Significant increase in online orders
Nguyen Thi Hanh from Cau Giay district in Hanoi said due to the complicated developments of COVID-19, she avoids crowded places. As online shopping services have offered customers a wide range of products at reasonable prices and home delivery, it is much more sensible and easy for her to buy things online.
According to survey conducted by Nielsen Vietnam, in conjunction with Infocus Mekong Mobile Panel, 25% of respondents said that they have increased their online shopping and have reduced their external consumption journeys.
The latest research by Kantar Worldpanel Vietnam shows that online shopping is booming significantly despite the COVID-19 epidemic escalating globally. Vietnam is witnessing more people shopping online than usual, accelerating the growth of online fast-moving consumer goods (FMCG) spending to a triple digit rate in just one month.
This trend has led to a dramatic increase in online orders at e-commercial platforms such as Shopee, Tiki and Lazada. Tiki in particular saw an average of 3 ,000 - 4,000 orders per minute in February. Since the beginning of February, demand saw a 15% increase compared to the November-December 2019 period. The most purchased items have been masks, wet towels and air purifiers.
Lazada has also seen a significant increase in shopping demand for healthcare products, such as disinfectant sprays (up 160%), diapers and paper (60%) and canned food (50%).
Retailers including VinMart, Saigon Coop, Big C, Lotte, and AEON have also quickly adapted their business plan to meet customers’ demand by placing their products online. Saigon Coop has strengthened its telephone order and home delivery services. Its orders by phone have increased 10 times the normal number in some places.
The number of people using VinID to shop online has tripled. Scan&Go bills soared by a multiple of 15 at peak times, revealed Mai Lan Van, VinID’s marketing director.
Ministry of Industry and Trade (MOIT) statistics show that while sales at traditional markets in Hanoi have decreased by 50-80%, revenue through e-commerce channels has increased by 20-30%.
Taking drastic measures to protect customers
Despite the benefits and convenience it brings to customers, online selling hides many problems which need to be controlled, such as the sale of counterfeit goods as well as intellectual property infringement.
According to the MOIT’s Department of Electronic Commerce and Digital Economy, as of March 16, violations have been found in approximately 11,450 online stores and 26,400 products, all of which thereafter deactivated by e-commerce platforms.
To address the problem, the Department has worked to complete a legal framework for e-commerce transactions to facilitate the booming development of the online market whilst putting forward solutions to fight counterfeit sales.
The MOIT has made amendments to the government’s Decree No. 52/2013/ND-CP, which applies to traders, organisations and individuals engaged in e-commerce activities in Vietnam, in order to create a legal framework to protect customers.
In addition, the ministry has joined hands with market management forces and police to fight against smuggling, counterfeit trade, and violations of intellectual property rights while tightening management of trading activities on e-commerce platforms, websites and social networks.
The ministry has also taken action to support accredited businesses in distributing goods on e-commerce platforms on the domestic market.
