Riding the Wave: Vietnam’s E-commerce Boom in 2025

As we delve into 2025, Vietnam’s e-commerce sector is on a trajectory to reach between US$26–28 billion by the end of the year. This remarkable growth is not merely a number; it stands as a testament to the country’s resilience and the burgeoning appetite of its consumers. Despite global declines in online retail, Vietnam has shown remarkable endurance, setting the stage for one of Southeast Asia’s most exciting e-commerce landscapes.

A Resilient Market

The resilience of Vietnam’s e-commerce is particularly striking. In 2022, while many markets faced significant declines, Vietnam experienced only a slowdown. In the first nine months of 2025, combined sales from the top four platforms—Shopee, TikTok Shop, Lazada, and Tiki—soared to US$11.62 billion, marking an impressive 34.4% year-on-year increase. This excitement is not just about numbers; it’s about a thriving consumer base that eagerly embraces online shopping.

Vietnam: The Third-Largest E-commerce Market

Vietnam has officially surpassed the Philippines, cementing its position as the third-largest e-commerce market in Southeast Asia, following Indonesia and Thailand. The Ministry of Industry and Trade (MoIT) reported that by 2024, e-commerce represented roughly 10% of the total retail and consumer services revenue in the country. The 2025 growth outlook predicts a 25.5% uplift in the sector, revealing a promising trajectory for stakeholders and investors alike.

Key Growth Metrics

1. Gross Merchandise Value (GMV) for the first half of 2025 hit VND 222.1 trillion (approximately US$8.49 billion), showing a robust 23.1% growth.

2. Trends indicate that Southeast Asian e-commerce GMV is set to exceed US$300 billion by 2025, bolstered by the rise of content-commerce formats like livestreaming.

3. TikTok Shop has seen explosive growth, with 148% year-on-year growth in GMV in 2025 and a remarkable 42% market share, showcasing the platform’s ascendance over traditional marketplaces.

Drivers of Growth

Several factors propel Vietnam’s e-commerce sector:

• Influencers and KOLs (Key Opinion Leaders) are instrumental in driving sales, leveraging their vast reach to engage consumers effectively.

• The growing use of AI and advanced analytics is making the shopping experience more personalized and efficient.

• The rise of social commerce through formats such as livestreaming is rapidly reshaping consumer engagement, adding an element of entertainment to the shopping process.

Competitive Landscape

The competition in Vietnam’s e-commerce sphere remains fierce but stable. Shopee leads the market with a 56% share, although its year-on-year revenue growth has slowed to 4%. In contrast, TikTok Shop has surged, achieving 69% growth and closing the gap significantly. Lazada maintains a steady 3% market share, while Tiki struggles, experiencing a 80% revenue drop.

Key Competitive Dynamics

• Shipping Costs: The rise in logistics costs is squeezing margins for e-commerce platforms, necessitating adjustments in pricing and operational structures.

• Shoppertainment: Innovative shopping experiences, such as livestreaming and interactive formats, are becoming the norm, driving sales conversions more than traditional methods.

Expenditure Trends

Vietnamese consumers are embracing e-commerce with increasing zeal. The average monthly expenditure on the top four platforms reached US$1.29 billion in 2025, rising from US$1 billion the previous year. The total GMV for Q3 2025 alone achieved US$3.94 billion, with predictions for Q4 reaching US$3.98 billion—a 15% increase compared to the same quarter in 2024.

Transformative Trends

E-commerce Export Hub

Vietnam is emerging as a potential regional e-commerce export hub. Supported by rapid digital advancements and robust manufacturing capabilities, the country is increasingly recognized in the cross-border digital trade arena. Major platforms, including Amazon, now see Vietnam as a crucial player in e-commerce exports, specifically in categories like furniture and personal care, which are expanding faster than the global average.

The Digital Native Economy

The driving force behind e-commerce growth is Vietnam’s youthful demographic. As of 2025, over 72.5% of the online consumer base consists of Gen Z and Millennials, who prefer mobile shopping experiences. A recent survey indicates that 62.8% of digital consumers make purchases at least weekly, emphasizing the shift toward mobile-first shopping models.

Why E-commerce Could Rival Traditional Retail

1. Rapid Acceleration: E-commerce penetration is growing much faster than in other emerging markets, approaching double-digit figures of total retail sales.

2. Redefining Norms: Younger generations are reshaping shopping behaviors, favoring convenience and interactivity over traditional in-store experiences.

3. Quick Expansion: Unlike markets with entrenched retail chains, Vietnam’s lack of extensive legacy retail allows e-commerce platforms to soar without significant competition from physical stores.

4. Logistical Innovations: With advancements in delivery capabilities and digital payment systems, the gap between online and offline retail is closing rapidly.

5. Support for SMEs: Small and medium-sized enterprises benefit significantly from platforms like Shopee and TikTok, gaining market access without the need for physical storefronts.

6. Regulatory Backing: Government initiatives are improving the digital commerce landscape, promoting data protection and digital transformation.

Navigating Challenges in E-commerce

While opportunities abound, Vietnam’s e-commerce sector grapples with several challenges:

Competitive Pressures

The “money-burning” environment driven by aggressive marketing strategies is unsustainable in the long term, leading to increasing risks for businesses.

Regulatory Landscape

New regulatory requirements bring compliance challenges. Proposed changes aim to refine e-commerce laws, but navigating this evolving landscape can be complex.

Generational Gap

While young consumers drive growth, older demographics remain less comfortable with online shopping, necessitating investment in targeted education and user-friendly experiences.

Talent Deficits

There’s a shortage of skilled professionals in e-commerce sectors, particularly in crucial areas like data analytics and supply chain management.

Infrastructure Challenges

Logistics and fulfillment networks still need improvements. Last-mile delivery and warehouse capacities are critical areas that require heightened focus.

Sustainability Issues

Growing awareness of environmental impacts necessitates concerted efforts toward greener practices in logistics and packaging to meet rising consumer expectations.

In summary, Vietnam’s e-commerce landscape presents a vibrant opportunity for innovation and investment. With a mix of youthful consumers, evolving trends, and increasing digital adoption, the market is poised for continued growth—provided stakeholders can effectively navigate the accompanying challenges. This dynamic environment calls for well-planned strategies and local partnerships that can harness the potential of this rapidly developing market.