Vietnam’s e-commerce market acquired significant momentum over the course of the first half of 2025, with total online retail sales across major platforms reaching some VND202.3 trillion ($7.96 billion), up 41.52 per cent year-on-year, according to figures from data intelligence platform Metric.vn. This surge reflects a resilient shift in consumer habits and growing digital dependency, even amid a cautiously recovering economy.

While the broader economy posted 7.52 per cent GDP growth and total retail sales rose by 9.3 per cent, the National Statistics Office at the Ministry of Finance reported, e-commerce stood out as a growth engine, particularly in essential goods, fast-moving consumer goods (FMCG), and travel-related services. With inflation remaining moderate and the CPI rising just 3.27 per cent, purchasing power has stayed intact, creating an environment conducive for platforms to drive aggressive promotions, invest in logistics, and capture a larger share of household consumption online.

Gaining momentum

According to the “Overview of Vietnam’s Online Retail Market in the First Half of 2025” report from Metric.vn, Vietnam’s e-commerce market secured strong momentum in the first half of the year despite intensified competition and more cautious consumer behavior, marked by accelerating user engagement and rising transaction volumes across major platforms such as Shopee, Lazada, Tiki, and TikTok Shop.

The strong year-on-year growth of Vietnam’s e-commerce sector suggests a solid shift in consumer habits towards digital shopping, even as economic uncertainties and cautious spending persist. This signals a maturing market where success increasingly hinges on strategic innovation and deep consumer insight rather than sheer volume alone.

Alongside soaring revenues, total product volume sold reached 1.9237 billion units, an increase of 25.44 per cent year-on-year, clearly reflecting the widespread adoption and growing normalization of digital shopping in consumers’ daily lives.

However, the number of active shops declined slightly, to 537,900, down 6.25 per cent compared to the first half of 2024. This suggests a process of natural market selection, where underperforming sellers are gradually exiting the game, making way for more capable, agile merchants who can adapt quickly to market changes.

Metric.vn reported a slight decline in total online sales in the second quarter of the year compared to the first, of 0.37 per cent, to VND100.97 trillion ($3.97 billion), while product volumes continued to rise, by 2.35 per cent, reaching 973.1 million items. This divergence suggests a fall in average order value, reflecting consumers’ increasing focus on budget-friendly options and deal hunting amid ongoing financial pressures.

Despite this, overall purchasing power on e-commerce platforms remained strong throughout the first half of 2025. Growth was driven by favorable seasonal factors and steady demand, with consumer spending buoyed by festive periods, summer travel, and shopping for essential goods, fueling a solid year-over-year increase for the e-commerce sector.

Reshaping competition

The e-commerce market witnessed a clear rise of entertainment-integrated shopping platforms in the first half of 2025, while long-established e-commerce players faced increasing competitive pressure. TikTok Shop led in growth with a 69 per cent year-on-year increase in sales, boosting its market share from 29 per cent to 39 per cent. This reflects the strong expansion momentum of the “entertainment-commerce integration” model.

Shopee maintained its market-leading position with a 58 per cent share, despite only achieving modest growth of 16 per cent. This figure marks a decline from 63 per cent in the same period last year, reflecting the increasing competitive pressure from emerging platforms. In contrast, Lazada and Tiki continued to face significant challenges, with sales falling by 48 per cent and 63 per cent respectively, and their market shares shrinking further, according to the Metric.vn report.

This sharp divergence signals a notable shift in consumer behavior, favoring platforms that blend entertainment and shopping into a more dynamic, engaging experience. The trend underscores the urgency for traditional e-commerce players to rethink their strategies, particularly by investing in content-driven experiences and real-time interactive selling. As TikTok Shop continues to disrupt the market, it is clear that the future of online retail lies not just in product selection or pricing, but increasingly in how platforms engage consumers emotionally and socially.

According to industry analysts, e-commerce is no longer a playground for spontaneous or amateur sellers. Today, to survive and thrive, sellers must understand consumers, leverage technology, and operate professionally - from content creation, advertising, and customer service to logistics management and data analytics.

Mr. Nguyen Huu Tuan, Director of the Centre for E-commerce and Digital Technology Development (eComDX) at the Vietnam E-commerce and Digital Economy Agency under the Ministry of Industry and Trade, believes that Vietnam’s B2C e-commerce revenue could reach $39 billion this year, laying the groundwork for accelerating digital transformation and international integration.

However, e-commerce is not just a field of opportunity; it is also a fierce battleground. Businesses must quickly adapt to emerging trends such as livestream selling, “shoppertainment’, and the application of AI to analyze consumer behavior, personalize experiences, and optimize operations.

“Official brand stores that are highly rated by consumers, with appropriate business strategies, high-quality products, clear origins, and good customer service, continue to generate orders and even post growth,” said Mr. Tuan. “In contrast, stores that fail to meet quality standards or lack a clear business strategy aligned with market rules will struggle to compete and may face the risk of being pushed out of the market.”

Looking ahead

Metric.vn forecasts that Vietnam’s e-commerce market will continue its upward trajectory in the third quarter, with total sales expected to reach VND122.8 trillion ($4.83 billion) and product volumes projected at around 1.236 billion units. These figures represent growth of 21 per cent and 27 per cent, respectively, compared to the second quarter.

This anticipated surge is largely attributed to major seasonal promotional campaigns such as “Mega Sale” and “Back to School”, which have become key demand drivers during the summer shopping period. These events not only stimulate impulse buying but also encourage consumers to stock up on essentials and prepare for the new academic year, particularly families with school-aged children.

The momentum is also being fueled by a continued shift towards digital consumption. Consumers are increasingly turning to online platforms for everyday needs, with purchasing behavior in the third quarter expected to focus on FMCG, Food and Beverages (F&B), Household Products, and Health & Personal Care. This trend underscores a broader consumer preference for essential goods and reliable quality, especially amid ongoing concerns about inflation and financial planning.

At the same time, e-commerce platforms are doubling down on logistics infrastructure and service innovations to support this growth. Investments in warehousing, fast delivery, and real-time order tracking are helping improve fulfillment speed and customer satisfaction. Additionally, platforms are aggressively expanding interactive selling methods, most notably livestream shopping, which combine entertainment with direct purchasing and further enhance user engagement and conversion rates.

Shipping incentives, such as free delivery and same-day shipping for select products, are also being ramped up as platforms compete for consumer attention. These strategies are proving effective in reducing cart abandonment and boosting order frequency.

Altogether, these factors are reinforcing the strong growth momentum of Vietnam’s e-commerce sector as it enters the peak season in the latter half of the year. Market players that can effectively align promotions, logistics, and content strategies will be best positioned to capitalize on this high-growth period.

Overall, the first half of 2025 further solidified the central role of e-commerce in mass consumer spending in Vietnam. At the same time, it highlighted a significant transformation in consumer behavior, retail models, and competitive strategies in a rapidly digitizing environment.

This shift reflects more than just increased online transactions. It signals a broader evolution in how Vietnamese consumers discover, evaluate, and purchase products. Convenience, personalization, and trust have become key differentiators, pushing both brands and platforms to innovate beyond traditional price-based competition.

Vietnam’s e-commerce market is expected to enter a new phase of development, where digital transformation is no longer optional but essential for survival. The convergence of data-driven marketing, AI-powered personalization, and immersive content formats like short videos and livestreaming will redefine the customer journey. Platforms that can seamlessly integrate entertainment, community engagement, and shopping will likely lead the next wave of growth.