Vietnam’s e-commerce market is one of the most dynamic and fastest-growing in Southeast Asia, continuing its upward trajectory and showing signs of evolution and maturity.
Key trends shaping the sector include the rapid adoption of “shoppertainment”, the surge in cross-border transactions, and tighter regulatory oversight to address fraud risks, protect consumers, and ensure fair competition.
E-commerce surges driven by “shoppertainment”
Sales on four e-commerce platforms in Vietnam, namely Shopee, Lazada, Tiki, and TikTok Shop, reached VND 202.3 trillion (US$7.8 billion) in H1 2025, representing a nearly 42% year-over-year (YoY) increase, according to data from Metric.vn, an e-commerce market research platform from Vietnam. Total sales volume also increased, growing 25.4% YoY to 1.9 billion products.
Metric.vn expects e-commerce sales to grow in Q3 2025, increasing by 21% in value quarter-on-quarter (QoQ) to reach VND 122.8 trillion (US$4.7 billion). Consumption output is also set to increase, totaling around 1.2 billion products, up 27% QoQ.
In H1 2025, TikTok Shop led in growth with a 69% YoY surge in revenue. The platform also saw its market share increase from 29% to 39%, underscoring the momentum of the “shoppertainment” model. This model enables brands to sell directly through video content, allowing businesses to entertain customers while they shop. This makes the shopping process more interactive and enjoyable, which in turn increase sales and customer loyalty.
Increased competitive pressure
This year, Shopee maintains its market leading position, boasting a 58% market share in the first half of 2025. However, this marks a decline from 63% in H1 2024, signaling increasing competitive pressure. Revenue growth was also more modest, at 16% YoY.
Lazada and Tiki also faced challenges, with sale dropping 48% and 63%, respectively, alongside further market share declines.
Competition is also intensifying at the seller level. The number of online shops fell 6% YoY, and the number of shops generating orders in H1 2025 dropped by over 80,000 compared to H1 2024, and by more than 55,000 compared to H2 2024.
Metric.vn attributes this to market consolidation, with activity increasingly concentrating on large-scale sellers capable of maintaining steady order flows.
Official brand stores are also gaining in prominence, now driving a significant share of e-commerce platform revenues. Although these shops account for a minor 3.4% of total shops, they contribute up to 28.7% of total revenue on Shopee and TikTok Shop, reflecting growing consumer preference for authentic stores that ensure product quality and service reliability.
Cross-border shopping on the rise
Another rising trend this year is cross-border e-commerce. In H1 2025, imported goods recorded sales of VND 7.5 trillion (US$285 million), with more than 164 million products sold, marking a nearly 7% YoY increase.
This builds on growth already observed in 2024. Last year, more than 324.1 million products arrived in Vietnam, up nearly 38% YoY. These products generated sales of VND 14.2 trillion (US$564.5 million), representing a remarkable 43% YoY increase.
E-commerce exports are also on the rise. Access Partnership, a research organization on e-commerce, estimates that the value of Vietnam’s business-to-consumer (B2C) e-commerce exports reached VND 86 trillion (US$3.5 billion) in 2023 and are projected to grow 1.7 times through 2028 to VND 145.2 trillion (US$5.8 billion). Micro, small and medium enterprises (MSMEs) are set to contribute significantly, accounting for an estimated 25% of that value.
Tighter regulatory oversight
The growth in cross-border e-commerce has prompted new regulatory measures. In January 2025, Vietnam Law and Legal Forum of the Vietnam News Agency reported that the Ministry of Industry and Trade (MoIT), through its E-commerce and Digital Economy Agency, was working on an e-commerce law, aiming to make online trade more sustainable, protect consumers, and ensure that foreign sellers meet the same obligations as domestic ones.
This law would require any foreign business selling into Vietnam to obtain a license from the MoIT and establish a representative office in Vietnam or appoint a legal entity in Vietnam as their authorized representative. These representatives would be responsible for ensuring consumer rights, verifying seller information, and providing compensation before disputes escalate.
The law would also mandate that foreign goods and services sold in Vietnam meet local product standards, technical requirements, and safety regulations. Foreign e-commerce platforms would also have to share seller information with Vietnamese regulators and comply with a government-approved list of goods allowed for import via e-commerce.
The ministry plans to submit the draft law for consideration in October 2025.
Separately, a new decree, effective July 01, 2025, requires e-commerce and digital platforms that process payments, whether domestic or foreign, to withhold value-added tax (VAT) and personal income tax from individual sellers who use their platforms.
According to law firm Baker and McKenzie, the rule applies to all sellers, both residents and non-residents, with tax residency determined based on official personal income tax regulations. Sellers are required to supply accurate identification information, and cooperate with platforms to ensure correct tax withholding.
E-commerce platforms, meanwhile, must declare and pay these taxes monthly to the tax authorities. They must also provide annual tax withholding certificates to sellers, store transaction and account data, and share information with tax authorities when requested.
Featured image: Edited by Fintech News Singapore, based on images by Kajikom and Frolopiaton Palm via Freepik
