How to Succeed in the Vietnamese E-commerce Market Through Vietnamese Translation Services?
The e-commerce industry in Vietnam is rapidly expanding as a result of increased foreign investment, a favourable regulatory environment, and improved internet access. By 2025, online sales are expected to account for nearly a tenth of total goods and services sales in the country. These are some of the many reasons why your businesses should invest in the e-Commerce market in Vietnam.
In today’s post, let’s discuss the opportunities of the Vietnamese e-Commerce market and how you can succeed in this market through the use of Vietnamese translation services.
Why Should You Enter the e-Commerce Market in Vietnam?
The Vietnamese government’s dedication to the digital transformation of the economy has actively fueled the growth of Vietnam’s e-Commerce industry. Foreign investment in this sector will benefit this sector’s growth. Below are three main reasons why entering the Vietnamese e-Commerce market will be a wise investment for your business.
#1. Tech-savvy Young Population
According to Worldpopulationreview, Vietnam has a population of over 98 million people, with only 7.87% of those over the age of 65 (2020). The young population is not only the driving force behind the Vietnamese economy, but they are also the most technologically savvy segment of the population. In fact, Vietnam was ranked 6th in Asia regarding the number of internet users in 2020, with 69.24 million users.
While developed countries are dealing with an ageing population, the median age in Vietnam is 30.5 years old (2021). It is an ideal age for high consumption, a good income, and a frequent online shopping habit. As a result, they are the most promising growing online shoppers for any e-Commerce in Vietnam.
#2. High e-Commerce Growth Rate
According to the Vietnam e-Commerce and Digital Economy Agency, 53% of the Vietnamese population shop online. The e-Commerce market in Vietnam reached 11.8 billion USD in 2020, a growth of 18%, accounting for 5.5% of total retail sales of consumer goods and services.
According to Google, Temasek, and Bain & Company’s E-Business Report of Southeast Asia 2020, online retail sales in Vietnam increased by 46%, ride-hailing and food delivery grew by 34%, online marketing, entertainment, and online games rose by 18%. This report also predicts that the average growth rate from 2020 to 2025 will be 29% and that the country’s e-Commerce scale will reach 52 billion USD by 2025.
Vietnam’s e-Commerce is rapidly catching up with that of other ASEAN countries. Vietnam was ranked 86 in the 2020 United Nations E-Government Survey, moving up two places among 193 nations.
#3. Rise of Digital Payments
The increased acceptance of digital financial technology (fintech) and the Covid-19 epidemic have fueled the trend of cashless payments in Vietnam. According to the Vietnam National Payment Joint Stock Company (Napas), the Napas electronic clearing and financial switching system processed more than 800 million transactions worth more than VND8 quadrillion in the first five months of the year, representing a 113% increase in volume and a 169% increase in transaction value over the same period in 2020.
Although cash payments currently account for nearly a third of all e-commerce transactions in Vietnam, this figure is expected to drop to a quarter by 2025. This 7% decrease in cash payments is likely to be offset by an increase in digital payments.
In Vietnam, digital wallets, also known as e-wallets, are expected to replace a large portion of cash transactions. Currently, there are over 13 million e-wallet accounts in Vietnam, which are distributed among a large number of players such as Moca, Momo, ZaloPay, ShopeePay, etc.
How to Optimize Your e-Commerce Strategy for the Vietnamese Market?
There is no doubt about the great potential of the e-Commerce sector in Vietnam. However, foreign businesses should conduct their businesses with caution to overcome the risks and challenges of entering the Vietnamese e-Commerce industry. Let’s check out some tips that help you make a splash in this market.
#1. Optimize Your Pages for Mobile Shoppers
According to the annual Global Mobile Market Report by Newzoo, Vietnam was in the top 10 nations in the world in terms of smartphone users in 2020, with more than 61 million. This figure is expected to reach 82.15 million by 2025.
When buying products, ordering food, or planning trips online, shoppers are likely to use their smartphones. As a result, e-Commerce websites must be designed to optimize browsing and purchasing on mobile devices in the Vietnamese market.
e-Commerce brands can reach mobile-first customers by using responsive design. It includes effective designs for navigation buttons, progress indicators, and pop-up tooltips which can be achieved through e-Commerce Vietnamese localization services.
#2. Celebrate Vietnamese Shopping Events
In Western countries, the gift-buying feeding frenzy or shopping starts at the end of the year during Christmas and New Year. However, in Vietnam, rather than the Christmas season, people celebrate a variety of local festivals and special days. Thus, if you are an international e-commerce company that wants to succeed in this market, localizing their websites and running promotion campaigns as parts of your marketing strategy to capitalize on Vietnamese local events is a must.
Take Shopee, Lazada, or Tiki – three big names in the e-Commerce market of Vietnam as an example. These three platforms have shopping events with big sales promotions every month to attract more e-Commerce shoppers. And on 11/11 (Singles’ Day) or Vietnamese’ New Year Holiday (Tết Holiday), Vietnamese shoppers enjoy the biggest online sales of the year on these e-Commerce platforms.
#3. Use Vietnamese for Communication
English-language proficiency in Vietnam is classified as low proficiency by EF EPI. In fact, in 2021, Vietnam is ranked 66 out of 112 surveyed countries and 12 out of 24 Asian countries. The figure speaks for itself. It is critical to creating Vietnamese versions for your e-Commerce website if you want to reach more Vietnamese audiences and persuade them to buy your products.
All important content including product descriptions, blogs, frequently asked questions, and other marketing materials should be well-translated into the Vietnamese language. But that’s not sufficient. You also need to pay attention to local localization and locale specifics relating to payment methods, local laws, cultural differences, and regional preferences.
To achieve the best quality, make sure you use e-Commerce Vietnamese translation services from professionals.
e-Commerce Vietnamese Translation Services from GTE Localize
Let GTE Localize, a professional e-Commerce Vietnamese translation agency, be your companion in the Vietnamese e-Commerce market. Our team is based in Vietnam, which gives us the advantage of having a deep understanding of the Vietnamese language, culture, customer behaviour, and best practices of the e-Commerce industry in Vietnam.
At GTE Localize, Vietnamese translation services for e-Commerce materials are provided by native Vietnamese linguists and localizers with at least 5 years of experience working as professional translators and a solid background in e-Commerce-related fields.
Get a 1:1 free consultancy with our e-Commerce localization experts now and get your e-Commerce Vietnamese translation projects kicked off.