Vietnam's e-commerce market exceeds $25 bln

Vietnam's retail e-commerce market is estimated to surpass $25 billion in 2024, marking a 20% increase compared to the previous year, according to the Ministry of Industry and Trade.

This figure exceeds the earlier projection of $22 billion made by Google, Temasek and Bain & Company in their ‘e-Conomy SEA 2024’ report. Regionally, Vietnam's e-commerce scale now ranks third, after Indonesia, which is forecast to make $65 billion and Thailand, which is set to realize $26 billion.

E-commerce remains a vital distribution channel, allowing the sale of large volumes of goods and agricultural products, especially during peak harvest seasons.

Many businesses have achieved remarkable growth by leveraging e-commerce platforms, while cross-border retail sales have surged, with increasing participation from small and medium-sized enterprises (SMEs).

Accounting for over 60% of Vietnam’s digital economy in 2024, e-commerce has been one of the country’s two key growth drivers, alongside online tourism.

Vietnam is now among the top 10 fastest-growing e-commerce markets globally. It is a factor driving economic growth and promoting digital transformation in enterprises.

Recently, besides the presence of domestic online retail platforms, including Shopee, TikTok Shop, Lazada, Tiki and Sendo, the market has witnessed the entry of cross-border platforms such as Temu and Shein.

However, the complexity and diversity of e-commerce models have presented regulatory challenges. For instance, live-streaming sales currently fall under general e-commerce regulations as an advertising activity accompanying sales, without specific rules for livestreamers, account identification and information control during live sessions.

Counterfeit and substandard goods remain a challenge, with violations becoming increasingly sophisticated in the digital space.

Cross-border activities also pose management difficulties. Some platforms, including Temu and Shein, have entered Vietnam without completing formal legal procedures. This lack of oversight has allowed foreign goods to penetrate the domestic market, affecting local products.

To address these challenges, a new e-commerce law is being studied and proposed, aiming at enhancing regulatory frameworks. The ministry also strengthens oversight and inspection of violations, particularly concerning cross-border digital platforms.

Currently, Vietnam has nearly 725,000 organizations and individuals conducting business on e-commerce platforms, with a total transaction value exceeding $75 trillion, according to the tax authority. Tax revenue from e-commerce activities in 2024 rose by 20% year-on-year, reaching VND116 trillion ($4.56 billion).