Sustainable development: A woman checks her phone in a mall in Hanoi. eCommerce is creating more equitable development and reducing income gaps, so much so that traditional trading is at risk of being sidelined, experts say. — AFP
HANOI: Vietnam remains among the top 10 countries with the fastest eCommerce growth rate in the world, with the market valued at US$25bil.
The increase of last year was 20% over 2023, according to the country’s eCommerce and Digital Economy Agency.
The eCommerce sector is expanding at a rate nearly three times higher than traditional trade and contributed about 20% to the total retail sales of goods and services globally.
South-East Asia is the region with the most dynamic eCommerce market in the world.
In Vietnam, eCommerce accounted for 9% of total retail sales of goods and services and two-thirds of the digital economy, statistics showed.
With a two-digit growth, Vietnam’s eCommerce market is among the top countries with the fastest expansion rates in the world, creating momentum for the digital economy and digital transition, according to the agency.
Notably, eCommerce is not only an opportunity for firms to boost revenue, but is also a platform for Vietnamese companies to penetrate deeper into global supply chains.
Statistics of Access Partnership, an international research organisation specialising in eCommerce, said that Vietnam’s business-to-consumer (B2C) eCommerce export value is estimated to reach 145.2 trillion dong by 2028, with micro, small and medium-sized enterprises projected to contribute 25%, from 86 trillion dong in 2023.
The agency also pointed out challenges in eCommerce market management.
Specifically, there are still difficulties in managing cross-border eCommerce services.
Several foreign eCommerce platforms sold into Vietnam without completing registration or simply dumping cheap products, which heavily impacted the domestic market and increased price pressures.
In addition, the legal framework to manage live-streaming, which is booming, remains incomplete, together with rampant fake, counterfeit and low-quality products, requiring more efficient management measures.
To promote sustainable development of the eCommerce market, Le Hoang Anh, the agency’s director, said that the focus would be on improving the regulations on eCommerce and enhancing management on cross-border commerce to ensure transparency and compliance.
It was also necessary to promote the development of sustainable and green eCommerce to reduce its impact on the environment, she said.
The application of artificial intelligence in eCommerce management would also be strengthened, she added.
According to economist Vo Tri Thanh, while eCommerce is creating more equitable development and reducing income gaps, traditional trading is at risk of being sidelined.
Policy-makers must ensure that no one is left behind, he said.
Dispute resolution, consumer protection as well as the promotion of innovation and new business models should also be taken into account for sustainable eCommerce development, he added.
The Industry and Trade Ministry will study and propose the development of a law on eCommerce this year to create a consistent legal framework for a market that an be both successful and sustainable. — Viet Nam News/ANN
