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Thursday, July 25, 2024

Vietnam retail sector embraces digital transformation

The Saigon Times

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HCMC – Vietnam’s retail sector is undergoing an accelerated digital transformation as retailers are adopting data-driven strategies and diversified sales channels to reduce costs and optimize operations.

At a recent seminar in HCMC, experts said an increasing number of businesses are generating up to 30% of their revenue from e-commerce.

However, choosing the right digitalization strategy and effectively tapping into the online retail market remain key challenges, according to the Vietnam News Agency.

Pham Hong Son, an e-commerce expert, noted that despite the rapid growth of e-commerce, traditional retail channels still dominate 70% of the retail market and are expected to continue growing in the coming years.

Vietnam currently has about 700,000 grocery stores, with more owners adopting technology to digitize their businesses.

The Ministry of Industry and Trade forecasts that Vietnam’s retail market will reach US$350 billion by 2025. The e-commerce market is projected to grow at an annual growth rate (CAGR) of 10.09% until 2029.

However, experts warn of fierce competition from foreign e-commerce platforms. Nguyen Anh Duc, chairman of the Association of Vietnam Retailers, said only two out of the top five e-commerce platforms in Vietnam are domestic: Tiki and Sendo.

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