'Woohujuksun' Vietnamese E-commerce... Partnering with Amazon to Revamp Infrastructure

Sharp Increase in Internet Subscribers
Average Economic Growth Rate of 38% Over 4 Years
Challenges Including Complex Customs Procedures
Government Promotes Cooperation with Advanced Platforms

[Asia Economy Hanoi Correspondent Jo Ara] The scale of Vietnam's internet economy has rapidly grown, reaching nearly $13 billion last year. This is largely attributed to the relatively young population and the increase in internet subscribers.

According to Vietnamese media on the 21st, the e-Conomy SEA 2019 report released by Google and Singapore's state-owned investment firm Temasek showed that Vietnam's internet economy growth rate, including e-commerce, recorded an average annual growth rate of 38% over the past four years (2015?2019).

Among six Southeast Asian countries (Indonesia, the Philippines, Thailand, Singapore, Vietnam, and Malaysia), Vietnam ranked second after Indonesia, which showed a 42% growth rate.

Accordingly, Vietnam's internet economy size was $3 billion in 2015, ranking fifth among the six countries. However, this year it recorded $12.8 billion, rising to a joint third place with Singapore. By 2025, the market size is expected to reach $43 billion, firmly establishing Vietnam as the third largest after Indonesia and Thailand.

The rapid expansion of Vietnam's internet economy is due to the increase in internet users from 44 million in 2015 to 61 million this year, as well as the sharp growth of e-commerce from $400 million to $5 billion during the same period. It is projected to reach $230 billion by 2025.

A representative from the Ministry of Industry and Trade of Vietnam evaluated that "the growth speed of the internet economy far exceeds expectations."

However, challenges such as insufficient infrastructure, slow delivery, complicated customs procedures, and inconvenient order search services remain to be resolved. According to a survey by the Ministry of Industry and Trade, 40% of online shopping customers expressed dissatisfaction with e-commerce platform services.

The Vietnamese government is promoting cooperation with the American online shopping giant Amazon to facilitate transactions through e-commerce platforms. The plan is to have Vietnamese sellers use Amazon when shipping products overseas.

Minister Tran Tuan Anh of the Ministry of Industry and Trade announced that they will eliminate counterfeit goods within e-commerce and strengthen accountability for those infringing intellectual property rights.

He also stated that from next year until 2025, a master plan for e-commerce development will be submitted to the government, urging companies to develop advanced technologies to enhance competitiveness.

Additionally, he emphasized that e-commerce infrastructure, including a national-level e-commerce payment system and payment centers, will be further developed.