Opportunities and Key Trends in Vietnam’s E-Commerce Future

Vietnam’s e-commerce sector is rapidly growing, driven by a young, tech-savvy population and increasing mobile and social media integration, presenting significant opportunities for Italian businesses. Key trends include the rise of social commerce, digital payments, and cross-border trade, positioning Vietnam as a key player in Southeast Asia’s digital economy.

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Vietnam’s e-commerce sector is experiencing remarkable growth, positioning itself as a promising opportunity for businesses. Despite global economic turbulence, the market’s resilience and upward trajectory present a unique chance for expansion.

This article delves into Vietnam’s dynamic e-commerce environment, examining its key characteristics and outlining actionable strategies for foreign companies to effectively navigate and thrive in this burgeoning market.

Vietnam’s e-commerce landscape

Vietnam’s e-commerce market has become one of the fastest-growing sectors in Southeast Asia. According to a report by Google, Temasek, and Bain & Company, the country’s digital economy had a gross merchandise value (GMV) of US$36 billion in 2024, an increase from US$31 billion in 2023. This is expected to grow to between US$90 and US$200 billion by 2030.

The e-commerce sector has been critical to this growth registering a GMV of US$22 billion in 2024, an increase from US$19 billion in 2023. This is also predicted to increase to US$63 billion by 2030.

Further, this growth is driven by a combination of factors including a youthful, digitally engaged population, a surge in internet connectivity, and evolving consumer habits that favor convenience and innovation in shopping. These elements collectively position Vietnam as a key digital marketplace in the region.

Key drivers behind Vietnam’s rapid e-commerce expansion

There are several key drivers behind Vietnam’s rapid e-commerce expansion, including:

• Widespread mobile access: One of the main catalysts for Vietnam’s e-commerce boom is the rapid expansion of internet access and mobile phone adoption. Smartphones are the primary tool for accessing e-commerce platforms, with nearly 57 percent of online purchases made via mobile devices. As mobile commerce continues to grow, platforms are increasingly optimizing their apps to offer smoother, faster shopping experiences.

• Social media integration and social commerce: Platforms such as TikTok and Facebook have evolved into more than just social networks—they are now integral to the e-commerce ecosystem.

• Growing middle class and urbanization: Vietnam’s rising disposable income, fueled by economic growth and a rapidly expanding middle class, further supports the e-commerce boom. Urbanization also plays a critical role, with more people in cities turning to online shopping for its convenience and ability to offer a wider variety of goods.


Leading e-commerce platforms in Vietnam

The competition within Vietnam’s e-commerce market is intense, with several key players shaping the industry. These platforms vary in terms of their offerings, strengths, and target audiences.

• Shopee: The dominant force in Vietnam’s e-commerce sector, Shopee has built a reputation for vibrant marketing campaigns and interactive user experiences. Despite occasional challenges with delivery speed and customer service, Shopee continues to lead the market, capturing the largest share of GMV at 67.9 percent.

• Lazada: As one of the region’s oldest e-commerce platforms, Lazada’s experience and robust logistics network give it a strong competitive edge. Backed by Alibaba, Lazada offers a wide range of products and more reliable delivery options compared to many of its competitors.

• Tiki: A local success story, Tiki stands out by offering a personalized shopping experience that emphasizes product quality and customer service. Starting as an online bookstore in 2010, Tiki has since expanded into various categories including electronics, fashion, and home goods.

• Sendo: Emerging as a community-focused platform, Sendo is making strides by catering to the specific preferences of Vietnamese consumers. The platform emphasizes local promotions and supports small and medium-sized businesses (SMEs).

• TikTok Shop: A recent addition to the market, TikTok Shop has quickly become a favorite among the younger demographic. By combining the popularity of short-form video content with e-commerce features, TikTok has tapped into the growing trend of social commerce.

• The Gioi Di Dong (Mobile World): Initially a brick-and-mortar electronics retailer, The Gioi Di Dong has successfully expanded into e-commerce, offering a seamless shopping experience for tech enthusiasts. The platform specializes in mobile devices and consumer electronics, providing a trusted space for customers looking for the latest gadgets and electronics.


Opportunities for companies entering Vietnam’s e-commerce market

Expanding business-to-business (B2B) e-commerce

While the business-to-consumer (B2C) e-commerce market in Vietnam is flourishing, the business-to-business (B2B) segment is still in its early stages but shows enormous potential. Vietnam’s position as a hub for manufacturing, particularly in sectors like electronics, footwear, and consumer goods, provides an excellent foundation for B2B e-commerce to thrive. This is further amplified by the “China plus one” strategy, where companies are seeking to diversify their supply chains beyond China, making Vietnam an attractive alternative for sourcing.

Vietnam’s growing network of free trade agreements (FTAs) such as the European-Vietnam Free Trade Agreement (EVFTA) and the Regional Comprehensive Economic Partnership (RCEP) offers favorable conditions for B2B trade. These agreements lower tariffs and streamline cross-border trade, creating an attractive environment for e-commerce platforms catering to B2B transactions.

Despite its current size, this sector’s potential for growth presents an exciting opportunity for investors looking to capitalize on the country’s manufacturing strengths and trade agreements.

Capitalizing on the rise of digital payment solutions

The increasing shift towards digital payments is a significant trend in Vietnam’s e-commerce landscape. As of 2024, cashless transactions reportedly accounted for over 63 percent of total payments, with QR code payments experiencing an extraordinary surge of nearly 900 percent. The Vietnamese government’s active promotion of digital payment systems supports this trend, making it easier for both businesses and consumers to engage in e-commerce.

The surge in digital payment methods such as e-wallets, QR codes, and bank transfers represents an immense opportunity for fintech companies to collaborate with e-commerce platforms.

Leveraging the growth of social commerce

Social commerce is quickly becoming a powerful subsector of e-commerce in Vietnam. The integration of marketplace functions within popular social media platforms like Facebook, TikTok, and Instagram allows businesses to sell directly through social content. This trend is particularly appealing to the younger generation, who are increasingly relying on social media for product discovery and purchasing decisions.

The rapid growth of social commerce, projected to reach a market value of US$4.5 billion by the end of 2024, presents a significant opportunity for businesses to engage with consumers where they spend much of their time.

Tapping into China and ASEAN cross-border e-commerce growth

Vietnam’s strategic location and robust infrastructure make it an ideal hub for cross-border e-commerce. With neighboring countries such as China, Thailand, and Cambodia, Vietnam is well-positioned to serve as a key node in the region’s e-commerce network. The country has experienced steady growth in cross-border trade, with a 20 percent annual growth rate, driven by its access to international markets and a digitally connected population.

The Vietnamese government’s investments in digital infrastructure, including the National Digital Transformation Program, aim to streamline customs procedures, improve internet connectivity, and enhance payment systems. These efforts further boost Vietnam’s potential as a destination for cross-border e-commerce.

The promising outlook for Vietnam’s e-commerce sector in 2025

As Vietnam’s e-commerce landscape continues to expand rapidly, the market is predicted to surpass US$25 billion by 2025, marking a significant milestone in its digital transformation. The impressive 18-20 percent growth in the B2C sector during the first ten months of 2024 reflects the growing confidence in online shopping among Vietnamese consumers. With a robust 116 foreign suppliers engaging through the e-commerce portal and a notable 26 percent increase in direct revenue from these platforms, the country is fostering local e-commerce growth and emerging as a key player in cross-border e-commerce.

As Vietnam continues to strengthen its e-commerce ecosystem, international and local players benefit from ample opportunities for expansion and innovation in this vibrant market. For companies looking to establish a foothold or expand their presence in Southeast Asia, 2025 represents a pivotal year to harness the full potential of Vietnam’s digital economy.

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