GROSS VALUE OF VIETNAM'S MAIN E-COMMERCE PLATFORMS HIT $12.6 BILLION IN 2024

The top five e-commerce platforms in Vietnam, Shopee, Lazada, TikTok Shop, Tiki, and Sendo, posted a total gross merchandise value (GMV) of VND318.9 trillion (about $12.6 billion) in 2024, a 37.36 per cent rise from 2023, according to Metric.

According to the "Vietnam Online Retail Market Landscape 2024 & Forecast 2025" report published by Metric in early February, there are 3.4 billion products now being sold via e-commerce platforms, up 50.76 per cent from a year ago. Vietnamese people spend an average of VND873.6 billion ($34.7 million) on the five e-commerce platforms daily. These figures indicate sustained high purchasing power in the market.

There has been a surge in imports via cross-border e-commerce. About 324.1 million items were brought into Vietnam last year with a GMV of 14.2 trillion ($568 million), up 38 per cent and 43 per cent from the previous year.

Metric noted that Vietnamese consumers are not hesitant when buying products via cross-border e-commerce. An improved logistics system has reduced delivery times and risks of lost orders. In addition, the platforms also offer better policies for return orders and customer protection.

In addition, international products are more competitively priced than locally produced items thanks to affordable manufacturing costs. This is an important signal for local firms, requiring them to optimise products and pricing strategies to stay competitive.

The surge of imported products and changing consumption behaviour create more challenges for domestic companies. This trend also opens up opportunities for them to increase quality and competitiveness.

In terms of consumption trends, Vietnamese people prefer online shopping for essential goods, with priority to authentic or foreign-origin products. Beauty, home living, and fashion generate the highest revenue for e-commerce platforms, while groceries and food recorded the highest growth of up to 76.3 per cent.

Despite this growth, the number of stores generating orders declined by 20.25 per cent. This reflects fierce competition, as many small or less efficient sellers have withdrawn from the market. This creates ample room for brands with clear business strategies, product portfolios tailored to consumer tastes, and increased operational flexibility.

Source: VIR