Vietnam’s e-commerce market is estimated at US$22 billion, the third largest in Southeast Asia behind only Indonesia ($65 billion) and Thailand ($26 billion).
The market has grown by 18% from last year, the third fastest rate behind the Philippines (23%) and Thailand (19%), according to the annual “e-Conomy SEA 2024” report by Google, Temasek and Bain & Company released this week.
It is expected to grow by 19% annually to reach $63 billion by 2030 and surpass Thailand.
E-commerce makes up 60% of Vietnam’s digital economy with the rest made up mostly of ride-hailing and delivery and online media.
The most popular platforms in the country are Shopee, TikTok Shop, Lazada, Tiki and Sendo.
New Chinese platforms such as Temu and Shein are also trying to grab market share.
Tran Tuan Anh, CEO of Shopee Vietnam, said the market sees intense competition due to its vast potential and room for growth.
“Now is the time to focus closely on meeting the needs of both buyers and sellers,” he told VnExpress in a recent interview.
Vietnamese shopped for VND25.3 trillion (US$1 billion) a month on average on five major e-commerce platforms in the first nine months of this year, according to data provider Metric.
Products priced under VND200,000 accounted for more than half of all sales, it added.
Another report by Lazada and Kantar said one-third of Southeast Asian consumers are price-sensitive and actively seek deals.
More than half of respondents cite competitive pricing and the availability of discount vouchers as crucial factors, with promotions significantly influencing repeat purchases.
