Workforce and Logistics: Essential Factors for Sustainable E-Commerce Expansion in Vietnam, According to Experts

Businesses and online shop owners in Vietnam must pay greater attention to human resources and logistics, considering these factors the “keys” to competitive advantage in an increasingly volatile e-commerce market, according to experts.

E-commerce Growth Remains Strong

The 2024 Overview Report on the Online Retail Marketplace reveals that online retail sales across five major e-commerce platforms—Shopee, Lazada, TikTok Shop, Tiki, and Sendo—reached approximately VND318.9 trillion ($12.1 billion) in 2024. This represents a robust growth of 37.36% compared to 2023. The total sales volume surged to 3.4 billion items, marking a staggering 51% year-on-year increase.

While these figures highlight robust consumer demand, the number of active sellers generating sales has actually declined by 20.25%, indicating escalating competition. Many small and inefficient vendors are exiting the market, leaving room for brands that have clear business strategies, curated product offerings, and flexible operations.

Particularly notable is the tremendous sales growth seen in shop malls on Shopee and TikTok Shop, which posted increases of 69.79% and 181.31%, respectively. This demonstrates a strong consumer shift towards trusted, well-established brands.

As a result, sellers are urged to enhance the shopping experience, improve service quality, and focus on logistics infrastructure and workforce stability to maintain their competitive edge.

In 2024, Shopee Vietnam reported selling over 3.2 billion imported items, generating VND14.2 trillion ($539 million) in revenue—a growth of 37.9% in volume and 42.9% in value compared to the previous year. Currently, there are 31,500 foreign sellers operating on Vietnam’s e-commerce platforms, applying additional pressure on domestic businesses.

In terms of product categories, beauty, home & living, and women’s fashion topped the revenue charts. However, groceries & food reported the highest growth rate at 76.3%, indicating a clear transition in consumer behavior from traditional markets and supermarkets to online grocery shopping—driven by demand for speed, convenience, and time savings.

While rising imports and evolving consumer preferences bring challenges, they also present opportunities for local players to enhance product quality and sharpen competitive strategies. To thrive in this ever-changing e-commerce landscape, retailers need to be creative, agile, and ready to adapt to new trends.

Human Capital: The Silent Driver of E-commerce Success

The fierce competition is taking a toll on many small and medium-sized sellers. However, companies that have established robust logistics systems and supply chains continue to drive market growth.

Pham Quang Nhat, director of human resources provider GRGR Co., Ltd., emphasizes that the explosive growth of e-commerce brings immense pressure on warehouse staffing, especially during peak seasons. “Good products are no longer enough; companies need professionally trained warehouse personnel capable of operating quickly, accurately, and sustainably,” he notes.

Nhat further elaborates that major e-commerce players are making significant investments to ensure stable warehouse staffing, which is a critical link in the supply chain. This stability directly impacts delivery speed, customer experience, and overall operational efficiency.

As a result, recruiting, training, and retaining quality warehouse workers has become a top priority for e-commerce companies. While logistics systems have improved to shorten delivery times and minimize risks of delays or losses, human capital remains at the core of the entire operation.

“A skilled, well-trained, and adaptable workforce is the real key to helping e-commerce businesses cut costs, maintain efficiency, and achieve sustainable development,” Nhat stresses.

Established in 2016, GRGR is a logistics and human resource services company that caters to e-commerce businesses. In less than a decade, it has transformed from a niche startup into one of the leading players in warehouse staffing and logistics support, aiding hundreds of partners in managing labor demand during peak seasons.

Positioning itself as a vital bridge between employers and the workforce, GRGR contributes to the sustainable development of Vietnam’s logistics and e-commerce sectors—two industries projected to continue shaping the country’s digital economy in the years to come.