Vietnam Market Insights Vietnam Market Insights

E-commerce in Vietnam

E-commerce in Vietnam

Market Overview

Vietnam’s e-commerce sector represents the largest segment of the country’s digital economy, with gross merchandise value (GMV) reaching $14-16 billion in 2024. The market has demonstrated consistent compound annual growth rates exceeding 25% since 2019.

Market Size and Metrics

GMV Breakdown (2024 estimates)

  • Total e-commerce GMV: $14-16 billion
  • B2C transactions: 75-80% of total
  • C2C marketplace activity: 20-25% of total
  • Cross-border purchases: 15-20% of GMV

Penetration Statistics

  • Online retail as percentage of total retail: 12%
  • Internet users making online purchases: 65%
  • Average annual transactions per buyer: 12-15
  • Average order value: $25-30

Major Platforms

Shopee (Market Leader)

  • Estimated 60-65% market share by GMV
  • Owned by Sea Group (Singapore)
  • Strengths: gamification, live commerce, free shipping subsidies
  • Seller base: 800,000+ active merchants
  • Monthly active users: 25+ million

Lazada

  • 20-25% market share
  • Owned by Alibaba Group
  • LazMall brand store focus
  • Integrated with Alipay, local payment methods
  • Strong logistics infrastructure

Tiki

  • 8-10% market share
  • Domestic Vietnamese company
  • TikiNow: 2-hour delivery in major cities
  • Book and electronics heritage
  • TikiSent: Cross-border marketplace

TikTok Shop

  • Rapidly growing since 2022 launch
  • Live commerce integration
  • Content-to-commerce model
  • Younger demographic skew (Gen Z)
  • Facing regulatory scrutiny

Other Players

  • Sendo (domestic, regional focus)
  • The Gioi Di Dong (electronics vertical)
  • FPT Shop (electronics, corporate backing)
  • Bach Hoa Xanh (grocery, offline-online hybrid)

Consumer Behavior Patterns

Demographics

  • Primary age group: 25-40 years old
  • Urban concentration: 70% of transactions
  • Female buyers: 55-60% of purchases
  • Income segments: Middle-class primary driver

Purchase Categories

  1. Fashion and accessories: 30-35%
  2. Electronics: 25-30%
  3. Beauty and personal care: 15-20%
  4. Home and living: 10-15%
  5. Food and beverages: 8-12%

Payment Preferences

  • Cash on Delivery (COD): 20-30% of orders
  • E-wallets: 35-40% (MoMo, ZaloPay, ShopeePay)
  • Cards (credit/debit): 15-20%
  • Bank transfers: 10-15%
  • Buy Now Pay Later: 3-5% (growing)

Shopping Triggers

  • Flash sales and time-limited promotions
  • Free shipping thresholds
  • Discount codes and cashback
  • Influencer recommendations
  • Social proof (reviews, ratings)

Logistics and Fulfillment

Delivery Infrastructure

  • 95% population coverage for standard delivery
  • Same-day delivery: Available in HCMC, Hanoi, Da Nang
  • 2-hour delivery: Limited to major cities, select categories
  • Rural delivery: 3-7 days typical

Major Logistics Partners

  • Vietnam Post: Widest coverage, lowest cost
  • Giao Hang Nhanh (GHN): E-commerce specialized
  • Giao Hang Tiet Kiem (GHTK): Cost-efficient option
  • J&T Express: Cross-border capable
  • Ninja Van: Regional player
  • Platform-owned: Shopee Xpress, Lazada Logistics

Fulfillment Models

  • Marketplace (drop-shipping): 60-70% of orders
  • Platform fulfillment centers: 20-30%
  • Seller-managed: 10-15%

Seller Ecosystem

Seller Categories

  • Individual sellers: 60-65%
  • SMEs: 25-30%
  • Brands/Official stores: 10-15%

Cross-border Sellers

  • China: 40-45% of cross-border GMV
  • Korea: 15-20%
  • Japan: 8-10%
  • Other: 25-30%

Commission Structure

  • Shopee: 1-5% commission + payment fee
  • Lazada: 2-8% depending on category
  • Tiki: 3-6% standard rate
  • Additional: Payment processing (1-2%), logistics (platform-dependent)

Social Commerce

Platform Integration

  • Facebook Marketplace: C2C transactions
  • Zalo Official Accounts: Brand stores
  • Instagram Shopping: Limited adoption
  • TikTok Live: Emerging channel

Live Commerce

  • Annual GMV from live streaming: $2-3 billion
  • Primary platforms: TikTok, Shopee Live
  • Categories: Fashion, beauty, food dominate
  • Peak hours: 7-10 PM

Regulatory Framework

Licensing Requirements

  • E-commerce service license for platforms
  • Business registration for sellers
  • Cross-border e-commerce registration
  • Food safety certificates (F&B sellers)

Consumer Protection

  • Decree 52/2013/ND-CP: E-commerce regulations
  • 7-day return policy (most platforms)
  • Product authenticity guarantees
  • Dispute resolution mechanisms

Taxation

  • VAT: 10% on goods, applied at checkout
  • Personal income tax: For individual sellers
  • Corporate tax: For registered businesses
  • Cross-border: Import duties on shipments >1 million VND (~$40)

Challenges

Trust and Safety

  • Counterfeit products: 15-20% of marketplace listings (estimated)
  • Review manipulation: Platform monitoring ongoing
  • Data privacy concerns among consumers

Infrastructure Gaps

  • Last-mile costs in rural areas: 2-3x urban rates
  • Cold chain: Limited for fresh goods
  • Returns processing: Expensive, complex

Profitability

  • Platform subsidies declining
  • Customer acquisition costs rising
  • Logistics costs: 15-25% of GMV

Near-term (2025-2026)

  • Consolidation among smaller platforms
  • Increased focus on profitability over growth
  • Omnichannel integration (online-offline)
  • Grocery delivery expansion

Medium-term (2027-2030)

  • E-commerce penetration: 20-25% of retail
  • AI-powered personalization
  • Drone delivery pilots (rural areas)
  • Circular economy (resale platforms)

Sources

  • Ministry of Industry and Trade E-commerce Reports
  • Vietnam E-commerce Association (VECOM) White Papers
  • Platform annual reports (Sea Group, Alibaba)
  • Google, Temasek, Bain e-Conomy SEA
  • McKinsey Vietnam Consumer Insights
  • World Bank Logistics Performance Index