Vietnam’s e-commerce market is projected to grow 16.3 percent from 9.4 billion USD last year to 17.3 billion USD in 2023, according to GlobalData. (Photo: VietnamPlus)Singapore (VNA) – Vietnam’s e-commerce market isprojected to grow at a compound annual growth rate (CAGR) of 16.3 percent from9.4 billion USD last year to 17.3 billion USD in 2023, data analytics company GlobalData forecast.
Singapore-based Business Times on March 10 cited aGlobalData report saying Vietnam’s e-commerce market has doubled over the pastfive years, with total online spending expanding from 3.9 billion USD in 2015to 9.4 billion USD in 2019.
“While the traditional payment instruments such as cash,cards and bank transfers are widely used for e-commerce purchases, consumerpreference for alternative payments is on the rise,” said Nikhil Reddy, a bankingand payments analyst at GlobalData. “There is a growing demand for faster andconvenient payment means, especially among tech-savvy millennials.”
According to a GlobalData survey, cash is still the most preferredpayment mode, making up 35.6 percent of e-commerce purchases. Alternativepayment solutions are gradually gaining ground, accounting for 15.5 percent.MoMo is the most preferred alternative payment in Vietnam, followed by PayPal.
Meanwhile, global firms are investing in Vietnamesee-commerce companies, looking to ride on the strong growth.
In 2018, Tiki received 5.3 million USD and 44. million USD funding from VNGCorporation and Chinese investor JD.com, respectively. In the same year, Sendosecured 51 million USD from SBI Group (a Japan-based financial services company) andother investors. Furthermore, Chinese e-commerce giant Alibaba invested anadditional 2 billion USD in Lazada, one of the leading e-commerce companies in thecountry./.
VNA
