Since the outbreak of the COVID-19 pandemic, the shift towards a digital economy and changing consumer shopping trends have contributed to boosting exports and goods consumption, helping the Vietnamese products reach distant markets, according to experts.

Since the outbreak of the COVID-19 pandemic, the shift towards a digital economy and changing consumer shopping trends have contributed to boosting exports and goods consumption, helping the Vietnamese products reach distant markets, according to experts.

In particular, many businesses have experienced sales increases of up to 70-80 percent when joining cross-border e-commerce platforms. This demonstrates that digital transformation and technological application have enhanced the value and competitiveness of products in the international market, as well as saved time and operational costs.

Nguyen Van Thanh, Director of the E-commerce Development Centre under the Ministry of Industry and Trade (MoIT)’s Vietnam E-commerce and Digital Economy Agency, said last year, while online retail sales in Vietnam reached USD 16.4 billion, the Vietnamese digital economy was nearly USD 23 billion, which is projected to reach USD 49 billion by 2025.

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According to statista.com, in 2022, the Vietnam's e-commerce market value based on B2C revenue amounted to approximately 16.4 billion U.S. dollars, accounting for approximately 7.5 percent of the total retail sales of goods and services in the country that year. It was forecasted that the revenue of this segment would exceed 20 billion U.S. dollars by 2023.

Recently, regulatory authorities have partnered with online giant retailers such as Amazon and Alibaba to hold training courses aimed at equipping the Vietnamese micro, small, and medium-sized enterprises (MSMEs) with export knowledge and skills. Last year, as many as 1,300 MSMEs benefited from the courses and set up stalls on Amazon and Alibaba.

Statistics showed that the northern mountainous province of Son La is home to around 3,250 firms and 806 cooperatives which have utilized social media and e-commerce platforms to promote and sell farm produce. Since early this year, more than 500 tons of fruits from Son La farmers have been sold through e-commerce platforms.

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Digital payment in e-commerce: Parallel to the emergence of e-commerce, the digital payment sector in Vietnam has been expanding rapidly in the last couple of years. In 2022, the most popular usage of digital payments among people in the country was to pay for online purchases. Although cash is still the preferred method for e-commerce shopping, the popularity of this payment option has been decreasing in recent years. On the other hand, more and more consumers have turned to online payment methods, such as e-wallets and cards, which are expected to be the future go-to payment choice for e-commerce users in Vietnam.

When the pandemic first broke out, figures show, the need for online purchases through e-commerce platforms began to rise sharply. More than 70 per cent of Vietnam’s population have access to the internet, nearly 50 per cent have tried online shopping, and 53 per cent have used e-wallets or online payments. Consumer habits also changed, with spending on non-essential activities being cut while outlays on essentials such as food, health, and household appliances increased.

To improve the effectiveness of exporting and selling Vietnamese goods through e-commerce, the MoIT has partnered with localities to hold various e-commerce connectivity schemes, helping thousands of businesses access distribution methods and cultivate a habit of online shopping.

In the near future, the MoIT will also continue focusing on improving the application capacity and developing e-commerce, especially cross-border e-commerce.