VN’s e-commerce market projected to surpass US$ 17 bln by 2023

The e-commerce market will gain a compound annual growth rate of 16.3%.

GlobalData further found that Viet Nam's e-commerce market has doubled during the past five years, with total online spending increasing from VND 90.1 trillion (US$ 3.9 billion) in 2015 to VND 218.3 trillion (US$ 9.4 billion in 2019). 

Nikhil Reddy, Banking and Payments Analyst at GlobalData, said: “While the 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.”

According to GlobalData’s 2019 Banking and Payments Survey, cash is still the most preferred payment mode (35.6%) for e-commerce purchases in Viet Nam in 2019.

Alternative payment solutions are gradually gaining ground and accounted for 15.5%. MoMo is the most preferred alternative payment solution in Viet Nam, followed by PayPal. 

Meanwhile, global companies are investing in Vietnamese e-commerce companies, looking to ride on the strong growth./.

By Kim Loan