E-commerce in Vietnam is growing, recording $20.5 billion in revenue in 2023, driven by expanding access to the internet and developing middle class with increasingly evolving customer habits. Other popular platforms like Shopee and TikTok Shop hold sway over the market, while social commerce and mobile-first strategies catalyze its rapid growth. In other words, e-commerce in Vietnam will not slow down anytime soon, considering further digital adoption in rural areas.
The e-commerce industry in Vietnam is exceptionally developed, thus, it is considered one of the most dynamic digital economies throughout Southeast Asia. With revenues projected to reach $20.5 billion in 2023, influenced by a year-on-year increase of 25%, Vietnam’s e-commerce sector currently ranks among the highest-growth e-commerce markets globally. This growth is being fuelled by increased access to the internet, rising middle-class incomes, and evolving consumers. With an impressive 79.1% internet penetration rate and about 78 million users as of early 2024, Vietnam is in a much better position to further its digital expansion.
Within a decade, the e-commerce market of Vietnam grew from $7.2 billion in 2014 to $20.5 billion in 2023. Within the B2C market, the share in the nation’s total retail revenue to e-commerce reached 7.5% as of 2022. Besides that, the penetration is underpinned by growth in digital payment systems: 87% of adults use cashless methods of payment.
The most popular product categories vary across the platforms, with Shopee and TikTok Shop driven mainly by fashion and accessories, Tiki leading in the electronics segment, while Lazada also sees high demand for home and lifestyle products. Mobile devices are the main portal of access to e-commerce, with platforms like TikTok Shop and Lazada reporting over 70% mobile-based traffic, reflecting a shift toward mobile shopping.
A brighter future ahead for Vietnamese e-commerce will be driven by the expansion of logistics networks into the most remote areas, the national strategy on digital economic development to reach 20% GDP share from the activity of the digital economy by 2025, and increasing online shopping habits among consumers. Though successful, it also faces other challenges such as environmental sustainability and reliance on low-cost products. However, with the swift development of digital infrastructure in place, Vietnamese e-commerce remains highly attractive for both domestic and international players.
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