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|E-commerce sales in Vietnam will go through the roof with spending almost doubling over the next five years|
Surveying more than 16,000 people across Singapore, Malaysia, the Philippines, Indonesia, Thailand, and Vietnam, the report reveals that online consumer spending in Southeast Asia continues to gain momentum as shown by e-commerce gross merchandise value (GMV).
By the end of 2021, the Southeast Asian region’s e-commerce GMV is projected to reach $132 billion, which is 1.8 times higher than the $75 billion recorded in 2020. But it does not stop there. In five years, e-commerce GMV is expected to reach $254 billion., nearly double of the figure by the end of 2021, representing a compound annual growth rate of 14 per cent.
5-year growth will be even more dramatic for Vietnam, the Philippines, and Indonesia. By the end of 2026, Vietnam’s e-commerce GMV is expected to grow 4.5 times from 2021 levels, while the Philippines’ is projected to grow 3.8 times and Indonesia’s by 1.6 times, the report claims.
Vietnam enjoys the second-highest growth rate in Southeast Asia at 8 per cent trailing behind Indonesia (15 per cent) and followed by Malaysia (5 per cent), the Philippines (5 per cent), Singapore (5 per cent), and Thailand (2 per cent). Vietnam's digital consumer population is expected to grow from 49 million in 2020 to 53 million in 2021.
In addition, Vietnamese consumers appear to be open to trying new stores, with 61 per cent of respondents expressing willingness to do so.
The reports also points out that digital spending continues its expansion amid the pandemic, with spending per person and overall e-commerce sales both seeing explosive growth on-year.
The average spending per digital consumer is expected to grow 60 per cent by the end of the year, from $238 per person at the end of 2020 to $381. This figure is projected to reach $671 by 2026, nearly double of this year’s figure and 4.9 times as much as the figure in 2019.
The contribution of online retail to total retail for key categories rose faster in Southeast Asia than in Brazil, China or India, going from 5 per cent in 2020 to 9 per cent in 2021.