TikTok Shop narrows gap with Shopee as Vietnam e-commerce becomes duopoly

Vietnam’s e-commerce market is rapidly evolving into a two-player battleground as TikTok Shop aggressively gains ground on Shopee, reshaping how consumers shop online and how brands allocate advertising and sales budgets.

According to Q&Me’s newly-released Vietnam E-commerce Market Report 2026, the country’s four largest online retail platforms – Shopee, TikTok Shop, Lazada and Tiki – generated a combined gross merchandise value (GMV) of $13.6 billion between May 2025 and April 2026, up 37% from $9.9 billion a year earlier.

Shopee retained its position as market leader, but its dominance continued to weaken. The SEA Ltd.-backed platform accounted for 53% market share, down from 61% the previous year, with GMV rising 21% year-on-year to $7.29 billion during the period.

By contrast, TikTok Shop posted explosive growth, with GMV surging 83% to $5.96 billion and market share climbing to 44% from 33% a year earlier.

The report suggests Vietnam’s e-commerce sector has effectively entered a “duopoly era,” with smaller rivals rapidly losing relevance.

Alibaba-backed Lazada saw its market share halve from 6% to 3%, generating just $385 million in sales during the period. Domestic pioneer Tiki continued its steep decline, posting only $5 million in GMV, down 82% from a year earlier.

TikTok Shop’s rise reflects a broader shift in online retail behavior, driven by the rapid adoption of “shoppertainment” – a blend of shopping, livestreaming and short-form entertainment content.

The platform is no longer viewed as an experimental social-commerce channel but increasingly as a direct competitor to Shopee across major retail categories. The shift is forcing brands and merchants to redirect marketing spending toward livestreaming campaigns, influencer-led sales, and short-video content formats.

Another defining trend in 2026 has been the migration of routine household spending online, signaling that Vietnamese consumers are moving beyond discretionary purchases toward using e-commerce for daily essentials.

The groceries and food segment recorded some of the strongest growth, with sales rising 45% to $1.24 billion. Essential products such as dairy and eggs nearly doubled in sales volume.

High-frequency replenishment items also saw strong momentum. Sales of diapering products more than doubled, while purchases tied to one-time nursery preparation declined, reflecting changing consumption patterns toward recurring online spending.

Beauty products remained the single largest category in Vietnam’s online retail market, generating $3.3 billion in GMV and growing 37% year-on-year.

The market also experienced a significant consumer electronics upgrade cycle. Sales of smartphones and tablets jumped 53% to $1.11 billion, supported by rising demand for digital lifestyles, hybrid working arrangements, and content creation tools.

Despite the overall expansion, the report highlighted growing concerns over product authenticity and consumer trust. Health products became the only major category to contract, declining 2% overall, while functional foods plunged 22% following a wave of counterfeit scandals in 2025.

Authorities last year reportedly recalled more than 700 products and seized over 100 tons of counterfeit goods, severely damaging consumer confidence in online health-related purchases. The scandals have intensified demand for transparency and product verification.

While 68% of Vietnamese consumers still view discounts and promotions as the biggest advantage of online shopping, 67% said authenticity guarantees were the top improvement they wanted from e-commerce platforms, followed by reliable customer reviews at 53%.

For brands and merchants, trust is increasingly becoming a major commercial advantage. According to the report, Mall Flagship and Official Stores now generate around 25 times more GMV per store than regular online sellers, highlighting the growing importance of verified retail channels in Vietnam’s increasingly competitive e-commerce landscape.