The "Vietnam Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The gift card industry in the region is expected to grow by 14.4% on annual basis to reach US$0.8 billion in 2024. The gift card industry in Vietnam will continue to grow over the forecast period and is expected to record a CAGR of 11.7% during 2024-2028. Gift card market in the country will increase from US$0.7 billion in 2023 to reach US$1.2 billion by 2028.
This report provides a detailed data centric analysis of gift card market, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at country level, this report provides a comprehensive understanding of gift card market dynamics, market size and forecast.
Key Developments in the Gift Card Sector in the Vietnam
Product Launches and Innovations
Expansion of Got It Gift Cards: Got It, a leading player in Vietnam's gift card industry, has reported significant growth and is set to expand its offerings. In 2023, the company generated approximately USD 6.3 million in revenue, reflecting a 26.8% increase from the previous year. Looking ahead, Got It anticipates nearly 49% revenue growth in 2024, driven by its expansion from offline store vouchers to digital solutions for brand partners' websites and apps. Additionally, Got It plans to venture into peer-to-peer gifting, further diversifying its product range.
Growth of Digital Gift Cards: The Vietnamese market is experiencing a rapid shift toward digital gift cards, fueled by a growing middle class and rising consumer spending. This trend will continue as gift card providers benefit from increasingly adopting digital gifting solutions.
Integration with E-commerce: The integration of gift cards into e-commerce platforms is a significant trend in Vietnam. As online shopping grows, more retailers are adopting gift card options to enhance customer experience and drive sales.
Corporate Gift Card Programs: The corporate sector in Vietnam is increasingly using gift cards as employee incentives, particularly in remote work. This trend highlights the broader acceptance of gift cards as versatile personal and corporate gifting tools. These product launches and trends indicate a vibrant and evolving gift card market in Vietnam, marked by innovation and growing consumer demand for digital solutions. The sector is positioned for continued growth as providers adapt to changing market dynamics.
Strategic Partnerships
Got It and Brand Partners: Got It has been actively expanding its partnerships with various brands. The company has transitioned from offering vouchers for physical stores to collaborating with brand partners' websites and apps, enhancing its digital gift card offerings. This strategic shift has contributed to Got It has significant revenue growth, with expectations of nearly 49% growth in 2024.
E-commerce Integration: As the Vietnamese market increasingly embraces e-commerce, many retailers are forming partnerships to integrate gift card options into their online platforms. This trend will make gift cards more accessible to consumers, driving overall market growth.
Corporate Partnerships for Employee Incentives: Numerous companies in Vietnam are incorporating gift cards into their employee incentive programs. This trend reflects a growing recognition of gift cards as effective tools for motivating and rewarding employees, especially in remote work settings. Partnerships between gift card providers and corporations will likely increase as businesses seek to enhance employee engagement.
Strategic Collaborations: Strategic collaborations among retailers, digital platforms, and financial service providers support the growth of Vietnam's gift card sector. These partnerships aim to enhance the availability and appeal of gift cards, catering to the growing middle class and rising consumer spending. These collaborations highlight a dynamic and evolving gift card market in Vietnam, characterized by innovation and a focus on meeting consumer needs through strategic partnerships and digital integration.
Regulatory Changes
Although no major new regulatory policies have targeted the gift card sector in the last 12 months, the existing framework continues to support market growth. The government's focus on digital payments, consumer protection, and e-commerce expansion is shaping the operating environment for gift card providers and retailers in Vietnam.
Support for Digital Payments: The Vietnamese government has been actively promoting digital payment solutions, including gift cards, as part of its broader strategy to enhance financial inclusion and modernize the economy. This initiative aligns with the government's goal to reduce cash transactions and encourage electronic payment methods.
Consumer Protection Regulations: Existing consumer protection laws in Vietnam govern the sale and redemption of gift cards. These regulations ensure fair treatment for consumers and provide clear rights regarding the use of gift cards, including transparency on fees, expiration dates, and redemption processes.
E-commerce Growth Initiatives: The government has implemented policies to support the growth of e-commerce, which indirectly benefits the gift card sector. As e-commerce continues to expand, the demand for digital gift cards is expected to rise, offering a convenient option for consumers.
Taxation Policies: Gift card transactions are subject to applicable taxes, including value-added tax (VAT). Government taxation policies can influence the pricing and attractiveness of gift cards in the market, affecting consumer adoption.
Cashless Payment Regulations: In May 2024, the Vietnamese government issued Decree 52/2024/ND-CP, which regulates cashless payments. This decree aims to strengthen the regulatory framework for electronic payments, including gift cards, and promote secure and efficient payment systems.
Encouragement of Corporate Gifting: The government recognizes the potential of gift cards as a tool for corporate gifting and employee incentives. This recognition has led to increased adoption of gift cards by businesses as part of their employee engagement and incentive strategies.
Scope
Total Spend on Gifts in Vietnam
- By Consumer Segment (Retail and Corporate)
- By Product Categories (13 Segments)
- By Retail Sectors (7 Segments)
Gift Card Market Size by KPIs across Consumer Segments in Vietnam
- Gross Load Value
- Transaction Value
- Unused Value
- Average Value Per Transaction
- Transaction Volume
- Average Value of Card Purchased
- Number of Cards
Gift Card Market Size by Consumer Segment in Vietnam
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in Vietnam
- By Retail Consumer
- By Retail Purchase Occasion
- By Corporate Consumer
- By Corporate Purchase Occasion
- By Company Size
Gift Card Market Size by Retail Consumer in Vietnam
- By Functional Attribute
- By Occasion
- Festivals & Special Celebration Days
- Milestone Celebration
- Self-Use
- Other
- Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in Vietnam
- Consumer Purchase Behaviour
- Gift Card Buyer by Age Group
- Gift Card Buyer by Income Level
- Gift Card Buyer by Gender
Gift Card Market Size by Corporate Consumer in Vietnam
- By Functional Attribute
- By Occasion
- Employee Incentive
- Sales Incentive
- Consumer Incentive
- By Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in Vietnam
- Food & Beverage
- Health, Wellness & Beauty
- Apparel, Footwear & Accessories
- Books & Media Products
- Consumer Electronics
- Restaurants & Bars
- Toys, Kids, and Babies
- Jewelry
- Sporting Goods
- Home & Kitchen Accessories & Appliances
- Travel
- Entertainment & Gaming
- Other
Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers) in Vietnam
- Ecommerce & Department Stores
- Restaurants & Bars
- Supermarket, Hypermarket, Convenience Store
- Entertainment & Gaming
- Specialty Stores
- Health & Wellness
- Travel
Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers) in Vietnam
- Gift Card Online Sales
- Gift Card Offline Sales
- 1st Party Sales
- 3rd Party Sales
- Sales Uplift
For more information about this report visit https://www.researchandmarkets.com/r/s5jo8p
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