Vietnam enjoys distinct e-commerce advantages: Shopee Vietnam CEO

Economical internet access, short shipping times, and favorable production locations are among key factors driving the growth of Vietnamese e-commerce, says Tran Tuan Anh, CEO of leading online shopping platform Shopee Vietnam.

He was speaking Wednesday at an online workshop on "Developing e-commerce: Opportunities, motivations, and challenges" organized by the government's news portal.

Anh noted that Vietnam boasted the lowest internet access costs in Southeast Asia, enabling consumers across various regions to connect easily. This accessibility allowed Shopee to reach more consumers in small cities and rural areas rather than just urban centers.

Such widespread internet access is crucial for the development of e-commerce, he said.

He also noted significant improvements in shipping times. Deliveries that used to take four to five days are done in less than two days now. In major cities they are often made the same day.

Vietnam's large market size, substantial population, rapid adoption of new products and increasing disposable income have contributed further to the growth of e-commerce. These days, even people in remote areas and islands enjoy access to online shopping with minimal barriers.

Besides the above factors, Vietnam's strong domestic manufacturing base provided a solid foundation for leveraging skilled labor and expertise to drive further e-commerce development.

Tuan said changes in e-commerce and technology are occurring rapidly both globally and within Vietnam.

“Shopee hopes that government authorities will support businesses and individuals in accessing and creating new e-commerce products and business methods,” he said.

Additionally, Shopee is committed to connecting ASEAN countries in order to capitalize on existing strengths and services. Therefore, it aims to collaborate with ministries, agencies and local governments to achieve national e-commerce goals and uphold business principles.

“Customer experience, complaint resolution and consumer protection are critical for e-commerce companies, especially Shopee. We have heavily invested in the Vietnamese market and implemented mechanisms to enhance consumer experience, such as faster delivery and improved peace of mind. We also seek guidance from ministries, agencies, and localities in specific cases,” said Tuan.

The Vietnam E-Commerce Index Report (EBI 2024) prepared by the Vietnam E-Commerce Association estimates that the nation’s e-commerce market will grow by over 25% year-on-year to $25 billion this year. It projects online retail sales at $17.3 billion.