Vietnamese E-Commerce Boom: Spending Hits $1.3 Billion Monthly
In recent months, Vietnam has witnessed a phenomenal surge in online shopping activity, with citizens spending an astounding average of VND 34 trillion (approximately US$1.3 billion) each month. This trend has been particularly noted across major e-commerce platforms like Shopee, TikTok Shop, Lazada, and Tiki, indicating a vibrant online marketplace that is rapidly evolving.
Growth in Gross Merchandise Value
According to data from metric provider Metric, the gross merchandise value (GMV) for these top-performing platforms reached a staggering VND 305.9 trillion, reflecting an impressive 34% year-on-year increase. This growth has been attributed to several factors, including heightened consumer demand, enticing discounts, reduced shipping costs, and the increased investment by sellers in dynamic content like livestreaming and short-form videos to attract buyers.
The Dominance of Leading Platforms
Shopee has retained its position as the leading e-commerce platform in Vietnam, capturing a dominant 56% of the gross merchandise value during the first nine months of the year. Close on its heels is TikTok Shop, which has rapidly gained traction, accounting for 41% of the GMV. The synergy between Shopee and YouTube has proven immensely fruitful, with Shopee integrating 2.4 million products linked to the video platform’s offerings.
Moreover, Shopee recently announced a collaboration with Meta, which aims to facilitate Facebook customers in purchasing Shopee products directly during livestreams. This strategic move enhances the shopping experience and broadens consumer access to a wider range of products.
TikTok Shop’s Innovative Approach
TikTok has strategically focused on video-based selling, and its success is evident in campaigns that have generated remarkable sales. A notable example is a recent initiative in Lai Chau Province, where livestreaming efforts resulted in the sale of an impressive 300 tons of potatoes in just two months. This innovative approach to e-commerce not only generates sales but also promotes local products, showcasing the platform’s versatility.
Lazada’s Steady Presence and Growth
While Shopee and TikTok Shop have garnered significant market share, Lazada remains a steadfast player with a consistent 3% market share. It has displayed the strongest increase in average order value over the past nine months, indicating a gradual but stable growth trajectory. Lazada has been proactive in expanding its product range, tying up with various milk brands and the South Korean retailer G-Market to introduce an additional 20 million products to its platform.
Future Projections
Looking ahead, Metric forecasts a further rise in the gross merchandise value for these e-commerce platforms, predicting a 15% increase in the fourth quarter compared to the previous year. Sectors such as fashion, beauty, household goods, and groceries are expected to lead in sales, further solidifying Vietnam’s position as an emerging powerhouse in the online shopping space.
As the e-commerce landscape in Vietnam continues to evolve and expand, it becomes increasingly apparent that consumer habits are shifting toward digital platforms. With the integration of advanced marketing strategies, a diverse range of product offerings, and continuous innovations in user experience, the future of online shopping in Vietnam looks bright.