E-commerce sales expected to hit US$30 billion by year end

Sorting goods at an establishment of Lazada. — VNA/VNS Photo Trần Việt

HCM CITY — E-commerce sales in Việt Nam are expected to reach US$30 billion by the end of this year, heard a meeting held in HCM City by the Ministry of Industry and Trade’s Trade Promotion Agency and the city’s Investment & Trade Promotion Centre (ITPC) on July 29.

Nearly VNĐ800 billion ($31.65 million) worth of goods were sold on the country’s top five e-commerce platforms of Shopee, Lazada, Tiki, Sendo and Tiktok Shop every day, ITPC Deputy Director Hồ Thị Quyên quoted a report by market analysis firm Metric.

Sales on the platforms in the first half of the year amounted to VNĐ143.9 trillion, surging 54.91 per cent as compared to the retail industry’s growth of 7.4 per cent.

Metric pointed out that the growth mainly came from TikTok Shop and Shopee.

Only Tiktok Shop and Shopee registered positive growth rates of 150.54 per cent and 65.96 per cent in revenue in the period.

Meanwhile, Lazada, Tiki and Sendo saw negative growth in both revenue and sale volumes. The report pointed out that Lazada’s revenue fell by 43.81 per cent and Tiki by 48.55 per cent.

Metric said that both Shopee and Tiktok Shop successfully took advantage of livestream shopping trend, while notably, the number of shop malls increased by 12.29 per cent in the period.

The top 10 brands with the highest e-commerce revenue included only one Vietnamese brand – Vinamilk – raising a need for domestic brands to develop business strategies to compete in the domestic e-commerce market.

Metric predicted that the demand for school supplies with prices of below VNĐ50,000 per item will increase in August and early September as a new school year begins.

Various kinds of shopping developed strongly, particularly social media live streaming commerce, and multi-channel sales, during the six-month span, bringing huge revenue for sellers.

Quyên said that business skills on the digital platforms have become significant in developing brands and images for enterprises and cooperatives, adding such digital tools as social media, livestreaming and email marketing help firms not only reach out to more customers but also optimise their business management and operation.

Deputy Director of the Trade Promotion Agency Lê Hoàng Tài highlighted that in order to capitalise on the opportunities that the digital platforms have brought about, companies should equip themselves with new business skills which are in accordance with the current trend.

In the coming time, the agency will continue joining hands with its partners to organise programmes to support businesses, cooperatives and household businesses in promoting trade via digital platforms and bolstering agricultural digital economy, while helping them access new technologies and expand their markets. — VNS