Vietnam’s e-commerce market to grow by an average of 25% per year

DNHN - Vietnam’s e-commerce market is growing rapidly, driven by increasing internet and mobile penetration.

According to data from data analytics firm YouNet ECI, in the first quarter of 2024, the total gross merchandise value (GMV) of Shopee, TikTok Shop, Lazada and Tiki reached VND 79.12 trillion; 768.44 million products were sold with over 510,000 online retail products… The above figures have been filtered out for virtual numbers, gift products, and international sellers.

Revenue of the four e-commerce platforms decreased by 16% compared to the previous quarter. However, the total market size in March 2024 recovered quickly, increasing by 39% compared to February.

Shopee continues to be the number one e-commerce platform in Vietnam with revenue of up to VND 53.74 trillion from January 1 to March 31, 2024, accounting for 67.9%. TikTok Shop ranks second with VND 18.36 trillion.

Notably, TikTok Shop gained an additional 6.3 percentage points of market share compared to the previous quarter. Their GMV market share in the first quarter of 2024 was nearly three times that of Lazada.

TikTok Shop has only entered the market since 2022 but has had a remarkable increase in market share thanks to pioneering the trend of shoppertainment.

Recently, TikTok Shop signed a cooperation agreement to promote Vietnamese goods and green products, aiming for sustainable e-commerce development… That promises to help this e-commerce platform make further breakthroughs in the near future.

In the first quarter of 2024, each store on Shopee had an average revenue of VND 222 million, TikTok Shop was VND 151 million, Tiki was VND 90 million and Lazada was only VND 54 million.

According to Mordor Intelligence, in January 2024, Vietnam was recognised as one of the 10 countries with the highest e-commerce growth rate in the world, leading Southeast Asia. Vietnam’s largest e-commerce platforms are expected to continue to grow strongly in 2024, with revenue and sales volume exceeding VND 310 trillion (USD 12.5 billion), up 35% compared to 2023.

Vietnam’s e-commerce market is growing rapidly, driven by increasing internet and mobile penetration. The shift to online shopping and advances in digital payments will continue to drive growth in Vietnam’s e-commerce market.

Government digitalisation initiatives and stakeholders’ proactive efforts to leverage technologies such as AI and machine learning will enable more personalised and convenient shopping experiences for Vietnamese users while helping businesses enhance their management capabilities and optimise costs for business operations.

YouNet ECI forecasts that Vietnam’s e-commerce market will continue to grow by an average of 25% per year towards 2025, driven by the development of shoppertainment and the official presence of major e-commerce brands.

Phuong Anh