ESSAY SUBJECT MICROECONOMICS THEME e COMMERCE MARKET ANALYSIS IN VIETNAM

MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY ECONOMICS ANDLAW DEPARTMENT ---o0o--- ESSAY SUBJECT: MICROECONOMICS THEME: E-COMMERCE MARKET ANALYSIS IN VIETNAM Ho Chi Minh C

MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY ECONOMICS AND

LAW DEPARTMENT -o0o -

ESSAY SUBJECT: MICROECONOMICS

THEME:

E-COMMERCE MARKET ANALYSIS IN VIETNAM

Ho Chi Minh City, March 31, 2022

TABLE OF Contents

A Analysis of E-commerce market size and Competitors 5

1 The situation of E-commerce development in Vietnam and the world: 5

1.1 E-commerce development in the world: 5

1.2 Current status of e-commerce development in Vietnam: 7

2 Scale of Vietnam's e-commerce in 2025 9

3 Competitors 10

3.1 Rookies" massively entered the market: 10

3.2 "Veterans" strengthened to dominate the playing field: 10

3.3 Fierce competition between Vietnam e-commerce and foreign e-commerce: 11

B The growth of the e-commerce market in Vietnam 11

1 Reasons for the development of e-commerce: 11

1.1 The advent of new technology makes internet access faster: 12

1.2 Market approach of e-commerce: 13

1.3 B2B platforms and e-commerce influences: 13

1.4 Progressive improvements and changes in the e-commerce platform: 14

2 Regional Perspectives 14

2.1 Growth potential in Asia: 14

2.2 Growth potential in Vietnam: 14

3 THE E-COMMERCE MARKET IN VIETNAM 15

4 Reasons to Invest in the E-Commerce Industry in Vietnam: 15

C_ E-COMMERCE MARKET TRENDS 17

1 ECommerce Concept: 17

2 Overview of Vietnam's e-commerce market today: 17

3 E-commerce Market Trends: 18

3.1 The trend of turning social networks into sales channels: 18

3.2 Trends in the variety of payment methods: 19

3.3 Trends in the use of domestic brands and retail retailers: 20

3.4 Visual trade trends: 21

D Demographics and Market Segmentation: 22

1.Definition: 22

1.1 Demographics 22

1.2 Market Segmentation 22

2.Segmentation by geographic location: 22

3.Market segmentation by demographic: 23

3.1 Age: 23

3.2 Income: 24

4.Market segmentation according to psychology and preferences: 25

5.Market segmentation by behavior: 26

5.1 Reasons for purchase: 26

5.2 Benefits: 27

E PROFITABILITY OF THE E-COMMERCE MARKET 27

1.E-commerce "crowned" in covid-19 pandemic: 27

2.Changing traditional buying habits: 29

3.Outstanding development trends: 30

4.How are businesses adapting to the new normal? 31

F Success factors of the e-commerce market in Vietnam 32

1 Social commerce - take advantage of social networking as a potential commercial channel: 33

2 "Playground" of content creators: 35

3 Personalization to provide the optimal user experience: 35

4 Electronics and consumer goods industry quickly ascends to the throne: 36

5 Foreign investment: 37

6 Logistics services: 38

G Resources and equipment needed for an E-Commerce startup: 38

1 Hiring a team and finding vendors: 38

2 Obtaining insurance and permits for an eCommerce startup: 39

3 Choosing an integrated payment solution: 39

4 Marketing:39

IN CONCLUSION: 40

PRESENTATION/ REPORT REQUIREMENT

REQUIRE:

Group of 5-10 studentsThe last two weeks of school

Content of requirements: use the supply and demand model to analyze a market

of products and services in Vietnam, for example, the gold market

Write, print, and submit a report (to GV) and submit online to the link: at least

25 pages A4 before 17:00 on April 12th,

2022 Class presentations

THE NECESSARY CONTENT:

Present the topic and generalize the basic theories of the problem Conclusions or lessons learned

The names of the team members and each person's work

State facts and use theories to analyze reality

EVALUATION CRITERIA:

PresentationTeamworkHow to present/present a reportAnswer your questions and those of your teachers

CONTACT INFORMATION:

About lecturer:

Ful Name: Ph.D Pham Van Quynh.

Email: phamvanquynh.cs2@ftu.edu.vn

MARKET RESEARCH – TEAM 3

The number of members: 10

1) Phạm Gia Bảo

Student’s ID: 2115027133 2) Nguyễn Phạm Minh Thư Student’s ID: 2115027077

3) Phan Nguyễn Khánh Linh Student’s ID: 2115027030 4) Phan Thị Minh Tâm Student’s ID: 2115027073

6) Hoàng Gia Phúc Student’s ID: 2115027116

8) Trần Thị Phương Trinh Student’s ID:2115027125

9) Trần Thị Mai Anh Student’s ID: 2115027030

10) Trịnh Thị Minh Ngọc Student’s ID: 2115027

3

GROUP 3

TIEU LUAN MOI download : skknchat123@gmail.com

A few opening words

The impact of the COVID-19 pandemic has changed a lot in the traditional economy.Entering the 4.0 era has made the number of smart mobile devices increasing, which setsthe stage for the e-commerce industry to be born Group 3, who are part of Gen Z, youngpeople today must be the ones who know and also through this essay on the e-commercemarket will help students understand more about this market in the most objective way.According to the statistical report, Vietnam is on the list as the country with the mostdeveloped e-commerce market in Asia and the world in the future with the presence ofmajor exchanges in the country This is also a bright spot for Vietnamese citizens inparticular and Vietnamese students, in general, to discuss this issue more closely

-OoOoO -Thank you!

Before entering the main content of the essay, group 3 would like to express theirsincere thanks to Ph.D Phan Van Quynh has guided us on the extremely usefulknowledge about microeconomics recently Although this is a very new and strangesubject for us, the teachings and instructors have made it easier for us to understandand imagine this specialty Once again, we would like to thank you and wish you muchsuccess on the next teaching journey

A Analysis of E-commerce market size and Competitors

1 The situation of E-commerce development in Vietnam and the

world:

1.1 E-commerce development in the world:

E-commerce continues to grow strongly across the globe, especially in developingcountries where e-commerce originated Development accounts for more than 90% of thetotal value of global e-commerce transactions, of which North America and Europe alonehave reached over 80% E-commerce growth is fastest in North America, followed byAsia-Pacific and Western Europe In Asia, Singapore and China have two countries withrapid e-commerce development and keep up with North American countries In the rest ofAsia, e-commerce has developed but is still very slow

GLOBAL E-COMMERCE GROWTH

TIEU LUAN MOI download : skknchat123@gmail.com

B2C is the oldest and fastest-growing e-commerce model However, in recent

years, the B2B e-commerce model has developed faster

Source: US Census Bureau, 2004

E-commerce in Latin American countries has developed very rapidly in recent years.Venezuela is the country with the fastest growth rate of e-commerce in the region,increasing by 224% in the two years from 2005 to 2007 After Venezuela are Chile,Mexico, and Brazil with similar e-commerce development rates respectively 183%,143%, 116% The country's most popular form of online payment is a credit card B2Be-commerce accounts for 80% of e-commerce transaction value in Latin America.Brazil is the fastest-growing country in the region, followed by Mexico and Argentina.Currently, 88% of B2B e-commerce websites in the region are Brazilian

1.2 Current status of e-commerce development in Vietnam:

E-commerce has appeared in Vietnam for the past 10 years since the Internet was launched in 1997 However, e-commerce applications have only been really popular in the past 4 years since the Law on Electronic Transactions was

promulgated in December 2005 and took effect in March 2006 The promulgation

of the Law on Electronic Transactions is considered a turning point for the

development of e-commerce in our country This shows that the Vietnamese government has seen the role of e-commerce in economic and social development.

In addition to promulgating the law, the government also issued the "Master Plan forE-commerce Development for the period 2006-2010" The objectives of the plan are:

60% of large-scale enterprises conduct business-to-business e-commercetransactions (B2B);

80% of small and medium enterprises know the utility of e-commerce and conduct e-commerce transactions in the form of business-to-consumer (B2C)

In the field of online buying and selling, the number of exchanges, or virtualmarkets, has increased rapidly According to a study by the Department of E-commerce and Information Technology - Ministry of Industry and Trade, bythe end of 2007 the number of B2B e-commerce platforms in our country was

40, and B2C was 100 The C2C e-commerce platform is also growing fast

Although the number of B2B e-commerce platforms is less than B2C, the revenue growth rate from B2B exchanges is higher.

In the field of financial services and banking, our country has implemented banking activities electronic goods, electronic securities Consumers can accesse-banking services through the internet (internet banking) or mobile networks (SMSbanking)

In the field of electronic securities, consumers can query market informationand account information, register to open an account, manage investment portfolios, place trading orders as well as receive information about results.transaction results

In the field of passenger transport, passenger transport companies, especially railway and air transport, have launched online ticket sales The

implementation of electronic ticketing activities in the aviation sector is an indispensable requirement when participating in the International Air TransportAssociation (IATA) Jetstar Pacific, formerly known as Pacific Airlines, was the first Vietnamese airline that started selling e-tickets in March 2006

By the end of 2008, Vietnam had deployed several online public services online such as electronic customs declaration, electronic certificate of origin, electronic tax declaration, online public procurement, business registration certificate, investment certificate, establishment license Electronic

representative office, online seal registration The implementation of online public services helps the government implement the "one-stop" plan quickly Italso creates a transparent and open environment for all public services In addition to the implementation of the above-mentioned online public services, since 2009 Vietnam has also implemented e-government procurement (e-procurement) - online bidding on 3 large units VNPT, EVN, and EVN Hanoi People's Committee

By the end of 2007, more than 30 provinces have approved programs and plan to develop local e-commerce in the period up to 2010 Many plans have been developed with good quality and high feasibility, for example such as the Ho Chi Minh City E-commerce Development Program for the 2008-2010 period or

the Bac Ninh Province's Ecommerce Development Plan for the 2007-2010period.

Besides the development of e-commerce in scale Across the country, Vietnam is alsovery interested in e-commerce cooperation with the world Our country has activelyparticipated in multilateral forums on e-commerce with APEC, UNCITRAL,UN/CEFACT, UNCTAD Bilateral cooperation on e-commerce with severalcountries like China aims to promote strengthened trade activities between the twocountries, cooperation with the United States to improve the capacity of protectingpersonal data, etc., and several other countries

Currently, many large US corporations in the field of information technology and commerce such as Microsoft, IBM, Intel, IDG, Yahoo!, Google, and eBay areofficially present and active in Vietnam market in Vietnam

e-2 Scale of Vietnam's e-commerce in 2025

According to the annual report SYNC Southeast Asia by Facebook and consultingfirm Bain & Company published on November 25, Vietnam is at the forefront ofdriving change and seizing development opportunities based on digital transformation

in the post-pandemic period of COVID-19

Despite the negative impacts in 2020 due to the COVID-19 pandemic, Vietnam's commerce still has strong acceleration steps, becoming one of the fastest-growing e-commerce markets in the region According to the Vietnam E-commerce White Paper,

e-in 2020, the growth rate of e-commerce will reach 18%, the scale will reach 11.8billion USD, and it is the only country in Southeast Asia with double-digit e-commerce growth According to representatives of large corporations of Google,Temasek, Bain & Company, Vietnam's e-commerce market has a lot of potentials,increasing by 16% and reaching a scale of over 14 billion USD This report alsopredicts that the average growth rate in the period 2020 - 2025 is 29% and by 2025,Vietnam's e-commerce may surpass the threshold of 52 billion USD and hold the 3rdposition in the ASEAN region 2025 in 2025, the growth of 34%, the highest rate inthe region

3 Competitors

Vietnam's e-commerce sector is witnessing a new wave of competition, as morebusinesses enter the market, old businesses deploy more services

3.1 Rookies" massively entered the market:

Since the beginning of 2020, the e-commerce market has witnessed the massiveentry of a series of new businesses The first "big hand" is Nagakawa Group to join the

"game 4.0" by shaking hands with major e-commerce platforms and launching theonline sales website shop.nagakawa.com.vn The recruit's ambition will be to "pioneerthe development of e-commerce in the refrigeration and home industries" This willmost likely be a formidable opponent of Green Electricity, MediaSmart

In April 2020, Elise fashion also launched its e-commerce site www elise vn, withmore than 1,500 fashion items ranging from clothing, handbags, and shoes to fashionaccessories Greg Fleming, CEO of fashion brand Elise, hopes the focus on multi-channel sales development will lift the company's share of online sales from about 1%today to 10% in the near term

Similarly, Pacific E-Commerce and Advertising Media Joint Stock Company havealso launched an application to provide e-commerce exchange services for brandbelievers In particular, this floor uses machine technology to inspect real and fakegoods

3.2 "Veterans" strengthened to dominate the playing field:

If the emergence of recruits entering the market in niche segments, or expanding theecosystem as new winds make the market more lively and attractive, the participation

of some giants rich in financial potential, modern technology is a potential threat to commerce platforms such as Lazada, Tiki, Sendo, Shopee…

e-For example, Grab, in March 2020, launched GrabMart in Ho Chi Minh City GrabMart has become a familiar service, well received by users, driver-partners, andbusiness partners with a stable weekly growth rate of double digits The averagenumber of daily orders and the number of business partners on the platform increased

10 times, as of the end of July 2020 compared to the end of April 2020 Grub Mart isactively expanding its network of partners and bringing services to many provincesand cities, to meet the online shopping needs of customers.

Most recently, on the Appstore app store, CH Play appeared Vipshop app and websiteVinShop.vn Most likely, Vingroup will return to the e-commerce industry with anevashop application connecting retail grocery owners and suppliers of goods

These movements show that e-commerce continues to be an attractive field forbusinesses, despite fierce competition

3.3 Fierce competition between Vietnam e-commerce and foreign e-commerce:

Recently, many Vietnamese enterprises have had to withdraw from the e-commercemarket in the process of competing with foreign enterprises

In December 2019, Vingroup officially announced its withdrawal from direct retail tofocus resources on industry and technology, in which Adayroi’s e-commerce site alsomerged into VinID Earlier in Late March 2019, Robin Online, formerly known asZalora, also announced the suspension of all sales activities despite the highest number

of visits to 965,000 visits per month in Vietnam at the time

Similarly, The Vuivui e-commerce site of the Mobile World also said goodbye after 2years of operation Explaining the reasons why some pure Vietnamese e-commerceplatforms had to stop operations, Chairman of the Board of Directors of Mobile WorldNguyen Duc Tai stated that operating the e-commerce floor requires businesses tohave a large capital source, while the revenue is not as expected "For example, theannual revenue of the online sales channel Vuivui.com only stopped at VND73 billion,which is enough to maintain," Mr Nguyen Duc Tai cited

B The growth of the e-commerce market in Vietnam

1 Reasons for the development of e-commerce:

According to Reputa's analysis of the e-commerce market in 2021, the Covid-19epidemic has contributed significantly to promoting the strong growth of the e-11

commerce market in 2021 and as a springboard for many breakthroughs in the future.future.

The Covid-19 pandemic has reshaped users' shopping habits in 2021 Complicateddevelopments have seriously affected traditional activities in business and thedistribution of goods E-commerce has helped remove all barriers of space and time inbusiness At the same time, promote the consumption of "Consumer Goods and Food"during the epidemic period, typically essential commodities and agricultural products.Therefore, E-Commerce is expected to propel Southeast Asia's Internet economyforward in the next decade with rapid growth

1.1 The advent of new technology makes internet access faster:

Along with the advent of more and more smart mobile devices, the speed ofentering industry 4.0 has also made the demand for internet access increase rapidly.Besides, the long time living with the covid 19 pandemic has partly changed people'sthinking, shopping, and business habits from the traditional form of shopping atmarkets, supermarkets, to online shopping, household shopping services, etc

The worldwide e-commerce market was valued at USD 9.09 trillion in 2019, with acompound annual growth rate (CAGR) of 14.7 percent predicted from 2020 to 2027.Increased internet penetration is increasing the number of people who use smartphonesaround the world Digital content, travel and leisure, financial services, and e-tailingare just a few of the e-commerce possibilities available to internet users, and they'regrowing in popularity as the number of people using the internet grows As a result,customers' technical knowledge is projected to have a favorable impact on marketgrowth The increasing need for speedier surfing has prompted advancements inconnectivity, resulting in 4G and 5G technology

The usage of 4G and 5G technology for connection is projected to have a favorableimpact on market growth because it offers the user an uninterrupted, seamlessexperience Furthermore, the usage of smartphones is accelerating at a rapid pace,boosting the customer's exposure to online buying

1.2 Market approach of e-commerce:

E-commerce allows the organization to reach out to more clients, resulting inessential exposure to the firm The increasing importance of online marketing toolssuch as Google advertisements and Facebook ads is also driving e-commerce Due tothe prominence of social media applications, marketing alternatives are aplenty thesedays, which aids in propelling the e-commerce market along growth paths

Using images of famous people on popular platforms such as Tiktok, and Youtubewith attractive words and attractive incentives has made it easier to reach users andfans

Furthermore, customers' preference for online purchasing is increasing as a result ofthe ongoing COVID-19 pandemic, which has forced brick-and-mortar stores to close.The epidemic has had a significant impact on major economies like the United States,China, India, and Italy

1.3 B2B platforms and e-commerce influences:

Business to Business (B2B) dominated the e-commerce industry in terms of revenue

in 2019, with a share of 63.1 percent, and is predicted to grow at the quickest rate from

2020 to 2027 This can be due to businesses' increasing preference for online sellingand the purchase of goods and services Furthermore, the B2B e-commerce segment isexpected to be driven by increased smartphone adoption and internet usage over theprojection period

The purchasing and selling of goods and services between businesses is referred to

as business-to-business e-commerce Furthermore, B2B e-commerce platformsprovide businesses with new ways to buy and sell products, lowering both operationaland inventory expenses Over the projection period, this is expected to help thesegment grow In B2B e-commerce, the rise of specialized or vertical marketplaces iscreating new opportunities Vertical markets provide a diverse selection of productswithin a particular category Similarly, specialist marketplaces offer value-addedservices such as volume discounts and a variety of payment choices

The trend of businesses selling and purchasing goods and services through a B2B commerce platform can be seen all over the world Businesses that prefer B2B e-13

e-commerce platforms conduct business using either the marketplace model or the directmodel Corporations offer their products on a shared platform alongside theircompetitors in the marketplace model, whereas companies set up their own privateB2B platforms and sell directly to buyers in the direct model.

1.4 Progressive improvements and changes in the e-commerce platform:

The e-commerce business is becoming more efficient and accessible as technologybecomes more widely accepted

The way individuals sell and buy goods and services has changed dramaticallythanks to the internet Customers' purchasing experiences are altering as a result of e-commerce or internet retail

Banks and other e-commerce businesses are providing a safe and secure onlineplatform for customers to pay with a payment gateway To enable sellers andcustomers to trade online, market players are focusing on making uniqueimprovements to their business structures

2 Regional Perspectives

2.1 Growth potential in Asia:

With a 55.3 percent share of the e-commerce market in 2019, Asia Pacific ispredicted to develop at the quickest rate from 2020 to 2027 This is due to a growingpropensity among firms to conduct their operations through a B2B e-commerceplatform In addition, expanding infrastructure and an increase in the number ofinternet users are predicted to drive regional market growth

2.2 Growth potential in Vietnam:

The two major market observers stated in the annual SYNC Southeast Asia report,which looks at the region's digital economy, that "located in a vibrant part of theworld, Vietnam is at the forefront of driving change and seizing opportunities to thrivebased on digital transformation in a post-pandemic future," that "Vietnam is at theforefront of driving change and seizing opportunities to thrive based on digitaltransformation in a post-pandemic future."

Southeast Asia is described as a pioneer in digital transformation in Asia-Pacific, withVietnam as one of the best performers, according to the research

According to the survey, seven out of ten Vietnamese consumers have access to theinternet, and the country will have 53 million digital users by the end of 2021.

In comparison to 2020, the number of goods categories purchased by Vietnameseonline consumers increased by 50%, while the number of online retailers in Vietnamincreased by 40%, resulting in a 1.5-fold rise in total online retail sales nationwide.Within the last three months, 49% of Vietnamese consumers migrated to a newonline marketplace, citing price incentives (45%), product quality (34%), andavailability of goods as reasons (33 percent)

3 THE E-COMMERCE MARKET IN VIETNAM

Thegioididong.com is the most important player in the Vietnamese eCommercebusiness The shop achieved $335 million in revenue in 2021 Fptshop.com.vn comes

in second with a revenue of $254 million, followed by the shop vn with a revenue of

$234 million In all, the top three stores in Vietnam contribute 10% of all onlinerevenue

Vietnam is the 25th largest eCommerce market, ahead of Norway and behind theUnited Arab Emirates, with sales of US$8 billion in 2021

In 2021, the Vietnamese eCommerce market expanded by 24%, contributing to aglobal growth rate of 29% The number of people shopping on the internet isincreasing New markets are emerging, and existing markets can expand further.Global growth will continue in the next years With their increasing middle classes andsluggish offline purchasing infrastructure, East and Southeast Asia will lead thismovement

The E-Commerce market includes online sales of tangible commodities to privateend-users (B2C) This definition includes purchases done on a computer, as well astransactions made on smartphones and tablets

4 Reasons to Invest in the E-Commerce Industry in Vietnam:

In Vietnam, e-commerce is growing, with nearly half of the population utilizing it

by 2020, up from roughly 28% in 2017 Vietnam is expected to become a significant

e-commerce hubby 2025

In the ASEAN region, Vietnam has some of the most favorable regulatory

conditions for beginning an e-commerce business Vietnam has signed thirteen free

trade agreements (FTAs) as of 2021, allowing for the import and export of goods with

lower or zero tariffs

Other Vietnamese-based e-commerce platforms, such as Tiki, Shopee, Lazada, and

Thegioididong, demonstrate Vietnam's ability to cultivate e-commerce SBI Holdings

of Japan has also invested US$51 million in Sendo vn Grab and Gojek, the region's

two most valuable enterprises, are likewise weighing the advantages and

disadvantages of a prospective merger

Vietnam's digital economy might be valued at $220 billion by 2030, attracting major

corporations such as Goldman Sachs and JD.com By 2025, eCommerce might

account for 10% of all retail sales in Vietnam In Ho Chi Minh City and Hanoi, online

shopping may exceed 50% of total sales

Number of recognized and registered e-commerce sites in

Vietnam from 2018 to 2020

40 35 30 25 20 15 10 5 0

Recognized Registered

Number of people accessing shopping platforms in 2021.

E-commerce Via mobile app The company's website Social media

High medium short

According to the chart above, the online business before the pandemic was smalland quite limited with the percentage of online businesses decreasing

C_ E-COMMERCE MARKET TRENDS

1 ECommerce Concept:

E-commerce or e-commerce refers to the form of business transactions conductedonline The most common e-commerce is the purchase and sale of products or services

through the Internet or on any device These transactions will include purchase,

payment, order, advertising, delivery,

2 Overview of Vietnam's e-commerce market today:

Since the Covid-19 pandemic, the e-commerce market in Vietnam is growingrapidly and expanding in many fields and becoming a popular business form known to

many businesses and people A variety of activities, participants, operational

processes, and supply chains of goods and services with the support of Internet

infrastructure and the application of modern technology has made e-commerce

become an important pillar in the process of developing the country's digital economy

It is estimated that since 2015, the e-commerce market has tripled in recent yearswith total spending of about VND90.1 trillion (2015) to VND315 trillion (2021).According to another statistic from the Ministry of Industry and Trade, by 2025,Vietnam's e-commerce market will reach nearly VND 400 trillion, potentiallysurpassing Thailand shortly.

Scale of Vietnam E-commerce market (unit:

tril-lion DONG)

450 400 350 300 250 200 150 100 50 0

2015 2016 2017 2018 2019 2020 2021 2022

3 E-commerce Market Trends:

The 2020 outbreak marks many major changes in customer behavior Salesincreased by up to 30% due to unprecedented consumer demand during the pandemic.Besides the increase in the field, the market trend is also worth paying attention tobelow are some market-setting trends in the period 2020-2022

3.1 The trend of turning social networks into sales channels:

In Vietnam, Facebook, YouTube, Instagram, and more recently Tiktok are the fourfierce battlegrounds in the social commerce era Each social network has differentbenefits and ways of implementing sales, suitable for each different type of item Theintegration of online commerce features in social networking platforms createsopportunities for businesses to sell At the same time, their users can also shop forproducts from their partner retailers without leaving the app

Facebook, the most popular social networking site right now, encourages retailers to

use the built-in Facebook Shop feature The platform also simplifies the process of

uploading products In 2020, Instagram launched a Shopping tab feature, which allows

users to discover new personalized products

Some reports indicate that 95% of stores in the E-Commerce Agency's 2019 survey

use social media to promote their sales 38% use Twitter and 48% use Instagram

100% of online stores that provide food and personal health use Instagram and

Facebook

Vietnamese stores use social network sales

2019 Activity Level Assessment

3.2 Trends in the variety of payment methods:

COVID-19 has made Vietnamese consumers wary of cash payments It's no surprise

that e-wallets and digital banking have seen a surge in popularity Most online and

offline stores now accept digital payments through the mobile app The top players in

this rapidly emerging landscape include VNPay, Momo, and ShopeePay

According to predictions from experts in the field, in the future, the proportion ofpayment methods will change The replacement with plummeting cash was replaced

by two main forms of e-wallet and wire transfer It shows that the electronics market is

increasingly accepted to develop strongly in Vietnam

Payment Methods For Online Shopping

2023 2019

Card Transfer Cash E-wallet Other

3.3 Trends in the use of domestic brands and retail retailers:

Experiencing severe bouts of economic impact from the epidemic, a group of

consumers tends to turn to domestic SMEs, helping them increase sales and

maintain business Another survey found that 65% of users want to buy products

from environmentally sustainable brands

The focus on "green consumption" and sustainable development shows that those

brands prioritize the environmentally friendly element In parallel with the new

consumer habits, Mr Brad Houldsworth predicts this will be the trend that dominates

the market in the coming years

According to a recent report, the share of environmental activists and eco-conscious

consumers in Vietnam is about 35% This is lower than the global average of 59%, but

there has been a significant shift in people's attitudes over the past few years This is

largely due to a series of outreach campaigns aimed at changing consumer behavior in

Vietnam