(Date 2021-03-26 18:21:52)
Potentials for e-commerce in Vietnam during 2021-2025
According to the Southeast Asian Digital Economy 2019 Report conducted by Google, Temasek and Bain, the 2019 digital economy in Vietnam was worth 12 billion USD, which was 4 times bigger than that in 2015 and is expected to top $43 billion by 2025. According to the report, the main causes for those impressive numbers are e-commerce expansion - where domestic platforms like Sendo and Tiki compete fairly with regional ones like Lazada and Shopee, or online advertising thriving on giants like Google, Facebook, Alibaba, and Tiktok.
In Vietnam, traditional commercial transactions are gradually digitally transformed by a majority of businesses. This process has been accelerating even faster amid Covid-19 pandemic and the 4.0 industrial revolution
Vietnam authorities also have a plan for national e-commerce to boom by 2025, turning it into one of the pioneering fields of Vietnam’s digital economy. This plan was included in Decision No. 645/QD-TTg, approving the ultimate development for local e-commerce from 2021 to 2025. It includes valuable solutions and resources to help the local e-commerce to rank the #2nd in the SEA by 2025. The plan’s approval brings out an ideal and crucial environment for digital advertising businesses to flourish
ADG and Advantages of Being a Pioneer
Planning to gain compound annual revenue growth by 43% for the next 3 years, ADG has what it takes to realize its targets.
Being quite a pioneer in the field of Digital Advertising in Vietnam, ADG has made remarkable achievements being Google Premier SMB Partner (2011), Facebook Authorized Reseller in Vietnam (2013), and most recently becoming Alibaba.com’s Authorized Reseller in Vietnam (Clever X - a subsidiary of ADG).
Becoming a premium partner or an authorized reseller of globally major platforms means that ADG has access to quite impressive data archives following each platform's policy. Such advantages, accompanied by breathtaking growth and expansion of the digital economy and e-commerce in Vietnam in recent years, have helped ADG achieve its compound annual revenue growth of 19.7% from 2016 to 2019. Moreover, during that period, ADG led the team of Advertising Agencies (Google and Facebook) in Vietnam with a stable market share of about 35%.
Ecosystem Advancement Strategy – Position Affirmation in the Digital Industry.
Not resting on victory, Clever Group is always aware of the high level of competition in the industry. Therefore, the Company has actively searched for potential businesses, to complete and advance its ecosystem in the field of Digital Advertising. Some major deals can be listed as Orion Media JSC (owner of 200 social media channels with more than 31 million followers), cMetric Corporation (provider of market research AI solution with Social Listening Tool).
The similarity of these businesses is that they all possess breakthrough technologies and platforms, but cannot approach larger customers or data as well as the financial resources to develop and optimize. Technology integration between their services with ADG’s existing services and products will help the Group have leverage and maximize its leading advantage in the market. Additionally, member companies’ performance under the ADG ecosystem will also be improved, hopefully considerably contributing to the consolidated financial performance of the Company.
43 billion USD seems like a challenging figure for Vietnam's digital economy. However, with the development of e-commerce, online advertising, and reasonable strategies and vision from technology enterprises like Clever Group, the above-mentioned figure might sound possible. Besides, with great potential from the market of such a vast population, technology companies like Clever Group can become the leader of the market and play a key role in the digital economy in the future. It is regarded as an opportunity for investors to reap profits with stocks from technological public companies, especially Clever Group's ADG.
Clever Group