Vietnam has seen a boom in E-Commerce thanks to rising Internet penetration and smartphone usage. (Photo: www.ripenecommerce.com)
Vietnam E-Commerce market will grow to $7.5 billion by 2019, driven by increasing internet penetration, rising personal disposable income, lower prices, better discounts relative to brick and mortar stores and presence of a large number of online retail portals, Ken Research said in its latest report.
The Vietnam E-Commerce market revenues have grown at a compound annual growth rate (CAGR) of 114.7% in the 2011-2014 period, largely led by the domestic factors such as supportive government policies, increasing demand and entry of new players in market.
The E-Commerce market is comprised of large companies, with Lazada
and Hotdeal being dominant players in online retail segment, while the market for online gaming has been dominated by VTG.
“Increasing internet penetration due to technological improvement and decline in the prices of broadband services are anticipated to give a boost to Vietnam E-Commerce market while lack of infrastructure facilities and negative price competition are few of the major challenges which will affect the growth of this industry in the future,” says the report.
The Vietnam E-Commerce Association has recently projected that E-Commerce transactions in Vietnam could hit $4 billion this year, representing a CARG of 34.68%.