 Goods classification of e-commerce company Lazada (Photo: Tran Viet/ VNA) |
According to a study by Google, Vietnam’s digital economy is forecast to grow to 52 billion USD by 2025, an annual 29% increase from 2020, it said.
“Vietnam is at the beginning of becoming a digitalized society with a young population that loves technology,” said Ralf Matthaes, Managing Director of Ho Chi Minh City-based Infocus Mekong Research. “So all these companies are tripping over themselves to offer these services.”
A consortium led by Alibaba Group Holding Ltd. and Baring Private Equity Asia is investing 400 million USD for a 5.5% stake in Vietnamese conglomerate Masan Group’s retail arm. As part of a deal announced on May 18, Masan will team up with Lazada, Alibaba’s Southeast Asia e-commerce unit.
“The combination of Alibaba’s online retail expertise, Lazada’s e-commerce platform in Vietnam, and Masan’s leading offline network will be a strong catalyst to modernise Vietnam’s retail landscape,” said Kenny Ho, Alibaba’s head of investment for Southeast Asia.
Tiki is the nation’s largest homegrown e-commerce site among dozens of local online shopping platforms, including some operated by retailers who have set up their own websites.
According to Crunchbase, investors including Sumitomo Corp. and JD.com have backed the startup with 192.5 million USD. Henry Low, a former Amazon and Coupang Corp. executive, expressed his hope that there will be more funding rounds and an eventual initial public offering.