Research shows that Vietnamese people have the second highest intensity of cross-border shopping among Southeast Asian countries participating in the survey, only 1% behind the top country.
Cross-border shopping is flourishing in Southeast Asia and Vietnam, opening up business opportunities for domestic businesses and the ability to access abundant goods for shoppers.
According to a report on cross-border business released by the shipping company Ninja Van, 59% of Vietnamese respondents said that they have ordered or shopped many times on international websites.
This rate ranks second among 6 countries participating in the survey, including Indonesia, Malaysia, Philippines, Singapore, Vietnam, and Thailand. The highest percentage belongs to Malaysia, with 60% of respondents saying they regularly buy goods from outside the territory.
In addition, most of the other Southeast Asian respondents are familiar with cross-border purchases within Asia or around the world.
According to Statista data, Southeast Asia’s average cross-border e-commerce share will increase from $74 billion in 2020 to $120 billion in 2021. In the 2016-2020 period, the average growth rate is 37, 7%/year, higher than the global average of 27.4%/year. It is forecasted that e-commerce revenue in 2025 in this region will reach 234 billion USD.
The potential for cross-border business is evident at shipping companies like Ninja Van. Specifically, in the past 12 months, the company has reached 2 million orders delivered per day in the ASEAN region with a coverage density of 100% of countries.
In 2019 and 2020, the company’s international parcel volume grew by double digits. The Group also recorded significant growth in 2021 although many countries temporarily closed their borders to limit the epidemic.
Cross-border e-commerce is growing, creating momentum for businesses to reach out to the world and expand their business scale in many different countries. However, the carrier believes that there are still challenges coming from payment gateways, logistics, regulations and laws, causing many Vietnamese business stores to still not participate in this activity.
Therefore, leading transport enterprises are making efforts to prepare for cross-border trading activities that have been taking place in the region. In addition to the necessary technological support for existing logistics services, logistics businesses must open more value-added services for supply chain management to complete the transportation ecosystem, including import and export services, order fulfillment services, collection points…
Along with the strong growth of cross-border trade as mentioned above, the domestic e-commerce market in other countries also recorded many optimistic figures.
In Ninja Van’s report, Vietnam currently accounts for 15% of the total online shopping market in Southeast Asia, second only to Thailand with 16% and on par with the Philippines. Research shows that Vietnamese people love online shopping and are leading the region in many indicators.
According to Statista data, Vietnam is expected to own the second largest e-commerce market in Southeast Asia, after Indonesia before 2025. Vietnam currently has an average purchasing size (ABS) of 26 USD, higher than Thailand (25 USD) and Indonesia (18 USD).
“We believe that the Vietnamese market is one of the potential countries thanks to its clear and sustainable growth in recent years,” said Mr. Phan Xuan Dung, Sales Director of Ninja Van Vietnam.
To see the scale of e-commerce in the country, one can look at the number of 300,000 orders per day that Ninja Van ships from online business stores, large and small businesses in 64 provinces and cities nationwide.
To meet such orders, the carrier has to work with a system of more than 200 business agents responsible for consolidating, tracing and supporting e-commerce sellers to ensure service quality and delivery time.
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Source: Vietnam Insider