The size of Viet Nam's ecommerce market was expected to reach US$35 billion in 2025, from $13 billion this year. – Photo thoibaotaichinhvietnam.vn

Viet Nam has set a target that the e-commerce industry would grow by 25 per cent per year to reach US$35 billion with more than half of the population shopping online by the end of 2025.

The goals were highlighted in the master plan for national e-commerce development in 2021-25, which got the Government’s approval late last week.

The plan would focus on accelerating the development of e-commerce towards a healthy, competitive and sustainable market as well as narrowing the gaps in e-commerce development between localities.

In addition, it also targeted to expand the export markets for Vietnamese goods through the development of e-commerce, especially cross-border e-commerce transactions.

Specifically, the Government targeted that 55 per cent of the country’s population would do online shopping by the end of 2025 and the average spending for online shopping would be about US$600 per person per year.

Business-to-consumer (B2C) e-commerce of goods and services would grow 25 per cent per year to reach US$35 billion, accounting for 10 per cent of the country’s total retail sales of goods and services.

Cashless payments in e-commerce would account for 50 per cent.

About 70 per cent of transactions on e-commerce platforms would have electronic invoices.

Ha Noi and HCM City would account for 50 per cent of the country’s B2C e-commerce translation value by 2025. In addition, half of the communes throughout the country would see the presence of online sellers.

Other goals included that 70 per cent of electric, water and telecommunications service providers would provide electronic contracts to consumers and 50 per cent of higher education and vocational education institutions would provide training on e-commerce.

To achieve the targets, the plan would focus on completing the legal framework for e-commerce in the context of Industry 4.0.

Solutions would also be raised to enhance consumer trust in e-commerce and improve the infrastructure system and support services.

According to the e-Commerce White Book 2019 by the Viet Nam e-Commerce and Digital Economy Agency under the Ministry of Industry and Trade, e-commerce revenue jumped 30 per cent from $6.2 billion in 2017 to $8.06 billion in 2018.

The size of the local e-commerce market was expected to reach $13 billion this year.

About 39.9 million people shopped online in 2018, up by 6.3 million people against the previous year. Average spending for online shopping was $202 per person in 2018, $16 higher than in 2017.

The e-Conomy SEA 2019 report by Google and Temasek predicted that e-commerce in Viet Nam would expand 43 per cent per year in the 2015-25 period, making Viet Nam the fastest growing e-commerce market in the region.

Viet Nam is now the second fastest growing e-commerce market in Southeast Asia, after Indonesia. – VNS