Vietnam is in an important position according to a partner and the Managing Director of SoftBank Ventures Korea, Daniel Kang. With a quickly growing GDP, a younger population, and a culture that accepts new technologies, the country is ready to quick growth in digital and online marketplaces.
In particular, the e-commerce sector is experiencing a boom, growing by more than 25% last year with online sales expected to hit $10 billion USD by 2020. Despite a cash-dominant economy and inconsistent transportation infrastructure, online retail is supported by the country’s 73% penetration rate in unique mobile users and a 67% penetration rate in Internet users. In addition, based on a survey by Visa, 84% of Vietnamese responders shop online at least once a month.
Foreign investors are already responding to the demand for e-commerce in Vietnam. Chinese online retailer behemoth Alibaba leads foreign ventures with Lazada, the largest digital marketplace in Southeast Asia, which reportedly has more than 31 million visits every month. In what some are speculating is a move to enter Vietnam, US-based Amazon is now partnering with the 140-member Vietnam E-commerce Association(VECOM).
The rise of e-commerce in Vietnam has also propelled industries such as Fintech. Because approximately 42% of the country’s consumers don’t have credit cards, cash-on-delivery has become extremely popular as 91% of Vietnamese online shoppers choose this method of payment.
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