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Vietnam Online Shopping: Industry Overview 2024

Vietnam’s online shopping market has seen remarkable growth in recent years, driven by the increasing accessibility of the internet and the widespread use of smartphones. The nation’s young and tech-savvy population, combined with a burgeoning middle class, has created an ideal environment for e-commerce to flourish. Platforms like Shopee, Lazada, and Tiki dominate the market, offering a wide range of products from electronics to fashion and daily necessities.

This surge in online shopping is also supported by the development of reliable digital payment methods, such as Momo and ZaloPay, which have made transactions more convenient. Social media platforms, particularly Facebook and Instagram, also play a significant role in promoting online sales, with many small businesses and independent sellers leveraging these platforms to reach customers.

However, the sector faces challenges such as logistics infrastructure, which can sometimes cause delays, particularly in rural areas. Despite these issues, Vietnam’s online shopping market is expected to continue growing as consumers increasingly embrace the convenience and variety offered by e-commerce. With government support for digital transformation and the rise of online retail channels, the future of Vietnam’s e-commerce industry looks promising.

Online shopping in Vietnam in numbers

Vietnam’s eCommerce market is on track for significant expansion, with revenue projected to reach US$13.90 billion in 2024. This marks a major milestone in the country’s rapidly growing digital economy, fuelled by widespread internet access and an increasing preference for online shopping among Vietnamese consumers, according to data from Statista.

The market is also expected to maintain a compound annual growth rate of 11.21 percent between 2024 and 2029. If these projections hold, the eCommerce sector will reach a market volume of US$23.65 billion by 2029. This growth underscores Vietnam’s emerging position as a key player in Southeast Asia’s digital economy.

Box 1: Opening a retail store in Vietnam

Shopping at retail stores in Vietnam is becoming increasingly popular as wages rise and the variety of products on offer expands. This presents a range of opportunities for foreign retail store chains.

Opening a retail store in Vietnam for foreign firms, however, is not always easy. Not only are there a number of technical requirements that need to be met, but Vietnam has also developed its own retail store culture, putting its own twist on retail store shopping experiences.

Understanding the nuances of Vietnamese retail store culture and the complexities of business establishment procedures in advance of entering the market can therefore be crucial to the success of a new retail store or chain of retail stores in Vietnam.

For more information see: How to Open a Retail Store in Vietnam

Online shopping in Vietnam: key domestic players

In Vietnam’s online shopping market, several key players dominate the landscape, catering to a growing population of tech-savvy consumers. The most notable eCommerce platforms include:

Tiki

Tiki is one of Vietnam’s leading eCommerce platforms and a homegrown success story. Initially focused on selling books, Tiki has expanded to offer a wide range of products, including electronics, fashion, and household goods. Known for its reliable delivery service and good customer support, Tiki has built a strong reputation among Vietnamese consumers. The platform also offers TikiNOW, a fast delivery service, which appeals to urban shoppers seeking convenience.

Sendo

Sendo is another prominent domestic eCommerce platform that caters primarily to Vietnamese sellers and buyers. It has a strong presence in both urban and rural areas, offering a wide range of products at affordable prices. Sendo’s focus on smaller, local sellers sets it apart from some of the more internationally oriented platforms, making it a key player in serving the domestic market. Its mobile-first approach has also helped it gain popularity, especially among shoppers outside major cities.

Voso

Voso is an emerging eCommerce platform in Vietnam, primarily backed by Viettel, one of the country’s largest telecom companies. Voso focuses on promoting local agricultural products, groceries, and daily essentials, catering to a market segment that values locally sourced goods. With the support of Viettel’s extensive logistics network, Voso is able to offer efficient delivery services across the country, including rural areas.

Chotot

Chotot is a well-known online marketplace in Vietnam, focusing on classified ads. It allows users to buy and sell second-hand goods, including electronics, vehicles, real estate, and household items. As a key player in the peer-to-peer market, Chotot is popular among Vietnamese consumers looking for affordable deals. It also serves as a platform for sellers to reach buyers in different regions across the country.

These domestic players, alongside international platforms, form a competitive and diverse eCommerce landscape in Vietnam. Their focus on catering to local needs, coupled with strong logistics networks, has helped them capture significant market share in the fast-growing online shopping sector.

Box 2: Monitoring retail sales in Vietnam

Vietnam’s retail industry is much bigger now than it was just a few years ago. From supermarkets to corner stores and everything in between shopping in Vietnam has never before come with so many options. Furthermore, foreign retailers are opening new retail outlets in Vietnam almost every other day. That said, Vietnam’s retail sales tend to fluctuate and for the better part of 2024 have been mostly flat. For more information see: Vietnam Retail Sales Tracker.

Online shopping in Vietnam: key foreign players

These foreign players have established themselves as significant forces in Vietnam’s online shopping market, leveraging their global reach, technological expertise, and wide product offerings to attract both local consumers and businesses. 

Shopee

Shopee is one of the dominant foreign eCommerce platforms in Vietnam, part of Singapore-based Sea Group. It offers a wide variety of products, from electronics and fashion to household goods. Known for its user-friendly interface, frequent promotions, and competitive pricing, Shopee has quickly become a favourite among Vietnamese consumers. The platform’s robust logistics and payment options, including cash on delivery, make it accessible to users across urban and rural areas.

Lazada

Lazada, backed by Alibaba, is another major foreign player in Vietnam’s eCommerce sector. With a strong focus on electronics, fashion, and lifestyle goods, Lazada offers a comprehensive shopping experience. It benefits from Alibaba’s global logistics and technological expertise, which allows it to provide efficient delivery and seamless payment options. Lazada’s Flash Sale events and partnerships with global brands have also made it a popular choice among Vietnamese shoppers.

Amazon

Although not as dominant as Shopee or Lazada, Amazon has been growing its presence in Vietnam, mainly through cross-border eCommerce. Vietnamese consumers use Amazon to access a wide range of international products, particularly in categories like books, electronics, and specialised goods that are not readily available locally. Amazon’s global reputation for quality and reliable delivery makes it appealing to Vietnamese customers seeking imported goods.

eBay

Similar to Amazon, eBay focuses on cross-border shopping in Vietnam, offering Vietnamese buyers access to international goods, particularly in niche categories like collectibles, electronics, and fashion. While not as widely used for everyday shopping, eBay attracts consumers looking for unique or second-hand items from overseas.

Alibaba

While Lazada is its main eCommerce platform in Vietnam, Alibaba’s wholesale platform, Alibaba.com, also plays a role in Vietnam’s online shopping ecosystem. It connects Vietnamese businesses with suppliers worldwide, making it a popular platform for local entrepreneurs looking to source goods for resale.

What’s next?

Online shopping in Vietnam has grown rapidly in recent years, driven by increased internet access, smartphone usage, and a tech-savvy population. Both domestic and international eCommerce platforms play key roles in this expanding market.

On the domestic front, platforms like Tiki, Sendo, and Voso are major players, offering a wide range of products and focusing on reliable service and local sellers. These platforms are well-positioned to cater to the unique needs of Vietnamese consumers, including efficient delivery and affordable pricing.

Foreign platforms, such as Shopee and Lazada, dominate the market due to their extensive product ranges, user-friendly interfaces, and robust logistics networks. They offer promotions and seamless payment options, including cash on delivery, making them highly popular. Other global players like Amazon and eBay also attract Vietnamese consumers, particularly those seeking cross-border shopping for specialised or imported goods.

Vietnam’s eCommerce market is expected to continue its rapid growth, supported by an increasing middle class, improved logistics, and government efforts to promote digital transformation. Both domestic and foreign players are poised to benefit from this vibrant and expanding online shopping ecosystem.

That said, Vietnam’s business environment is dynamic and can turn on a dime. With this in mind, foreign firms considering entering the online shopping space in Vietnam should make sure to keep up to date with the latest developments by subscribing to the-shiv.

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