Singapore’s Shopee retained its top position but saw market share slip from 68% to 62%, according to by data analytics platform Metric.
China’s TikTok Shop expanded its from 23% to 35%. Singapore’s Lazada and Vietnam’s Tiki lost market share. Lazada now has just a 3% share while Tiki’s was too small to even make the report.
The four e-commerce platforms posted a combined gross merchandise value of VND101.4 trillion (US$3.92 billion) for the quarter, up 42% year-on-year.
Metric attributed Lazada and Tiki’s struggles to competition from content-driven platforms, suboptimal user experiences and ineffective sales channels.
There is a clear shift in Vietnamese consumer behavior toward integrated entertainment-shopping platforms.
The rise of TikTok Shop reflects growing consumer preference for short-video shopping, intensifying pressure on traditional platforms.
“The rapid consumer shift to content platforms like TikTok Shop is a critical signal for platforms to guide future development strategies,” Metric said.
It projects a 15% gross merchandise value increase to VND116.6 trillion in the second quarter.
Nguyen Phuong Nga, senior business director at market research company Kantar Worldpanel Vietnam, confirmed the upward trend in online spending.
“E-commerce growth is not only in urban areas but also rapidly expanding in rural regions. Alongside this, promotional activities are increasing.”
A Kantar survey found that 60% of urban households purchased fast-moving consumer goods online in 2024, up from 29% in 2019 (before Covid-19).
In rural areas, the figure rose from 11% to 42% during the period. The e-commerce market is seeing fiercer competition. As TikTok Shop grows rapidly, Shopee is intensifying efforts to adopt trends like short-video and livestream selling.
In mid-April Shopee launched long-term livestream programs to showcase local products and regional agricultural specialties.
Metric expected platforms to continue investing heavily in logistics, livestreaming and personalized technology to enhance the shopping experience and boost order conversions.
Some platforms are pursuing niche strategies to sidestep direct competition. In early March Vietnam’s Sendo announced a transition to a model focused on agricultural products and food through Sendo Farm.
For sellers, the market has become a battle for survival. Metric reported a 38,000 reduction in the number of active shops in the first quarter, while shops generating gross merchandise value of over VND50 billion grew by 95%.
This indicates a polarized market where large sellers dominate and smaller ones are exiting.
Foreign sellers are also strengthening their foothold. On Shopee, they account for 5.9% of the market but are growing steadily due to competitive pricing.
With an average product price of just over VND45,000, international shops sold over 80 million items, up 7% in volume and 12% in gross merchandise value.
Vu Kim Hanh, chairwoman of the Vietnam High-Quality Goods Business Association, highlighted the intensifying competition and the influx of new players into the livestream space.
“Businesses realize they must ensure product quality and customer service while promoting products more creatively and attractively to drive sales,” she said at a recent event.
