According to the Q1 2025 Online Retail Market Report and Q2 Forecast report releases recently by data analytics platform Metric, the combined sales of Vietnam’s 4 largest e-commerce platforms (Shopee, TikTok, Lazada, Tiki) reached VND 101.4 trillion ($3.91 billion) in the first 3 months of 2025. This represents a 42.29 per cent jump compared to the same period of last year.

The total number of products sold through e-commerce platforms in the first quarter also reached 950.7 million, up 24 per cent year on year. 

Notably, this revenue growth has led to a significant reshuffling of market share. TikTok Shop recorded a remarkable sales growth of 113.8% in the first quarter, raising its market share from 23 per cent to 35 per cent. This surge reflects the growing consumer preference for video-based “shoppertainment” experiences.

Meanwhile, despite a 29.3 per cent increase in revenue, Shopee saw its market share slip from 68 per cent to 62 per cent underscoring the mounting competitive pressure in the sector. Lazada and Tiki also experienced steep declines in sales, with losses of 43.5 per cent and 66.6 per cent respectively.

Metric highlighted the rapid consumer shift toward content-driven platforms like TikTok Shop as a critical signal for e-commerce platforms to recalibrate their development strategies.

The first quarter of 2025 also saw a sharp decline in the number of active small retailers, with over 38,000 shops disappearing from the market compared to the same period last year. Conversely, the number of high-performing sellers rose substantially, particularly those generating over VND 50 billion ($1.92 million) in revenue, which nearly doubled (up 95 per cent) from the first quarter of 2024.

According to Metric, the retreat of small-scale sellers is making way for larger, more capable vendors with superior operational resources.

Consumers are increasingly gravitating toward official branded stores (Mall shops), making them a key driver of e-commerce growth. Although they account for just 3 per cent of total sellers, these Mall shops contributed 26.7 per cent of total sales on Shopee and TikTok Shop, highlighting their pivotal role in generating value. This trend reflects growing consumer prioritization of authenticity and service reliability amid widespread concerns over substandard products.

Imported goods on Shopee are gaining ground over domestic sellers thanks to their competitive pricing, wide range of designs, and alignment with local consumer tastes. In the first quarter of 2025, imported products achieved VND 3.6 trillion ($134.78 million) in sales with over 80 million units sold, reflecting a 12.2 per cent increase in revenue and a 7.18 per cent rise in volume.

Despite accounting for only 5.9 per cent of total market share, imported items continue to attract buyers due to their affordability and diversity, with the average price per product standing at just VND 45,000 ($1.73). This points to a strong consumer inclination toward high-volume, low-cost purchases, intensifying pressure on domestic vendors—particularly in the mass-market segment.

This growing competition poses a major challenge for local sellers, pushing them to enhance product quality and rethink their pricing strategies. In this context, advantages such as faster delivery and deeper local market knowledge will be crucial for domestic businesses looking to defend their market share.

Niche categories are showing impressive momentum, with strong potential for breakout growth in the near future. In the first 3 months, beauty products, home & living, and women’s fashion remained the top-performing categories on e-commerce platforms, with total revenues reaching VND 18 trillion ($693.17 million), VND 13.8 trillion ($531.52 million), and VND 11.9 trillion ($458.32 million) respectively.

Meanwhile, the dominance of mid-range products became increasingly evident. The VND 100,000–200,000 ($3.85- 7.7) price bracket led the way in both revenue and units sold, increasing its market share from 22.7 per cent to 25.9 per cent. In contrast, the share of premium items priced over VND 1 million ($38.5) declined from 19.4 per cent to 17.2 per cent. This segmentation underscores the strong potential of the mid-range segment, particularly in beauty, fashion, and baby products.

Among the top 10 highest-grossing brands, the majority belonged to the beauty sector. Tech giants, while still posting strong numbers, showed signs of deceleration. Samsung and Xiaomi ranked second and third respectively in revenue in Q1, but experienced year-on-year declines of 28.4 per cent and 17.1 per cent. In contrast, Apple maintained its top position, recording a revenue increase of approximately 58.3 per cent compared to the same period last year.

Looking ahead, Metric.vn forecasts that total industry revenue in Q2 2025 will reach VND 116.6 trillion ($4.49 billion), with product volume estimated at 1.112 billion units, representing quarter-over-quarter growth of 15 per cent and 17 per cent respectively. This growth is expected to be fueled by a range of favorable factors, including the mid-year promotional campaigns such as summer sales festivals, and an increasingly stable online shopping behavior. Consumer spending is also showing a clear shift toward essential goods, health care, and high-quality products with transparent origins.

In addition, e-commerce platforms are continuing to invest heavily in logistics, livestream shopping, and seller support tools, which are enhancing the overall shopping experience and driving higher conversion rates. All these factors together reinforce optimism around the e-commerce sector’s recovery and growth momentum heading into the second quarter of 2025