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Ecommerce

Vietnam: ecommerce sales on the wave of consistent increase - report

Monday 28 April 2014 | 10:21 AM CET

Vietnamese online shopping has registered a considerable increase in 2013, with total revenues reaching USD 2.2 billion, or up by 314% by comparison with 2012, tuoitrenews.vn reports.

Online purchase average was USD 120 per capita in 2013, the Vietnam E-Commerce and Information Technology Agency (VECITA) under the Ministry of Industry and Trade has stated in a recent report.

The significant growth rate of internet users, which has been triggered by the rapid development of the country’s ecommerce, has determined VECITA to revise its 2015 forecast for the sector from USD 1.3 billion to over USD 4 billion in revenue.

The current internet-connected population surpasses the 30 million barrier, and about 40%-45% of the total population is forecasted to use the online channel by 2015. VECITA has foretold that every Vietnamese person will spend at least USD 150 on ecommerce purchases on a yearly basis.

Still, with a population of 93 million projected for 2015, about 65% to 70% of the population with an internet connection will generate from USD 4.08 billion to USD 4.3 billion in online shopping revenue.

A VECITA survey of 781 online shoppers in 2013 indicated that 61% purchased items via ecommerce websites, 51% through group-buying websites, 45% by means of social forums, 19% by way of emarketplace websites, and six% via mobile applications. Over 41% of the online shoppers were managers or office workers, of which an approximated 59% were women and 41% men. This group was followed by students with 37% and those directly involved in business and production activities, accounting for 7%.

The popular online products were clothes, shoes and cosmetics, making up 62%. The second most popular categories were technology products with 35% followed by household products with 32% and air tickets with 25%.

Cash was a major payment method in online transactions with 74% of respondents opting for it and 41% transferred via banks. 11% used bank accounts, 9% resorted to mobile and game cards, and only 8% used electronic wallets.

The survey results showed that 5% of online purchasers were very satisfied, 29% were satisfied, 62% were neutral, and 4%v were dissatisfied. The obstacles of online shopping to respondents were the quality of products or services worse than advertised with 77%, prices not lower than buying from traditional shops with 40%, unprofessional logistic services with 38%, afraid of personal privacy disclosure with 31%, and complicated online order procedures with 29%.

Additional impediments which hindered ecommerce sales were the difficulties in examining product quality, the features of products which were not as advertised with 59%, buying in stores was easier and faster with 45%, a lack of trust in sellers with 41%, the absence of enough information to make purchase decisions with 38% and failure to have credit cards or other payable cards with 37%.

Nevertheless, out of the 781 respondents, 88% have said they will continue to purchase items online in the future and the resulting 12% will revert to conventional shopping.

The VECITA report revealed that, currently, 10 most popular sites frequented by internet users are Vatgia.com, Alibaba.com, Ecna.vn, 5giay.vn, 123mua.vn, Enbac.com, Chodientu.vn, muaban.net, Rongbay.com, and Ebay.vn.

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