Vietnam emerges as the fastest-growing e-commerce market in the region

DNHN - Vietnam leads the growth trajectory with a GMV increase of 52.9% year-on-year. Thailand follows with a growth of 34.1% year-on-year.

According to the Southeast Asia E-commerce Report recently published by OpenGov Asia, Vietnam has emerged as the fastest-growing e-commerce market in the region.

The report highlights Vietnam's rise, surpassing the Philippines to become the third-largest e-commerce market in the region.

In 2023, the total Gross Merchandise Value (GMV) of the top eight e-commerce platforms in Southeast Asia reached USD 114.6 billion, up 15% from the previous year. Despite macroeconomic challenges, the Southeast Asian e-commerce sector has demonstrated continuous growth, with this year's GMV expected to double that of 2020.

Vietnam leads the growth trajectory with a GMV increase of 52.9% year-on-year. Thailand follows with a growth of 34.1% year-on-year.

"The e-commerce market in Vietnam has seen steady growth, boasting an average annual growth rate of 16-30% over the past four years, the highest in the world," according to OpenGov Asia.

Indonesia remains the largest e-commerce market in ASEAN, contributing 46.9% to the region's GMV.

According to statistics from the e-commerce data platform Metric, in the second quarter of 2024, the estimated total revenue on the five largest online retail e-commerce platforms in Vietnam, including Shopee, Lazada, Tiki, Sendo, and Tiktokshop, reached approximately VND 85 trillion, up 78% compared to the same period in 2023. For the first six months of 2024, the total revenue on these five platforms was estimated at VND 156 trillion, up 78% compared to the same period in 2023.

In the first quarter of 2024, retail revenue on these five e-commerce platforms reached VND 71.2 trillion (excluding revenue from live-streaming sessions), up 78.6% compared to the first quarter of 2023. This growth rate far exceeds the forecast that Vietnam's e-commerce market revenue in 2024 would increase by only about 35% compared to 2023.

As reported by OpenGov Asia, Vietnam is intensifying efforts to develop cross-border e-commerce as a key economic growth driver, supported by numerous policies, guidelines, and innovative solutions. This sector is expanding at a rate 2.3 times faster than traditional e-commerce from 2022 to 2025, with forecasts showing an annual growth rate of 20% until 2026.

Over the past five years, Vietnamese businesses have significantly expanded their international operations, with the number of products exported through international e-commerce platforms increasing by 300% and many small and medium-sized enterprises achieving annual revenues of over USD 1 million.

The Vietnamese government, along with ministries, sectors, localities, and the business community, is actively promoting digital transformation and sustainable development in e-commerce.

Specifically, the National E-commerce Development Master Plan for the 2021-2025 period was approved by the government in Decision No. 645/QD-TTg dated May 15, 2020, focusing on promoting e-commerce applications to support key export sectors. Additionally, Decision 1415/QD-TTg dated November 14, 2022, by the Prime Minister on the project "Promoting Vietnamese Enterprises to Participate Directly in Foreign Distribution Networks until 2030," encourages and supports Vietnamese enterprises to participate in global production, supply, and distribution chains, maximizing the competitive advantages of export goods and supporting enterprises in online export as a core solution.

To implement the government's Resolutions and Decisions, the Ministry of Industry and Trade assigned the Department of E-commerce and Digital Economy to carry out the task of developing a unified e-commerce platform for 63 provinces and cities. Notably, following the government’s directives, the Ministry of Industry and Trade has implemented numerous programs to support businesses in boosting their e-commerce activities.

As a result, the e-commerce model is increasingly innovative, and traditional supply chains, supported by the pervasive power of digitalization and information technology, have contributed to the robust development of the domestic market and the promotion of exports.

Phuong Anh