Government Resolution No. 25/NQ-CP sets a target of 20-22% growth for e-commerce in 2025. What will the Ministry of Industry and Trade do to achieve this goal?
Not easy
Over the years, e-commerce Vietnam has made remarkable progress. While B2C e-commerce sales in Vietnam only reached $2.97 billion in 2014, by the end of 2024, they had reached a value of over $25 billion, accounting for approximately 9% of the country's total retail sales of goods and consumer services.
E-commerce continues to grow, becoming a crucial distribution channel, contributing to the development of supply chains and domestic and international circulation; supporting the efficient consumption of large quantities of agricultural products and food for farmers and businesses, especially during harvest season. Many businesses have experienced breakthrough growth thanks to the application of e-commerce, with a significant increase in cross-border retail sales, including the participation of many small and medium-sized enterprises.
Ms. Lai Viet Anh, Deputy Director of the Department of E-commerce and Digital Economy (Ministry of Industry and Trade), assessed: “ In recent years, e-commerce in Vietnam has affirmed its pioneering role in the digital economy. Although the global and regional economies are still facing many challenges, Vietnamese e-commerce continues to maintain an impressive growth rate of 18-25% per year. The wholesale and retail sectors continue to play an important role in the supply chain, supporting the flow of goods from production to consumption, creating jobs for workers and contributing to economic development .”
That's not to say developing e-commerce in the current era is too easy; on the contrary, the fierce competition among e-commerce platforms, as well as the ever-changing needs and tastes of customers, mean that if retail businesses don't seize opportunities from major shopping events, optimize product strategies, and enhance customer experience to maintain and grow market share, they will be quickly eliminated in the digital age.
This is clearly evidenced by the recently published Metric report, "Online Retail Market Outlook 2024 and Forecast 2025," which shows that approximately 165,000 shops exited e-commerce last year. The reason is that many small or inefficient sellers have had to give way to brands with clearer business strategies, product catalogs that better suit consumer tastes, and more flexible operational capabilities.
Ms. Cao My Hanh, Brand and Public Relations Manager at Sapo Technology Joint Stock Company, stated that in December 2024, Sapo conducted a survey of 15,000 sellers nationwide regarding their business situation in 2024. The results showed that e-commerce remained dominant, but the growth rate of online sales in 2024 did not meet expectations. Intense competition from international e-commerce platforms entering the market (Temu, Shein) or those directly importing into Vietnam (Taobao, Alibaba) has intensified pressure on e-commerce businesses.
On the other hand, platform business fees have increased compared to previous years, coupled with stricter tax regulations, posing a challenge for sellers in optimizing operating costs to ensure profitability.
But it's entirely possible.
Despite significant challenges, many businesses believe that Vietnam's e-commerce sector can fully achieve its goals, but requires seamless coordination among stakeholders in the ecosystem such as retailers, payment service providers, marketing service providers, infrastructure providers, and relevant authorities in promoting digital transformation.
To support the business community, the leaders of the Department of E-commerce and Digital Economy have assigned the Center for E-commerce Development to research and develop the Online Export Ecosystem (Ecomex) with specific solutions, aiming to realize the Government 's direction and jointly support Vietnamese businesses in bringing their export-potential products to international markets through e-commerce.
In addition, the Ministry of Industry and Trade also organizes cross-border e-commerce training programs, thereby enhancing capacity, disseminating regulations, procedures, and new knowledge to businesses; organizes regional linkage programs in e-commerce development; and builds and deploys a unified e-commerce platform for 63 provinces/cities (sanviet.vn), aiming to connect and create a platform to support both sellers, buyers, and digital platforms in providing goods and connecting services…
Sharing her views on regional linkages in e-commerce development, Ms. Nguyen Thi Minh Huyen – Deputy Director Department of E-commerce and Digital Economy - It was stated that organizing conferences to promote regional linkages in e-commerce development has addressed a practical issue and is also within the objectives of the national e-commerce development program and plan, which is to aim for sustainable e-commerce development, narrow the regional gap, and promote the consumption of key products in various regions.
“ In 2025, we will continue to consider this a key task to narrow the regional gap in e-commerce development, as well as boost the consumption of key local products, promote intra-regional and inter-regional e-commerce connectivity through the connection of state management agencies to improve the capacity to enforce policies and laws in e-commerce. For example, monitoring e-commerce activities, managing taxes, coordinating with e-commerce service operators to solve the problem of reducing shipping costs and cashless payments in e-commerce, and especially promoting the consumption of Vietnamese products through e-commerce …”, Ms. Huyen said.
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