppliers without
having a permanent establishment in Vietnam.
Referring to tax obligations of overseas suppliers,

Ms. Phung Nguyen, Director - Accounting and Tax
at Acclime Vietnam commented, Phung Nguyen
Director - Accounting and Tax
Acclime Vietnam
Overseas suppliers are required She continued, “After receiving the identification
to register for an electronic tax code of the tax payable amount to the state
budget as notified by the relevant tax authority, the
transaction through the website of overseas supplier shall pay tax in a freely convertible
the General Department of Taxation, foreign currency to the state budget revenue
ensuring that the entity has the ability account. According to the notice on the website of
the Taxation Department, the correct identification
to access and use the internet, and code must be recorded in the state budget payable
has an email address assigned to directly sent by the tax authority.
deal directly with the tax authority.
Registered non-resident suppliers will pay the tax
Overseas suppliers can authorize on a quarterly basis, while banks and intermediary
payment service providers will deduct and remit tax
organizations or tax agents in monthly.
Vietnam to conduct tax registrations,
declarations and payments on their In case the overseas supplier pays more than the
payable tax amount according to the declaration,
behalf. In case the overseas supplier the overseas supplier may offset the payable tax
authorizes an organization or tax amount in the next tax period.”
agent to operate under Vietnamese
law (hereinafter referred to as
‘authorized party’), the authorized
party is responsible for carrying
out the following procedures: tax
registration, tax declaration, tax
payment according to the contract
signed with the overseas supplier.
54
Tax calculation & responsibilities
of overseas suppliers
After the initial registration, overseas suppliers will
start declaring and paying value-added tax (VAT)
and corporate income tax (CIT) on a quarterly basis
at the deemed rates on the revenues they receive:
Taxable revenue refers to the amount received by
the non-resident supplier from its clients in Vietnam,
determined based on payment information (credit
card or bank account information), residency
information (billing, delivery, or home address), and
access information (mobile phone country code, IP
address, and landline address)
Deemed rates for calculating VAT follow Decree

No. 209/2013/ND-CP dated December 18, 2013
of the Government on detailing and guiding
implementation of several articles of the Law on
Value-Added Tax Deemed rates for calculating
CIT follow Decree No. 218/2013/ND-CP dated
December 26, 2013 detailing and guiding the
implementation of the Law on Enterprise Income
Tax Overseas suppliers can authorize organizations
or tax agents in Vietnam to conduct tax registration,
declaration, and payment on their behalf.
In case overseas suppliers do not register, declare
and pay taxes in Vietnam, the Vietnamese
organizations that purchase goods or services from
overseas suppliers or distribute goods or provide
services on behalf of overseas suppliers will be
responsible for declaring, withholding and paying
VAT and CIT (following Circular No. 103/2014/
TT-BTC dated August 06, 2014 of the Ministry of
Finance guiding the performance of tax obligations
of foreign organizations and individuals doing
business in Vietnam or earning income in Vietnam).
55
Cross-border compliance in Steps to establish a foreign owned
Vietnam for e-commerce platforms e-commerce enterprise in Vietnam
To avoid tax evasion and create efficient conditions Foreign investors will generally go through 3
for international service providers that do not stages to establish a Foreign Owned e-commerce
have a permanent establishment in the country enterprise in Vietnam:
to comply with Vietnamese tax laws, Vietnam’s
General Department of Taxation (GDT) launched
the Electronic Information Portal for Foreign STAGE 1 Incorporation of a company in
Suppliers and the eTax mobile app that is good Vietnam, by attaining
(i) the Investment Registration
signal for cross-border tax problems of the past few
Certificate (IRC); and
years.
(ii) the Enterprise Registration
Certificate (ERC)
Prior to the portal’s launch, according to the
provisions guiding the implementation of several
articles of the Law on Tax Administration, if foreign
service providers do not register, declare, and
STAGE 2 Attainment of the Trading License
pay tax in Vietnam, the banks and intermediary
for:
payment service providers of the Vietnam individual
(i). E-commerce Sales Web/App
buyer are responsible for subtraction and payment
(where retail is carried out);
on their behalf. However, in current regulations, and/or
banks do not have the right to deduct from (ii). E-commerce Service Web/App
customer accounts without consent. Therefore, for at the Department of Industry
cases where banks are forced to withhold money to and Trade (“DoIT”)
fulfil tax obligations, the National Assembly must
promulgate a law that allows local tax departments
to authorize banks to do so. In case, the buyer is an
organization in Vietnam, it holds the responsibility
STAGE 3 Registration/Notification of Web/
for withholding and pay tax on behalf of foreign
App to obtain the respective Blue/
service provider. Red tick at the Ministry of Industry
and Trade (“MoIT”) for e-commerce
Sales Web/App, and e-commerce
Consequently, under current Service Web/App respectively.
(Specified in the following Section
regulations, foreign e-commerce
below)
service providers are required to
register and pay tax for the revenue
they earn in Vietnam regardless of
its value, as there is no threshold for
exemption from declaring and paying
tax.
56
Process of registration or notification of web/app:
Registration of E-commerce
Notification of Sales
Trading Floor, Online Promotion Website,
E-Commerce Website
and Online Auction Website
Authority Ministry of Industry and Trade (MOIT)

Receipt and handling of the registration for websites is done online by the Ministry of
Industry and Trade on the e-commerce management portal at www.online.gov.vn
Creating an Step 1
account to Providing required information and documentation of the owner
access the (3 working days)
system of
MoIT Step 2
Receive the account activation (username and password) via email
Registering Step 3 Step 3

the
Using the registered account for logging in, Using the registered account for logging
e-commerce
choose a feature “Notification of the sales in, choose a feature “Registration of
website
e-commerce website” and fill in all required e-commerce service provision website” and
information. fill in all required information and upload
documents.
(3 working days)
(7 working days)
Step 4
Receiving code segment for insertion into Step 4
the sales online website and displayed Receiving the notice confirming adequacy
onscreen as a “notified” sign and eligibility of the application and
submitting physical documents to MOIT
(5 working days)
Step 5
Receiving code segment for insertion into
the sales online website and displayed
onscreen as a “registered” sign
57
Restrictions and potential hurdles
for foreign invested companies
Referring to restrictions and potential barriers for

foreign investors and entrepreneurs when investing
in the e-commerce sector in Vietnam, Ms. Phuong
Vo, Head of Incorporation, Licensing and Secretarial
Services at Acclime Vietnam commented:
Companies in Vietnam can only

undertake activities for which they
are licensed, which generally involves
specific business lines registration,
along with sub-license registration
for certain business lines. For foreign
Phuong Vo
investors and E-commerce activities, Head of Incorporation,
this can be somewhat complicated. Licensing and Secretarial Services,
Acclime Vietnam
Phuong continued: “specific matters to consider and • E-commerce services business lines are not
plan for include: mentioned in Vietnam’s WTO commitments,
therefore foreign invested companies must
• Where a company seeks to retail its own products first seek approval from relevant Ministerial
online via its website, in addition to registering level authority (generally, the Ministry of
the website, the company needs to register Industry and Trade and the Ministry of Planning
appropriate e-commerce trading business lines and Investment) for approval to register
for Online Retail (registration is via the relevant e-commerce services business lines in order to
Department of Planning and Investment – operate e-commerce services, which can take
“DPI”) and a Trading License for retail services some considerable time in practice. For clarity,
(registration is via the relevant Department of online retail through a company’s own website
Industry and Trade – “DoIT”); is not restricted by WTO commitments, but
• Where a company seeks to provide e-commerce e-commerce services business lines are.
services via an E-Commerce Trading Floor, an
Online Promotion Website (or App) or an Online Given the complications that these restrictions and
Auction Website (or App), it also needs to requirements can introduce, appropriate strategies
register the e-commerce business lines (issued to register and apply each step are critical to
by the relevant DPI) and hold a Trading License reducing the timelines for foreign investors to
for e-commerce services (issued by the relevant undertake e-commerce activities.”
DoIT);
58
Story of growth
Looking ahead, Vietnam’s e-commerce growth

is expected to pivot to USD 39 billion by 2025,
ranking second in the region only after Indonesia,
and signifying a threefold growth compared with
2020. This outstanding growth perspective is
buoyed by a consistent foreign investment flow
into the country’s digital economy, rising internet
penetration and high urbanization rate, in line with
the Vietnamese authorities’ commitment to put
in place efficient regulatory policies for supporting
online shopping by 2025.
International investors who are able to take

advantage of these factors and successfully
compete for a place in the market, will solidify
their presence in Vietnam, reap the rewards of the
digitization trend of the entire economy and create
10
longstanding value.
Conclusion.
59
59
Vietnam’s developing e-commerce In the new post Covid environment,
market poised for double-digit the e-commerce market in Vietnam
growth is forecast to continue its substantial
growth, which will continue to remain
Still in early stages of development, Vietnam’s
urban-driven. To succeed, investors
e-commerce ecosystem brings together a myriad
of opportunities which enable complementary, should “Think global. Act local” and
key sectors to expand - logistics, digital payments, consistently invest in brand building
cashback, social commerce, infrastructure, live
streaming, LogTech, blockchain, fintech, robotics, and sustainable growth. Furthermore,
green solutions and so on. However, regulatory ESG performance and green solutions
barriers, increasing demand in the market,
know-how & technological gaps present several
are becoming more prevalent in
challenges worthy of attention. the e-commerce narrative, with
specific focus on green solutions,
environmentally friendly supply-
chain models, and social governance
programs.
60
References &
engagement team.
Research references.
Data and metrics were corroborated in partnership with Kantar
Worldpanel, a global market research company focused on guiding
enterprises with strategic insights and innovative solutions.
In addition, Tiki, TMX, ShopBack have also provided valuable information

and specifics.
Additional research references:
• The World Bank
• Statista
• General Statistics Office of Vietnam
• Vietnam Investment Review
• J.P Morgan
• VECOM
• Idea
• Google and Temasek and Bain & Company
• Weforum
• State Bank of Vietnam
• McKinsey
• Foreign Investment Agency Vietnam
• Grab
• World Data Lab
• VISA

61
Engagement team.
If you have any questions regarding this study, please don’t hesitate to contact us.
VLAD SAVIN MATTHEW LOUREY

Head of Business Development | Acclime Vietnam Managing Partner | Acclime Vietnam
Vlad is a business development and marketing Matthew is a qualified accountant who has resided in
professional, who has resided in South East Asia for Vietnam for over 17 years. He has extensive experience
the last 8 years. He has wide experience in personal working in Australia for Big 4 accounting firms and
finance and corporate servicing, working with investment investment funds, and since Matthew relocated to
firms in Malaysia and Vietnam, while having a strong Vietnam he has spent much of his time advising foreign
background in marketing, client service and events investors on successfully undertaking business in Vietnam,
with international exposure. Vlad has been developing corporate investment transactions, market entry and
Acclime’s business strategy and growth, organizing and corporate finance. He also currently sits on a number
creating seminars and workshops for the foreign and of boards in Vietnam, advising as an independent non-
local investor community in Vietnam, while assisting with executive director.
client relationships and the overall brand positioning of
Matthew graduated from Monash University in 1994 with
the firm. Vlad graduated from Spiru Haret University
a Bachelor of Commerce and qualified as a Chartered
in 2006 with a Bachelor of Marketing and International
Accountant in Australia in 1997.
Relationships.
Email: m.lourey@acclime.com
Email: v.savin@acclime.com
62
Acclime Vietnam is a part of Acclime Group - a Kantar is the world’s leading data, insights and
premier corporate services provider in Asia with consulting company providing brands and retailers
presence in 11 jurisdictions covering Australia, with a unique, 360-degree understanding of
Cambodia, China, Hong Kong, India, Indonesia, consumer behaviour across the globe.
Malaysia, Philippines, Singapore, Thailand and
Vietnam. Worldpanel is a part of Kantar, delivering a holistic
market measurement, giving brands and retailers the
With a focus on providing exceptional services to power to spot emerging trends and respond quickly
international clients, Acclime helps corporates and to changing behaviour.
private clients seamlessly advance their businesses
and interests in difficult-to-navigate markets in Asia Kantar is shopper-centric, continuously monitoring
and beyond. Our years of in-market experience and the purchase and usage behaviour through the
deep knowledge helps our clients to avoid pitfalls and largest omnipanel in the world. Their vertical
make progress faster. expertise includes consumer goods, retail,
e-commerce, foodservice, beauty, home, fashion,
Acclime Vietnam is one of the most reputable and footwear, media and entertainment, mobile, home
trustworthy names in the corporate services sector in appliances, books, home improvement, toys and gift
Vietnam, with more than 130 staff working across 3 cards.
key cities: Hanoi, Ho Chi Minh City and
Danang, Acclime Vietnam has been assisting
foreign invested and locally owned companies to Kantar Worldpanel in Vietnam:
enter, expand, operate and succeed in Vietnam,
while maintaining the highest level of professional 58 Vo Van Tan
standards through proactive compliance, reporting District 3
assistance and advice. Ho Chi Minh City
Phone: +84 (28) 3930 6631

Acclime presence in Vietnam: Email: peter.christou@kantar.com
Ho Chi Minh City: Level 9, Lim Tower 3

29A Nguyen Dinh Chieu, District 1
Phone: +84 (28) 3535 8200
Hanoi: Unit 504, Level 5, Hanoi Tower

49 Hai Ba Trung, Hoan Kiem District
Phone: +84 (24) 6273 3589
Danang: Level 3, Indochina Riverside Tower

74 Bach Dang, Hai Chau District
Phone: +84 (236) 366 4662
Email: vietnam@acclime.com
63
ACCLIME VIETNAM
Ho Chi Minh City:

Level 9, Lim Tower 3
29A Nguyen Dinh Chieu, District 1
Hanoi:
Unit 504, Level 5, Hanoi Tower
49 Hai Ba Trung, Hoan Kiem District
Danang:
Level 3, Indochina Riverside Tower
74 Bach Dang, Hai Chau District
t. +84 (28) 3535 8200

e. vietnam@acclime.com
vietnam.acclime.com

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Industry report:

billion USD E-COMMERCE MARKET VOLUME IN SOUTHEAST ASIA,

E-commerce: crucial pillar

Online travel 1.4

Transport and food 2.4

Online media 3.9

(Source: Vietnam General Statistics Office data) 8%

million people, 2021. 0%

GDP growth, 2021 2,000

VIETNAM IMPORTS AND EXPORTS 2012-2021 (BILLION USD)

CPI growth, 2021 -400

Exports Imports Surplus/(Deficit)

Other base metals

Q3/2021 Q4/2021 Q1/2022 Q2/2022 Plastic materials

Textile fibers and fibers of all kinds

Telephones and parts

Other Machinery, instruments and accessories

Computers, electronical products and parts

E-COMMERCE Textile fibers and

150 5% The fourth wave of the Covid pandemic

120 Recently, Vietnam’s GDP grew by 5.0%

inflow of foreign direct investment into Vietnam 35 31.2

were locations receiving the largest of FDI flows in

Singapore ranked first with over 10.7 billion USD

Singapore South Korea Japan

China Hong Kong Taiwan

The Covid-19 pandemic has had an adverse impact

However, although the pandemic caused major

Based on a survey by Kantar Worldpanel,

Over 51% respondents are

2019 2020 2024

Worldwide Worldwide Worldwide

Asia World ex Asia

The emergence of a growing middle-class in

pillar seamlessly connecting consumers and retailers E-COMMERCE USERS

INTERNET USERS AND E-COMMERCE

internet users in Internet users have

E-commerce is a major pillar in Southeast Asia’s

In Vietnam, the growth of delivery services has

Therefore, it is obvious that Southeast Asia is

2019 2020 2021 2025

(Source: e-Conomy in Southeast Asia 2021)

100% 40 ONLINE RETAILERS IN SOUTHEAST ASIA IN 2020,

(Source: Kantar | Worldpanel Division | SEA

According to Kantar Worldpanel, in 2021 Vietnam

% GROWTH OF ONLINE SHOPPING TRIPS BY MARKET

India (urban) 103% 1%

Vietam (urban) 65% 6%

Taiwan 37% 16%

South Korea 17% 33%

0% 50% 100%% Value

For e-commerce platforms operating in

The complexity of customer behavior

E-commerce fraud, customer Growth drivers and flourishing

In addition to the challenges mentioned

Initiatives such as Super Brand Days, ShopFest,

User generated content (UGC) is growing

User generated content (UGC) is one of the