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Vietnam Boosts Digital Economy through E-Commerce Week

The Ministry of Industry and Trade has concluded the National E-Commerce Week and Online Friday 2022 event. The first programme offered opportunities for enterprises operating in the fields of e-commerce and digital technology to introduce their products, services, and solutions to advance the country’s digital economy. The Online Friday 2022 event aimed to promote the sustainable growth of e-commerce and the application of solutions to boost domestic firms’ revenue.

An opening ceremony was held earlier this month in Ho Chi Minh, jointly organised by the Ministry of Industry and Trade, the Vietnam E-commerce and Digital Economy Agency, and the municipal People’s Committee. According to Duong Anh Duc, the Vice Chairman of the municipal People’s Committee, a Concentrated Promotion Month has been implemented in the city for many years with the participation of many businesses across the country. The programme is a part of the Ministry of Industry and Trade’s goals to stimulate domestic consumption, expand the domestic market, and support production and business.

Along with the programme, the National E-Commerce Week and Online Friday 2022 provided domestic consumers and international visitors with opportunities to have enhanced shopping experiences in the online environment during the big year-end shopping festival. The Ministry of Industry and Trade worked with the largest affiliate marketing platform in Vietnam to share and offer solutions to help businesses use technology to increase profits. Businesses were able to take advantage of and optimise support tools and features on e-commerce platforms, expand access to a wide range of customers and raise online revenue.

As of 29 November, the second Concentrated Promotion Month (which will run from 15 November to 22 December) attracted the participation of 3,326 businesses with 6,981 promotions offered. The first Concentrated Promotion Month (which ran from 15 June to 15 July) witnessed the participation of 151,298 firms and 5,488 promotion programmes.

In Vietnam, the use of digital platforms, e-commerce sites, social networks, and specialised applications has increased sharply, and the country is expected to become the fastest-growing e-commerce market in Southeast Asia by 2026. Global e-commerce is estimated to grow by 28.4% annually between 2020 and 2027. Meanwhile, revenue from business-to-consumer (B2C) e-commerce in Vietnam is expected to increase by over 20% each year. As OpenGov Asia reported, over the last ten years, e-commerce in the country has continually grown by 25-30% while its size increased to US$ 13.7 billion in 2021. It has made up over 7% of the total flows of consumer goods and services and become an important distribution channel, in addition to traditional ones.

Despite the pandemic’s impacts in 2020 and 2021, e-commerce has still been flourishing in Vietnam. It is forecast to post double-digit growth this year to rank third in Southeast Asia. In fact, the pandemic fueled a significant uptick in e-commerce, which recorded a 16% growth last year. Although the pandemic drove the e-commerce market, it slowed down economic growth, which was the lowest in 30 years last year (2.58%), with key services sub-sectors experiencing a downturn. Data from the General Statistics Office showed that retailing and wholesaling declined 0.21% year-on-year, causing the economy to decrease by 0.02 percentage points. Warehouse and logistics dropped by 5.02% and lodging and catering services by 20.81%, leading to a drop in contribution by 0.3% and 0.51%, respectively, to the GDP growth.

Meanwhile, the share of turnover from e-retailing to last year’s total retail sales of goods and services was 7%, a year-on-year rise of 27% from 2020. E-retailing is forecast to surge 20% this year to US$ 16.4 billion, compared to US$ 5 billion in 2015.

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