Mobile e-commerce is gaining momentum to reach a revenue of $7 billion in 2021 and surpass desktop e-commerce in the coming year, according to the Mobile Application Market report by Vietnam’s mobile platform provider Appota.
The COVID-19 pandemic has caused a lot of fluctuation to the world economy in general and Vietnam in particular. Under the impacts of the pandemic, Vietnam's e-commerce market also experienced fast-paced development with a growth rate of 18 per cent to reach $11.8 billion.
Appota findings show that e-commerce and digital payment is booming during the crisis with a growing number of users. However, there has yet to be any breakthroughs in the value of digital payments, which can be attributable to the impact of the pandemic on consumer confidence. Vietnamese consumers have to be mindful with their spending in the midst of the crisis. However, with the expected recovery of the economy post-pandemic, the value of digital payments will increase 30 per cent to reach $15 billion this year.
In 2020, 121 startups have been providing fintech services. The number of digital payment startups accounted for 31 per cent, two times higher than those providing P2P lending services (16 per cent). It is apparent that the digital payment market is potential, but highly competitive.
The COVID-19 pandemic is a boon to e-wallet operators which witness a surge in the number of users. In September 2020, Momo reached 20 million users, becoming the most used payment platform in Vietnam. Meanwhile, intermediary payment services provider VNPay has become the second unicorn startup in Vietnam and one of 12 companies in Southeast Asia with a valuation of $1 billion, a Google, Temasek and Bain & Company e-Conomy SEA 2020 report shows.
Due to the implementation of social distancing measures, more people are staying at home and consume online mobile apps. Short-form video app TikTok recorded 16 million downloads in Vietnam, becoming the latest entertainment trend for users. The market segment is expected to be more vibrant in 2021 with the expansion of Instagram and Youtube.
Meanwhile, the online gaming segment also recorded skyrocketing growth with a 40 per cent growth in revenue, number of downloads and new game releases to reach $205 million in 2021.