Experts: E-commerce to grow solidly in 2021

Illustrative image (Photo: blog.paycorp.co.za)

Hanoi (VNA) - Vietnam’s e-commerce market will maintain its solid growth trajectory this year, analysts said at a ceremony announcing Vietnam’s E-Business Index within the framework of the Vietnam Online Business Forum on April 20.

Speaking at the event, a representative from the Vietnam E-Commerce Association (VECOM) said enterprises have become more dynamic and gradually adapted to e-commerce. The growing number of online consumers has resulted in growth in retail, ride-hailing, food delivery, online payments, training, and marketing.

Nguyen Binh Minh, member of the VECOM executive committee, said e-commerce is growing primarily in Hanoi and Ho Chi Minh City, and consumers are spending more on luxury and high-value goods or saving to buy necessities.

Trinh Khac Toan from Amazon Global Selling Vietnam said e-commerce is developing strongly, with growth of 22 percent recorded over the last five years, which is expected to exceed 20 percent in 2021 alone.

Experts said the E-business Index in 2021 was based on three criteria: human resources and infrastructure in information technology, e-commerce transactions between businesses and consumers, and between among businesses.

Notably, HCM City still led the index with 67.6 points, ahead of Hanoi with 55.7 points and Da Nang 19.

The southern province of Dong Nai rose to fifth place, behind Binh Duong, with 11.14 points. The northern port city of Hai Phong moved down to sixth place from third.

During the 2016-2020 period, the e-commerce gap between Hanoi and Ho Chi Minh City and other localities remained virtually unchanged.

Experts forecast that online businesses will grow 29 percent during the 2021-2025 period, and Vietnam’s digital economy is expected to reach 52 billion USD by 2025.

Figures from VECOM show that Vietnam’s e-commerce market increased 16 percent last year to over 14 billion USD. Of this, online retail grew 46 percent, ride-hailing and food delivery 34 percent, and online marketing and games 18 percent. Online tourism, meanwhile, fell 28 percent./.