Vietnam e commerce market lighting industry report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

Vietnam E-Commerce Market Overview

• The Vietnam E-Commerce Market is valued at USD 25 billion, based on a five-year historical analysis. This growth is primarily driven by the rapid adoption of digital payment methods, increased internet and smartphone penetration, a growing middle class, and a young, tech-savvy population that prefers online shopping. The COVID-19 pandemic further accelerated this trend, as consumers shifted to online platforms for their shopping needs. Social commerce, mobile payments, and the rise of local platforms like Tiki and Shopee have also contributed to rapid market expansion and competition .
• Key cities dominating the Vietnam E-Commerce Market include Ho Chi Minh City and Hanoi, which are the economic and cultural hubs of the country. These cities benefit from a high concentration of internet users, robust logistics infrastructure, and a growing number of startups and established companies investing in e-commerce solutions, making them pivotal to the market's growth .
• In 2023, the Vietnamese government implemented the "National Digital Transformation Program" under Decision No. 749/QD-TTg issued by the Prime Minister. This program aims to promote e-commerce and digital economy initiatives, including policies to enhance digital infrastructure, support small and medium enterprises (SMEs) in adopting e-commerce, and improve consumer protection in online transactions, thereby fostering a more robust e-commerce ecosystem. The program mandates ministries and localities to accelerate digital transformation and sets targets for the digital economy's contribution to GDP, digital infrastructure upgrades, and the widespread adoption of e-commerce among businesses .

Vietnam E-Commerce Market Segmentation

By Type:The e-commerce market in Vietnam can be segmented into various types, including B2C, C2C, B2B, C2B, D2C, marketplace platforms, social commerce platforms, and cross-border e-commerce. Among these, B2C is the most dominant segment, driven by the increasing number of online shoppers and the growing preference for convenience in purchasing goods and services. C2C and marketplace platforms also show significant growth, as they cater to the rising trend of peer-to-peer transactions and the popularity of platforms like Shopee and Lazada. Social commerce and mobile-first platforms are rapidly gaining traction, reflecting the evolving digital habits of Vietnamese consumers .

By End-User:The end-user segmentation of the e-commerce market includes individual consumers, small and medium enterprises (SMEs), large enterprises, and the government and public sector. Individual consumers represent the largest segment, driven by the increasing number of online shoppers seeking convenience and variety. SMEs are also significant contributors, leveraging e-commerce platforms to reach broader markets and enhance their sales channels. The adoption of e-commerce among SMEs is further supported by government initiatives and digital transformation programs .

Vietnam E-Commerce Market Competitive Landscape

The Vietnam E-Commerce Market is characterized by a dynamic mix of regional and international players. Leading participants such as Tiki Corporation, Shopee Vietnam (Sea Group), Lazada Vietnam (Alibaba Group), Sendo (Sen Do Technology JSC), FPT Retail (FPT Digital Retail Joint Stock Company), The Gioi Di Dong (Mobile World Investment Corporation), Dien May Xanh (Mobile World Investment Corporation), VinID (One Mount Group), TikTok Shop Vietnam (ByteDance Ltd.), Chotot.vn (Carousell Group), Yes24 Vietnam (Hansae Yes24 Holdings Co., Ltd.), Lotte Vietnam (Lotte Group), AeonEshop (AEON Vietnam Co., Ltd.), Voso.vn (Viettel Post Joint Stock Corporation), Postmart.vn (Vietnam Post Corporation) contribute to innovation, geographic expansion, and service delivery in this space .

Vietnam E-Commerce Market Industry Analysis

Growth Drivers

• Increasing Internet Penetration:As of future, Vietnam's internet penetration rate is projected to reach 75%, with approximately 75 million users accessing online services. This growth is driven by affordable data plans and increased access to broadband, particularly in urban areas. The World Bank reports that the digital economy contributes around $23 billion to Vietnam's GDP, highlighting the significant role of internet access in facilitating e-commerce growth and consumer engagement.
• Rising Smartphone Usage:In future, Vietnam is expected to have over 65 million smartphone users, representing a 10% increase from the previous year. The proliferation of affordable smartphones has made online shopping more accessible, especially among younger demographics. According to the Ministry of Information and Communications, mobile commerce accounts for approximately 32% of total e-commerce sales, indicating a strong correlation between smartphone adoption and e-commerce growth in the country.
• Expansion of Digital Payment Solutions:By future, digital payment transactions in Vietnam are anticipated to exceed 1.8 billion, reflecting a 25% annual growth rate. The rise of fintech companies and government initiatives to promote cashless transactions have significantly enhanced consumer confidence in online payments. The State Bank of Vietnam reported that digital payment methods now account for 55% of all e-commerce transactions, underscoring the importance of secure payment solutions in driving e-commerce growth.

Market Challenges

• Logistics and Delivery Issues:Vietnam's logistics sector faces significant challenges, with delivery times averaging 3-5 days for e-commerce orders. The World Bank estimates that logistics costs account for 18% of the total retail price, impacting profitability for e-commerce businesses. Inadequate infrastructure, particularly in rural areas, complicates last-mile delivery, leading to customer dissatisfaction and potential loss of sales for online retailers.
• Intense Competition:The Vietnamese e-commerce market is characterized by fierce competition, with over 55 active platforms vying for market share. Major players like Shopee and Lazada dominate, capturing approximately 72% of the market. This competitive landscape pressures smaller businesses to innovate continuously and invest heavily in marketing. According to industry reports, customer acquisition costs have risen by 12% in the past year, further straining the resources of emerging e-commerce companies.

Vietnam E-Commerce Market Future Outlook

The future of Vietnam's e-commerce market appears promising, driven by technological advancements and changing consumer behaviors. As internet access and smartphone penetration continue to rise, more consumers are expected to engage in online shopping. Additionally, the integration of AI and machine learning will enhance personalized shopping experiences, while sustainability trends will shape consumer preferences. The government's support for digital transformation will further bolster the sector, creating a conducive environment for growth and innovation in e-commerce.

Market Opportunities

• Expansion into Rural Areas:With approximately 70% of Vietnam's population residing in rural regions, e-commerce companies have a significant opportunity to tap into this underserved market. By developing localized logistics solutions and targeted marketing strategies, businesses can cater to the unique needs of rural consumers, potentially increasing their customer base and sales volume.
• Growth of Social Commerce:Social media platforms are becoming vital channels for e-commerce, with over 55 million active users engaging in social commerce activities. By leveraging social media for marketing and sales, businesses can reach younger demographics effectively. This trend is expected to drive a 35% increase in social commerce sales in future, presenting a lucrative opportunity for e-commerce players to enhance their market presence.