Online B2C retail predicted to continue booming
The revenue of products sold through the online business-to-consumer (B2C) retail model is forecast to surge in the coming time and reach 650 trillion VND (26.31 billion USD) in 2024, according to the E-Commerce and Digital Economy Agency under the Ministry of Industry and Trade (MoIT).
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Commenting on e-commerce growth in recent years, the agency noted that in 2018, B2C revenue reached 10.8 billion USD, which was raised to 11.8 billion USD in 2020 and 16.4 billion USD in 2022.
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| Online B2C retail predicted to continue booming. |
In 2023, the figure hit 20.5 billion USD, accounting for 7.8-8 per cent of the country’s total retail sales of goods and revenue from consumer services in the year.
A report on the online retail market in 2023 released by e-commerce data platform Metric showed that 2.2 billion products were successfully delivered through five major e-commerce platforms in Vietnam, namely Shopee, Lazada, Tiki, Sendo, and Tiktok Shop, a surge of 52.3 per cent over 2022.
According to the e-Conomy, SEA 2022 report by Google, Temasek, and Brain & Company, Vietnam was one of the countries recording the highest e-commerce growth. The B2C revenue and sales volume in Vietnam are predicted to continue uptrend, with the five leading e-commerce platforms expecting to earn 310 trillion VND in 2024, representing a year-on-year growth of 35 per cent.
However, experts hold that e-commerce activities in Vietnam still face many challenges.
Do Huu Hung, CEO of Access Trade Vietnam, said that the e-commerce market in Vietnam has formed systems of service supply to the market, including basic technologies assisting e-commerce transactions, safe e-payment systems, marketing services, online marketing, and delivery services.
The connections and sharing of the services have helped optimize the linkage between manufacturers and consumers. The establishment of a sustainable ecosystem will be a foundation for e-commerce to continue expanding in 2024.
However, Hung said that issues related to the origin of products, private information safety, logistics infrastructure serving e-commerce activities yet to catch up with the growth of the market, as well as customers’ confidence are still challenges that Vietnam needs to address to promote the development of e-commerce in the future.
Experts underlined the need for the joint efforts of ministries and sectors in designing strategies and measures to boost e-commerce, including protecting customers’ interests, promoting green and sustainable development, and narrowing gaps among localities and regions through digital platforms.
(Source: VNA)
