Vietnam's E-commerce Landscape Flourishes

Vietnamese consumers are increasingly turning to online platforms for their shopping needs, with a staggering daily expenditure of $35 million. This surge in online shopping activity is primarily facilitated by major platforms such as Shopee, Lazada, TikTok Shop, Tiki, and Sendo, which collectively saw a gross merchandise volume of VND319.9 trillion. This represents a 37% increase compared to the previous year, accounting for 6.5% of the nation's total retail sales.

Delivery people seen in Cau Giay District, Hanoi in February 2024. Photo by VnExpress/Ngoc Thanh

Beyond the Numbers: The Real Impact

While the figures are impressive, they might only scratch the surface. Transactions on social media platforms and cross-border e-commerce platforms are not included in these statistics, suggesting that actual online spending could be even higher. The Department of E-commerce and Digital Economy estimates Vietnam's 2024 e-commerce market size at over $25 billion, surpassing earlier forecasts and indicating a robust digital economy.

Consumer Behavior Shifts

Vietnamese consumers are not just shopping online more; they're shopping differently. There's a noticeable preference for branded and foreign products, with significant growth in categories like beauty, home and lifestyle, and fashion. The grocery and food segment, in particular, has seen a remarkable 76% growth, highlighting a shift towards purchasing daily necessities online.

Challenges and Opportunities

As the market grows, so does the competition. The influx of imported goods, especially from China, is reshaping the competitive landscape. Local businesses are urged to optimize their products and pricing strategies to stay relevant. Meanwhile, the government is taking steps to protect local vendors, including the removal of VAT exemptions on low-value imported goods sold via express delivery, aiming to level the playing field and encourage the consumption of domestically produced goods.