Ecommerce in Vietnam: Key players, Trends, Growth & Opportunity 2024

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Ecommerce in Vietnam kvytech

Living in a world dominated by the wonders of rapid technological advancements, it’s hard to find an aspect of our lives that hasn’t been stirred by the digital age. One such revolution that has affected nations globally is the advent and boom of E-commerce. As we explore the world of ecommerce in Vietnam, we dive deep into an enthralling story of promising growth, rapid adaptations, and immense opportunities. This realm, replete with a mix of global goliaths and local unicorns, is shaping not just the country’s economic narrative but also altering how the everyday Vietnamese shops. 

The world of ecommerce in Vietnam is not only thriving but evolving in synchrony with the latest trends, all while demonstrating the pioneering spirit of the local entrepreneurs and enterprises.

Whether you’ve come here to gain a broader perspective on the digital commerce landscape, decipher the emerging trends, identify the movers and shakers, or analyze the growth trajectory and potential opportunities in this segment – stay tuned. Read on to delve into a comprehensive narrative about Ecommerce in Vietnam, a journey that’s as exciting as it’s transformative.

1. A brief overview of the E-commerce landscape in Vietnam.

Setting the foundation for a digital future, E-commerce in Vietnam showcases a dynamic blend of innovative trends and growth potential. This progressive shift towards digitalization is set against the backdrop of a young, internet-savvy population, opening up a plethora of opportunities for both established companies and emerging startups. 

AspectDetails
Internet Penetration Rate68% of Vietnam’s population actively uses the internet
Demographic ProfileYouth-centric population, contributing to a surge in online shopping
E-commerce PlatformsNumerous platforms, both local and international, competing for market share
Business Models and StrategiesDiverse range of models and strategies from global giants to local innovators

1.1. The Bedrock of E-commerce Growth: Vietnam’s Internet-Savvy Population 

With a staggering 68% of its population actively using the internet, Vietnam presents a significant surge in online shopping trends. Fueling this momentum is a youth-centric demographic profile, offering fresh, enthusiastic online shoppers who are eager to explore this flourishing digital space. 

1.2. Competitive E-commerce Platforms Paving the Way

Emerging from this digital transformation are numerous e-commerce platforms, all competing for substantial market shares in this rapidly blooming arena. These platforms come in all shapes and sizes, showcasing a diverse range of local and international players. 

1.3. A Kaleidoscope of Business Models and Strategies 

Each player in the Vietnamese e-commerce market brings with them unique business models and strategies. Whether it’s global giants carving out their niche or local businesses innovating their way to the top, the competitive edge of this market is undeniably sharp. And as you explore this flourishing digital marketplace, you’ll uncover a landscape littered with exciting innovations and endless opportunities ready for the taking.

2. Understanding Vietnam’s Ecommerce landscape

As we delve deeper into the untapped promise and prospective opportunities in Vietnam’s ecommerce landscape, intriguing patterns begin to emerge. Trade experts are unfurling promising predictions of a robust uplift in this sector. A vivid snapshot into the future reveals an impressive panorama: by the time we close the year 2024, the revenue accumulated from the ecommerce realm is estimated to thunderously register a colossal US $17 billion. 

2.1. The Promising Online Shopping Growth

In the dynamic world of international trade and commerce, it is widely believed that the burgeoning ecommerce sector in Vietnam is on the verge of a substantial leap forward. This sector, brimming with potential, has been identified by industry specialists as a powerhouse that could redefine the economic landscape of Vietnam in the forthcoming years. 

2.2. Predicting a Bright Future 

These experts are not just making vague predictions, there is a strong sense of confidence in their outlook. They envisage a future where ecommerce isn’t merely a part of Vietnam’s economy, but it emerges as a dominant force that fundamentally shapes the way business operates. 

2.2.1. A Rising Tide 

Think of it as a rising tide, gradually but powerfully changing the contours of the shore. In this analogy, ecommerce is the fierce tide, advancing resolutely, and Vietnam’s traditional retail landscape is the shore, poised to be reshaped. 

2.2.2. Bracing for a Prosperous Onslaught 

This forthcoming ecommerce onslaught promises not destruction, but prosperity. As it sweeps across the country, it paves the way for high-level efficiencies, convenience, and an unrivalled breadth of choices for consumers. Ultimately, instigating a lucrative revolution in Vietnam’s economy. 

2.3. Forecasting Financial Success 

Ready to set sail into uncharted waters of group-breaking success, the Vietnamese ecommerce market is set to redefine ‘booming.’ This transformation, teeming with huge financial potential, heralds an era of a prosperous future. Strapping in for this ride, let’s dissect the strategies paving the way for this impending success, together highlighting the measurable gains confronting this robust sector. 

2.3.1. Envisioning a Lucrative Ecommerce Future 

As we look towards the future, we see a potentially immense shift in Vietnam’s economic panorama. With the ecommerce scene receiving an unprecedented focus, the forecast of the financial landscape is changing. This transformation is not just abstract; it’s something that can be measured in raw numbers. It is estimated that by the end of 2024, a staggering figure of US $17 billion will be injected into the economy, all sourced from ecommerce activities alone. 

2.3.2. The Percpetive of Gain: A Monetray Boost 

This projection is significant for many reasons. When we talk about a value as vast as US $17 billion, it’s not merely a large number. Rather, think of it as a colossal boost for the nation’s economy, representing a significant chunk of the country’s gross domestic product (GDP). The sheer scale of this potential income illustrates the meteoric rise that ecommerce is expected to make in Vietnam’s financial structure. 

2.3.3. The Ecommerce Ascend: A New Economic Superstar 

This financial forecast is not just a monetary gain; it’s a signal revealing the evolving status of ecommerce in Vietnam. With figures like these, ecommerce will no longer be the burgeoning industry it once was. Instead, it will have ascended to a position of magnified importance within the Vietnamese economy. It’s a revelation of the strategic value ecommerce will potentially hold in shaping the economic fabric of the country in the coming years.

2.4. Gauging the Market’s Segmental Dominance 

When we pivot our focus towards the different market segments within the ecommerce landscape in Vietnam, we can see that the year 2021 illuminated certain sectors more vividly than others. Let’s delve into these domains to get a flavor of their economic accomplishments: 

2.4.1. Electronics & Media: The Trailblazers 

Undeniably, the Electronics & Media domain emerged as the most prolific in 2021. This sector strapped itself to the rocketship of ecommerce and soared to a staggering projected market volume of US $3.66 billion, unequivocally cementing its position as the powerhouse of ecommerce in Vietnam. 

2.4.2. Fashion: Close on the Heels 

Not too distant in the rearview mirror, we have the Fashion domain nipping at the heels of Electronics & Media. With a projected market volume of US $1.73 billion, the fashion sector demonstrated that it’s not just a style statement; it’s a significant player in ecommerce. 

2.4.3. Furniture & Appliances: The Steady Edifice 

Another sector making noteworthy inroads in ecommerce is the Furniture & Appliances segment. While not as monstrous as its electronic and fashion counterparts, it remains a steadily growing entity, contributing its part in shaping the ecommerce environment. 

2.4.4. Toy & Hobby Markets: The Dark Horses 

Lastly, let’s not discount the Toy & Hobby markets. These segments, while trailing slightly behind the aforementioned domains, play their role in enriching the ecommerce tapestry in Vietnam, pioneering new trends and feeding the ever-growing consumer demand.

2.5. The Role of Internet Penetration 

One of the primary drivers accelerating the marketplace’s evolution is the impending upsurge in the internet penetration rate in Vietnam. According to projections, this figure is poised to skyrocket to a whopping 75% by the year 2024. This key piece of information underscores the profound effect of Vietnam’s burgeoning digitization. 

2.5.1. Tech-Savvy Youth: The Backbone of Digitization 

The second vital constituent bolstering the flourishing ecommerce environment in Vietnam is the country’s dynamic, young demographic. With a median age of around 30 years, not only does Vietnam have one of the youngest populations in Asia, but its populace is also incredibly tech-literate. This amalgamation of youth and technological proficiency frames an enticing canvas for ecommerce growth and expansion

2.5.2. Forging a Strong Ecommerce Ecosystem 

These converging factors – a burgeoning internet penetration and a tech-savvy young community – have sparked a surge in the ecommerce sector. Vietnam’s ecommerce environment is not just thriving, but it’s robust, resilient and ripe for opportunity – offering a beacon of potential for businesses and consumers alike.

2.6. The Growing Prosperity of ARPU 

Let’s delve into the significance of ARPU (Average Revenue Per User) in the vibrant landscape of Vietnam’s ecommerce. Currently, the ARPU in Vietnam situates itself at a substantial US $62.32. However, the ever-evolving ecommerce sector indicates a projection of growth where we could see this figure soaring to an impressive estimated US $76.17 by 2024. 

2.6.1. The Mounting ARPU: A Testament to Consumer Readiness 

This marked increase in ARPU is not just a number on the rise. It carries with it a deeper implication. The surge in ARPU reflects a marked readiness among consumers to contribute larger amounts online. They’re not merely shopping more frequently. They’re also increasing the total amount they’re prepared to spread in the online marketplace. This growing consumer confidence is a direct catalyst to the momentum of the Ecommerce sector, pushing it forward on successful exceedingly accelerated trajectory. 

2.6.2. Potential Impact for Ecommerce Sector 

The ripple effects of this willingness to spend more online are far-reaching for the ecommerce sector. Increased ARPU paves the way for stronger revenues, more room for growth and innovation, and thus higher potentials for success and profitability within the sector. This can fuel the already accelerating ecommerce industry in Vietnam towards even greater heights. 

2.7. Demystifying the Ecommerce Models in Vietnam 

Unraveling the facets of Vietnam’s ecommerce sector necessitates an understanding of the various types of digital commerce models flourishing in the nation. Generally speaking, these can be divided into: Business-to-Consumer (B2C), Consumer-to-Consumer (C2C), Business-to-Business (B2B), and Consumer-to-Business (C2B). 

2.7.1. B2C – Direct Consumer Approach 

Delving into Vietnam’s thriving B2C ecommerce landscape, we see businesses selling directly to consumers amplified by cultural nuances, technological savvy, and rapid digital growth. This model stands as a crucial part of Vietnam’s booming digital economy, with leading brands unlocking its potential in the ecommerce spectrum.

Tiki.vn: The Rising Star of B2C Ecommerce in Vietnam 

Tiki.vn has scaled the heights of the Ecommerce scene in Vietnam, carving out a firm position as a key player in the B2C model. The platform boasts an impressive assortment of goods, spanning categories from electronics to fashion, books to home appliances. Each product category is a testament to Tiki.vn’s triumphant business strategy, and serves as a cog in the wheel driving its success story in Vietnam. 

Lazada: The Alibaba-backed Giant 

Casting a considerable shadow in the Ecommerce space of Vietnam is Lazada, a phoenix that draws its strength from the backing of Alibaba. A diverse range of product categories, from home appliances to fashion apparel, health products, and more dot the landscape of this high-profile online marketplace. By leveraging Alibaba’s extensive global supplier network, Lazada has anchored itself firmly in Vietnam’s B2C Ecommerce sector. 

Shopee: Capturing Market Share with a Wide Array of Goods 

Not one to be overshadowed, Shopee, a Singapore-based Ecommerce platform, has garnered substantial momentum within Vietnam. A wide spectrum of product categories, extending from beauty essentials to automotive goods, exude a magnetic allure on the B2C stage. Shopee leverages easy and convenient transactions bolstered by solid technology to engage businesses and consumers, thereby commanding a significant standing in the Ecommerce arena. 

Sendo: A Homegrown Phenomenon 

A player that resonates with the masses in Vietnam’s suburban and rural areas, Sendo is a homegrown Ecommerce platform that has proven its mettle. By focusing on consumers in the less commercially dense regions, Sendo has spun a unique niche in the competitive Ecommerce landscape, further escalating the interest and involvement of consumers with the platform. 

2.7.2. C2C – The Trade Connection 

When it comes to the Consumer-to-Consumer (C2C) model, Vietnam’s ecommerce landscape exhibits vibrant activity. With this model, consumers trade goods amongst each other facilitated by a third-party platform that provides the required virtual marketplace. A few distinctive examples are pivotal to understanding this model’s successful implementation in Vietnam. 

Chotot: Vietnam’s Virtual Classifieds 

Essentially Vietnam’s response to Craigslist, Chotot is an exemplary representation of the C2C ecommerce model. It offers a dynamic platform where consumers can transact directly. 

Tiki.vn: From an Online Bookstore to a C2C Hotspot 

The C2C ecommerce model finds expression in Tiki.vn as well. Originating as an online bookstore, Tiki progressed rapidly into an encompassing C2C platform. Now, it welcomes anyone to its trading community, selling a broad spectrum of products, ranging from electronics to fashion to fresh groceries. 

Sendo: Demolishing Geographical Hurdles 

Sendo is another vital aspect of the C2C scene in Vietnam. Its significant contribution is linking sellers and buyers from tier 2 and tier 3 cities, therefore democratizing trade across the whole country. The platform has managed to reach the remotest corners of Vietnam, making ecommerce accessible for all. 

Bid.vn: Bringing Excitement to Ecommerce 

Concluding this exploration of the C2C model in Vietnam is the unique auction site Bid.vn. In addition to facilitating consumer-to-consumer trading, it enables users to engage in online bidding, adding another layer of excitement and engagement to ecommerce in Vietnam.

2.7.3. B2B – A Potential Goldmine 

Stepping into the world of ecommerce, you might often hear the term “B2B” or Business-to-Business. Unlike consumer-centric models, B2B focuses on transactions between businesses and has shown signs of immense potential in the Vietnamese ecommerce market. It may not be as glamorous as its B2C counterpart, but let me assure you, with the digital transformation of various sectors, B2B ecommerce is indeed a goldmine ready to be tapped. Let’s delve into how and why it happens.

Alibaba.com: The Gateway to Global Suppliers 

Taking a leap into the B2B e-commerce model, albeit less popular among customers, Alibaba.com is a testament to its remarkable potential. By offering incredible opportunities in areas like manufacturing and logistics in Vietnam, this platform is paving an indomitable path for businesses, by linking them with global suppliers. 

TikiPro: Simplifying Procurement for Businesses 

Additionally, TikiPro, a B2B purchasing platform, is revolutionizing the procurement landscape for businesses in Vietnam. They provide a broad spectrum of products ranging from electronics to office supplies. This approach not only caters to diverse business needs but also aids in streamlining their buying processes. 

Fado: Bridging the Domestic Demand-Supply Gap 

Fado, another innovative player, offers a cross-border B2B e-commerce platform. With this, Vietnamese businesses can source internationally acclaimed, high-quality products. Fado, by guaranteeing competitive prices and prompt delivery, seeks to bridge the domestic demand-supply gap. 

META.vn: Revolutionary Provider of Industrial Products and Services 

Adding some mettle to the B2B model is META.vn, a provider of industrial products and services. By extending its services through an online platform, META.vn goes beyond traditional boundaries. Offering a multitude of items from construction materials and machinery to office equipment, the platform caters to various business needs. 

Halana: Carved Out for A Significant Space

Specialized in the supply of industrial equipment, Halana showcases a wide range of products catering to the varied needs of businesses. Its online platform is a one-stop-mark for top-notch, durable machinery and tools for sectors such as manufacturing, automotive, construction, among others. By investing in quality and reliability, Halana is steadily developing its prominence and contributing to the growth of eCommerce in Vietnam.

Atalink: Connecting Businesses Across Industries 

Atalink, a leading B2B e-marketplace in Vietnam, emphasizes on connecting businesses across diverse industries. Its expansive product categories, encompassing machinery, agriculture, textiles and more, offer businesses an efficient trading platform and breathe novel entrepreneurial pulse into the e-commerce landscape. 

Misumi: Penetrating the Vietnamese Industrial Sector 

Misumi, a global brand, is making headway into the Vietnamese industrial sector through its e-commerce platform. Boasting a catalog of over 8 million precision engineering products, Misumi has successfully carved out an efficient online channel for businesses. The success of Misumi underlines the fact that sectors traditionally not affiliated with online purchasing can also find significant benefits from digital platforms

Sapo: Streamlining Multi-Channel Sales Management for Retailers 

Lastly, there’s Sapo, a multi-channel sales management software tailored for retailers. By making it easier for businesses to manage their online operations, from sales processes and inventory to customer services, Sapo is helping reshape the e-commerce landscape.

2.7.4. C2B – The Reversed Model 

Encapsulating the concept of Consumer-to-Business (C2B), this revolutionary model overturns the conventional B2C approach by empowering the consumers to offer their products or services directly to businesses. The C2B landscape in Vietnam exhibits a proliferating growth, exemplified with robust utilization in various sectors. 

C2B Integration – The Success Stories 

The Pioneers in Restaurant Reviewing: Foody 

One notable example of C2B implementation in Vietnam is Foody, a widely used app where consumers provide restaurant reviews and share their food experience. Foody exemplifies the C2B model’s principle where the food industry leans heavily on consumer-generated reviews and ratings to improve their service. 

Personalized Touring: Triip 

In the tourism sector, the C2B model finds its vivid application in Triip, a platform facilitating travelers to design their personalized tours. Travelers can here express their preferences, and their tailor-made tour packages are ultimately proposed to travel agencies. This consumer-centric approach products impacts the service offerings of businesses. 

Revolutionizing the Fashion Industry: 1gram 

Yet another interesting instance of the C2B model operating in Vietnam is the fashion industry’s 1gram. This platform empowers consumers to voice their fashion needs directly to manufacturers, thus enabling the production of bespoke clothes. By offering consumers control over their fashion choices, this model exemplifies the intimate connection between businesses and customers. 

The emergence of such C2B platforms in Vietnam signify an evolution within the e-commerce sector, illustrating a system where consumers direct their preferred products and services. It showcases the dramatic adaptation by businesses to align themselves with this evolving consumer pattern.

2.7.5. Embracing the Niche: Business to Government (B2G) 

Exploring B2G Ecommerce in Vietnam 

In the realm of Ecommerce in Vietnam, a fascinating episode has recently been unfolding – the rise of the Business to Government (B2G) model. B2G is a dynamic segment, where businesses, big and small, engage directly with government agencies, gaining momentum in sectors such as Information Technology (IT) and infrastructure. With the promise of lucrative government contracts, the B2G model opens doors to potential prosperity for businesses and a wealth of opportunities for growth and innovation. 

FPT Corporation: Implementing Digital Transformation 

A shining exemplar of a successful B2G ecommerce model in Vietnam is FPT Corporation. Recognized as a leading technology company, FPT has a critical role in executing some of the government’s major projects, such as the National Public Service Portal. With this, FPT highlights the untapped potential of the B2G model, while also accelerating the digitization of government operations and public services. 

VNPT: Bridging the Gap between Technology and Government Operations 

The Vietnam Posts and Telecommunications Group (VNPT) stands tall as another remarkable B2G ecommerce player. Delivering comprehensive IT and telecommunications services to several governmental agencies, VNPT has successfully managed the critical junction of technology and public sector operations. The group is instrumental in digitizing processes, enhancing efficiency, and fostering transparency in governmental actions. 

Bkav: Ensuring Cybersecurity 

Riding the wave of B2G ecommerce, Bkav, a renowned Vietnamese tech company, is making its mark in the area of cybersecurity. Working in collaboration with the government, Bkav is taking steps towards securing a safe digital experience at the national level. They are actively assisting the government in mitigating cyber threats, thus emphasizing the potential extent of B2G ecommerce in ameliorating public quality of life through technologically advanced solutions.

2.7.6. The Efficiency-Driven Model: Consumer to Government (C2G) 

In Vietnam’s ecommerce landscape, an intriguing entry is the somewhat unconventional model called Consumer to Government (C2G). Aimed at amplifying the scope and competency of public service delivery, C2G serves as a direct conduit between Vietnamese consumers and governmental entities. This integration facilitates a range of public transactions – from fulfilling electricity bills to settling traffic fines online. 

Consumer to Government (C2G) – A New Ecommerce Frontier? 

Though less common than Business to Consumer (B2C) or Consumer to Consumer (C2C), the C2G model is securing its footing within Vietnam’s ecommerce marketplace. C2G symbolizes an innovative niche where Vietnamese citizens engage in service offerings or complete transactions directly with governmental bodies. So, let’s take a closer look at the C2G implementation on the ground in Vietnam. 

Online Tax Systems – C2G in Full Swing 

A notable example of effective C2G execution in Vietnam is the introduction of online tax systems. This essentially allows individuals to pay taxes conveniently from their personal computing devices, and has revolutionized how tax contributions are handled in the country. The digital shift has not only eased the strain on the public but has also restructured administrative processes, leading to a more efficient and organized tax ecosystem. 

Digitizing Traffic Violation Payments 

Another manifestation of C2G operations is the digitization of traffic violation payments. In a bid to streamline the management of traffic-related dues and fines, an online payment gateway has been launched in Vietnam. This innovative shift permits citizens to settle their traffic fines directly over the internet – a testament to the increasing digital convenience and governmental efficiency in the country. 

Online Public Services – A Paradigm Shift 

The C2G model extends its reach even further, penetrating the public service sector through online applications platforms. These platforms cater to essential services such as renewal of passports and licenses. By offering facilities for online appointments, documentary submissions, and service requests, these digital systems have significantly simplified the bureaucratic processes, building an expedient bridge between the Vietnamese populace and governmental agencies.

2.7.7. Increasing Transparency: Government to Business (G2B) 

Transitioning towards G2B Model 

Vietnam’s ecommerce landscape is experiencing a paradigm shift towards the Government-to-Business (G2B) model, a fascinating evolution from traditional ecommerce interactions. This model integrates government services into an online framework targeted at businesses. Evidence of this digital transformation is seen in the adoption of online tax payments and e-tendering systems. Key advantages of this approach encompass increased inclusivity and heightened transparency, leading to an overhaul in governmental transactions. 

The National Public Service Portal: A Game Changer 

In the sphere of G2B ecommerce initiatives, one cannot overlook the magnificent National Public Service Portal. Unveiled by the Vietnam government in late 2019, this portal forms a seamless electronic conduit catering to interactions between the government and businesses. The portal offers a gamut of around 3000 administrative procedures and services, ensuring a convenient, transparent interface for businesses to engage with governmental entities. 

Redefining Procurement: The National E-Procurement System 

Altering the rules of public procurement, the National E-Procurement System of Vietnam has taken the process entirely online. This seismic shift to digital has addressed the challenge of limited supplier access and mitigated the opacity inherent in traditional bidding frameworks. As a result, the procurement experience is now more inclusive, efficient, and fair. 

eTax Service: Streamlining Tax Processes 

The innovative eTax service initiated by the Vietnam Ministry of Finance has simplified tax filing processes, injecting transparency and convenience into the experience. This initiative serves up an online platform allowing businesses to submit tax returns, facilitating a smoother interaction with the tax regime and consequently, an improved business environment. 

e-Customs Initiative: Revolutionizing Customs Procedures 

A significant stride in G2B ecommerce is the digital transformation of customs procedures, led by the Ho Chi Minh City Customs Department’s e-Customs initiative. This online solution has simplified import and export procedures for businesses, eliminating extensive paperwork, and enhancing the accuracy of the declaration process. This beneficial move towards digitization has not only hastened workflows but has also fostered a more transparent and efficient customs procedure.

2.7.8. A Fresh Entrant: The Sharing Economy Model 

A newer player on the field, the Sharing Economy model, embodies shared utilization of goods and services via a digital platform, propelling a shared economy forward in Vietnam. This model has given birth to high profile companies like Grab and Go-Viet that have capably placed themselves as leaders in Vietnam’s potent sharing economy. 

The above models are just a snapshot of the Ecommerce framework that currently defines Vietnam. However, with the continuous evolution of the digital marketplace seeking to cater to consumer preferences and requirements, this landscape is kaleidoscopic and continually shifting.

>> Read More: Dive into Asia-Pacific’s vibrant e-commerce market to Explore territories and strategize efficiently.

3. Unique characteristics of Vietnam’s Ecommerce landscape

3.1. The Youthful Demographic: A Digital Native Community 

In the heart of Vietnam’s ecommerce landscape is an overwhelming youthful demographic. Over 60% of the population are aged under 35 years, resulting in a digital native community that is technologically competent, receptive to innovation, and quick at adapting to emerging online shopping trends. This youthful, tech-savvy populace shapes a vibrant and adaptive online marketplace, designed to cater to the youthful preferences and shopping behaviors. 

3.2. High Social Media Penetration: A Breeding Ground for Social Commerce 

Remarkably, over half of Vietnam’s population are active social media users. This high penetration rate presents a fertile platform for burgeoning social commerce. Businesses steer these platforms clear of their traditional boundaries — instead of primarily utilizing them for marketing, many are directly selling their products, thereby blurring the boundary between social networking and ecommerce. The integration of commerce into social media offers enormous potential to target a massive user base that already spends a significant portion of their time in these virtual spaces. 

3.3. Payment Preferences: Cash-on-Delivery Reigns Supreme 

Despite the proliferation of online payment platforms, cash-on-delivery remains a widely prevalent payment method in Vietnam. The majority of Vietnamese online shoppers still feel the need to physically verify their purchased products before paying. This preference has resulted in ecommerce business offering flexible payment methods, fostering trust, and enticing more consumers towards online shopping. 

3.4. Localization: A Personalized Shopping Experience 

Localization in content and on sales platforms is a distinctive and appealing feature of Vietnam’s ecommerce market. To cater to the culturally diverse and multilingual population of Vietnam, many ecommerce websites offer options to browse and shop in local languages. This inclusivity facilitates broad market reach and offers consumers a personalized and familiar online shopping experience. 

3.5. Logistics Infrastructure: A Potential for Growth and Innovation 

The absence of well-established, large-scale logistics networks is another distinctive feature of Vietnam’s ecommerce landscape. With the country’s logistics infrastructure still under development, a myriad of local last-mile delivery companies has emerged. This situation, despite posing certain challenges, also creates a vast potential for growth and technological innovation in logistics for ecommerce businesses

4. Key Players

Delving into the heart of Vietnam’s digital marketplace, we uncover a diverse range of significant contributors that orchestrate the rhythm of this thriving landscape. These key players, native and global, are driving the exponential growth of the e-commerce ecosystem. Allow us to guide you as we look closer at these dominant forces – Tiki, Lazada and Sendo. 

4.1. Stepping Up the Game with Tiki 

Acclaimed as the “Amazon of Vietnam”, Tiki stands tall as a local force to reckon with. Born a humble online store in 2010, Tiki began its journey selling books and quickly evolved into a multi-category platform. Embodying true entrepreneurial spirit, the business recognized the significance of an optimal user experience and rapidly innovated to recreate its design and functionality. Tiki’s phenomenal growth is also attributable to its strong investor network, which showcases giants such as JD.com and Tencent. These collaborations have fetched Tiki an impressive stature in the competitive eCommerce terrain. 

4.2. The Global Powerhouse: Lazada 

On the international front, Lazada, yet another brainchild of Alibaba, leaves an indelible mark on Vietnam’s digital landscape. The caption of Lazada’s success story reads – a wide range of product offerings, and swift deliveries – making it a favorite among users. Supplementing these strengths is Lazada’s integrated payment gateway, Alipay, that simplifies online transactions for its users. This user-friendly feature further entrenches Lazada’s position in Vietnam’s bustling ecommerce neighborhood. 

4.3. The Local Champion: Sendo 

Coming to the third pillar of Vietnam’s ecommerce, Sendo – an FPT Corporation subsidiary is a trailblazer. Volte-face to other platforms, Sendo has aligned its strategies to cater specifically to the demands of Vietnam’s rural and suburban populations. The genius of Sendo’s operation lies in its fusion of online and offline shopping experiences, geared to resonate with the local market’s unique requirements. This innovative approach further underscores the potential of ecommerce businesses to adapt creatively to cater to specific consumer segments. 

It is the relentless pursuit of innovation and growth by these key players that morphs Vietnam’s ecommerce landscape into a vibrant nerve-center of opportunity. If you find yourself wearing the hat of an investor, entrepreneur, digital marketer or even a committed online shopper, don’t blink – the Vietnamese e-commerce market is an exciting hotbed of growth and financial opportunity worth paying attention to! 

5. Developing Trends

Understanding the Vietnamese ecommerce market requires examining several noteworthy trends that strongly influence its trajectory. Here, we delve into these trends, scrutinizing their effect on buyers’ behavior, and how they’re propelling the ecommerce sector in Vietnam to new heights. 

Developing Trends Vietnamese ecommerce kvytech

5.1. The Emergence of Social Commerce 

As we progress towards the era of digital revolution, one of the most fast-paced and show-stopping trends we’re witnessing is the meteoric rise of social commerce. This remarkable fusion of social media platforms to endorse and swap products and services has caught the eyeballs and hearts of the Vietnamese people, known for their unwavering devotion to social media. Here, users typically spend over seven hours a day, and the year 2024 is set to push that envelope further. 

As social commerce amalgamates the realms of social interaction and commerce, there’s an awe-inspiring revelation that continues to bolster the phenomenon. The statistics say it all. 

  • By 2024, it’s projected that an astounding 74% of Vietnamese consumers will leverage social media for their shopping needs, putting it leagues ahead of the global average.
  • Doubling down on this digital dominance, the projected figure for the average daily social media usage is set to shoot up to 7.8 hours by 2024, a substantial increase from the current six hours.

Key Predictions for Social Commerce in Vietnam by 2024 

AspectCurrent StandingPredicted Figures in 2024
Percentage of Vietnamese consumers using Social Media for Shopping68%74%
Average Daily Social Media Usage6 hours7.8 hours

The towering dominance of social commerce, backed by these impressive predictions, flatly tells us that this sector is set to beat all records, becoming the cornerstone of the dynamic eCommerce terrain in Vietnam. 

5.2. Booming Online Shopping 

As we stride forward into the heart of the digital revolution, the impact of e-commerce continues to gain momentum. While traditional brick-and-mortar stores retain a degree of relevance, it’s impossible to ignore the significant shift towards online shopping in Vietnam. Fueled by convenience, superior online bargains, and rapidly growing confidence in digital payment systems, Vietnamese consumers are propelling a considerable expansion in the burgeoning digital marketplace. 

YearNo. of Online ShoppersGrowth
201719.9 Million
201926.9 Million35%
202139.4 Million46%
2024 (Projected)52.5 Million33%

This exponential growth, witnessed over the years, manifests that e-commerce has firmly sewn its roots into the fabric of Vietnamese society. Projections for 2024 estimate a whopping 52.5 million online shoppers in the country, indicating that the upwards trajectory of this trend is set to continue.    

  • Convenience: With just a few clicks, shoppers can browse an array of products and services from the comfort of their homes, removing geographical and time restrictions.
  • Greater Variety: E-commerce platforms offer a wide range of goods that might not be readily available in physical stores.
  • Better Bargains: Online platforms often provide attractive deals, discounted prices, and shopping rewards that draw in consumers.
  • Secure Digital Payments: As Vietnam spearheads toward cashless society, payments through credit/debit cards, and mobile wallets are fortifying consumer confidence in online transactions.

Undoubtedly, the blend of these elements paints an exciting future for e-commerce in Vietnam, with clear indicators of sustained growth along the horizon.

5.3. Accelerating Mobile Commerce 

Mirroring other global markets, mobile commerce in Vietnam is witnessing dynamic growth. With the ubiquity of smartphones and high-speed internet turning into a norm, online shopping is becoming a routine part of life for many Vietnamese consumers. According to the latest data extracted from Statista, it’s predicted that by 2024, over 35.8 million people in Vietnam will be purchasing goods and services online.

Further boosting this trend is the advent of user-centric mobile shopping applications and mobile-optimized ecommerce websites that have earmarked mobile commerce as a critical element in Vietnam’s ecommerce landscape. Key stats to consider: 

  • Estimated mobile commerce revenue by 2024: $6 billion
  • Projected Compound Annual Growth Rate (CAGR) from 2020 to 2024: 28.7%
  • Anticipated ratio of mobile users to total internet users by 2024: 67%

The following table provides a quick glance at the growth trajectory of mobile commerce in Vietnam: 

YearNumber of Users (Millions)Revenue (Billions)
202019.5$2.2
202122.3$2.7
202225.1$3.3
202328.8$4.6
202435.8$6

The ease and convenience offered by mobile applications are making them the preferred platform for ecommerce transactions. As we move towards 2024, retailers who can deliver a frictionless mobile experience will be well-positioned to capture a significant share of this burgeoning market.

5.4. Personalization: The New Norm 

Ecommerce businesses in Vietnam, like their counterparts worldwide, are shifting in response to consumer preferences for hyper-personalization. This move is characterized by the provision of tailor-made shopping experiences, presenting customers with product suggestions that reflect their browsing habits and expressed interests. 

According to the latest data, by 2024, an estimated 62% of ecommerce businesses in Vietnam are expected to adopt personalization as a primary marketing strategy—a telling metric that underscores the importance of personalization in the ecommerce industry. 

  • Hyper-personalization: A more advanced level of personalization that dynamically uses AI and real-time data to deliver more relevant content.
  • Browsing patterns: This refers to consumers’ online behavior, such as products viewed or clicked on, time spent on different pages, items added to the cart, and so forth.
  • Expressed interests: Involves analyzing customers’ communication with the brand to understand their preferences, for instance, through surveys, feedback or product ratings.

6. Broadening Perspectives

Three seminal elements contribute largely to the skyrocketing growth of the ecommerce domain in Vietnam: advancing technology, changing consumer behavior, and solid backing through government policies. Delving into these factors will help us capture the magnitude of the industry’s rapid development. 

6.1. Advancing Through Technology

Let’s embark on a journey into the role played by growing technology innovations in energizing Vietnam’s ecommerce realm. The increase in internet users, mobile technology’s deepening influence, and worldwide dedication to digitization have spearheaded the notable shift to online shopping. Traditional brick-and-mortar stores are now either being supplemented by or transforming into their virtual versions, offering consumers the luxury of unrestricted shopping hours. 

The ecommerce industry also embraces these technological strides, providing a secure, pain-free shopping experience assisting its growth. This reality is encapsulated in the following remark: 

“As burgeoning technological innovations continue, online shopping has evolved from a mere trend to an integral part of day-to-day living for many Vietnamese.”

6.2. Adjusting to Shifts in Consumer Behavior  

Now, let us decipher the transformation in consumer behavior, a central agent in forming Vietnam’s ecommerce panorama. A recent surge in remote work coupled with the global pandemic has reshaped our homes into multi-functional spaces accommodating work, education, and shopping. As consumers increasingly stay indoors, the dependence on online shopping escalates.  

Further, increasing disposal income among Vietnam’s middle class has paved the way for varied consumer goods expenditure online. Over time, consumer spending power has emerged as a formidable agent for the ecommerce realm. 

6.3. Leveraging Government Policies  

Last, but far from least, we must consider the integral role of government policies in promoting digital transformation. The Vietnamese government, alive to ecommerce’s economic potential, has actively smoothed its growth trajectory via advantageous policies. Measures boosting digital literacy, improving internet infrastructure, and creating a nurturing environment for ecommerce startups epitomize government strategies. 

These robust policies have accelerated ecommerce adoption and driven its continuous expansion, setting up a cycle of sustained growth. 

Gazing into the future, Vietnam’s ecommerce sector appears ripe for success. Industry forecasts peg Vietnam’s 2024 ecommerce market worth at a commanding $15 billion, a gigantic leap from the $3.5 billion in 2019. This predictive data accentuates the sheer scale of unrealized opportunities within Vietnam’s ecommerce sector, presenting an appealing opportunity for smart investments.

7. Ecommerce Opportunities in Vietnam

Ecommerce Opportunities in Vietnam kvytech

Just imagine, a labyrinth bustling with digital activity – that’s the precise description of Vietnam’s e-commerce landscape. Within this emerging Southeast Asian economy, over 70 million digitally equipped citizens match with a vibrant technology-forward population, propelling online retail to astronomical heights. Add to this the government’s encouraging approach towards digital transformation and a flourishing startup culture seeking alternative business methodologies, and what you get is a perfect storm for digital commerce growth. To truly grasp this intricate landscape, let’s navigate through the labyrinth that is Vietnam’s e-commerce, focusing specially on its growth prospects and arising opportunities in the forthcoming years.  

“With continuous technology advancements, the e-commerce ecosystem in Vietnam progresses steadily, stimulated by a swelling consumer base exploring the digital marketplace. As technology insinuates deeper into our day-to-day lives, the potential for expansion in this domain is truly immense.” – Nguyen Trong Thanh, Vietnam E-Commerce Association (VECOM)

Decoding the Core Components of the Ecommerce Terrain in Vietnam:  

Let’s break down the fundamental drivers shaping Vietnam’s e-commerce landscape. The following analysis is segmented for a clearer understanding. 

1. Key Players: 

A melting pot of multinational online retail behemoths and rookie local e-commerce platforms craft a diverse and competitive ecommerce landscape.

2. New Age Trends:  

Unravelling the recent trends that are forging the e-commerce world. These include the spike of social and mobile commerce practices, and adopting personalized user experiences. 

3. Predicted Growth:  

Rigorous analysis into the impressive expansion trajectory, which are propelled by swift technological advancements, dynamic consumer behaviour transformations and government initiatives incentivizing ecommerce.  

4. Realizable Opportunities:  

Identifying potential opportunities lurking for businesses ready to dive into their digital journey within Vietnam’s e-commerce ecosystem.  

Our goal in this in-depth exploration is to provide a broad spectrum analysis of these dimensions, helping you to intimately acquaint yourself with the vibrant and dynamic e-commerce pulse of Vietnam.  

8. Spotlight on Innovative Ecommerce Business Models 

Diving into Vietnam’s vibrant ecommerce sector, numerous innovative business models are stirring the pot. These unique platforms are redefining traditional shopping and business operations. Let’s focus on one such innovator: Dropii.  

Dropii, emerging as a leading drop-shipping specialist, is revolutionizing ecommerce in Vietnam by filling the void between sellers and suppliers. 

Imagine launching an ecommerce venture without worrying about inventory or staggering upfront costs. That’s the magic of Dropii. This platform eradicates inventory overheads, thereby offering a risk-free, cost-effective business model for burgeoning retailers. 

More than just facilitating transactions, Dropii aims to educate. Equipped with a user-centric interface and dedicated support, they are empowering retailers, effectively acting as an ‘ecommerce guru’. 

Dropii stands out in the diverse Vietnamese ecommerce landscape by providing ease of use, low operational costs and revenue-generating opportunities with minimal startup costs. Exemplifying the energetic dynamism that marks Vietnam’s ecommerce sector, Dropii is a key contender to watch out for. 

9. Tackling Problems: Difficulties for Ecommerce Companies in Vietnam

Delving further into the dynamic ecommerce landscape of Vietnam, the evolution and success of the key players in the industry warrant special attention. Their journey – a collective saga of resilience, adaptability, and innovative strategy – provides us with invaluable insights about the mechanisms of digital commerce in Vietnam. 

9.1. Revamping Ecommerce: The Role of Innovation in Vietnam

Charting the success of Vietnam’s ecommerce trailblazers, one cannot ignore the game-changing initiatives and pioneering strategies they’ve deployed. Such groundbreaking ventures have shaped the evolution of the ecommerce sector in the nation. 

  • Tiki.vn: This platform distinguishes itself as the ultimate digital destination for consumer needs spanning gadgets to lifestyle products. Its defining feature is the promise of a delivery timeline within two hours for major cities across Vietnam, a unique offer that has cemented its place in the market.
  • Lazada: Through richly targeted marketing strategies and thrilling sales events, Lazada continually stands its ground in the Shopify market, attracting hordes of shoppers.
  • Shopee: Garnering consumer loyalty through a user-friendly interface, customer-centric policies, and extensive product variety, Shopee has successfully integrated mobile commerce, appeasing the tech-savvy Vietnamese audience.

“In an era where speed is of the essence, convenience is not merely a luxury; it’s a necessity. Our singular aim is to make the shopping journey enjoyable and effortless for our customers. Our platform isn’t just a conduit between businesses and consumers; it’s an orchestrator—providing a unique, comprehensive shopping experience that blends convenience, diversity, and pleasure.”

– A spokesperson from Lazada Vietnam

A comprehensive understanding of Vietnam’s ecommerce industry is incomplete without a close observation of these key players, their sustained dominance, and their underlying growth strategies. Equally crucial are the lessons to be learned from those whose efforts unfortunately didn’t yield a successful outcome in the challenging landscape of ecommerce in Vietnam. 

9.2. A Lesson in Failure: The Cases of Beamin and Uber in Vietnam 

The case studies of international giants, Beamin and Uber, serve as potent examples of the intricate challenges ingrained in Vietnam’s burgeoning ecommerce market. Both companies, despite their massive global success, experienced considerable hurdles in the Vietnamese landscape, leading to their eventual withdrawal. 

9.2.1. Beamin: The South Korean Food Delivery Giant 

Beamin, a renowned entity in South Korea’s food delivery sphere, faced significant obstacles in translating their domestic achievements on the Vietnam front. The factors contributing to their downfall included: 

  • A gaping lack of thorough market understanding despite optimistic forecasts for the Vietnam market, predicted to reach $38 billion by 2024 as per Statista.
  • The presence of potent local competition, with entities like GrabFood and Now.vn dominating the food delivery landscape.
  • Unsustainable discount campaigns which, although an initial crowd-puller, proved financially draining in the long run.
  • Subpar customer service, that further exacerbated their standing in a market that values exemplary customer experiences.

The prime takeaway from Beamin’s challenging journey in Vietnam was the urgent need for a distinctive brand identity in the midst of several established competitors. 

9.2.2. Uber: The International Ride-Hailing Powerhouse 

The globally recognized ride-hailing service, Uber, encountered a similar set of hurdles in its Vietnam endeavor. Despite a robust global presence, Uber grappled with: 

  • Tough competition with its local rival, Grab. Grab’s timely market entry and a deep understanding of local consumer behavior gave it a definitive edge over Uber.
  • Legal challenges including hefty tax evasion charges and complex licensing procedures.
  • Inability to tailor its global business model to fit into the unique contours of Vietnam’s business environment.

Ultimately, these stumbling blocks led to Uber selling their Southeast Asian operations to Grab, marking their exit from the Vietnam market. 

9.3. A Complex Yet Rewarding Market 

The promising Vietnamese ecommerce landscape, projected to grow at a compunded annual growth rate (CAGR) of 16.3% from 2024-2028 as per Statista, also bears intricate challenges. To thrive in this dynamic arena, multinational corporations must invest in acquiring deep local market insights, understanding consumer behavior, identifying appropriate localization strategies, and fostering meaningful ties with local stakeholders.

10. In a Nutshell for eCommerce in Vietnam

As we’ve seen, the ecommerce landscape in Vietnam is a dynamic, rapidly changing environment. It’s marked by significant technological advances, a shift in consumer behavior driven by a youthful demographic, and government policies conducive for growth. Vietnam’s ecommerce sector, backed by robust local and international key players, caters to diverse consumer needs, ranging from the conventional B2C transactions to disruptive C2G models. Integrating high internet penetration and an increasingly digitally savvy population, ecommerce in Vietnam is set to explore new territories and redefine online shopping. 

10.1. Unique Characteristics & Emerging Trends 

Enriched by unique characteristics such as localization, social commerce, and innovative payment methods, these factors are fueling the growth trajectory of ecommerce in Vietnam; 

  • Localization: A key contributor to Vietnamese ecommerce success, adapting to local culture, behavior, and preferences has proven beneficial in appealing to consumers.
  • Social Commerce: With approximately 57 million social media users in Vietnam, social commerce is becoming an effective emerging trend in promoting and selling products.
  • Innovative payment methods: The dominance of cash-on-delivery is slowly giving way to digital payment methods. By 2024, it is forecasted that more than 50% of online transactions will be made through digital payments.

10.2. New Age Trends by 2024 

As we look forward, new age trends such as mobile commerce, personalization, and social commerce will shape the future market dynamics. 

  • Mobile Commerce: Expected to account for more than 55% of all ecommerce sales by 2024.
  • Personalization: As consumers increasingly seek personalized experiences, retailers are forecasted to invest heavily in personalized marketing strategies.
  • Social Commerce: With a predicted growth of 34% by end of 2024.

10.3. Opportunities & Challenges 

Opportunities abound, driven by promising forecasts and untapped potential across segments. Conversely, challenges persist as depicted by the difficulties of various international players in navigating the complex Vietnamese market. Success in e-commerce requires a deep understanding of the local market, agile adaptation to evolving consumer preferences and needs, and fostering strategic partnerships. 

10.4. Projected Ecommerce Growth Statistics by 2024 

Market SegmentAnticipated Growth% 
Furniture & Appliances33% 
Fashion27% 
Electronics & Media25% 
Toys & Hobby21% 

In conclusion, the ecommerce sphere in Vietnam remains a fertile ground for growth, opportunities, lessons, and challenges. The future looks promising where persistent innovators will find an exciting canvas to perform.

If you’ve found this overview of the ecommerce landscape in Vietnam enlightening, you may also want to delve into other regional markets. We have some fantastic resources that can help you do just that: 

This article will offer you a broader view of the ecommerce dynamics within Asia, providing a more holistic insight into the opportunities and challenges across the region.

11. Common Queries About Ecommerce in Vietnam

Who are the key players in the ecommerce industry in Vietnam?

The key players are Tiki, Lazada, Sendo, and several others, some focusing on B2C, while others serve diverse ecommerce models from B2B to C2C, C2B, and even C2G.

What are the emerging trends in Vietnam’s ecommerce landscape?

Some of the emerging trends include social commerce due to high social media penetration, a substantial increase in online shopping, mobile commerce acceleration, and a shift towards personalized shopping.

What are the opportunities for ecommerce in Vietnam?

The opportunities are vast due to the industry’s predicted growth, changes in consumer behavior, advancements in technology, and favoring government policies.

What are the unique characteristics of Vietnam’s ecommerce landscape?

These include a youthful demographic, high social media penetration, preference for cash-on-delivery, localization, and developing logistics infrastructure.

Are there different ecommerce models in Vietnam?

Yes, there are several ecommerce models in Vietnam from B2C, B2B, C2C, and C2B, to less common models such as B2G and C2G.

What inspires the growth of ecommerce in Vietnam?

The growth of ecommerce in Vietnam has been inspired largely by technological advancements, increasing internet penetration, and a young, tech-savvy population.

What challenges does the ecommerce industry face in Vietnam?

The ecommerce industry in Vietnam faces challenges such as adapting innovation, mastering localization strategies, and navigating the complexities of the market.

Below are the sources and references used in the generation of this article: 

  • Statista: Vietnam Ecommerce Outlook
  • Vietnam Briefing: Vietnam’s Ecommerce Market
  • EcommerceDB: Vietnam Ecommerce Market
  • Nielsen Vietnam: The Future of Ecommerce in Vietnam
  • BBC: The Rise of Vietnam’s Ecommerce Market
  • TechCrunch: Vietnam’s Startup Ecosystem and Ecommerce