GENERAL METHODOLOGY OF MARKET REPORTS Secondary Market Research The reports are compiled based on secondary market research. Secondary research.

GENERAL METHODOLOGY OF MARKET REPORTS
Secondary Market Research The reports are compiled based on secondary market research. Secondary research is information gathered from previously published sources. Our reports are solely based on information and data acquired from national and international statistical offices, industry and trade associations, business reports, business and company databases, journals, company registries, news portals and many other reliable sources. By using various sources we ensure maximum objectivity for all obtained data. As a result, companies gain a precise and unbiased impression of the market situation. Cross referencing of data is conducted in order to ensure validity and reliability. The source of information and its release date are provided on every chart. It is possible that the information contained in one chart is derived from several sources. If this is the case, all sources are mentioned on the chart. The reports include mainly data from the last 12 months prior to the date of report publication. Exact publication dates are mentioned in every chart. Definitions The reports take into account a broad definition of B2C E-Commerce, which might include mobile commerce. As definitions may vary among sources, exact definition used by the source (if available) is included at the bottom of the chart. Chart Types Our reports include text charts, pie charts, bar charts, rankings, line graphs and tables. Every chart contains an Action Title, which summarizes the main idea/finding of the chart and a Subtitle, which provides necessary information about the country, the topic, units or measures of currency, and the applicable time period(s) to which the data refers. With respect to rankings, it is possible that the summation of all categories amounts to more than 100%. In this case, multiple answers were possible, which is noted at the bottom of the chart. Report Structure Reports are comprised of the following elements, in the following order: Cover page, preface, legal notice, methodology, definitions, table of contents, management summary (summarizing main information contained in each section of report) and report content (divided into sections and chapters). When available, we also include forecasts in our report content. These forecasts are not our own; they are published by reliable sources. Within Global and Regional reports, we include all major developed and emerging markets, ranked in order of importance by using evaluative criteria such as sales figures. Notes and Currency Values If available, additional information about the data collection, for example the time of survey and number of people surveyed, is provided in the form of a note. In some cases, the note (also) contains additional information needed to fully understand the contents of the respective data. When providing information about amounts of money, local currencies are most often used. When referencing currency values in the Action Title, the EUR values are also provided in brackets. The conversions are always made using the average currency exchange rate for the respective time period. Should the currency figure be in the future, the average exchange rate of the past 12 months is used.

METHODOLOGY OF THE CURRENT REPORT
Report Coverage In this country report, major trends in the B2C E-Commerce market, sales figures, B2C E-Commerce share of the total retail market, main online product categories, and relevant information about Internet users, online shoppers and leading E-Commerce companies were included. Report Structure The report starts with an overview of the B2C E-Commerce market and international comparisons, where the relevant country is compared to other countries worldwide and in the region in terms of criteria relevant to B2C E-Commerce. The “Trends” section includes an overview of trends on the B2C E-Commerce market, such as social commerce, cross-border and M-Commerce trends. The section “Sales & Shares” includes the development of B2C and total E-Commerce sales, including historical sales and forecasts. Furthermore, this section shows the development of B2C E-Commerce share of the total retail market. In the “Users & Shoppers” section, a review of the development of Internet users and Internet penetration was included. Moreover, the evolution of the online shopper penetration was shown. Afterwards, the section “Products” shows the leading product categories among online shoppers. The next two sections, “Payment” and “Delivery”, cover information related to delivery and payment methods most used by online shoppers. Finally, the “Players” section includes information about the leading E-Commerce players, such as online retailers and marketplaces.

DEFINITIONS B2C E-COMMERCE B2C E-COMMERCE SALES M-COMMERCE
The following expressions and definitions are used in this B2C E-Commerce market report*: B2C E-COMMERCE the sale of products (and services) through electronic transactions via the Internet from businesses to consumers. B2C E-COMMERCE SALES the total sales generated either on the B2C E-Commerce market in a certain country or region, or the total sales generated through B2C E-Commerce by a player on the market. M-COMMERCE M-Commerce, also called “Mobile Commerce”, means the sale of products (and services) through electronic transactions via mobile devices, such as mobile phones, tablets and smartphones. CROSS-BORDER B2C E- COMMERCE the sale of goods (and services) directly to consumers in other countries, with orders made online through foreign online shops and delivered from the country where the foreign shop is based or from a central logistics facility, i.e. across the country’s borders. SOCIAL COMMERCE sale of goods (and services) that involves the use of social media, such as social networks. INTERNET USERS the total number of inhabitants in a certain country that regularly accesses the Internet. ONLINE SHOPPERS the total number of inhabitants in a certain country or region that participates in B2C E-Commerce. ONLINE CLASSIFIEDS an online platform, where both consumers and businesses can publish small advertisements about the sale of goods and services. WEBROOMING a practice in retail where consumers browse/research the products online before making the purchase in-store; may also refer to customers using Internet-enabled mobile devices to browse/research/compare products online while being in-store. OMNICHANNEL an approach to retail that strives to provide the customer with the seamless shopping experience across all retail channels, such as in-store, online and mobile. Note: *the definitions used by the original sources might differ from the ones stated on this chart; the exact definition used by each source, where available, is included on the respective charts

TABLE OF CONTENTS (1 OF 3) 1. Management Summary
2. Overview and International Comparisons B2C E-Commerce Overview and International Comparisons, August 2015 Online Shopper Penetration, by Selected Emerging Markets, incl. Vietnam, in % of Adult Internet Users, May 2014 Share of Households Buying FMCG Products Online at Least Once in 2014, by Selected Countries Worldwide, incl. Vietnam, in %, 2014 Number of Internet Users in Asia-Pacific, by Country, incl. Vietnam, in millions, 2013 – 2018f Internet Penetration in Asia-Pacific, by Country, incl. Vietnam, in % of Population, 2013 – 2018f Share of Respondents who Made at Least One Purchase Online in the Previous Three Months in Asia-Pacific, by Selected Countries, incl. Vietnam, in %, Q4 2014 Mobile Shopper Penetration in Asia-Pacific, by Selected Countries, incl. Vietnam, in % of Respondents, 2012 – 2014 Breakdown of Frequency of Cross-Border Online Shopping, in % of Online Shoppers, by Selected Countries, April 2015 Internet Penetration in Southeast Asia, by Country, incl. Vietnam, in % of Population, 2014 B2C E-Commerce Share of Total Retail Sales in Southeast Asia, by Country, incl. Vietnam, in %, 2013 Devices Most Used for Online Shopping in Southeast Asia, by Country, incl. Vietnam, Compared to Global Average, in % of Online Shoppers, Q1 2014 Breakdown of the Last Online Purchase in Southeast Asia, by Device Used, in % of Online Shoppers, by Country, incl. Vietnam, 2014/Q1 2015 Activities Carried Out on Smartphones at Least Weekly in Southeast Asia, incl. Purchase, by Country, incl. Vietnam, in % of Smartphone Users, 2014/Q1 2015 Top 3 Drivers of Online Shopping in Southeast Asia, by Countries, incl. Vietnam, Q1 2014 Share of Internet Users Who Do Not Trust to Provide Credit Card Information Online in Southeast Asia, by Country, incl. Vietnam, Compared to Global Average, in % of Internet Users, Q1 2014 3. Trends B2C E-Commerce Trends Overview, August 2015 Devices Used, incl. Mobile, in % of Respondents, April 2015 M-Commerce Share of Total B2C E-Commerce Sales, in %, 2018f Breakdown of Frequency of Online Shopping via Smartphone, in % of Smartphone Users, November 2014

TABLE OF CONTENTS (2 OF 3) 3. Trends (Cont.)
Share of Online Buyers of Fashion Products who Ordered Fashion Products Online via Facebook Pages, in %, December 2014 Product Categories Purchased Online via Facebook, in % Online Shoppers Who Purchase On Facebook, December 2014 Payment Methods Used When Purchasing Items on Facebook, by Age Group, in % Online Shoppers Who Purchase on Facebook, December 2014 Online/Offline Purchase Behavior after Online/Offline Research, in % of Internet Users, 2014/April 2015 4. Sales & Shares B2C E-Commerce Sales, in USD billion, 2013 & 2014 B2C E-Commerce Share of Total Retail Sales, in %, 2014 B2C E-Commerce Sales, in EUR billion, 2013 & 2018f 5. Users & Shoppers Internet Penetration, in % of Individuals, Number of Internet Users, in millions, and in % Penetration, f Online Shopper Penetration, in % of Internet Users, 2013 & 2014 6. Products Product Categories Purchased Online, in % Online Shoppers, 2013 & 2014 Online Share of Total Modern Retail Sales of Grocery, in %, 2013 & 2014 7. Payment Payment Methods Used in Online Shopping, in % of Online Shoppers, 2013 & 2014 Factors Considered in Online Shopping, incl. Payment, in % of Online Shoppers, 2014

TABLE OF CONTENTS (3 OF 3) 8. Delivery
Complaints Received by E-Commerce Websites, incl. Delivery, in % of E-Commerce Websites, 2014 9. Players E-Commerce Player Overview, August 2015 Most Often Visited E-Commerce Websites, in % of Respondents, 2014 Websites Most Often Used for Online Shopping, in % of University Students Who Shop Online, February 2015 E-Commerce Websites Used to Purchase Fashion Products from, in % of Online Shoppers who Purchased Fashion Products, by Age Group, December 2014 Top 10 E-Commerce Websites by Visits, by Website Rank, August 2015 Breakdown of E-Commerce Marketplaces, by Market Share, in %, 2014

1. Management Summary 10 – 12 2. Overview and International Comparisons 13 – 28 3. Trends 29 – 37 4. Sales & Shares 38 – 41 5. Users & Shoppers 42 – 45 6. Products 46 – 48 7. Payment 49 – 51 8. Delivery 52 – 53 9. Players 54 – 60

Management Summary (1 of 2)
Overview and International Comparisons Online retail is gaining momentum in Vietnam. The growth drivers include increasing online shopper penetration, rising spending per shopper and improving Internet penetration. In terms of Internet penetration, Vietnam (48%) ranked third in Southeast Asia in 2014 and was the sixth largest country in Asia-Pacific in number of Internet users (56 million). Delivery and payment infrastructure need to be developed in order to boost B2C E-Commerce. Vietnam (48th) ranked below Malaysia (25th) and Thailand (35th) in terms of logistics performance in The payment system also leaves room for improvement, as 42% of Internet users who do not make purchases online stated lack of credit card as the major reason in 2014, while cash on delivery was the most used payment method in online shopping. Trends Social commerce is one of the most important trends on the online shopping market in Vietnam. Of the respondents surveyed in December 2014, 50% of men and 65% of women admitted having purchased something via Facebook. By far the most purchased product category was clothing, bought by 51% of men and 71% of women. Overall, 87% of online buyers of fashion products made at least one purchase from this category via Facebook. Mobile commerce is also an emerging trend. With smartphone ownership increasing, M-Commerce is predicted to account for 6.5% of total B2C E-Commerce sales of goods by 2018. Regarding the cross-border trend, 51% of online shoppers surveyed in Vietnam between November 2014 and April 2015 had never bought a product online from a foreign country, while 33% did so at least annually, 7% less often and 5% did so only once. Sales & Shares Between 2014 and 2013, B2C E-Commerce sales in Vietnam increased by +35%, reaching EUR 2.24 billion. The growth rate predicted until 2019 is CAGR of +28%. B2C E-Commerce accounted for 2.1% of the total retail sales in Vietnam in 2014. Internet Users & Online Shoppers Internet penetration in Vietnam improved from 30.7% of individuals in 2010 to 48.3% in The number of Internet users in Vietnam is predicted to reach 55.8 million by 2018, up from estimated 40.5 million in 2014. Online shopper penetration as a percentage of Internet users amounted to 57% in 2013 and 58% in 2014, with the 2013 survey conducted in two large urban areas only.

Management Summary (2 of 2)
Products “Clothes, shoes, cosmetics” was the product category most purchased by online shoppers in Vietnam both in 2013 and in The second leading category in 2013, “Technology” showed the biggest increase in popularity from 35% of online shoppers in 2013 to 60% and shared the first rank with “Clothes, shoes, cosmetics” (60%) in 2014. The online share of the total modern retail grocery market in Vietnam more than tripled from 0.4% in 2013 to 1.5% in 2014, with 3.1% of households having bought FMCG products online at least once in 2014. Payment “Cash on Delivery” was the payment method most used by online shoppers in Vietnam in 2014 (64%), though its usage declined from 2013 (74%), while the share of online shoppers using “Electronic Wallet”, the second leading payment method, increased from 8% in 2013 to 37% in 2014. Delivery 60% of E-Commerce websites in Vietnam received complaints about “Delivery Time” in 2014 and 3% about “Delivery, Shipment” in general. Players The most visited E-Commerce websites in Vietnam in July 2015 included marketplaces such as Vatgia.com, Lazada.vn, online classifieds 5giay.vn, Chotot.vn, Muaban.net, Totdoi.vn, as well as foreign websites Amazon.com, Alibaba.com and Aliexpress.com. Lazada.vn (21%) and Sendo.vn (10%) held the largest market shares among the E-Commerce marketplaces in 2014, while another source reported that consumer electronics merchants Mobile World (9%) and Nguyen Kim Trading (5%) were the largest B2C online retailers of goods in terms of market share that year. A newcomer to the E-Commerce market is one of the major property developers, Vingroup, which launched the VinEcom division with a EUR 38 million investment, planning to open a website which would become an online retail channel for Vingroup and its partners.

B2C E-Commerce in Vietnam is expected to maintain relatively high growth rates, spurred by increasing Internet and mobile penetration. Vietnam: B2C E-Commerce Overview and International Comparisons, August 2015 A.T. Kearney ranked Vietnam as the smallest B2C E-Commerce market in Southeast Asia in terms of sales in However, online retail is gaining momentum there. An annual MasterCard survey conducted across Asia-Pacific revealed that the share of respondents in Vietnam who shopped online in the previous three months increased from 68% to 80% between 2013 and 2014, as cited by Vietrade. Apart from increasing online shopper penetration, another growth driver is rising online spending per shopper, at USD 145 in 2014, compared to USD 120 in 2013, as reported by VECITA. Euromonitor International projects that although the annual growth rate of B2C E-Commerce in Vietnam is reported to decline from +43% in 2014, it is still expected to show relatively high CAGR of +28% until 2019, spurred by growing Internet, smartphone and tablet penetration, as well as governmental support for the annual Black Friday online sales event. Internet penetration, one of the important factors for development of E-Commerce, is improving in Vietnam. At 48%, Vietnam ranked third in Southeast Asia in 2014 by that criterion. eMarketer reported that Vietnam (55.8 million) was the sixth largest country by number of Internet users in Asia-Pacific in 2014 and was predicted to keep this rank until Delivery infrastructure has some room for improvement, as 60% of the E-Commerce websites surveyed by VECITA in 2014 received complaints about delivery. Vietnam ranked 48th in the global logistics performance index by the World Bank in 2014, below Malaysia (25th) and Thailand (35th). The payment system also needs to be developed in order to boost B2C E-Commerce. According to VECITA, 42% of respondents did not shop online because they did not have a credit card or other payment card, while among those respondents who did shop online, the most used payment method was “Cash on delivery” (63%). Vietnam News reports citing the Ministry of Industry and Trade that online shopping accounted for 19% of the transactions made with the 72 million bank cards circulating in the country. Of the 72 million, only 3 million cards were enabled for online banking transactions. In order to adapt the payment system in the country to the demands of the evolving E-Commerce, The State Bank of Vietnam established an interbank electronic payment system which connects 66 members. Furthermore, 51% of population in Vietnam still lived in rural areas in 2014, with the share decreasing from 56% in 2010, according to the World Bank. Moreover, modern retail accounts for only 22% of the total retail sales, according to Cushman & Wakefield, with retailers focusing on urban areas. However, as urbanization progresses and living standards rise, modern retail is expected to expand, according to Deloitte. Source: VECITA, April 2015, March 2014; Euromonitor International, June 2015; MOIT cited by Vietnam News, October 2014; A.T. Kearney, 2015; MasterCard cited by Vietrade, March 2015; Cushman & Wakefield, February 2015; Deloitte, December 2014; eMarketer, December 2014; World Bank, August 2015

in % of Adult Internet Users
26% of adult Internet users in Vietnam made purchases online in May 2014, ranking the country fourth after China, Russia and Brazil. Global: Online Shopper Penetration, by Selected Emerging Markets, incl. Vietnam, in % of Adult Internet Users, May 2014 in % of Adult Internet Users Note: Survey: includes only responses of surveyed individuals who use the Internet at least occasionally or own a smartphone based on a survey of adult population; conducted via face-to-face and telephone interviews between April and May 2015 with around 1,000 respondents per country; question asked: “In the past 12 months, have you used the internet to do any of the following things?”; the graph shows share of responses “Buy Products” Source: Pew Research Center, March 2015

The share of households buying FMCG online at least once in 2014 in Vietnam (3.1%) was significantly below that of South Korea (58.9%). Global: Share of Households Buying FMCG Products Online at Least Once in 2014, by Selected Countries Worldwide, incl. Vietnam, in %, 2014 in % of Households Note: data for Vietnam is based on urban population in four major cities: Ho Chi Minh City, Ha Noi, Da Nang and Can Tho Source: Kantar Worldpanel, July 2015

Vietnam (55.8 million) is forecasted to remain in the sixth place in Asia-Pacific in terms of number of Internet users until 2018. Asia-Pacific: Number of Internet Users in Asia-Pacific, by Country, incl. Vietnam, in millions, 2013 – 2018f 2013 2014e 2015f 2016f 2017f 2018f China* 620.7 643.6 669.8 700.1 736.2 777.0 India 167.2 215.6 252.3 283.8 313.8 346.3 Japan 100.0 102.1 103.6 104.5 105.0 105.4 Indonesia 72.8 83.7 93.4 102.8 112.6 123.0 Philippines 42.3 48.0 53.7 59.1 64.5 69.3 Vietnam 36.6 40.5 44.4 48.2 52.1 55.8 South Korea 40.1 40.4 40.6 40.7 40.9 41.0 Thailand 22.7 24.3 26.0 27.6 29.1 30.6 Australia 16.8 17.1 17.3 17.6 17.8 18.0 Malaysia 13.0 13.7 14.4 15.2 16.2 Hong Kong 5.2 5.3 5.4 5.5 5.6 5.7 Singapore 4.0 4.1 4.3 4.4 4.5 4.7 Other 141.0 153.1 164.4 175.7 187.8 201.1 Asia-Pacific (Total) 1,282.5 1,391.5 1,489.6 1,585.3 1,686.0 1,795.1 Note: *excludes Hong Kong Definition: individuals of any age who use the Internet from any location via any device at least once per month Source: eMarketer, December 2014

Vietnam is predicted to move up the ranking of countries in Asia-Pacific by Internet penetration to the seventh place by 2018. Asia-Pacific: Internet Penetration in Asia-Pacific, by Country, incl. Vietnam, in % of Population, 2013 – 2018f 2013 2014e 2015f 2016f 2017f 2018f South Korea 81.9% 82.3% 82.6% 82.8% 83.0% 83.2% Japan 78.6% 80.3% 81.6% 82.5% 83.5% Australia 75.6% 76.0% 76.2% 76.4% 76.5% 76.6% Hong Kong 73.7% 74.9% 77.0% 77.9% 78.7% Singapore 73.0% 74.0% 75.0% 78.0% China 46.0% 47.5% 49.2% 51.2% 53.7% 56.4% Malaysia 44.0% 45.5% 47.2% 51.7% 54.4% Philippines 40.0% 44.6% 49.0% 53.0% 56.8% 60.0% Vietnam 39.5% 43.3% 47.0% 50.6% 54.1% 57.5% Thailand 33.6% 35.9% 38.2% 40.5% 42.6% Indonesia 29.0% 33.0% 36.5% 39.8% 43.2% 46.8% India 13.7% 17.4% 20.2% 22.4% 24.5% 26.7% Other 22.7% 24.3% 25.8% 27.2% 28.7% 30.3% Asia-Pacific (Total) 32.5% 35.0% 37.1% 39.2% 41.3% 43.6% Note: Definition: *excludes Hong Kong individuals of any age who use the Internet from any location via any device at least once per month Source: eMarketer, December 2014

80% of respondents in Vietnam in Q bought items online in the previous 3 months, less than most countries in Asia-Pacific. Asia-Pacific: Share of Respondents who Made at Least One Purchase Online in the Previous Three Months in Asia-Pacific, by Selected Countries, incl. Vietnam, in %, Q4 2014 in % of Respondents Survey: based on a survey of 7,010 respondents in 14 markets in Asia-Pacific, including Vietnam, conducted between October and December 2014; the minimum number of respondents per country was 500, ages ; the respondents were asked about their online shopping habits Source: MasterCard, April 2015

Asia-Pacific (Average)
In 2014, mobile shopper penetration in Vietnam (45.2%) was slightly below the average for Asia-Pacific (45.6%). Asia-Pacific: Mobile Shopper Penetration in Asia-Pacific, by Selected Countries, incl. Vietnam, in % of Respondents, 2012 2013 2014 China 54.1% 59.4% 70.1% India 30.3% 47.1% 62.9% Taiwan 28.2% 45.2% 62.6% Thailand 51.0% 51.2% 58.8% Indonesia 54.5% 46.7% 54.9% Korea 40.2% 47.6% 53.8% Malaysia 25.4% 31.5% 45.6% Asia-Pacific (Average) 35.4% 38.6% Vietnam 33.7% 34.9% Hong Kong 40.9% 40.0% 38.2% Singapore 39.8% 31.4% 36.7% Philippines 21.4% 32.8% 34.0% Japan 25.8% 22.9% New Zealand 18.2% 15.0% 20.7% Australia 18.7% 24.8% 19.6% Definition: Survey: respondents who have made a purchase using a smartphone based on a survey of 7,010 respondents in 14 markets in Asia-Pacific, including Vietnam; in 2014 the survey was conducted between October and December 2014; the minimum number of respondents per country was 500, ages ; the respondents were asked about their online shopping habits Source: MasterCard, July 2015

Less than 50% of online shoppers in Vietnam had experience in cross-border online shopping, as of April 2015. Asia-Pacific: Breakdown of Frequency of Cross-Border Online Shopping, in % of Online Shoppers, by Selected Countries, April 2015 in % of Online Shoppers Note: Survey: may not add up to 100% due to rounding based on a survey of 30,631 Internet users in the listed countries conducted between November 2014 and April 2015; question asked “How often do you purchase products online from abroad (including shipments to you from a foreign country)?“; only one answer possible; base for this question were Internet users purchasing online via computer, tablet or smartphone Source: Google, TNS, August 2015

With 48%, Vietnam ranked third among the major countries in Southeast Asia in terms of Internet penetration in 2014. Southeast Asia: Internet Penetration in Southeast Asia, by Country, incl. Vietnam, in % of Population, 2014 in % of Population Note: population aged 5+ for Indonesia; 6+ for Thailand data for Indonesia, Thailand and Singapore was provided to ITU by national statistical and Internet agencies, the rest is ITU’s estimate Source: ITU, 2015

in % of Total Retail Sales
Together with Indonesia, Vietnam (0.1%) had the lowest B2C E-Commerce share of total retail sales across Southeast Asia in 2013. Southeast Asia: B2C E-Commerce Share of Total Retail Sales in Southeast Asia, by Country, incl. Vietnam, in %, 2013 in % of Total Retail Sales Source: Frost & Sullivan, July 2014

Vietnam ranked third in Southeast Asia in share of online shoppers buying via mobile phone and via tablet in Q Southeast Asia: Devices Most Used for Online Shopping in Southeast Asia, by Country, incl. Vietnam, Compared to Global Average, in % of Online Shoppers, Q1 2014 Computer Mobile Phone Tablet Philippines 71% 62% 38% Indonesia 58% 61% 39% Vietnam 34% Thailand 57% 32% Singapore 73% 48% 29% Malaysia 72% 47% 24% Global Average 80% 44% 31% Note: devices most used for shopping online; does not add up to 100% due to multiple answers possible; ranked by “Mobile Phone” Definition: based on an online survey of 30,000 respondents worldwide, incl. from the listed countries Source: Nielsen cited by The Rakyat Post, August 2014

Across Southeast Asia, Vietnam had the second lowest share of online shoppers who made their last online purchase via smartphone (18%). Southeast Asia: Breakdown of the Last Online Purchase in Southeast Asia, by Device Used, in % of Online Shoppers, by Country, incl. Vietnam, 2014/Q1 2015 in % of Online Shoppers Note: Survey: Source: does not add up to 100% due to rounding, no answers given, or don’t know answers based on a survey of 9,529 Internet users, conducted in two waves from May 2014 to September 2014, and from November 2014 to April 2015; question asked: “Which device did you use to make your purchase?“; based on a recent online purchase Google, TNS, August 2015

Look for Product Information Look up Maps and Directions
“Purchase” was the least popular weekly activity carried out on smartphones in Vietnam and other countries in Southeast Asia. Southeast Asia: Activities Carried Out on Smartphones at Least Weekly in Southeast Asia, incl. Purchase, by Country, incl. Vietnam, in % of Smartphone Users, 2014/Q1 2015 Visit Social Networks Use Search Engines Watch Online Videos Check Mail Listen to Music Play Games Look for Product Information Look up Maps and Directions Purchase Singapore 71% 75% 61% 72% 35% 14% 36% 43% 9% Vietnam 83% 78% 32% 60% 39% 18% 8% Malaysia 62% 63% 37% 29% 24% 6% Thailand 85% 44% 22% 10% 3% Indonesia 73% 20% 16% 11% 5% 2% Philippines 64% 41% 49% 30% 25% 19% 13% Note: Survey: Source: does not add up to 100% due to multiple answers possible based on a survey of 3,384 Internet users, conducted from May 2014 to September 2014, and from November 2014 to April 2015; question asked: “How often do you [perform the activities above] - through your web browser or apps - on a smartphone?“ Google, TNS, August 2015

The top three drivers for online shopping in Vietnam in Q were similar to those in the Philippines and Thailand. Southeast Asia: Top 3 Drivers of Online Shopping in Southeast Asia, by Countries, incl. Vietnam, Q1 2014 Indonesia Malaysia Philippines Singapore Thailand Vietnam Top 3 Drivers for Online Shopping Look at products online before purchasing in- store Convenience Read online reviews prior to purchasing products Look at products in-store before purchasing online Research product online prior to purchasing Research products online prior to purchasing Look at products online before purchasing in store Survey: Source: based on a survey of 30,000 Internet users in 60 countries, incl. Vietnam Nielsen, September 2014

55% of Internet users in Vietnam showed lack of trust in sharing their credit card data online in Q1 2014, compared to a global average of 49%. Southeast Asia: Share of Internet Users Who Do Not Trust to Provide Credit Card Information Online in Southeast Asia, by Country, incl. Vietnam, Compared to Global Average, in % of Internet Users, Q1 2014 in % Internet Users Note: Survey: Source: relates to the months November and December based on a survey of over 30,000 online shoppers in 60 countries, conducted in the period from February to March 2014 Nielsen, September 2014

Social commerce is a major trend in Vietnam, with orders on goods displayed on Facebook accepted via online messages or phone calls. Vietnam: B2C E-Commerce Trends Overview, August 2015 Social commerce is one of the most important trends on the online shopping market in Vietnam. Of the respondents surveyed by Q&Me in December 2014, 50% of men and 65% of women admitted having purchased something via Facebook. By far the most purchased product category was clothing, bought by 51% of men and 71% of women. Overall, 87% of online buyers of fashion products made at least one purchase from this category via Facebook. The most widespread way of finding a page on Facebook in order to buy something was via Facebook ads and pages shared by friends. Of those respondents who also sold something via Facebook, the majority used Facebook messages to accept the orders, followed by phone calls. Mobile commerce is also an emerging trend. Though Vietnam was behind Singapore (85%), Malaysia (51%) and Thailand (40%) in terms of smartphone penetration, smartphone ownership increased from 20% in 2013 to 36% in 2014, as reported by HKTDC Research citing TNS. The 28% online shopper penetration, according to the source, is likely to increase as more consumers in Vietnam become connected via smartphones. 36% of the respondents who had multiple connected devices used smartphones to go online, compared to 44% who used computers for this purpose. Regarding the cross-border trend, 51% of online shoppers surveyed by Google and TNS between November 2014 and April had never bought a product online from a foreign country, while 33% did so at least annually, 7% less often and 5% did so only once. The main challenges to cross-border online shopping were the assumption that returns are difficult or costly (41%) and lack of convenience (40%), while the two key drivers were better quality of products (54%) and better availability (39%). The omnichannel trend is yet to develop in Vietnam. Webrooming, where products are researched online but the eventual purchase follows offline, was practiced by 56% of Internet users in the Google/TNS survey conducted in 2014 and early However, only 17% of Internet users conducted the purchase online after online research and still less, 7%, went to offline stores to browse products and then purchased them via the Internet. Source: Google, TNS, August 2015; Q&Me, December 2014; HKTDC Research citing TNS, September 2014

In April 2015, a larger share of respondents from Vietnam used a mobile phone (93%) or a smartphone (55%) than a computer (46%). Vietnam: Devices Used, incl. Mobile, in % of Respondents, April 2015 in % of Respondents Note: Survey: Source: does not add up to 100% due to multiple answers possible; based on a survey of 1,000 respondents, of whom 71% used Internet and 29% did not; ages 18+; conducted between November and April 2015; question asked: “Which, if any, of the following devices do you currently use?” Google, TNS, August 2015

M-Commerce share of total B2C E-Commerce sales in Vietnam is forecasted to reach 6.5% in 2018.
Vietnam: M-Commerce Share of Total B2C E-Commerce Sales, in %, 2018f Source: Cnova citing Euromonitor and IDC, January 2015

In Vietnam a total of 21% of smartphone users shopped at least daily, with 10% shopping several times per day in November 2014. Vietnam: Breakdown of Frequency of Online Shopping via Smartphone, in % of Smartphone Users, November 2014 Note: Survey: Source: the category “Other” was not specified by the source based on a survey of 539 individuals from Vietnam who own a smartphone, conducted in November 2014 Q&Me, December 2014

87% of online buyers of fashion in Vietnam ordered fashion products online via Facebook pages, as of December 2014. Vietnam: Share of Online Buyers of Fashion Products who Ordered Fashion Products Online via Facebook Pages, in %, December 2014 Survey: Source: based on a survey of 300 female and male respondents aged 18 and above who purchased fashion products online in 12 months prior to the survey, conducted in December 2014 Q&Me, December 2014

in % of Online Shoppers Who Purchase on Facebook
“Clothes” was the most popular product category for both male (51%) and female (71%) Facebook online shoppers in Vietnam in 2014. Vietnam: Product Categories Purchased Online via Facebook, in % Online Shoppers Who Purchase on Facebook, December 2014 in % of Online Shoppers Who Purchase on Facebook Note: Survey: Source: does not add up to 100% due to multiple answers possible; ranked by “female” based on a survey of 200 individuals, male and female, from Vietnam aged 18 and over conducted in the period November – December 2014; 50% of male and 65% of female respondents purchased something via Facebook Q&Me, December 2014

in % Online Shoppers Who Purchase On Facebook
“Cash On Delivery” was by far the most used payment method for online purchases made via Facebook in Vietnam in December 2014. Vietnam: Payment Methods Used When Purchasing Items on Facebook, by Age Group, in % Online Shoppers Who Purchase on Facebook, December 2014 in % Online Shoppers Who Purchase On Facebook Note: Survey: Source: does not add up to 100% due to multiple answers possible based on a survey of 200 individuals, male and female, from Vietnam aged 18 and over conducted in the period November – December 2014; 50% of male and 65% of female respondents purchased something via Facebook Q&Me, December 2014

Only 7% of Internet users in Vietnam researched products offline and then ordered them online in April 2015. Vietnam: Online/Offline Purchase Behavior after Online/Offline Research, in % of Internet Users, 2014/April 2015 in % of Internet Users Note: Survey: Source: does not add up to 100% due to multiple answers possible; based on a survey of 1,000 respondents, of whom 71% used Internet and 29% did not; ages 18+; the base of respondents for this question were Internet users accessing via computer, tablet or smartphone; the survey was conducted in two waves between May 2014 and September 2014 and between November 2014 and April 2015; question asked: “Which of these online or offline sources informed your recent purchase, at any stage from getting initial ideas to reaching a final decision? / Where did you make your purchase?” Google, TNS, August 2015

Between 2013 and 2014, B2C E-Commerce sales in Vietnam increased by +35%, reaching USD 2.97 billion (EUR 2.24 billion). Vietnam: B2C E-Commerce Sales, in USD billion, 2013 & 2014 in USD billion +35% Note: Source: the source’s methodology is based on total population, Internet penetration, online shopper penetration and estimated value of online purchases per shopper for each respective year; for 2013 these numbers were respectively: population of 90.0 million, Internet penetration of 36%, online shopper penetration of 57%, value per shopper of USD 120; for 2014: 90.7 million, 39%, 58% and USD 145 VECITA, MOIT, April 2015, March 2014

B2C E-Commerce accounted for 2
B2C E-Commerce accounted for 2.1% of the total retail sales in Vietnam in 2014. Vietnam: B2C E-Commerce Share of Total Retail Sales, in %, 2014 Note: the source’s methodology is based on total population, Internet penetration, online shopper penetration and estimated value of online purchases per shopper; the source estimated B2C E-Commerce sales at USD 2.97 billion in 2014 Source: VECITA, MOIT, April 2015

B2C E-Commerce sales of goods and digital content in Vietnam are forecasted to grow at CAGR of +29.7% between 2013 and 2018. Vietnam: B2C E-Commerce Sales, in EUR billion, 2013 & 2018f CAGR +29.7% in EUR billion Definition: sales of goods and digital content to the general public via the Internet; sales from businesses to consumers via online shopping malls and marketplaces are included; B2B or C2C transactions are excluded Source: Euromonitor International, IDC cited by Cnova, January 2015

Internet penetration in Vietnam improved from 30
Internet penetration in Vietnam improved from 30.7% of individuals in 2010 to 48.3% in 2014. Vietnam: Internet Penetration, in % of Individuals, in % of Individuals Note: Source: the numbers for 2012, 2013 and 2014 are ITU’s estimate ITU, Ministry of Information and Communications, 2015

In 2018, the number of Internet users in Vietnam is predicted to reach 55.8 million, with penetration rate of 57.5%. Vietnam: Number of Internet Users, in millions, and in % Penetration, f in % Penetration in millions Definition: individuals of any age who use the Internet from any location via any device at least once per month Source: eMarketer, December 2014

Online shopper penetration in Vietnam increased only marginally from 57% of Internet users surveyed in 2013 to 58% in 2014. Vietnam: Online Shopper Penetration, in % of Internet Users, 2013 & 2014 2013 2014 Survey: Source: based on a survey of 781 Internet users in 2013 and 900 Internet users in 2014; in 2013, the survey was conducted in two big urban centers only; for 2014 this limitation was not mentioned VECITA, MOIT, March 2014, April 2015

“Technology” showed a big increase in popularity among online shoppers in Vietnam in 2014 and shared the first place with “Clothes”. Vietnam: Product Categories Purchased Online, in % Online Shoppers, 2013 & 2014 in % Online Shoppers Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 900 Internet users Source: VECITA, MOIT, April 2015

The online share of the total modern retail grocery market in Vietnam more than tripled from 0.4% in 2013 to 1.5% in 2014. Vietnam: Online Share of Total Modern Retail Sales of Grocery, in %, 2013 & 2014 2013 2014 Survey: Source: based on a survey conducted in 4 major urban cities: Ho Chi Minh City, Ha Noi, Da Nang and Can Tho Kantar Worldpanel, July 2015

Usage of “Bank Transfer” and “COD” by online shoppers in
Vietnam declined in 2014, while that of “Electronic Wallet” grew. Vietnam: Payment Methods Used in Online Shopping, in % of Online Shoppers, 2013 & 2014 in % of Online Shoppers Note: does not add up to 100% due to multiple answers possible *”Scratch cards” in the original language version Survey: based on a survey of 900 Internet users Source: VECITA, MOIT, April 2015

“Convenient payment methods” was the factor considered by 81% of online shoppers in Vietnam when making purchases online in 2014. Vietnam: Factors Considered in Online Shopping, incl. Payment, in % of Online Shoppers, 2014 in % of Online Shoppers Note: Survey: Source: only the top 3 ranking factors are included based on a survey conducted in October – December 2014 in 14 countries in Asia-Pacific and 11 in the Middle East and Africa, incl. Vietnam; with a minimum of 500 respondents per country MasterCard cited by Vietrade, March 2015 Kantar Worldpanel, July 2015

in % of E-Commerce Websites
60% of E-Commerce websites in Vietnam received complaints about “Delivery Time” in 2014 and 3% about general “Delivery, Shipment”. Vietnam: Complaints Received by E-Commerce Websites, incl. Delivery, in % of E-Commerce Websites, 2014 in % of E-Commerce Websites Note: Survey: Source: does not add up to 100% due to multiple answers possible based on a survey 247 traders and organizations owning E-Commerce service websites; based on complains received by E-Commerce service websites (over 6,600 reports and complaints) VECITA, MOIT, April 2015

In 2014, one of the largest property developers in Vietnam, Vingroup, launched the VinEcom division to create a major E-Commerce site. Vietnam: E-Commerce Player Overview, August 2015 According to Euromonitor International, although clothing is the largest product category in Vietnamese B2C E-Commerce in terms of sales, the online clothing market is highly fragmented and as a result consumer electronics merchants rank on top in terms of market share in online retail sales of goods. In 2014, they were Mobile World JSC (9%), Nguyen Kim Trading JSC (5%) and Vien Thong A Import Export Trading Production Corp (4%). However, two surveys, by MasterCard cited by Vietrade, and Q&Me, reported that E-Commerce marketplace and online retailer Lazada.vn was the most visited E-Commerce website. Furthermore, the top 10 websites in the shopping category in Vietnam include four online classifieds, led by 5giay.vn and Chotot.vn, as of July 2015, according to Alexa.com. Thanh Nien Daily reports that foreign companies are building their presence on the emerging online retail market in Vietnam. Websites backed by foreign investors accounted for 59% of total sales in 2014, up from 44% in Such companies include Lazada and Sendo. The parent company of the B2B2C E-Commerce site Sendo.vn, FPT, cooperated with Japanese companies SBI, Econtext Asia and Beenos in 2014, offering them a 33% stake in Sendo Technology, Nikkei Asian Review reports. The investment was to be used for the development of a smartphone shopping website. Moreover, Amazon.com and Aliexspress.com ranked among the top 10 E-Commerce websites in Vietnam in July 2015, according to Alexa.com. Another international player, Cdiscount, a member of Cnova and Groupe Casino partnered with another Group Casino company operating under Big C Supercenter’s brand to enter Vietnam in early 2014, according to Cnova. The offering of the new operation includes home appliances, furnishing, leisure, consumer electronics and personal goods and is planned to expand into a marketplace model. A newcomer to the E-Commerce market is one of the largest property developers, Vingroup. Tech in Asia reports that in Vingroup created the VinEcom division, funded by USD 50 million, with the ambition to become the largest E-Commerce website in the country. According to Vingroup, VinEcom will operate as an online retail channel for various products and services of Vingroup and its partners. The partners will include tenants in Vingroup’s shopping malls and other retailers. Source: Cnova, January 2015; Thank Nien Daily, April 2015; Alexa.com, August 2015; Q&Me, May 2015; MasterCard cited by Vietrade, March 2015; Nikkei Asian Review, December 2014; Tech in Asia, October 2014; Vingroup, August 2015; Euromonitor International, June 2015

Lazada.vn (24.4%) was the most visited E-Commerce website in Vietnam in 2014, followed by Hotdeal.vn (21.9%). Vietnam: Most Visited E-Commerce Websites, in % of Respondents, 2014 in % of Respondents Note: only top four websites were revealed Survey: based on a survey conducted in October – December 2014 in 14 countries in Asia-Pacific and 11 in the Middle East and Africa, incl. Vietnam, with a minimum of 500 respondents per country Source: MasterCard cited by Vietrade, March 2015

in % of University Students Who Shop Online
Among university students in Vietnam shopping online, Lazada.vn was the most popular online shopping website in February 2015. Vietnam: Websites Most Often Used for Online Shopping, in % of University Students Who Shop Online, February 2015 in % of University Students Who Shop Online Note: Survey: Source: does not add up to 100% due to multiple answers possible based on a survey of 800 male and female university students in Vietnam conducted in February 2015 Q&Me, May 2015

Lazada.vn was the most popular website to purchase clothing from for online shoppers across selected age groups in Vietnam in Dec Vietnam: E-Commerce Websites Used to Purchase Fashion Products from, in % of Online Shoppers who Purchased Fashion Products, by Age Group, December 2014 <19 years old years old years old Lazada.vn 31% 40% 64% Muachung.vn 25% 30% 41% Cungmua.com 16% 43% Nhommua.com 17% Hotdeal.vn 26% 123mua.vn 27% 29% Vatgia.com 22% Zalora.vn 20% 19% Tiki.vn Lamido.vn 15% Sendo.vn 13% Amazon.com 11% Note: Survey: Source: does not add up to 100% due to multiple answers possible based on a survey of 300 female and male respondents aged 18 and above who purchased fashion products online in 12 months prior to the survey, conducted in December 2014 Q&Me, December 2014

E-Commerce marketplace Vatgia
E-Commerce marketplace Vatgia.com was the 23rd most visited website in Vietnam, the highest rank among E-Commerce websites. Vietnam: Top 10 E-Commerce Websites by Website Rank*, August 2015 Website Rank* Website Category 23 Vatgia.com B2C, C2C E-Commerce Marketplace 28 5giay.vn Classifieds 35 Lazada.vn General Merchandise Retailer and Marketplace 46 Amazon.com 52 Chotot.vn 79 Alibaba.com 88 Muaban.net 94 Aliexpress.com 96 Thegioididong.com Consumer Electronics Retailer 132 Totdoi.vn Note: *rank among all websites in Vietnam, based on the number of visits; the number of visits was not revealed by the source Source: Alexa.com, August 2015

Lazada.vn and Sendo.vn were the two leading marketplaces in Vietnam in 2014, with a market share of 21% and 10% respectively. Vietnam: Breakdown of E-Commerce Marketplaces, by Market Share, in %, 2014 Note: Survey: Source: market share in terms of sales generated by the marketplace, as opposed to revenues of marketplace operators from services provided to the sellers based on a survey of 85 marketplaces VECITA, MOIT, April 2015

GENERAL METHODOLOGY OF MARKET REPORTS Secondary Market Research The reports are compiled based on secondary market research. Secondary research.

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GENERAL METHODOLOGY OF MARKET REPORTS Secondary Market Research The reports are compiled based on secondary market research. Secondary research.

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