The Vietnam E-Commerce Association said online retailers in the country will continue to rake in huge revenues in the next five years with sales expected to hit US$10 billion in 2020.
Nguyen Thanh Hung, vice chairman of the industry group, said the market has finished its first stage of development, creating technology infrastructure, legal frameworks and a workforce ready for the next phase of growth.
“It now has enough momentum for a new stage,” Hung said, as cited by the news website Saigon Times Online.
He said the industry will grow by more than 30 percent a year possibly until 2025, compared to the current 25 percent.
Online retailers posted sales of $4 billion last year and they are going to make $10 billion in 2020, accounting for 5 percent of Vietnam's total retail sales, Hung said. In 2014 that ratio was around 2.1 percent.
Tran Trong Tuyen, CEO of Hanoi-based DKT, which offers online technical support for around 15,000 retailers in Vietnam, said Vietnam’s e-commerce market now centralizes on Hanoi and Ho Chi Minh City.
The two biggest cities make up for 75 percent of the total online retail sales, Tuyen said.
Once the industry starts to expand to other cities and provinces, it will see a major boom and become five times as big, he said.