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Vietnam e-commerce market size is projected to reach $15 billion by 2025
According to the latest report by Google – Temasek in November 2018, Vietnam e-commerce market size in 2018 is $2.8 billion and is expected to reach $15 billion by 2025; with annual growth rate of 43% in period 2015 – 2025. In SEA region which has about 120 million e-commerce active users, Vietnam is the second fastest growing market, just behind Indonesia.
“180 Billion USD Market in 2020”
According to a forecast by the Trade Research Institute (Ministry of Industry and Trade), the retail trade average annual growth rate of Vietnam would reach 11.9% in 2016-2020 period reaching a market size of nearly 180 billion USD in 2020. In particular, the convenience store model is in fierce competition as domestic and foreign investors race to open chains, invest in technology, enhance services to find a firm foothold in the market.
“Vietnam’s cinema industry is blossoming”
As living standard has been vastly improved, Vietnamese people are now willing to pay more for entertainment activities that were once considered luxurious. Among those, going to the cinemas emerges as a very popular opion to spend some free time on.
Taking advantage of this trend, cinema industry in Vietnam has made huge progress and are still on course of further development. In 2015, 39.6 million tickets worth 104 million USD were sold. It is expected that the figure will reach 200 million USD in 2020.
“3800 tons of dairy products in 2050”
With higher income and better nutritional awareness, Vietnamese people have sustainably increased their purchase of dairy products. It is estimated that in 2050, each Vietnamese will consume 34 kilograms of milk and related variants per year, that multiplied by the total population of 112 million people then will result in a market size of 3,800 tons of dairy products.
“50 Million USD Market”
E-Learning had arrived late, but is blooming fast in Vietnam. In 2015, the country’s E-learning market size was estimated at 50 million USD, quite modest for a country of over 90 million people.
However, its annual growth rate is believed to be around 40% for the period between 2013 and 2018, which is simply enormous and indicating how huge E-learning in Vietnam can become.
Upto August 2017, there are a total of 150 start-ups in the field, notably 80% of which were established after January 2016. Contents offered by E-learning sites are various, but there emerge three major groups:
“Foreign language is the most popular subject”
Read More “E-learning in Vietnam”
“10 billion USD in 2015 to 25 billion USD in 2025”
Vietnam’s hectic scene of modernization and industrialization has benefited some particular industries, one of which is electrical construction. Factories, airports, shopping complexes, everything needs switches and light bulbs.
It has been suggested that electrical construction account for ¼ of general construction’s total market value, which will rise from 10 billion USD in 2015 to 25 billion USD in 2025. Proportionally, electrical construction’s market value should increase from 2.5 billion USD to 6.25 billion USD in the same period.
Such CAGR of 10.9% over the next decade is an impressive piece of statistics, signaling a good time ahead for electrical construction industry.
Naturally, even for the most evenly positive state or situation, there are certain points that require extra attentions.
The first point is infrastructure renovation movement in Vietnam’s rural areas. In around 9,000 communes across the country, a lot of stuff needs to be upgraded, and a lot of other stuff needs to be built: roads and bridges, markets and houses, schools and hospitals.
“30% increase annually”
In 2016, Vietnam recorded 129 cases of food poisoning and 57,000 units found violations. Todays each time going to market, consumers keep worrying whether the food is safe or not because lack of its origin information.
As a result, growing numbers of people are turning to “clean” food, buying foods certificated by officials. This trends also opens up a new business opportunity in “organic food”.
Organic Trade Association estimates total organic consumer market of Vietnam at about 2 million USD per year.
Health & wellness products have highest consumption, reached 3,955.8 million USD in 2015, with compound annual growth rate of 17.9% from 2012 to 2015.
According to Organik Da Lat, consumption of organic products has increased by 30% annually. Statistics from “Hợp tác xã Thỏ Việt” show that consumer demand in the first eight months of 2014 increased by 50% compared to 2013.
Many big brands in Vietnam have invested and developed its organic products, such as Vinamilk, Co.opmart, Vinamit,…
Vinamit, a well-known dried fruit manufacturer and exporter, also included organic into their core business.
For the past 4 years from 2013, Vinamit has invested in a 171 hectare organic fruit farm in Binh Duong. Up to now, Vinamit has 80 organic products certificated under the USDA (US) and EU (Control Union) standards.
“Annual growth at nearly 20% “
In 2016, Vietnam Insurance Market has the gross insurance premiums at about USD 3.91 billion,
increasing 22.64% compared with the previous year.
Also, the CARG index of Vietnam Insurance market is at 18.68% in the period of 5 years (2011-2016),
which shows the good performance of Vietnam Insurance market.
Insurance companies in Vietnam are operated
in life insurance or non-life insurance.
Life insurance market makes the growth of 29.8%,
reaching USD 2.25 billion with 18 operating companies in 2016.
Prudential is the biggest companies in terms of insurance premiums revenue with the market share of 27.11%.
“FDI trend in Vietnam”
Newly-registered foreign direct investment (FDI) capital in Vietnam has improved since the global financial crisis, racking up nearly $12 billion in 2015 (The World Bank, 2017) and the first half of 2016 alone (Van, 2016).
As one of the driving forces of the economy (Vuong, Tran and Nguyen, 2009), this displays the reforming status of Vietnam.
Specifically, the value of M&A accounts for approximately half the FDI inflows, making it the most crucial component of the capital (Gaskill and Nguyen, 2015; Vuong, Tran and Nguyen, 2009).
Recording over 500 successful deals in 2016, the total M&A deal value reached nearly $6 billion, increasing by 23.8% on-year and more than 10 times since 2006 (MAF, 2016)
“200 high-tech agriculture enterprises by 2020”
Vietnam is strongly promoting hi-tech agriculture, as a mean to increase productivity and reduce negative impact on the environment.
The country has set a target that in 2020, hi-tech agriculture product would account for 35% of total value of national agriculture product (approximately 11.6 billion USD on 33.2 billion USD).
To achieve that ambitious target, enthusiastic participation of private sector is required. According to the Government’s outlook, there would be 200 hi-tech agriculture enterprises operating nationwide by 2020. However, until 2015, the number was reported to stand at just 22.
Whether this void of hi-tech agriculture enterprises would be filled up in time or not depends a lot on foreign investment, because the most plausible business model would be a cross-country partnership, in which the Vietnamese side provides land and understanding of local conditions, while a foreign side contributes technology and know-how.