Vietnam E-commerce & Social Commerce Market

Vietnam E-commerce & Social Commerce Market Overview

• The Vietnam E-commerce & Social Commerce Market is valued at USD 25 billion, based on a five-year historical analysis. This growth is primarily driven by the rapid increase in internet penetration, smartphone usage, a growing middle class, and a shift in consumer behavior towards online shopping. The COVID-19 pandemic further accelerated this trend, as more consumers turned to digital platforms for their shopping needs. Social commerce and mobile payments are also key contributors to the market’s expansion .
• Key cities dominating the market include Ho Chi Minh City and Hanoi, which are the economic and cultural hubs of Vietnam. These cities benefit from a high concentration of young, tech-savvy consumers and robust infrastructure that supports e-commerce activities. The presence of major logistics and payment service providers in these areas also enhances the overall market dynamics .
• 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 payment solutions, with a budget allocation of USD 1 billion to support small and medium-sized enterprises (SMEs) in adopting digital technologies. The initiative mandates digital transformation targets for businesses, including e-commerce adoption, digital payment integration, and compliance with national digital standards .

Vietnam E-commerce & Social Commerce Market Segmentation

By Type:The market is segmented into B2C (Business to Consumer), C2C (Consumer to Consumer), B2B (Business to Business), Social Commerce, Mobile Commerce, Subscription Services, and Others. B2C dominates due to the popularity of online retail platforms, while C2C and Social Commerce are rapidly expanding through social media and peer-to-peer platforms. Mobile Commerce is gaining traction as mobile payment adoption rises and consumers increasingly shop via smartphones. Subscription Services and other emerging models are also contributing to market diversity .

By End-User:The end-user segmentation includes Individual Consumers, Small Businesses, Large Enterprises, and Government Agencies. Individual consumers account for the majority share, reflecting the strong adoption of online shopping among the general population. Small businesses are increasingly leveraging e-commerce platforms for market access, while large enterprises and government agencies use digital channels for procurement and service delivery .

Vietnam E-commerce & Social Commerce Market Competitive Landscape

The Vietnam E-commerce & Social Commerce Market is characterized by a dynamic mix of regional and international players. Leading participants such as Tiki Corporation, Shopee Vietnam, Lazada Vietnam, Sendo (Sen Do Technology JSC), FPT Retail, Thegioididong.com (Mobile World Investment Corporation), Vingroup (VinShop, Adayroi - legacy), MoMo (M_Service JSC), ZaloPay (VNG Corporation), Grab Vietnam, Viettel Post (Viettel Post Joint Stock Corporation), TikTok Shop Vietnam, Nguyen Kim Trading Joint Stock Company, FPT Shop, Voso.vn (Viettel Post E-commerce Platform) contribute to innovation, geographic expansion, and service delivery in this space .

Vietnam E-commerce & Social Commerce Market Industry Analysis

Growth Drivers

• Increasing Internet Penetration:As of future, Vietnam's internet penetration rate is projected to reach78%, with approximately78 million usersaccessing online platforms. This growth is driven by the government's initiatives to enhance digital infrastructure, including investments of aroundUSD 1 billionin broadband expansion. The increasing accessibility of the internet is fostering a robust online shopping culture, enabling consumers to engage with e-commerce platforms more frequently and conveniently.
• Rising Smartphone Usage:In future, Vietnam is expected to have over67 million smartphone users, representing a significant increase from previous years. The affordability of smartphones, with prices averaging aroundUSD 200, has made them accessible to a broader demographic. This surge in smartphone adoption is facilitating mobile commerce, allowing consumers to shop online anytime and anywhere, thus driving e-commerce growth in the country.
• Growth of Digital Payment Solutions:The digital payment landscape in Vietnam is rapidly evolving, with over50%of online transactions in future expected to be conducted through digital wallets and mobile payment platforms. The government’s push for a cashless economy, supported by initiatives like the National Payment Strategy, is projected to increase the number of digital payment users toabout 30 million. This shift enhances consumer confidence in online shopping, further propelling e-commerce growth.

Market Challenges

• Logistics and Delivery Issues:Vietnam's logistics sector faces significant challenges, with delivery times averaging3-5 daysfor e-commerce orders. The lack of efficient infrastructure, particularly in rural areas, hampers timely deliveries. In future, logistics costs are expected to account for20%of total e-commerce expenses, impacting profitability for online retailers. Addressing these logistical hurdles is crucial for enhancing customer satisfaction and retention in the e-commerce market.
• Consumer Trust and Security Concerns:Despite the growth of e-commerce, consumer trust remains a significant barrier, withabout 40%of potential online shoppers citing security concerns as a primary reason for not purchasing online. In future, incidents of online fraud are projected to increase by15%, further exacerbating these fears. Building robust security measures and transparent policies is essential for fostering consumer confidence and encouraging online transactions.

Vietnam E-commerce & Social Commerce Market Future Outlook

The Vietnam e-commerce and social commerce market is poised for significant transformation, driven by technological advancements and changing consumer behaviors. The integration of AI and big data analytics is expected to enhance personalized shopping experiences, while the rise of influencer marketing will further engage consumers. Additionally, the shift towards sustainable practices will resonate with the growing environmentally conscious consumer base, creating a more responsible e-commerce landscape. These trends will shape the future of the market, fostering innovation and growth.

Market Opportunities

• Expansion of Social Commerce Platforms:The rise of social media usage, with over70 million active usersin Vietnam, presents a significant opportunity for social commerce. Brands can leverage platforms like Facebook and Instagram to reach consumers directly, enhancing engagement and driving sales. This trend is expected to create a new revenue stream for businesses, capitalizing on the growing preference for shopping through social channels.
• Growth in Cross-Border E-commerce:Vietnam's cross-border e-commerce is projected to reachUSD 5 billionin future, driven by increasing demand for international products. Consumers are increasingly seeking unique and high-quality goods from abroad, creating opportunities for local businesses to expand their offerings. This trend not only enhances market competitiveness but also fosters international partnerships, broadening the scope of e-commerce in Vietnam.