Vietnam etailing: Decoding growth and structure

Vietnam formal online retail is ready for 10x growth in 6 years

Published on: Nov 2019

• Growth will slowly taper down as we move into the later years as 1) the digitally mature customer base will be already be shopping online and 2) companies would need to drive growth through tier2+ regions/long tail categories + 3) start focussing on profitability

Electronics category to have the highest penetration in 2024E, fashion category also poised to rapidly expand their penetration

• Electronics category is under focus for most players to increase ATV and expected to grow penetration rapidly

Most formal e-tailers are heavy on C2C and COD play, however, this is changing rapidly

• Players like Lazada and Tiki which began with B2C are now strengthening their C2C offering to scale up and remain competitive
• COD dominates the payment landscape for e-tailers; however, the share of COD is expected to reduce significantly in the near term