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[Vietnam] COVID-19 epidemic promotes cashless payments in grocery stores

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According to a survey by Intage Vietnam (August-September 2021/Hanoi and Ho Chi Minh City), the digitalization of shopping and payments strongly progressed during the April-September period of social segregation measures.

According to the survey, "using e-wallets" (32%) and "sending money via internet/e-mobile" (29%) were the top two behaviors that consumers in urban areas wanted to continue after social quarantine, indicating a shift in payment methods among urban consumers. An increasing number of stores are allowing customers to make purchases without cash by completing deposits via a smartphone banking app.

The digitization of payments is becoming the "new normal" in Vietnam's traditional sectors as well. According to a report by the Vietnam Economic Policy Research Institute (VEPR), there are currently 5 million family-owned stores in Vietnam, accounting for about 30% of GDP. Among them, it is said that there are about 1.4 million food and general merchandise stores, and many of them continued as sole proprietorships because of complicated procedures even if they wanted to change their business to a corporate form as their business expanded. The response to technology was a weak point.

However, with the expansion of the new Corona, Vin Group's VinShop, an e-commerce app for individual stores, and other apps are beginning to promote digitalization and help streamline the entire supply chain. These apps allow grocery stores to purchase inexpensively, place bulk orders for a wide variety of products, and receive them the next day without the worry of holding inventory.

VinShop's business model in a field that was thought to be traditional and difficult to intervene in is a reminder that if it can rethink its traditions and develop its own customers, it can target opportunities from the growing demand of consumer needs.

"COVID-19 epidemic promotes cashless payments in grocery stores" - Source: monthly magazine ACCESS (February 2022)

Translated with AI Translator

  • Intage Inc

    Author profile
    (Mrs.) Yuki Makino

    INTAGE VIETNAM Customer Support Representative.
    After working for 4.5 years as a Japanese teacher and secretary to the principal at Dong Du Japanese Language School, she is now a research assistant. She provides analysis results and improvement measures using various data to clients in various industries.
    For other columns by Vietnamese expatriates click here

  • Intage Inc

    Editor profile
    Intage Inc.

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  • Feb 23, 2022
  • 521 Views

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