Vietnam’s E-Commerce Surge: Q1 2025 Insights

Vietnam’s e-commerce landscape is experiencing an exhilarating transformation, as showcased in the recent Q1 2025 Online Retail Market Report released by Metric. The combined sales of the nation’s four largest e-commerce platforms—Shopee, TikTok, Lazada, and Tiki—soared to an impressive VND 101.4 trillion (approximately $3.91 billion) in just the first three months of the year. This uptick marks a significant 42.29% increase compared to the same period last year, illustrating a vibrant market bursting with potential.

Product Sales on the Rise

In tandem with the revenue growth, the total number of products sold across these platforms reached an astonishing 950.7 million, reflecting a year-on-year increase of 24%. This momentum not only underscores the growing consumer appetite for online shopping but also highlights a pivotal shift in purchasing behaviors.

TikTok’s Dominance Grows

Notably, one of the stars of this surge is TikTok Shop, which recorded jaw-dropping sales growth of 113.8%. This impressive leap propelled its market share from 23% to a commanding 35%. The trend indicates a clear shift towards “shoppertainment,” where engaging video content significantly influences consumer buying decisions.

In contrast, Shopee, despite its revenue growth of 29.3%, experienced a decline in market share from 68% to 62%. This decline emphasizes an increasingly competitive landscape, where innovation and engagement through content-driven platforms are becoming critical to retaining market presence. Meanwhile, Lazada and Tiki faced serious challenges, suffering losses of 43.5% and 66.6%, respectively, hinting at a tough battle ahead for established players.

The Changing Face of Retailers

Metric’s report delves deeper into the structural changes in the market, revealing a sharp decline in the number of active small retailers. Over 38,000 shops have vanished compared to last year, making space for larger, more capable vendors. Interestingly, the number of high-performing sellers, especially those generating over VND 50 billion (around $1.92 million), is on the rise, nearly doubling with a 95% increase compared to Q1 2024.

This shift suggests that while smaller sellers are exiting, more substantial, well-resourced retailers are stepping in to seize their market share.

The Appeal of Official Branded Stores

Consumer preferences are also shifting towards official branded stores, or Mall shops, which, although only 3% of total sellers, accounted for a remarkable 26.7% of total sales on platforms like Shopee and TikTok Shop. This trend indicates a growing prioritization of authenticity and reliability among consumers, reflecting their increasing wariness of substandard products.

The Surge of Imported Goods

Interestingly, imported goods are gaining traction over domestic products on Shopee, largely due to their competitive pricing and design variety. In Q1 2025, imported products garnered VND 3.6 trillion ($134.78 million) in sales, which represents a revenue increase of 12.2% and a volume growth of 7.18%. With an average product price of just VND 45,000 ($1.73), it’s clear that consumers favor high-volume, low-cost purchases, increasing pressure on local vendors—especially in the mass market.

Niche Categories on the Rise

While the overall market is evolving, specific niche categories are showing impressive growth. Beauty products, home & living goods, and women’s fashion emerged as top performers on e-commerce platforms, with total revenues hitting VND 18 trillion ($693.17 million), VND 13.8 trillion ($531.52 million), and VND 11.9 trillion ($458.32 million), respectively.

Additionally, a noticeable trend in the mid-range product segment is emerging, with items priced between VND 100,000 and 200,000 ($3.85–7.7) leading in both revenue and units sold. This category’s market share expanded from 22.7% to 25.9%, while the share of premium items declined, underscoring the demand for accessible quality.

Brand Dynamics

When looking at the top-grossing brands, the beauty sector predominates, although tech giants also remain significant players. Apple retained its number one position, witnessing a substantial revenue increase of approximately 58.3%. In contrast, competitors like Samsung and Xiaomi faced year-on-year declines of 28.4% and 17.1%, respectively, indicating a potential shift in consumer interests.

Future Projections for Q2 2025

Looking ahead, the industry is poised for further growth. Metric predicts that total revenue for Q2 2025 will reach VND 116.6 trillion ($4.49 billion), with an estimated product volume of 1.112 billion units. This expected growth of 15% in revenue and 17% in products sold is fueled by mid-year promotional campaigns and a more stable online shopping culture.

E-Commerce Investment

The ongoing investments in logistics, livestream shopping, and seller support tools are enhancing the overall shopping experience, increasing conversion rates, and ultimately reinforcing optimism about the e-commerce sector’s recovery and growth. As consumer spending trends lean more towards essentials and high-quality products with transparent origins, the future looks promising for Vietnam’s online retail market.

The dynamic shifts in Vietnam’s e-commerce landscape pave the way for a vibrant and competitive environment, promising exciting developments in the months and years to come.