Vietnam s e commerce platform has attracted a lot of money, and its annual sales will exceed 10 bill

Mondo Finance Updated on 2024-03-02

Vietnam's e-commerce market has once again proved its thriving power to the public. According to Metric's 2023** Retail Market Overview Report, Vietnam's top 5 e-commerce platforms (Shopee, Lazada, Tiki, Sendo, TikTok Shop) successfully delivered 2.2 billion products, an increase of 523%, which is the strongest growth in the last three years.

The number of product deliveries has risen dramatically, and the platform's revenue has skyrocketed with it. According to the report, the transaction volume of B2C platforms in Vietnam will reach 498 in 20239 trillion VND (US$20.5 billion), of which 232 for the five major e-commerce platformsVND 2 trillion, accounting for 47%. In 2021, they accounted for only 314%。

In fact, the rapid development of e-commerce platforms is inseparable from the support of the Vietnamese market. According to Statista, Vietnam is ranked as one of the top 10 countries with the highest e-commerce growth rate in the world. In addition, according to Google's e-conomy SEA 2022 report, Vietnam has been the fastest-growing country in Southeast Asia's digital economy for two consecutive years in 2022 and 2023.

In 2023 alone, the strong development of new shopping formats represented by live streaming and multi-channel sales has brought huge revenue to e-commerce sellers. Especially in the last two quarters of last year, the growth rate of e-commerce business in August reached the highest 899%, with an income of more than VND 21 trillion.

This explosive growth momentum is set to continue, with revenue from Vietnam's B2C platforms expected to reach VND 65 billion in 2024, with sales from the top five e-commerce platforms increasing by 35% compared to 2023 to reach VND310 trillion (US$12.4 billion).

In addition, Vietnam's Department of E-Commerce and Digital Economy noted that the number of online shoppers is expected to reach 61 million in 2023, with an average purchase value of about US$336. It can be seen that in the hot Southeast Asian e-commerce market, Vietnam, a dark horse, has long been in the forefront.

There is a lot of chaos in the market, but behind the rapid development of e-commerce, it is inevitable that a series of chaos will arise in selling goods. Especially for Vietnam, many unscrupulous sellers are also ready to move.

In the previous complaints about the protection of rights and interests sent by the Ministry of Industry and Trade of Vietnam, it was shown that in 2022 and 2023, e-commerce-related cases accounted for the highest proportion, with a score of 147% and 149%。It can be said that with the continuous development of the e-commerce market, there are more and more related violation cases.

Specifically, the problem of smuggling and illegal cross-border transport of goods remains complex, and counterfeit goods and goods infringing on intellectual property rights are on the rise. In the first eight months of last year, the General Administration of Markets of Vietnam inspected a total of 52,613 cases, a year-on-year increase of 11%; 37,960 illegal acts were found and dealt with, a year-on-year increase of 36%; The confiscated goods worth nearly VND 143 billion and the compulsory destruction of goods worth VND 93 billion.

In addition to the common violations such as counterfeiting and smuggling, the phenomenon of tax evasion and tax avoidance by e-commerce sellers also gives regulators a headache. In 2023, Vietnam's tax authorities collected and processed about VND 275 billion for violations from 179 businesses and 1,061 individuals operating on the spot.

A shocking set of data that will only get worse if the market is not strictly regulated. Therefore, Vietnam's e-commerce market is in urgent need of compliance development.

At the end of December last year, the General Administration of Market Management of Vietnam conducted surprise inspections of a number of warehouses and smashed a number of counterfeit dens, which reduced the circulation rate of counterfeit and shoddy products in the market to a certain extent; In response to the tax issue of sellers, the State Administration said that it would publish the list of e-commerce sellers in arrears of taxes on Volkswagen**, and at the same time it would be enforced, including prohibiting taxpayers who have not fulfilled their obligations from leaving the country.

It can be seen that Vietnam is cracking down on violations in the e-commerce market. Moreover, such measures will be more stringent in the future, and only by further standardizing the order of e-commerce development can the market gain a steady stream of momentum. For all the sellers of nuggets, you also need to firmly abide by the rules of the market and do not defy the law.

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