This represents a compounded annual growth rate of 16.3 percent, the British data and analytics company said in a report.

"Improving payments infrastructure, coupled with rising consumer confidence in online shopping and the availability of convenient payment solutions are expected to further drive e-commerce growth in Vietnam," Nikhil Reddy, banking and payments analyst at GlobalData, said. 

The e-commerce market has increased from VND90.1 trillion ($3.9 billion) in 2015 to VND218.3 trillion ($9.4 billion) in 2019.

While the traditional payment instruments such as cash, cards and bank transfers are widely used for e-commerce purchases, consumer preference for alternative payments is on the rise, Reddy said.

"There is a growing demand for faster and convenient payment means, especially among tech-savvy millennials."

Cash remained the most preferred payment method in Vietnam, accounting for 35.6 percent in 2019, followed by cards (28.4 percent) and bank transfers (20.5 percent).

Alternative payment solutions are gradually gaining ground and accounted for a 15.5 percent share. 

Nearly 30 percent of Vietnam’s population shopped online between 2016 and 2020, with yearly sales being around $350 per person.