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Vietnam has 23 million regular online shoppers

In addition to the middle class, according to Nielsen Vietnam, the local e-commerce market has a more important customer group, which is Connected Spenders. This term refers to a person who is passionate about technology with the diverse income and is willing to spend online. Currently this group has about 23 million people. The expenditure of this group is accounting for one third of e-commerce spending of consumers in Vietnam.

 “Of course we do not ignore the middle-class customers, but to seize the opportunity immediately in E-Commerce market, we identify ‘Connected Spenders’ as the top priority group to focus on exploiting”, Mr. Doan Duy Khoa, Director of Consumer Research Department at Nielsen Vietnam, commented at Vietnam Mobile Day 2017 in Ho Chi Minh City.

The expert predicted, e-commerce in Vietnam, especially on the mobile platform would continue to develop rapidly in the coming time thanks to convergence of favorable conditions.

Currently, half of Vietnam's population use the Internet and they are in the top spot in online time in Southeast Asia area. On average, one person spends nearly 25 hours online weekly, more than three hours a day. Nearly a third of Internet users have started online shopping with the average per capita spending of $160 per year.

Experts also rate those who use the Internet in Vietnam as super-connected. In large cities, the percentage of people using telephones is up to 95%, among which 78% are smartphones. In addition to accessing social networks, reading news, taking pictures, chatting and playing games, the Vietnamese also use smartphones to find product information, read reviews and compare prices whenever they plan to buy any item. Smartphones also create more intense competition in the advertising industry.

 “Almost all Internet users in Vietnam are trending towards multi-screen. Specifically, they can be both watching TV and holding a phone to surf the web. This poses the challenge for manufacturers. In the past, they advertised on TV and got much attention. Now, they advertise on the TV but you are online on the phone, the problem is how to make the ads attractive to you”, Mr. Khoa said.

Currently, the three most popular online items in Vietnam are fashion, health care - beauty products and electronic devices. However, the online payment via telephone, mobile banking is not high. This ratio in Ho Chi Minh City and Hanoi is just 13%. Compared to last year, this ratio increases by 5 percentage and tends to improve. 16% respondents said they would use mobile banking in the future.

 “When asked about their intention to use mobile banking, only one third customers feel safe. They are afraid of losing information upon payment. That is a huge obstacle. The safety factor remains the most concern of customers, more than price of the product”, Mr. Khoa said.

In the long term, the prospects for e-commerce, particularly on the mobile platform in Vietnam, are much higher. “IOT (Internet of Things) is a trend that is constantly evolving. All connected devices will become devices for e-commerce, especially mobile phones”, said Mr. Arn Vogels, director of MasterCard for Indochina.

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