Market Size and Potential Growth
Internet related businesses in Vietnam is rather infancy. Internet penetration in Vietnam is significantly large with 30.5 million users by 2012, accounting for about 40% of total population. However, Internet related businesses such as e-commerce, online payment, online advertising and contents etc are all starting.
• E-commerce: mostly is e-market places and key players now is Viet Price JSC (vatgia.com) and VCCorp with various venturing projects. Vietnam’s e-commerce market value (Gross Merchandised Value - GMV) was approximately US$700mn (2011: US$300mn). The Department of E-Commerce at MOIT estimated that Gross Merchandised Value will reach US$1.3bn by 2015.
•E-Payment: In 2011, there were total 1.5 million transactions made via e-wallet companies with Total Payment Value (TPV) of VND3,400bn (US$170mn) from 12 e-payment licensed companies.
•Group purchasing websites: Total revenue of top 15 group purchasing websites in Vietnam is estimated at VND673bn (US$33mn) in 2011. Top 4 websites including nhommua.com, hotdeal.vn, muachung.vn and cungmua.com represent 90% total market share.
•Online news and ads: Online advertising market in Vietnam is estimated at US$26.4mn by March 2011. Number 1 website is Vnexpress, a general news online media with 13 million unique visitors and 30 million pageviews per day. Vnexpress has an estimated advertising revenue of VND150bn (US$7.8mn). The follower is 24h with 2011 revenue of about VND120bn (US$5.8mn).
•Search engines and social network services: there are few small players mostly doing games.
Domestic Key Players As above
Competition Dynamics As matter of Internet business, only top 3 can be existent.
Foreign ownership Those are sensitive businesses and most foreign investors are venturing funds and individuals. They almost all invested in the management/holding company but not the individual project or websites.