Vietnam’s e-commerce market to exceed $17B in 2023: research

The country’s e-commerce market has doubled during the past five years

Vietnam’s e-commerce

Vietnam’s e-commerce market to exceed $17B in 2023: research. Source: shutterstock.com

According to GlobalData, the Vietnamese e-commerce is expected to grow at CAGR of 16.3% to $17.3 billion in 2023, compared to $9.4 billion in 2019.

While traditional payment instruments such as cash, cards, and bank transfers are widely used for e-commerce purchases, consumer preference for alternative payments is on the rise. There is a growing demand for faster and convenient payment means, especially among tech-savvy millennials
Nikhil Reddy, Banking and Payments Analyst at GlobalData

The report found that cash is still the most preferred payment method in Vietnam, accounting for 35.6% in 2019. However, alternative payment solutions are increasingly gaining popularity and accounted for a 15.5% share. The study unveiled that MoMo is the most preferred alternative payment solution in Vietnam, followed by PayPal.

Strong growth has encouraged global companies to invest in Vietnamese e-commerce companies. This way, in 2018, Tiki received $5.3 million and $44 million in funding from VNG Corporation and Chinese investor JD, respectively. Along with that, another company Sendo got $51 million from SBI Group and other investors. Furthermore, Alibaba invested an additional $2 billion in Lazada, one of the leading e-commerce companies in the country.

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