Vietnam will likely see a strong rise in e-commerce this year after the relatively nascent industry posted an impressive revenue of US$4 billion, local media have reported, citing the Ministry of Industry and Trade.
Big players such as Lazada, Tiki and Zalora, with funding from foreign ventures, are expected to expand their business even more through mobile apps, news website Saigon Times Online reported on Tuesday.
Since last year they have diversified their portfolios through collaboration. Lazada, for instance, is working with group buying site Nhommua and mobile retailer FPT Shop to boost sales, it said.
More e-commerce businesses are also set to launch supplementary services such as delivery and payment to complete their ecosystems, it quoted Nguyen Thanh Hung, vice chairman of the Vietnam E-commerce Association, as saying.
VC Corporation, which owns Muachung and Rongbay, and Hoa Binh-Peacesoft, which owns Chodientu and Nganluong, are among a few businesses on track to have ecosystems of their own, the website reported.
The participation of new businesses, including Adayroi and SILdeal, is also expected to fuel the competition.
Nguyen Thi Hanh, a senior official with the trade ministry's e-commerce department, was quoted as saying that businesses must achieve a minimum growth of 25-30 percent a year, or they will fall behind in a sector that grows 25 percent every year.
However, in order to be stay in business for a long term, companies must target an annual growth of at least 50 percent, she said.
Three popular e-commerce businesses, namely food ordering Food Panda, baby foods and accessories seller Beyeu, and clothes and cosmetics seller Deca, have reportedly shut down in Vietnam last year.