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| A customer shops online. In Việt Nam, the e-commerce landscape is dominated by three major platforms. — VNS/VNA Photo |
HÀ NỘI — The e-commerce industry in Việt Nam has seen explosive growth, with consumers spending an estimated US$16 billion on online purchases in 2024. This surge places Việt Nam among the top three e-commerce markets in Southeast Asia, a region that is rapidly evolving in its digital shopping landscape.
The recent Southeast Asia E-commerce 3.0 report by Momentum Works underscores the dynamism of this market, revealing that the overall gross merchandise value (GMV) across e-commerce platforms in the region reached an impressive US$128.4 billion in 2024. This marks a robust growth rate of 12 percent year-on-year, illustrating a significant shift in consumer behavior as online shopping becomes increasingly entrenched in daily life. On average, the region processes around 43.6 million online orders each day, nearing the scale of the United States market.
Leading the charge in Vietnam are three major platforms: Shopee, Lazada, and TikTok Shop, which together account for over 90 percent of total order volume. This suggests a concentrated but competitive market landscape, with Shopee dominating with a commanding 65 percent market share, translating to approximately $10.4 billion in GMV. Following Shopee, TikTok Shop has carved out a substantial niche with 28 percent of the market, equating to $4.5 billion, while Lazada contributes 6 percent or $1 billion. Tiki, another player in the market, holds a modest share of 1 percent, translating to nearly $200 million.
The report highlights that Việt Nam isn’t operating in isolation; it ranks alongside other burgeoning markets such as Thailand, with $23.5 billion in e-commerce spending, and Malaysia, contributing $11.5 billion. Interestingly, the region’s dynamics also showcase a varied growth rate: Thailand and Malaysia led in growth with impressive increases of 22 percent and 20 percent, respectively, hinting at a vibrant competitive environment.
Despite Indonesia maintaining its position as the largest e-commerce market in the region—with a staggering US$56.5 billion in GMV and a 44 percent market share—its growth has experienced a slowdown to just 5 percent. This deceleration can be attributed to ongoing mergers among e-commerce platforms, suggesting a period of consolidation that could reshape the competitive landscape.
Moreover, the e-commerce ecosystem in Việt Nam is not limited to just these dominant platforms. Additional digital commerce channels, including individual brand websites, multi-brand retailers, and even social media platforms and messaging apps, contributed an impressive $16.8 billion to the total e-commerce value in the region. This diversification signals that consumers are increasingly open to exploring various avenues for online shopping, broadening the scope of the market beyond traditional platforms.
The report also points to an interesting resurgence of Chinese consumer brands in Southeast Asia. These brands are returning to the market with upgraded products and localized strategies, aiming to capture critical market segments and cater to the unique preferences of regional consumers. This move not only heightens competition but also enriches the diversity of products available to consumers.
Looking ahead, Momentum Works forecasts a promising future for Southeast Asia’s e-commerce landscape. They estimate that the sector could generate an additional $131 billion in transaction value by 2030. Their optimism largely hinges on the effective adoption of artificial intelligence across various facets of business, including sales, operations, logistics, and customer service. Embracing technology seems to be the key to unlocking further growth and enhancing consumer experiences in this bustling digital marketplace. — VNS