ONLINE 2016: Internet, Mobile, Social Media Networks, Messaging, Ecommerce and Video Usage

VIETNAM
ONLINE 2016
Internet, Mobile, Social
Media Networks, Messaging,
Ecommerce and Video Usage
NOVEMBER 2016
Rahul Chadha
Contributor: Dustin Sodano
Read this on
eMarketer for iPad
VIETNAM ONLINE 2016: INTERNET, MOBILE, SOCIAL MEDIA NETWORKS,
MESSAGING, ECOMMERCE AND VIDEO USAGE
Vietnam’s young population and low service costs help give the country a higher internet penetration rate than
most of its neighbors in Southeast Asia. Usage of smartphones and related activities, including use of social media
and messaging apps, are also fairly high.
■■ In 2016, more than half of the country will access the Average Daily Time Spent Online Among Internet
internet at least once a month—a higher rate than in Users in Vietnam, 2015
% of respondents
India, Indonesia and Thailand.
<3 hours
■■ According to Nielsen, internet users in Vietnam spend 9+ hours 7%
20%
nearly 25 hours per week online. This is high compared
3-5 hours
with elsewhere in Southeast Asia. 26%
7-9 hours
15%
■■ One poll found that mobile phones are the most
5-7 hours
common device used to access the web in Vietnam, 32%
employed by 85% of internet users ages 15 to 49.
Nearly three-quarters (73%) used laptops. Note: n=967 ages 15-49
Source: Vietnam Ecommerce and Information Technology Agency (VECITA),
"2015 Vietnam Ecommerce Report," April 15, 2016
■■ More than one-third of Vietnam’s population are social 210076 www.eMarketer.com
network users. By 2020, that figure will approach half
KEY STAT: Internet users in Vietnam tend to spend a
(46.7 million). Smartphones, used by 38.3% of adults
great deal of time online. In 2015, 58% of users spent an
at least monthly, are a main reason behind social average of 3 to 7 hours daily online, while 20% spent 9 or
networking’s growth. more hours on the web.
■■ Messaging apps are even more popular. One survey

found that 74% of smartphone users used a messaging
service more than once per week, while only 60% had CONTENTS
used social media apps.
2 Vietnam Online 2016: Internet, Mobile, Social Media
■■ Retail ecommerce sales, excluding travel, will total Networks, Messaging, Ecommerce and Video Usage
$1.71 billion in 2016, accounting for just 1.1% of total 3 Vietnam’s Internet Penetration Is Driven by Mobile Phones
retail sales in Vietnam. By 2020, that figure will expand
4 Smartphone Users Gravitate to Social Networks
to only 1.5%.
6 Messaging Apps Appeal to the Price Conscious
■■ Purchasing online video is not yet very common. One 7 Local and Regional Players Rule Ecommerce
poll found that only 13% of internet users in Vietnam
10 Paying Customers Still Prefer Cable and Satellite over
had paid for an online video provider. By comparison, Video-on-Demand
78% had paid for cable TV and 40% had paid for
12 eMarketer Interviews
satellite TV.
12 Related eMarketer Content
■■ Online video viewers have one destination that stands 12 Related Links
out from the rest: YouTube.
12 Editorial and Production Contributors
WHAT’S IN THIS REPORT? This report looks at some of
the most crucial aspects of Vietnam’s digital usage and
behavior, including internet penetration, smartphones and
social networks, messaging apps, ecommerce and video.
VIETNAM ONLINE 2016: INTERNET, MOBILE, SOCIAL MEDIA NETWORKS, MESSAGING, ECOMMERCE AND VIDEO USAGE ©2016 EMARKETER INC. ALL RIGHTS RESERVED 2
VIETNAM’S INTERNET Weekly Time Spent Online According to Internet
Users in Select Countries in Asia-Pacific, Nov 2015
PENETRATION IS DRIVEN BY hours
MOBILE PHONES Singapore 25.9
Philippines 24.7
Vietnam has one of the higher internet penetration Vietnam 24.7
rates in Southeast Asia thanks to a young population
Hong Kong 24.4
and low access costs. eMarketer estimates that this
Malaysia 24.2
year, for the first time, more than half of the country’s
India 24.1
population (50.6%) will access the internet at least
Taiwan 23.0
once a month. That puts its penetration rate above
Indonesia 20.3
India, Indonesia and Thailand. The number of internet
Thailand 19.5
users in the country is expected to grow from
48.2 million in 2016 to 61.7 million in 2020, when the Note: n=1,000 ages 16+ in each country
Source: Nielsen, "Cross-Platform Insights Report 2015" as cited in press
penetration rate will reach 62.5%. release, June 21, 2016
212518 www.eMarketer.com
Vietnam’s internet growth is complicated by the active The amount of time internet users spend online daily was
role the government plays in regulation. While the also substantial. According to the Vietnam Ecommerce
economic reforms begun by the government in 1986— and Information Technology Agency (VECITA), only 7% of
known collectively as Doi Moi—have liberalized the internet users in Vietnam spent an average of 3 hours or
country’s economy, the government still monitors online less online each day in 2015, while 58% spent between 3
content and suppresses anything deemed subversive. and 7 hours.
While the level of control over the internet in Vietnam
does not approach that seen in China, the country’s two
Average Daily Time Spent Online Among Internet
largest internet service providers, Viettel and Vietnam Post Users in Vietnam, 2015
and Telecommunications (VNPT), are state-run entities. % of respondents
However, these controls have not tempered residents’ <3 hours

9+ hours 7%
interest in accessing the internet. According to November 20%
2015 data from Nielsen, internet users in Vietnam spent 3-5 hours
an average of 24.7 hours per week online, tying them 26%
7-9 hours
with internet users in the Philippines, and trailing only 15%
internet users in Singapore, a country with a much more
5-7 hours
robust internet infrastructure. 32%
Note: n=967 ages 15-49

For consumers in Vietnam, the route to the internet will

increasingly run through mobile devices. VECITA also
reported that in 2015 mobile phones surpassed laptops as
the device most commonly used to access the internet:
85% of internet users ages 15 to 49 said they relied on
mobile phones to get online, while 73% of respondents
used a laptop.
Devices Used to Access the Internet Among Internet
Users in Vietnam, 2014 & 2015
SMARTPHONE USERS GRAVITATE
% of respondents TO SOCIAL NETWORKS
Laptop
75% Internet users, particularly those on advanced
73% handsets, have been quick to join social networks.
Mobile phone
eMarketer estimates that 35.8 million people in
65%
85% Vietnam will be social network users in 2016, or 37.6%
Desktop of the population. By 2020, those figures will climb to
33% 46.7 million people and a penetration rate of 47.3%.
38%
Tablet
19% Social Network Users and Penetration in Vietnam,
19% 2015-2020
2015 2016 2017 2018 2019 2020
2014 2015
Social network users (millions) 32.3 35.8 39.1 42.1 45.1 46.7
Note: n=967 ages 15-49 —% change 13.8% 10.9% 9.2% 7.8% 6.9% 3.6%
"2015 Vietnam Ecommerce Report," April 15, 2016 —% of internet users 72.7% 74.2% 75.1% 75.5% 75.6% 75.7%
210077 www.eMarketer.com —% of population 34.2% 37.6% 40.7% 43.4% 46.0% 47.3%
Note: internet users who use a social network via any device at least once
Internet access via mobile phones will continue to grow per month
in part due to the continued adoption of smartphones Source: eMarketer, Nov 2016
in Vietnam. eMarketer estimates that the number of
smartphone users in the country will increase from Kantar Media Vietnam (KMV) found that 80% of internet
36.5 million, or 38.3% of the population, this year to users ages 15 to 54 in urban areas in Vietnam polled
58.4 million users in 2020, when they will account for in 2015 used social networks, making it the most
59.2% of residents. popular internet activity in the survey, tied with visiting
news websites.
Mobile Phone* and Smartphone** Users in Vietnam,

2015-2020 Leading Internet Activities Among Internet Users in
2015 2016 2017 2018 2019 2020 Vietnam*, 2015
Mobile phone users* 57.1 59.2 61.0 62.9 64.5 65.9
% of respondents
(millions)
Access news websites 80%
—% of population 60.5% 62.1% 63.5% 64.8% 65.9% 66.8%
—% change 4.4% 3.7% 3.1% 3.1% 2.6% 2.2% Social network use 80%
Smartphone users** 27.2 36.5 43.7 49.5 54.5 58.4 Instant messaging 72%
(millions)
Listen to music online 69%
—% of population 28.8% 38.3% 45.5% 51.0% 55.6% 59.2%
—% of mobile phone users 47.6% 61.7% 71.6% 78.7% 84.4% 88.6% Online newspaper 68%
—% change 40.4% 34.4% 19.8% 13.3% 10.1% 7.3% Find information 62%
Note: *individuals of any age who own at least one mobile phone and use
the phone(s) at least once per month; **individuals of any age who own at View video clip 47%
least one smartphone and use the smartphone(s) at least once per month
Source: eMarketer, Sep 2016 Send/receive emails 39%
Watch TV shows 34%
A May 2016 survey of smartphone users in Asia-Pacific Academic/research 33%

from research firm GfK found that 81% of respondents in
Note: n=5,775 ages 15-54; *urban areas
Vietnam used their devices to access the internet daily. Source: Kantar Media Vietnam (KMV), "Vietnam Media Habit Survey," May 5,
2016
That figure was higher than the one reported for Japan,
India and Australia, underscoring just how fundamental
smartphones have become to gaining internet access
in Vietnam.
Number of Messaging Apps Used by Smartphone
Messaging App Users in Vietnam, by Age, June 2016
LOCAL AND REGIONAL PLAYERS
% of respondents RULE ECOMMERCE
18-25
10% 15% 30% 34% 11% Ecommerce has yet to take off in Vietnam. eMarketer
26-30 anticipates retail ecommerce sales, excluding travel,
7% 33% 25% 18% 16%
will total $1.71 billion in 2016, accounting for only
30-35
12% 30% 21% 24% 14% 1.1% of the $161.16 billion in total retail sales.
35+
24% 35% 26% 9% 6% Retail ecommerce sales in Vietnam will total
Total
$3.26 billion by 2020, constituting 1.5% of all retail
12% 33% 27% 17% 12% sales, eMarketer estimates.
1 2 3 4 5+
Note: n=1,200; via smartphone; numbers may not add up to 100% due to Total Retail and Retail Ecommerce* Sales in Vietnam,
rounding 2015-2020
Source: DI Marketing, "Chat Apps Usage in Vietnam," June 10, 2016 billions, % change and % of total retail sales
2015 2016 2017 2018 2019 2020
The market for messaging apps was most fragmented at Total retail $147.99 $161.16 $174.37 $187.45 $200.57 $213.61
sales
the younger end, with 45% of respondents ages 18 to 25
—% change 9.9% 8.9% 8.2% 7.5% 7.0% 6.5%
using four or more messaging apps. In fact, the research
Retail $1.37 $1.71 $2.08 $2.47 $2.88 $3.26
showed that those under 35 were using only one app in ecommerce*
sales
significantly smaller numbers than those who were 35
—% change 43.5% 24.3% 22.0% 18.5% 16.8% 13.2%
or older.
—% of total 0.9% 1.1% 1.2% 1.3% 1.4% 1.5%
retail sales
Note: converted at the exchange rate of US$1=VND21,913.7; excludes
travel and event tickets; *includes products or services ordered using the
internet via any device, regardless of the method of payment or fulfillment
Source: eMarketer, Aug 2016
VECITA reported that ecommerce revenue in 2015

had totaled $4.07 billion, an increase of 37% from the
previous year.
The country’s ecommerce landscape is dominated by

local and regional players. Lazada Vietnam, which is
majority-owned by China’s Alibaba Group and carries its
own inventory and serves as a marketplace, ranks among
the top players in the country. According to SimilarWeb,
Lazada Vietnam recorded the highest number of monthly
page views in Vietnam in August 2016 at 24.5 million. That
put it ahead of consumer electronics retailer The Gioi Di
Dong, business-to-consumer (B2C) platform Tiki.vn, online
retailer Sendo.vn and several others.
Leading B2C Ecommerce Sites in Vietnam, Ranked by Product/Service Categories Purchased Digitally by
Monthly Page Views, Aug 2016 Digital Buyers in Vietnam, 2015
millions % of respondents
Lazada Vietnam 24.5 Clothing, shoes, cosmetics

64%
The Gioi Di Dong 17.1
Tech/electronics
Tiki.vn 11.7 56%
Sendo.vn 10.7 Kitchen and home appliances
49%
Vatgia.com 10.4
Books, stationery, gifts, flowers
Fptshop 7.7 42%
3.2 Hotdeal Travel (airfare, train ticket)
3.2 Nguyenkim.com 34%
Food
Lozi 2.4
33%
1.5 Phongvu Movie or concert tickets
22%
Note: represents activity tracked by SimilarWeb, broader industry metrics
may vary Hotel bookings, tours
Source: SimilarWeb as cited by ecommerceIQ, Sep 27, 2016
19%
Education/business services
According to data from DI Marketing, advanced handsets 7%
have still not yet displaced desktops and laptops. Its Music/videos/DVDs/games
August 2016 survey of digital buyers in Vietnam found 7%
that 75% of respondents used a PC to make a purchase, Spa and beauty services
6%
while 51% used a smartphone and 21% used a tablet.
Other
2%
Devices Used for Digital Purchases by Digital Buyers
in Vietnam, Aug 2016 Note: ages 15-49
% of respondents "2015 Vietnam Ecommerce Report," April 15, 2016
Desktop/laptop 75%
Smartphone 51%
Tablet 21% DIGITAL BUYERS ATTACHED TO CASH

Note: n=565
Source: DI Marketing, "Study About Online Shopping Behavior in Vietnam,"
ON DELIVERY
Sep 12, 2016
In Vietnam, cash on delivery (COD) remains a favored
payment method among consumers, especially in
However, there are signs that advanced handsets are urban areas.
making inroads among digital buyers in Vietnam. Tran Hai
Linh, CEO of Sendo.vn, said in June 2016 that 75% of its According to a July 2016 survey of digital buyers living in
customers accessed the site by smartphone. urban Vietnam conducted by Q&Me, 85% of respondents
used COD as their main payment method for digital
The growth of mcommerce in Vietnam is also in line with purchases. Bank transfers were the primary payment
wider regional trends. Online marketing services provider method for 8% of those polled, while only 6% said they
Criteo found that mobile transactions made up 54% of all relied on debit or credit cards, a reflection of the low
digital ecommerce transactions in Southeast Asia in Q2 penetration rate of payment cards in the country.
2016, an increase from 39% in Q4 2015.
VECITA found that 64% of digital buyers in Vietnam had

purchased soft goods and cosmetics digitally in 2015,
making them the most popular product category for
ecommerce. Consumer electronics ranked second (56%),
followed by kitchen and other home appliances (49%).
Primary Payment Method Used for Digital Purchases Vietnam is similar to India in its adherence to COD as a
According to Digital Buyers in Urban Vietnam*, preferred payment method. As in India, consumers have
July 2016 little incentive to switch over to other payment methods,
% of respondents
with many services accepting cash as a matter of course.
“Even if I want to pay my electricity bill, someone
Bank Credit card/
transfer debit card comes around and collects cash,” said Richard Burrage,
8% 6%
managing partner at Vietnam-based market research firm
Cimigo. Furthermore, COD also makes it easier to refuse
an order once it arrives. “If I do some shopping online, I’ll
Cash on delivery pay them in cash. All of the fears of online shopping are
85%
dispersed; if I don’t like it, I can turn it away,” said Burrage.
The ability of consumers to inspect goods purchased

Note: numbers may not add up to 100% due to rounding; *Hanoi and Ho online before paying has alleviated some of the trust
Chi Minh City
Source: Q&Me, "Vietnam Ecommerce Market Survey," July 19, 2016 issues related to the nascent ecommerce market in
Vietnam, but it has also provided an incentive for vendors
Similarly, VECITA reported that 91% of digital buyers in and third-party logistics providers to keep the cost of COD
Vietnam had used COD to complete an ecommerce free or low. And when costs related to COD purchases
transaction in 2015, an increase from 64% in 2014. Digital are incurred, they are usually shouldered by the merchant.
buyers’ use of ewallets actually declined from 37% to In addition, merchants and consumers prefer cash
11% over the same time period, while bank transfers payments because it’s easier for such transactions to
were used by 48% of buyers in 2015, up from 14% the remain off the books, thus avoiding taxes.
year before.
Bank cards are rarely used to buy goods or services
thanks to the combination of an underbanked populace
Payment Methods Used for Ecommerce Transactions and a dearth of point-of-sale (POS) terminals for offline
According to Digital Buyers in Vietnam, 2014 & 2015
% of respondents purchases. The government in Vietnam has moved in
recent years to encourage consumers to move toward
Cash on delivery
payment methods other than cash by establishing new
64%
91%
regulations for digital payments.
Ewallet
37% Still, much work remains to be done if vendors are going
11% to start accepting more payment methods. According to
Bank transfer a November 2015 survey of businesses in Vietnam by
14% the Vietnam Ecommerce Association (VECOM), nearly all
48% (97%) respondents accepted bank transfers, while only
Scratch cards 16% accepted payment cards, a category that included
11% credit and debit cards. Only 4% accepted digital wallets.
6%
Payment card (credit, debit, gift, etc.)
7% Noncash Payment Methods Accepted by Businesses
20% in Vietnam, Nov 2015
% of respondents
Other
1% Bank transfer 97%
1%
16% Payment card*
2014 2015
4% Digital wallet
Note: ages 15-49 2% Scratch card**
Note: n=4,735; *includes all types of payment cards (credit, debit, gift, etc.);
**type of preloaded payment card
Source: Vietnam Ecommerce Association (VECOM), "Viet Nam E-Business
Index 2015," Feb 1, 2016
The digital wallet sector in Vietnam remains fractured.
Online newspaper VietnamNet reported in August 2016
PAYING CUSTOMERS STILL
that there were 16 digital wallets in operation in the PREFER CABLE AND SATELLITE
country as of May 2016, but many of them had been OVER VIDEO-ON-DEMAND
developed by ecommerce platforms and worked solely on
those websites. In order for digital payment methods like Despite the emergence of various video-on-demand
mobile wallets to catch on in Vietnam, they will have to
(VOD) platforms in Vietnam, paying for online video
provide a greater range of service options for consumers.
services has not yet become a widespread behavior
among consumers there.
A September 2015 poll of internet users in the

country conducted by Nielsen found that only 13% of
respondents paid for an online video service provider.
Cable TV remained the dominant mode of pay TV, used by
78%, while 40% paid for satellite TV.
Internet Users in Vietnam Who Currently Pay for

Select TV/Video Services, Sep 2015
% of respondents
Cable provider 78%
Satellite provider 40%
13% Online service provider
7% Other
4% None of these
Source: Nielsen, "Global Video-on-Demand Survey" as cited in press

release, March 18, 2016
Despite the uphill battle online video services face

from traditional TV platforms, digitally savvy consumers
are turning to online resources in search of more and
different programming, as well as the freedom offered
by on-demand services, according to data from Nielsen’s
November 2015 study.
“Consumers are exercising their choice of how, when and

where they can obtain their content and are more active
in their media habits than ever before,” said Doan Duy
Khoa, director of consumer insights for Nielsen Vietnam.
YOUTUBE ECLIPSES THE COMPETITION Top 3 Video-on-Demand (VOD) Platforms According to
VOD Viewers in Vietnam, Nov 2015
Among those who have embraced online video, YouTube % of respondents
has emerged as a favorite destination. The adoption 1. YouTube 97%
of YouTube by video viewers in Vietnam makes sense 2. Facebook 81%
given the platform’s ad-supported model, which gives
3. NhacCuaTui.com 56%
consumers resistant to paying for videos access to
free content. Note: ages 16+
Source: Nielsen, "Cross-Platform Insights Report 2015" as cited in press
release, June 21, 2016
According to data from comScore Video Metrix, Google 212515 www.eMarketer.com
sites (a category that mainly refers to YouTube) had the

Although it did not register on either Nielsen or
most unique viewers of any online video property in
comScore’s list of top online video properties, Netflix has
Vietnam in March 2016, with 15.4 million.
been available in Vietnam since January 2016. However,
the subscription-based service suffers from a lack of
Top 10 Online Video Properties Among Internet Users localized content and the absence of Vietnamese subtitles
in Vietnam, Ranked by Unique Viewers, March 2016 for much of its nonlocal content.
millions
1. Google sites* 15.4
2. BroadbandTV 12.5
3. QuizGroup 10.0
4. BlueSeed Digital 7.2
5. Facebook 6.8
6. Maker Studios 6.1
7. Fullscreen 6.0
8. Coc Coc 5.9
9. Videology 5.8
10. Warner Music 4.8
Note: home and work locations; includes ad and content video streaming;
*mainly refers to YouTube
Source: comScore Video Metrix, May 19, 2016
comScore’s data included a litany of online video content

studios that largely publish their work on YouTube, such as
BroadbandTV, Maker Studios and Fullscreen. But it also
included Facebook, which garnered 6.8 million views in
the month, as well as Vietnam-based web browser Coc
Coc (5.9 million).
Similarly, the November 2015 Nielsen data found that

YouTube was the most popular platform among VOD
viewers in Vietnam. In fact, 97% of respondents used
YouTube, while 81% used Facebook. Local platform
NhacCuaTui.com was also a favorite, used by 56% of
those polled.
EMARKETER INTERVIEWS EDITORIAL AND
PRODUCTION CONTRIBUTORS
Marketing in Asia-Pacific: Millennials in Vietnam Are
Social, Skeptical and Seeking Role Models Cliff Annicelli Managing Editor, Reports
Richard Burrage Michael Balletti Copy Editor
Managing Partner Joanne DiCamillo Senior Production Artist
Cimigo Dana Hill Director of Production
Interview conducted on April 20, 2016 Eden Kelley Chart Editor
Stephanie Meyer Senior Production Artist
Kris Oser Deputy Editorial Director
RELATED EMARKETER CONTENT Heather Price Senior Copy Editor
John Rambow Executive Editor, Reports
Digital Usage in Southeast Asia: Vietnam Allie Smith Director of Charts
Global Millennials 2016: Gauging the Digital Behavior
of Young Adults Around the World
Mobile Commerce in Vietnam: An Early Picture
Retail Ecommerce Sales in Southeast Asia:
Opportunities and Challenges for Six Key Markets
Social Network Users: Vietnam
RELATED LINKS
comScore Inc.
Criteo
DI Marketing
GfK
Kantar Media Vietnam (KMV)
Nielsen
Q&Me
SimilarWeb
Vietnam Ecommerce Association (VECOM)
Vietnam Ecommerce and Information Technology
Agency (VECITA)
W&S Group
We Are Social

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VIETNAM

■■ Messaging apps are even more popular. One survey

MOBILE PHONES Singapore 25.9

However, these controls have not tempered residents’ <3 hours

Note: n=967 ages 15-49

For consumers in Vietnam, the route to the internet will

Mobile Phone* and Smartphone** Users in Vietnam,

A May 2016 survey of smartphone users in Asia-Pacific Academic/research 33%

VECITA reported that ecommerce revenue in 2015

The country’s ecommerce landscape is dominated by

Lazada Vietnam 24.5 Clothing, shoes, cosmetics

Tablet 21% DIGITAL BUYERS ATTACHED TO CASH

VECITA found that 64% of digital buyers in Vietnam had

The ability of consumers to inspect goods purchased

A September 2015 poll of internet users in the

Internet Users in Vietnam Who Currently Pay for

Cable provider 78%

Satellite provider 40%

13% Online service provider

Source: Nielsen, "Global Video-on-Demand Survey" as cited in press

Despite the uphill battle online video services face

“Consumers are exercising their choice of how, when and

sites (a category that mainly refers to YouTube) had the

1. Google sites* 15.4

4. BlueSeed Digital 7.2

6. Maker Studios 6.1

8. Coc Coc 5.9

10. Warner Music 4.8

comScore’s data included a litany of online video content

Similarly, the November 2015 Nielsen data found that

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