E-Commerce Growth in Vietnam: Navigating New Realities
A Booming Market
Vietnam’s e-commerce landscape has taken a significant leap forward, with gross merchandise value across the nation’s four major platforms—Shopee, TikTok Shop, Lazada, and Tiki—reaching over VND 458 trillion (approximately USD 17.64 billion) in 2025. This achievement marks a 26% increase from the previous year and represents an astonishing growth rate nearly three times that of Vietnam’s overall retail and consumer services sector, which expanded by 9.2% in the same period. According to market research firm YouNet ECI, this boom underscores the resilience and adaptability of online shopping in the face of changing consumer behaviors.
Signs of Consumer Caution
Amid this impressive growth, a closer look at transaction data reveals emerging pressures on consumer demand. The fourth quarter of 2025 saw an eight percent decline in the volume of goods sold compared to the same period the prior year. This drop occurred even as the average selling prices surged by 33%. Such paradoxical trends indicate that while the market is growing, consumers are becoming more selective and cautious in their spending, particularly concerning non-essential items.
The Pricing Puzzle
The increase in average prices has been chiefly attributed to higher fees introduced by the e-commerce platforms themselves in 2025, compelling many sellers to raise prices across the board. This inflation in costs has made consumers more discerning, prompting a shift in focus towards essential items while curbing discretionary spending. The dynamics of consumer behavior are shifting, and the e-commerce platforms are at a crossroads, needing to address how to balance growing demand with rising costs.
Generational Insights
A recent survey conducted by YouNet ECI in collaboration with social media analytics firm Buzzmetrics revealed intriguing insights into generational attitudes toward spending. Younger consumers, particularly those from Generation Y (born 1981–1996) and Generation Z (born 1997–2012), are showing discernible variations in their purchasing behavior. Generation Y expresses concerns regarding economic prospects, while Generation Z, although more optimistic, contends with financial restrictions, with many households earning less than VND 30 million (approximately USD 1,155) per month.
Shift Towards Essentials
As costs rise while incomes remain stagnant, it’s no surprise that consumer spending is recalibrating. Shoppers are prioritizing essential goods over luxury or non-essential items, underscoring a significant shift in purchasing priorities. This shift not only affects consumer behavior but also reflects broader economic realities, compelling retailers and e-commerce platforms to reassess their strategies.
Future Outlook for E-Commerce
Looking ahead to 2026, YouNet ECI projects that Vietnam’s e-commerce market will continue to expand at a healthy double-digit pace. However, challenges remain, particularly regarding pricing pressure. Smaller sellers with limited capital are increasingly finding it difficult to compete on the major platforms. In the face of rising costs and decreased transaction volumes, the number of sellers has decreased by over 5%. Meanwhile, average revenue per seller has grown by 33%, indicating a concentration of market share among larger brands and authorized distributors.
Changing Consumer Priorities
Nguyen Phuong Lam, head of market insight at YouNet ECI, highlights that “consumers are no longer focused solely on price but are placing greater importance on transparency, credibility, and a consistent shopping experience across channels.” This evolving consumer mindset is a crucial factor for businesses to consider as they navigate the complexities of the e-commerce environment.
As Vietnam continues to enhance its digital marketplace, adapting to these shifting consumer preferences while maintaining a competitive edge will be paramount for the sustained success of e-commerce platforms in the region.