VIETNAM is one of Asia’s most promising e-commerce markets with profits from e-commerce.
Although neighboring nations such as Indonesia, Singapore, Malaysia, and Thailand dominate the regional e-commerce sector, Vietnam has emerged as a major force to be reckoned with.
Following Indonesia and Thailand, it is Southeast Asia’s third-largest e-commerce market. What’s more amazing is that these figures were accomplished despite the country’s very poor internet infrastructure.
This milestone was made feasible by a growing internet population, increased user penetration, and large-scale foreign investments in local retail firms like Tiki, Sendo, and Thegioididong.
Local shoppers, on the other hand, appear to prefer international e-commerce shops over local ones, particularly Amazon, which joined the market early last year.
According to one research, consumers’ worries about product quality and delivery time are putting pressure on bigger development opportunities and will most likely contribute to a preference for international merchants.
When customers were polled, 30% stated that the quality of e-commerce items purchased is not precisely what they expect.
Twenty-six percent, on the other side, mentioned restricted online product selection compared to physical stores, as well as slow delivery times, as factors influencing their e-commerce activity.
This indicates that local players must reconsider their business strategies, operational efficiency, logistical capabilities, and suggested selling factors in order to reclaim consumers.
Despite massive foreign financial inflows into local e-commerce stores and investment by significant retailers themselves, it is obvious that the proper business plans are lacking.
Local players must work hard to understand the demands of their local market, the constraints of their trips, and the faults that prevent deeper user penetration.
Not to add, local players, must make greater efforts to diversify goods selection, enhance product quality, provide supply chain transparency, and increase logistical efficiency.
Some of the above-mentioned issues can be addressed by forming supply chain alliances and using appropriate technologies.
Again, e-commerce players must understand what it means to be digital and what it takes to truly deliver on the promises of digital convenience and efficiency.
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Of course, some may question why a preference for foreign shops should be a cause for concern. In order to alleviate poverty, boost employment, enhance the livelihood, and promote more digital initiatives, it is important for a developing country’s economic growth to be supported by local business operations.
Nonetheless, Vietnam is a developing e-commerce tiger that could soon overtake surrounding countries and emerge as a thriving economy — as long as local e-commerce firms solve their constraints.
