viet_nam_ec_trend_in_viet_nam_2024_2_en.pptx

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1. Q&Me is online market research provided by Asia Plus Inc. 1 Vietnam EC trend in Vietnam 2024 Asia Plus Inc.

2. Overview 2 This market research report provides an in-depth analysis of the e- commerce (EC) market trends in Vietnam as of 2024. The research was conducted through intensive consumer surveys involving a sample size of 300 online shoppers, combined with a comprehensive analysis of EC transaction data sourced from Metric.vn. Our goal was to uncover the latest trends in the EC market, explore consumer behaviors, and understand their motivations and brand perceptions. This report offers valuable insights into the current state of Vietnam's EC landscape, highlighting key factors that influence online shopping habits. The findings were summarized in May 2024 to ensure the most up-to- date perspectives on the evolving EC market.

3. EC industry trend 3

4. 4 The "current 12- month period" is from May 2023, to April 2024. The "previous 12- month period" refers to the year immediately before this, from May 2022 to April 2023. 1,213 856 1,053 699 626 381 442 297 480 293 375 287 379 240 225 184 305 176 176 111 Current 12 month Previous 12 month Beauty Phones & Tablets Sports & Travel Cameras & Camcorders Home & Lifestyle Health Computers, Laptops & Office Equipment Watches & Jewelry Home Appliances Groceries & Food Fashion Accessories Electronics & Gaming Mom & Baby Audio Equipment Women's Bags & Wallets 271 3,794 5,644 The industry has increased by 48% from 3,798 million USD to 5,645 million USD By Amount (million USD) 370 Q&Me's Vietnam market research solution introduction

5. EC trend 2023 v.s 2024 (Ratio) 5 21% 23% 19% 18% 11% 10% 8% 8% 8% 8% 7% 8% 7% 6% 4% 5% 5% 5% 3% 3% 2% 3% Beauty, home & lifestyle and home appliances are the top 3 categories for online shopping. By Percentage Current 12 month Previous 12 month Beauty Phones & Tablets Sports & Travel Cameras & Camcorders Home & Lifestyle Health Computers, Laptops & Office Equipment Watches & Jewelry Home Appliances Groceries & Food Fashion Accessories Electronics & Gaming Mom & Baby Audio Equipment Women's Bags & Wallets 5% 4% Source = metric.vn. The "current 12- month period" is from May 2023, to April 2024. The "previous 12- month period" refers to the year immediately before this, from May 2022 to April 2023.

6. EC trend and growth by category 856 Beauty (million USD) 1,213 Previous 12 mo nth Curre nt 12 mo nth 42% 699 1,053 Previous 12 mo nth Curre nt 12 mo nth Home & Lifestyle (million USD) 51% 381 626 Previous 12 mo nth Curre nt 12 mo nth Home application (million USD) 64% 297 442 Previous 12 mo nth Curre nt 12 mo nth Mom & Baby (million USD) 49% 293 480 Previous 12 mo nth Curre nt 12 mo nth Phone & tablets (million USD) 287 375 Previous 12 mo nth Curre nt 12 mo nth Health (million USD) 240 379 Previous 12 mo nth Curre nt 12 mo nth Groceries & Food (million USD) 184 6 • The "current 12- month period" is from May 2023, to April 2024. The "previous 12- month period" refers to the year immediately before this, from May 2022 to April 2023. 225 Previous 12 mo nth Curre nt 12 mo nth Audio Equipment (million USD) 64% 31% 58% 22% The category growth is between 22- 73%. The growth is highest among sport & travel, and home appliance

7. EC trend and growth by category 176 Sports & Travel (million USD) 305 Previous 12 mo nth Curre nt 12 mo nth 73% 111 176 Previous 12 mo nth Curre nt 12 mo nth Computers, Laptops & Office (million USD) 59% 102 137 Previous 12 mo nth Curre nt 12 mo nth Fashion Accessories (million USD) 34% 67 76 Previous 12 mo nth Curre nt 12 mo nth Women's Bags & Wallets (million USD) 13% 42 63 Previous 12 mo nth Curre nt 12 mo nth Surveillance Cameras (million USD) 31 47 Previous 12 mo nth Curre nt 12 mo nth Watches & Jewelry (million USD) 29 7 • The "current 12- month period" is from May 2023, to April 2024. The "previous 12- month period" refers to the year immediately before this, from May 2022 to April 2023. 47 Previous 12 mo nth Curre nt 12 mo nth Electronics & Gaming (million USD) 50% 52% 62% The category growth is between 22- 73%. The growth is highest among sport & travel, and home appliance

8. By category: Beauty / Home & Lifestyle 856 1,213 Previous 12 month Curre nt 12 month Beauty (million USD) 408 297 204 132 151 96 131 75 122 94 104 76 48 31 4824 - 200 400 Makeup Beauty Tools Men's Care 600 800 1,000 1,200 Hand, Foot, Hair & Nail Care Bath & Body Care Other Beauty Products Current 12 month Previous 12 month Beauty by subcategory (million USD) Facial Care Perf ume Personal Care 42% 699 Home & Lifestyle (million USD) 1,053 Previous 12 month Curre nt 12 month 340 226 303 190 114 79 80 54 55 38 50 39 43 292 3419 015 Current 12 month Previous 12 month Home & Lifestyle by subcategory (million USD) Other Home & Lifestyle Products Bedroom Essentials Outdoor & Gardening Spiritual & Feng Shui I tems Family Safety Dining Essentials Bathroom Essentials Kitchen Tools Lighting Odor Control & Air Fresheners 51% 8 Source = metric.vn. The "current 12- month period" is from May 2023, to April 2024. The "previous 12- month period" refers to the year immediately before this, from May 2022 to April 2023. 1,213 856 1,053 699

9. By category – Home appliances / Mom & Baby 381 Home appliances (million USD) 626 Previous 12 month Curre nt 12 month 256 148 221 144 96 52 28 20 98 159 626 Current 12 month Previous 12 month Home appliances by subcategory (million USD) Small Home Appliances TVs & Accessories Kitchen Appliances Electric Circuits & Parts Large Home Appliances Other Home Appliances 64% 49% 90 161 74 102 74 102 32 45 14 85 19 86 442 Previous 12 month Current 12 month Mom & Baby by subcategory (million USD) Goods for baby Baby Health Care Formula & Baby Food Maternal Health Care Diapers, Diaper Pants, Baby Wipes Accessories 297 9 Source = metric.vn. The "current 12- month period" is from May 2023, to April 2024. The "previous 12- month period" refers to the year immediately before this, from May 2022 to April 2023. 442 Previous 12 month Curre nt 12 month Mom & Baby (million USD) 297 381

10. By category - Phone & tablet / Health 293 480 Previous 12 month Curre nt 12 month Phone & table (million USD) 333 176 147 117 Current 12 month Previous 12 month Phone & table by subcategory (million USD) Phones - Tablets Phone & Tablet Accessories 64% 287 375 Previous 12 month Curre nt 12 month Health (million USD) 170 127 131 100 60 47 93 1221 2 Current 12 month Previous 12 month Health by subcategory (million USD) Functional Foods Sexual Health Support Products Health Care Other Health Products Medical Supplies Other Medical Equipment 31% 10 Source = metric.vn. The "current 12- month period" is from May 2023, to April 2024. The "previous 12- month period" refers to the year immediately before this, from May 2022 to April 2023. 375 287 480 293

11. By category – Groceries & Food / Audio Equipment 240 Groceries & Food (million USD) 379 Previous 12 month Curre nt 12 month Audio Equipment (million USD) 225 116 73 96 44 63 39 33 22 23 19 22 18 17 6 18 4 Current 12 month Previous 12 month Groceries & Food by subcategory (million USD) Beverages Baked Goods Cereals & Preserves Cooking Ingredients Essentials Grocery - Other Snacks Ready- to- eat & Dry Goods Fresh & Frozen Food 58% 184 Previous 12 month Curre nt 12 month 80 66 80 66 52 43 2422 4 432 184 Current 12 month Previous 12 month Audio Equipment by subcategory (million USD) Audio Systems - Speakers Amplifiers and Sound Adjusters Music Players Recording Microphones Other Audio Equipment Earphones & Headphones Audio/ Video Cables & Converters 22% 11 Source = metric.vn. The "current 12- month period" is from May 2023, to April 2024. The "previous 12- month period" refers to the year immediately before this, from May 2022 to April 2023. 225 240 379

12. By category – Sports & Travel / Computers & Office 131 62 46 33 28 20 27 21 25 14 20 10 19 8 10 8 Current 12 month Previous 12 month Sports & Travel by subcategory (million USD) Sports & Outdoor Gear Travel Accessories Travel & Luggage Sports & Outdoor Fashion Sports & Outdoor Accessories Travel Bags Bags & Backpacks Sports Shoes 73% 176 305 Previous 12 month Curre nt 12 month Sports & Travel (million USD) 111 Computers, Laptops & Office (million USD) 176 Previous 12 month Curre nt 12 month 425 168 252 228 231 166 180 145 154 106 143 100 137 122 39 75 112 85 Current 12 month Previous 12 month Computers, Laptops & Office by subcategory (million USD) Computer Components Computer Accessories Desktop Computers Lapt ops Office Equipment Monitors Mice & Keyboards Printers & Scanners Storage Devices 59% 12 Source = metric.vn. The "current 12- month period" is from May 2023, to April 2024. The "previous 12- month period" refers to the year immediately before this, from May 2022 to April 2023. 176 111 305 176

13. 67 Women's Bags & Wallets (million USD) 76 Previous 12 month Curre nt 12 month By category – Fashion / Women's Bags & Wallets 102 137 Previous 12 month Curre nt 12 month Fashion Accessories (million USD) 76 53 24 17 22 20 9 7 6 5 Current 12 month Previous 12 month Fashion Accessories by subcategory (million USD) Accessory Precious Metals Eyewear Earrings Women's Bags & Wallets by subcategory (million USD) Rings 34% 41 34 18 18 6 5 6 6 2 2 Current 12 month Previous 12 month Handbags Other Women's Bags & Wallets Crossbody Bags & Shoulder Bags Wallets Party Clutches & Handheld Wallets 2 1 76 11 67 Tote Bags Waist Bags & Chest Bags 13% 13 Source = metric.vn. The "current 12- month period" is from May 2023, to April 2024. The "previous 12- month period" refers to the year immediately before this, from May 2022 to April 2023. 137 102

14. By category – Cameras / Watches & Jewelry 42 Surveillance Cameras (million USD) 63 Previous 12 month Curre nt 12 month Watches & Jewelry (million USD) 47 23 33 8 12 5 8 6 2 11 3 111 42 Previous 12 month Current 12 month Surveillance Cameras by subcategory (million USD) Surveillance Cameras Flycams Lenses Other Cameras & Camcorders Camera Accessories Cameras Camcorders 50% 31 Previous 12 month Curre nt 12 month 26 14 10 7 5 6 4 2 3 1 Current 12 month Previous 12 month Watches & Jewelry by subcategory (million USD) Men's Wat ches Women's Wat ches Jewelry & Accessories 57% Watch Accessories Watch Sets & Couples Watches 14 Source = metric.vn. The "current 12- month period" is from May 2023, to April 2024. The "previous 12- month period" refers to the year immediately before this, from May 2022 to April 2023. 47 31 63

15. 29 Electronics & Gaming (million USD) 47 Previous 12 month Curre nt 12 month EC trend by category - Electronics & Gaming 29 15 9 7 4 4 1 3 3 1 Current 12 month Previous 12 month Electronics & Gaming by subcategory (million USD) Wearable Devices & Accessories Smart Devices & Accessories Console Accessories Other Electronics & Gaming Products Gaming Consoles 62% 15 47 29

16. Consumer survey – Online shopping behaviors 16

17. About consumer research 17 This consumer research was conducted among online shoppers who made purchases within the past three months. The study focused on their online shopping behaviors, opinions about online shopping, and brand perceptions. Participants included males and females aged 18- 49 from Ho Chi Minh City and Hanoi. By analyzing the responses, the research aimed to uncover key insights into how these consumers engage with e- commerce platforms, their preferences, and their perceptions of various brands. This demographic provides a comprehensive view of the online shopping landscape in Vietnam's major urban centers.

18. Respondent online shopping frequency / amount Those who make monthly online purchases account for the majority of the respondents. Q. How often do you shop online (Average of last 3 month) / How much do you shop online (Average of last 3 month) (n=300) / * the respondents are all online shopping users 32% 22% 27% 11% 4% 3% Online shopping frequency * Several times / week Once / month Once / week Once / 2- 3 month Once / 2- 3 weeks Less than once / 2- 3 month 4% 11% 13% 18% 11% 15% 12% 17% Amount to spend on online shopping / month Less than 100,000 VND 100,001 - 200,000 VN D 500,001 - 700,000 VN D 2,000,001 and more 200,001 - 300,000 VN D 700,001 - 1,000,000 VND 300,001 - 500,000 VN D 1,000,001 - 2,000,000 VND

19. Online shopping benefits 19 Q. What are the reasons that you use online shopping over physical shopping (n=300) Price- related factors (pricing, promotion) are the biggest factors to use online shopping 72% 62% 49% 46% 45% 42% 34% 28% 22% 13% Promotions and discounts Good price A variety of products Able to purchase anytime Delivery flexibility / No need to carry Ease of comparison Able to purcahse anywhere / No need to… Avoid crowds in physical shops Good reviews Membership / point service

20. Decision factors in online shopping 20 Q. What factors most influence your decision to buy a product online?(n=300) Price- related factors (pricing, promotion) come as the biggest decision factors, followed by quality and reviews. 73% 69% 39% 38% 30% 25% 19% 19% 18% 14% Price Promotions / Discounts Product quality Reviews / rating Shipping cost Brand Return policy Shipping speed Recommendations from friends / family Seller reputation

21. EC dependency by category Nearly 50% of fashion and beauty/health product buyers consider online as their main shopping channel. 21 49% 44% 25% 25% 19% 18% 38% 41% 38% 41% 28% 36% 3% 8% 12% 14% 11% 19% 4% 4% 13% 12% 7% 18% 6% 2% 11% 8% 36% 8% Beauty / Health Fashion IT Home appliances Mo m & Baby Food Online is one of the channel to purchase Do not consider online for the category Online is the main channel to purchase Other channels are main channel Do not purchase the category Q. Please choose what is applicable for your purchase of <category name> (n=300)

22. Popular EC channel (1) Shopee is the most favorite online shopping channel and use the most when purchasing online 92% 31% 21% 14% 11% 11% 8% 8% 64% 60% 52% 14% 12% 6% 2% 0% 0% 0% 1% 0% Shopee TikTok Lazada Facebook Tiki The Gioi Instagram Dien May Sendo Di Dong Xanh Zalo Use Use the most month (n=300) Q. Please choose the platform that you use the most in last 3 month (n=300) 23 Q. Please choose all the service that you purchase via online in last 3

23. Popular EC channel (2): vs 2023 Tiktok Shop has rapidly developed, rising to the second position in terms of both the number of users and the number of frequent users 64% 62% 12% 23% 6% 5% 2% 4% 92% 90% 60% 30% 52% 55% 32% 41% 21% 26% 14% 10% 11% 6% 10% 12% 7% 10% 8% 10% Q. Please choose all the service that you purchase via online in last 3 Shopee TikTok Lazada Facebook Tiki The Gioi Di Instagram Dien May Dong Xanh Sendo Zalo 28% month (n=300) Q. Please choose the platform that you use the most in last 3 month (n=300) 24 28% 46% 26% 14% 4% 40% 32% 26% 36% 19% 22%

24. Important factors in EC Price / promotion, quick delivery and products variety are the top factors in selecting EC platform 24 53% 54% 21% 27% 76% 77% 59% 54% 47% 32% 29% 20% Price/ Promotion Good / Quick delivery Variety of products Good information / reviews Ease of use Customer support 2023 2024 Q. What are important in selecting EC service provider (Please select up to 3) (n=300)

25. Reasons to select EC platform Shopee is selected for the price / promotion, product variety. TikTok has good reputation for information / reviews and fun shopping Q. What are important in selecting EC service provider (n=300) 76% 68% 60% 54% 48% 45% 56% 55% 53% 52% 40% 41% 52% 39% 52% 18% 49% 47% 47% 35% 33% 38% 27% 31% 31% 32% 42% 29% 40% 40%40% 40% 34% 26% 25% 32% 37% 36%36% 32% 48% 63% 9% 20% 11% 20% 6% 19% 9% Shopee (275) TikTok(179) Lazada (157) Facebook (94) Tiki (6 3) The Gioi Di Dong (42) Dien May Xanh (32) Price/ Promotion Ease of use Enjoy shopping Variety of products Good information / reviews Good / Quick delivery Customer support

26. EC channel popularity by category (1) EC platform usage is higher for Mom&Baby. The popularity of social commerce is high for fashon category. IT is purchased more at the dedicated platform of mobile groups. 62% 58% 56% 44% 68% 62% 27% 37% 31% 15% 24% 27% 11% 5% 13% 41% 8% 11% Mo m & Baby Fashion Beauty & Health IT Home appliances Food EC platform (Shopee, Lazada etc.) Social commerce (Facebook, TikTok etc.) Other dedicated stores (DMX, BHX etc.) Hasaki, Guardian etc. Q. What are the online services that you use to buy <category>, Asked only those who use online, * The choice was multi- choice but re- calculated for 100% Uniqlo, Juno etc. The Gioi Di Dong, FTP shop etc. Dien May Xanh, Dien May Cho Lon etc. Concung.com, KidsPlaza, Bibomart etc. Bach Hoa Xanh, Coopmart etc.

27. EC channel popularity by category (2) The usage of the online channel is high for Home appliances, Food and Mom&Baby. Dedicated stores (e.g. Dien May Xanh, The Gioi Di Dong) are popular for IT category 74% 33% 30% 13% 11% Shopee TikTok Lazada Facebook Hasaki Beauty 68% 25% 22% 19% 10% Shopee Lazada TikTok Facebook Tiki Mom & Baby 63% 29% 20% 20% 11% Shopee Lazada TikTok Facebook Sendo Food 77% 38% 28% 22% 10% Shopee TikTok Lazada Facebook Instagram Fashion 56% 34% 26% 20% 18% Shopee The Gioi Di Dong Lazada FPT Shop Dien May Xanh IT 74% Q. What are the online services that you use to buy <category>, Asked only those who use online, * The choice was multi- choice but re- calculated for 100% 36% 23% 15% 13% Shopee Lazada TikTok Facebook Dien May Xanh Home appliance