- The stages of development of e-commerce in Vietnam.
According to experts, the activities of Vietnam’s e-commerce investment (VN E-commerce) are divided into three main phases.
Phase 1: From 2000-2010
During this period, the first generation of e-commerce platforms appeared, such as:
- Vat Gia;
- En Bac;
- Cho dien tu;
- 123mua.vn;…
At this time, the investment in e-commerce platforms was still modest, only a few platforms called for investment.
Phase 2: From 2011-2017
The e-commerce industry in Vietnam has become more vibrant with the emergence of numerous e-commerce platforms both domestically and internationally. Two popular and successful models during this period are:
- Groupon (group-buying model):
- E-commerce marketplace:
During this period, one of the notable deals was the Nhommua platform, which received a $60 million investment from IDG Ventures Vietnam, Rebate Networks, and Ru-net Global. However, the Groupon models were not able to sustain their development pace and experienced a decline after a few years. On the other hand, the marketplace model, exemplified by companies like Tiki and Sendo, consistently attracted significant investments due to their strong growth potential.
Phase 3: From 2018 to the present.
The E-commerce industry has been continuously growing with the emergence of many new business models. Among them, notable are service-oriented businesses such as:
- B2B Distribution
- E-commerce enabler
- Social commerce
Within these, the achievements of some companies have demonstrated the remarkable growth of the Vietnamese E-commerce industry in this period. For example:
- Telio, which has successfully raised $49 million in funding.
- Kiotviet, which has raised $51 million in funding.
- Vietnam’s breakthrough opportunities in e-commerce.
Currently, the legal framework has created favorable conditions to promote the development of e-commerce. Due to the rapid growth of the Vietnamese e-commerce industry, many new business models have emerged, requiring continuous updates to the legal framework to ensure timely adjustments.
In the marketplace sector, the market is almost dominated by foreign businesses. The top three platforms leading the market are Shopee, Tiktok Shop, and Lazada. They are followed by domestic e-commerce platforms such as Tiki and Sendo.
In addition, in new e-commerce models such as B2B Distribution, Ecommerce enabler, and Social commerce, domestic businesses have almost an absolute advantage. This is partly due to the keenness of young Vietnamese entrepreneurs and the absence of large companies with enough resources to penetrate these markets in Vietnam.
Vietnam’s accession to the WTO and participation in various FTAs also create opportunities for many businesses to facilitate trade. This in turn creates breakthrough opportunities for the potential Vietnamese e-commerce market.
With double-digit growth and consistently being among the leading countries in terms of e-commerce development worldwide, experts predict that by 2025, the scale of the Vietnamese e-commerce market could reach 49 billion. Another optimistic forecast from Google shows that Vietnam’s e-commerce market will reach a scale of up to 57 billion USD.
(Reference: Investment Journal – 35 years of foreign investment in Vietnam)
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