E-commerce has become an integral component of the modern retail market in the country, with spillover effects on manufacturing, logistics, finance and employment.
E-commerce is also being gradually recognised as a channel to support exports, modestly contributing to the country’s trade surplus.
Vietnam’s e-commerce market is projected to hit nearly $31 billion this year, rising by 25.5 per cent YoY and accounting for a tenth of the total retail sales of goods and services in the country, according to government statistics.
With a market size of $31 billion, the sector now requires an institutional framework, infrastructure and market discipline commensurate with its scale.
Cross-border e-commerce models are opening fresh routes for small and medium enterprises (SMEs) that often face significant barriers in conventional exports.
With a market size of $31 billion, the sector now requires an institutional framework, infrastructure and market discipline commensurate with its scale, according to domestic media reports.
However, many household businesses and small enterprises are facing rising pressure from platform commission fees, advertising costs and logistics expenses. Their bargaining ability remains weak, while dependence on a countable number of major platforms continues to grow.
Without appropriate regulatory adjustments, e-commerce risks developing in a more concentrated direction, potentially weakening the domestic business ecosystem, the report noted.
Gaps also remain in tax management, fair competition between online and traditional businesses, personal data protection and consumer rights at the macro level.
The rise in e-commerce’s share in total retail sales has made the risks of budget revenue losses, distorted competition and erosion of market trust are becoming increasingly apparent.
Fibre2Fashion News Desk (DS)
