Citi hosts E-Commerce and Technology Summit 2024

During the summit, panellists shared insights from a recent report conducted in partnership with Citi, highlighting the outlook for the Southeast Asian e-commerce market.

Ramachandran A.S., Citi Vietnam’s country officer and head of Banking

Since 2022, the sector has grown exponentially, fuelled by increased consumer spending and new business models.

The e-commerce market in Southeast Asia is concentrated among four big players - Indonesia, Thailand, Vietnam, and the Philippines - which collectively hold more than half of the market share.

E-commerce in Vietnam has seen remarkable growth, registering a 34 per cent increase in the first half of 2024, which is outpacing the region’s growth rate of 18 per cent. This makes Vietnam one of the fastest-growing markets in Southeast Asia.

The majority of Vietnam’s online growth in 2024 is attributed to existing online shoppers increasing their spending.

The top three platforms - Shopee, TikTok Shop, and Lazada - command 55 per cent of e-commerce market share. Overall, 2024 is forecast to be another strong year for e-commerce in Vietnam, with up to 38 per cent expected sales growth.

Despite this rapid growth, 30 per cent of surveyed ecommerce businesses in Southeast Asia reported not being profitable in 2023.

Citi leaders and industry experts discussed several significant challenges impeding profitability, including high marketing costs, reduced budget and intensifying competition.

They emphasised that embracing a dynamic ecosystem will be vital for the future profitability and growth of e-commerce.

“Innovation is not just about technology; it’s about creating new connections and redefining conventional processes and thinking. We are shaping a future that embraces change, fosters collaboration, and ultimately delivers value to our clients,” said Ramachandran A.S., Citi Vietnam’s country officer and Banking head at the event.

Citi leaders from Trade and Treasury Solutions, within its Services business, shared their views on payment solutions that will shape the e-commerce landscape.

Citi introduced the bank’s end-to-end solutions that support payments through their entire lifecycle, from accepting payments, holding and managing funding, and paying beneficiaries.

With strong e-commerce capabilities, Citi was the first bank in Vietnam to provide cross-border payments solutions for overseas sellers and digital payments services on marketplaces. In 2023, Citi also developed an e-commerce and digital framework.

In 2024, the bank launched multiple payment system enhancements to support large volume growth in domestic and cross-border payments.

Experts discuss payments innovation at Citi roadshows Innovations in cross border payments were the main theme of Financial Institutions Asia Pacific Roadshow events in Hanoi and Ho Chi Minh City organised by Citi Vietnam.

Cross-border e-commerce to be boosted Commodities export through cross-border sites is expected to create booming development for Vietnam’s e-commerce business.

Stakeholders see potential in cross-border e-commerce Realising the expectation of achieving over $11 billion in e-commerce exports by 2027 is a long-term challenge and requires timely support policies from platforms as well as state management agencies.