Vietnam’s e-commerce revenue will likely reach US$52 billion, re-accelerating to nearly a 29% compound annual growth rate, keeping the third position in the ASEAN region by 2025.

Vietnam e-commerce revenue is estimated at $52 billion by 2025. Photo: PVcomBank

The figures were released at the “e-Conomy SEA 2020” report by Google, Temasek, Bain & Company recently, in which Vietnam’s internet economy was estimated to reach a total value of US$14 billion in 2020, having grown 16% year-on-year. 

To reach the ambitious results, Deputy Minister of Industry and Trade Cao Quoc Hung said the Vietnam e-Commerce and Digital Economy Agency under the Ministry of Industry and Trade (MoIT) should continue to review, amend and issue new policies and legal documents in the direction of facilitating and supporting e-commerce application activities for the development of the e-commerce sector.

Management policies will be built on a practical basis to facilitate businesses, protect the interests of consumers when shopping online. Besides, Vietnam also needs build appropriate application solutions for local businesses, and organize some activities to stimulate the demand for consumers, thereby, increasing e-commerce revenue.

In addition, it is necessary to promote the application of e-commerce to support key export industries, expand consumption for domestic goods and promote the development of e-commerce in localities, Deputy Minister Hung said.

Vietnam’s revenue from e-commerce increases by 18%, reaching US$11.8 billion in 2020, lower than the previous forecast in the “e-Conomy SEA 2020” report. However, the result still made Vietnam the country with double-digit e-commerce growth in Southeast Asia in 2020.

Such the growth was much lower than the previous estimates of 25-30%. Last year, Covid-19 impacted heavily on the global economy, especially, delaying production supply, and trade activities, forcing many businesses to suspend their operations, go bankrupt or reduce the scale of production, according to the Agency. 

However, many Vietnamese businesses defined right directions, quickly implementing solutions to maintain operations such as promoting activities in the e-commerce market, improving products, switching services, and actively seeking output markets.

Manufacturing businesses, who are the driving force in the country’s economy, have all put e-commerce into their long-term strategies to deal with the crisis and build new distribution channels, according to the Agency.

Earlier, the Vietnam Online Shopping Day 2020 recorded over 113 million views and consumer interactions on Online Friday's web platforms. The market recorded 3.7 million orders in 60 hours, up 267% against the same period of 2019.