Vietnam’s e-commerce boom: a $5.8 bln opportunity by 2028

Vietnam’s business-to-consumer (B2C) e-commerce export value is estimated at VND145.2 trillion ($5.8 billion) by 2028, with micro, small and medium-sized enterprises (MSMEs) projected to contribute 25%.

This promising outlook was unveiled during a seminar co-hosted by the Vietnam E-Commerce Association (VECOM) and Access Partnership, an international research organization specializing in e-commerce, in Hanoi on Monday.

Megan Lim, director of economic strategy at Access Partnership, reported that Vietnam's B2C e-commerce export value already hit VND86 trillion in 2023.

Among the MSMEs engaged in cross-border e-commerce, a staggering 93% affirmed that they could not proceed with exports without leveraging platforms like Amazon Global Selling, Alibaba or eBay.

Furthermore, 65% of the surveyed firms reported that more than half of their B2C e-commerce sales came from foreign markets, and 50% anticipated a growth rate of over 20% in their total retail sales over the next five years.

However, Lim also highlighted several major barriers that hinder MSMEs from expanding their investment in this burgeoning field, including high logistics costs, a shortage of talent, and limited knowledge of foreign markets.

VECOM secretary general Tran Van Trong said since 2017, VECOM has held several cross-border e-commerce forums with up-to-date topics that have made a significant impact. It also established the Online Export Support Alliance aimed at creating a supportive ecosystem for businesses engaged in online export activities.

The Ministry of Industry and Trade is also accelerating the building of a draft master plan on national e-commerce development from 2026 to 2030. This plan underscores online export as a crucial component of e-commerce development, outlining specific goals, policies and solutions to support MSMEs.

The Vietnam e-commerce index report 2024 by VECOM revealed that the sector's growth rate in 2023 increased by over 25% compared to 2022, reaching $25 billion. Of this, the online retail sector amounted to $17.3 billion, with e-commerce accounting for around 10% of the total retail sales of goods and consumer services.

Addressing environmental issues in e-commerce, a recent survey found that 79% of online customers believe the State should quickly enact and disseminate policies and laws on environmental protection in e-commerce.

About 71% suggested that businesses and online sellers should disclose eco-friendly options to help customers make informed decisions, and 61% of consumers underlined the need for awareness campaigns to promote environmental protection among online shoppers.