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Fields that rise despite COVID-19

Fields that rise despite COVID-19

Thursday 07, 05 2020
The effects of COVID-19 have caused many business fields such as aviation, hotel, restaurant, tourism, etc. severe damages.

However, amid the epidemic, there are still several fields taking advantage of the situation to attain immense growth.

Online shopping gets popular

The negative effects of COVID-19 have made many people unemployed and reduced their income. People are deterred from gathering and shopping. Therefore, online shopping has become a trend chosen by many people.

People have turned to online shopping to increase the family’s income. Therefore, electronic commerce sites are always lively. According to the Department of Electronic Commerce and Digital Economy, the statistics from electronic commerce sites such as Sendo, Lazada, Tiki, or Shopee, etc. show that there has been an increase in online shopping.

During rush hour, Tiki receives from 3000 to 4000 orders per minute. SpeedL says that since COVID-19 appeared, their number of orders has increased by 150-200%. Even though it has only shifted its focus to online shopping channel recently, Saigon Co.op has achieved impressive growth. Between 16th and 31st March, Saigon Co.op received 10,000 online orders from consumers via Zalo and Viber.

Deputy Director of the Ministry of Competition and Consumer Protection (of the Ministry of Industry and Trade) Trinh Anh Tuan said: “E-commerce in Vietnam is developing strongly.

According to statistics, the average E-commerce growth index is 25%”. According to the Rankings of Top E-commerce Enterprises in Vietnam updated on 3rd March by iPrice insights, Shopee Vietnam continues to have the highest website accesses in 2019 with an average of 38 million accesses per month, while Sendo has 27.2 million accesses per month, Lazada has 27 million accesses per month, and Tiki has 24.5 million accesses per month.

According to the eConomy SEA 2019 report published by Google and Temasek, the Vietnamese E-commerce market scale in early 2020 reached 5 billion USD with a growth rate of up to 81%.

The Data and Analysis Company Global Data says that the E-commerce market of Vietnam is estimated to reach 17.3 billion USD in 2023, increasing significantly compared to the 9.4 billion USD of 2019.

Delivery follows

COVID-19 makes the number of international postages from early 2020 to now of major businesses plummet compared to that of the same period in 2019, e.g. Vietnam Post’s postage has dropped by nearly 10%, while those of Viettel Post and DHL have dropped by 10-20% and 30-40%, respectively.

However, thanks to the fact that consumers are shifting to online shopping, delivery businesses are earning more profit by making deliveries for online shopping channels. According to the statistics from the Ministry of Information and Communication, agencies with high revenue include Viettel Post with nearly 400 billion VND/month, Giao Hang Nhanh (Fast Delivery) with more than 160 billion VND/month, Tiki with more than 40 billion VND/month, etc.

General Director of The General Post Office Company of Vietnam Chu Quang Hao said the company has set a profit-before-tax target of more than 633 billion VND. Technological bike brands such as Grab and GoViet also have highly responsive strategies to tackle the effects of COVID-19. Grab opens GrabMart in Hanoi and continues establishing the good purchasing service Grab Assistant in Vietnam.

GrabFood has added the pre-order feature, allowing users to pre-order food delivery for up to 48 hours. The brand has also turned Grabcar driver to Grabbike driver to take advantage of the number of drivers to meet the increasing delivery demands of the market.

GoViet reached 200 million orders after 18 months operating in Vietnam. The number of orders doubled 6 months after the brand reached 100 million orders last August. Currently, GoViet is connecting more than 150,000 drivers and 80,000 restaurants with millions of Vietnamese consumers.

According to Euromonitor, the online food delivery market in Vietnam is expected to reach more than 38 million USD in 2020 and the average growth rate per year will be 11%. According to the IDEA Market Research Company, the delivery service continues to rise significantly in 2020 in both the retail and E-commerce channels.

According to its estimation, delivery firms note a revenue growth of 30-40% from the growth in market scale of 20% and the competition for market share against major companies.

Online payment increases immensely

The development of online shopping has led to a change in consumers' payment habits. Accordingly, during the COVID-19 season, people are tending to restrict the use of cash and shift to using more forms of online payment to take advantage of the incentives from banks and E-wallet service providers.

The representative of the Military Commercial Joint Stock Bank (MB) says that the bank has encouraged customers to use the digital banking platform to minimize direct transactions while ensuring the safe financial transaction needs of customers.

The bank has implemented annual fee waivers, money transfer fees, and free transactions on digital banking platforms for online customers up to hundreds of billion VND.

Fields that rise despite COVID-19

According to the representative of Vietnam National Payment Joint Stock Company (NAPAS), on 16th March, 39/45 banks implemented the payment service fee exemption and reduction program, equivalent to 99.6% of the total number of small value money transfers via NAPAS.

After reducing the service fee, the volume of small value transactions increased from 21% to 25% of total transactions via the NAPAS system. In March 2020, the total number of small value interbank money transfers via NAPAS increased by more than 32% compared to that in February 2020.

This shows that customers have shifted from cash spending to using non-cash payment channels to limit the impact of COVID-19. Ms. Nguyen Tu Anh - Chairman of NAPAS Board of Directors - said the total number of non-cash payment transactions processed through the NAPAS system had increased by 76% over the same period in 2019. The total value of transactions had increased by 124% over the same period in 2019.

​>> OPPORTUNITY TO INVEST IN CROSS-BORDER E-COMMERCE SERVICES IN VIETNAM

Source: https://www.24h.com.vn

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Banking & Finance

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