E-commerce paves way for Australian exporters in Vietnam

25 Mar 2019

Austrade's new report, A Tiger Awakens: E-commerce in Vietnam introduces Australian e-commerce companies and potential exporters to digital retail in Vietnam.

The e-commerce market in Vietnam is growing in leaps and bounds. Vietnam’s business-to-consumer (B2C) e-commerce sector tripled in value between 2014 and 2017. It is forecast to reach US$10 billion in 2020 and become the third-largest e-commerce market in Southeast Asia.

This report highlights the big picture opportunity for Australian businesses to tap into Vietnam’s emerging e-commerce market. The population is young and incomes are rising. Vietnam’s affluent and middle classes are also growing faster than elsewhere in Southeast Asia, from 12 million in 2012 to an estimated 33 million in 2020.

According to Yvonne Chan, Senior Trade Commissioner for Austrade in Vietnam, the pace of e-commerce activity in Vietnam is generating fresh opportunities.

‘Vietnam could provide an exciting, vibrant and fast-growing market for Australian export companies that want to sell products through e-commerce platforms,’ she says. ‘Just as important, Vietnam is now a huge opportunity for the technology, marketing and logistics companies that enable e-commerce to flourish.’

The report contains valuable market insights. These include some of the key metrics for e-commerce uptake in Vietnam such as smartphone penetration rates, online purchase rankings and preferred methods of payment.

It also includes a survey of digital consumption habits and engagement with various social media platforms, as well as profiles of the eight principal e-commerce companies in Vietnam.

The report surveys risks and challenges, such as policy changes and regulation. It explains consumers’ concerns about substandard delivery services, false advertising and poor customer service that could impact Australian exporters selling through e-commerce platforms.

Last, the report offers practical advice. It draws on Austrade’s in-country expertise and includes tips on developing relationships with existing distributors. It also reviews some of the factors Australian companies should consider before embarking on an e-commerce strategy.

Contact Austrade for more information on opportunities in Vietnam’s e-commerce market.