Nguyễn Bình Minh, a member of the executive committee of Vietnam E-commerce Association, speaks at Vietnam Online Business Forum 2024 on Wednesday in HCM City. — VNA/VNS Photo

AI will continue to revolutionise the e-commerce industry, providing businesses with the ability to predict consumer behaviour and make informed decisions that drive sales, speakers said at a meeting on Wednesday in HCM City.

Speaking at the Vietnam Online Business Forum 2024, Bùi Huy Dũng, general manager of ACCESSTRADE Vietnam, said artificial intelligence (AI) has already made its mark in the e-commerce industry, and its influence is only expected to grow in the coming years.

AI-powered technologies such as chatbots, personalised recommendations, and voice assistants have transformed the online shopping experience.

By analysing customer behaviour and preferences, e-commerce businesses can leverage AI to offer tailored product recommendations and create targeted marketing campaigns, he said.

Lại Việt Anh, deputy director of the Ministry of Industry and Trade’s Vietnam E-commerce Association (VECOM), said the e-commerce industry has experienced significant growth and transformation in recent years, driven by technological advancements and changing consumer preferences.

“The pandemic has accelerated the shift towards online shopping, making it vital for e-commerce companies to stay proactive and predict the future trends that will shape the industry,” she said.

2024 key trends

The forum focused on discussions on various technology trends in e-commerce.

These trends include the growth of mobile commerce, sustainability as a key consideration, the emergence of new payment methods, cross-border e-commerce, augmented reality (AR) and virtual reality (VR) enhancements, personalisation and customer engagement, enhanced customer service with chatbots and AI assistants, and data analytics and insights.

Among these trends, voice commerce is emerging as a dominant trend in the e-commerce landscape due to the widespread adoption of smart speakers and voice assistants.

Consumers are increasingly using voice commands to make purchases, order groceries, and search for products online.

Another important trend is the growth of mobile commerce, which has been steadily rising and is expected to account for over 70 per cent of e-commerce sales by 2024.

To remain competitive, e-commerce companies must prioritise enhancing their mobile websites and apps to provide a seamless shopping experience on smaller screens.

Cross-border e-commerce is also set to experience significant growth, as consumers become more comfortable purchasing products from international markets.

In addition, personalisation has become a key driver of customer satisfaction and loyalty in the e-commerce industry.

Experts say businesses can use customer data and AI algorithms to deliver personalized product recommendations and promotions tailored to individual preferences.

They recommended engaging with customers through social media and personalised campaigns to help build stronger relationships and drive repeat purchases.

They recommended that businesses leverage these trends to enhance the customer experience, drive sales, and remain competitive in the evolving e-commerce landscape.

Potential market

Nguyễn Bình Minh, a member of the executive committee of VECOM, said Việt Nam’s e-commerce market reached US$25 billion by the end of last year, up 25 per cent year-on-year.

With a multitude of businesses across the country, the e-commerce industry is expected to maintain this rapid growth rate of around 25 per cent this year and next.

According to the Việt Nam E-Business Index (EBI) 2024 report by VECOM, HCM City, the country’s largest economic hub, maintains its top ranking with 87 points this year.

Following closely behind is Hà Nội, the capital city, with 84.3 points, while the southern province of Bình Dương secures the third spot with 51.3 points.

The index has increased to an average of 23.1 points, compared to 19.24 points last year. There is a significant disparity between Hà Nội and HCM City, the nation’s two major economic hubs, and other regions, according to the report.

The report assesses three sub-indexes, including information technology human resources and infrastructure, business-to-consumer e-commerce, and business-to-business e-commerce.

The share of e-commerce in total retail sales of consumer goods and services in 2023 amounted to 10 per cent, up from 8.5 per cent in 2022.

Despite challenges in the global economy and certain domestic factors impacting the economy and trade last year, the report noted the resilience of Việt Nam’s e-commerce sector driven by multiple factors such as digital transformation, consumer confidence, high-tech advancements, and incentive policies from the Government.

The forum also discussed the roles of live ads and live shopping technology, shoppertainment, and brand development on e-commerce platforms, as well as ways to optimise affiliate & KOC (Key Opinion Consumer) campaigns for faster growth.

The annual event in HCM City attracted some 3,000 business representatives, with a similar event scheduled to take place in Hà Nội on April 25. — VNS