While Facebook stores are on the rise, customers still prefer COD for payment.
Singh discussed the digital landscape in Vietnam for e-commerce, e-payments and government policies for Information and Communications Technology (ICT).
Vietnam’s fast-growing population will boost domestic demand. Vietnam’s middle-class is set to rise to 33 million by 2020. Vietnam’s stock of Foreign Direct Investment (FDI) reached around USD18 billion in 2017; up approximately 11% from 2016.
Revenue from telecommunication services for the first 6 months in 2018 amounted to VND189,948 billion and VND1,026,000 billion for the IT sector.
E-commerce has been on the rise. Facebook website stores are among the top three sales channels in the country and expected to grow further. However, cybersecurity is still a crucial gap, with losses of around VND12 trillion due to cyber-attacks in 2017.
Nonetheless, customers still prefer Cash on delivery (COD) as the preferred payment mode for e-commerce, at 80%.
The government has also put in place policies to promote the ICT sector, including tax, land and other financial incentives for companies and individuals.