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Vietnam's ecommerce market to surpass USD 17 billion in 2023

Monday 9 March 2020 13:22 CET | News

The Vietnamese ecommerce market is projected to grow at a compound annual growth rate (CAGR) of 16.3% from USD 9.4 billion in 2019 to USD 17.3 billion in 2023, according to GlobalData.

GlobalData’s report states that the country’s ecommerce market has doubled during the past five years with total online spending increasing from USD 3.9 billion in 2015 to USD 9.4 billion in 2019.

According to GlobalData’s 2019 Banking and Payments Survey, cash is still the most preferred payment mode for ecommerce purchases in Vietnam, accounting for 35.6% in 2019. Alternative payment solutions are gradually gaining ground and accounted for 15.5% share. MoMo is the most preferred alternative payment solution in Vietnam, followed by PayPal.

Strong growth has prompted global companies to invest in Vietnamese ecommerce companies. In 2018, ecommerce company, Tiki received USD 5.3 million and USD 44 million funding from VNG Corporation and Chinese investor JD.com, respectively. In the same year, another company Sendo secured USD 51 million from SBI Group (a Japan-based financial services company) and other investors. Furthermore, Chinese ecommerce giant Alibaba invested an additional USD 2 billion in Lazada, a large ecommerce company in the country.

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Keywords: GlobalData, Vietnam. ecommerce, Momo, PayPal, merchants, mobile wallets, PayPal, study, cash
Categories: Payments & Commerce
Companies:
Countries: Vietnam
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