Shifting dynamics in e-commerce

Vietnam’s e-commerce market continued to expand in the first nine months of 2026, with gross merchandise value (GMV) reaching VND411.7 trillion ($15.8 billion), up 22 per cent year-on-year. According to YouNet ECI’s “Vietnam E-Commerce Landscape & Customer Insights Q3/2026” report, the four major platforms - Shopee, TikTok Shop, Lazada, and Tiki - recorded 2.6 billion items sold and more than 436,000 active shops during the January-September period. In the third quarter alone, the market generated VND146.9 trillion ($5.7 billion) in GMV, with 902.5 million items sold.

The figures underscore the growing importance of e-commerce in Vietnam’s retail landscape. However, market expansion is taking place alongside persistent cost-of-living pressures, more cautious purchasing decisions, and intensifying competition between platforms.

Changing landscape

Shopee remained Vietnam’s largest e-commerce platform in the third quarter, generating VND74.4 trillion ($2.9 billion) in GMV, up 8 per cent year-on-year. TikTok Shop followed closely, with VND70.1 trillion ($2.7 billion), representing 60 per cent growth over the same period of 2025.

Together, the two platforms accounted for nearly 98 per cent of total GMV across the four marketplaces tracked by YouNet ECI. Their contrasting growth rates illustrate the competitive dynamics of the market: Shopee continues to benefit from its established position, while TikTok Shop is rapidly narrowing the gap. Lazada recorded VND1.9 trillion ($76.9 million) in quarterly GMV, down 26 per cent year-on-year, while Tiki generated VND522.1 billion ($20.1 million), up 4 per cent.

The concentration of sales on Shopee and TikTok Shop underscores the importance of platform selection for businesses seeking to reach online consumers. It also highlights the challenge facing smaller marketplaces and sellers as competition for customer attention becomes increasingly concentrated.

The number of shops generating revenue across the four platforms rebounded by 8 per cent from the second quarter to nearly 400,000 in the third quarter. However, the total remained 9 per cent below the level recorded a year prior.

The decline was concentrated among non-Mall sellers, whose numbers fell 9 per cent year-on-year to approximately 380,000. Meanwhile, Mall shops, which include official brand stores, increased 6 per cent to approximately 19,500.

Seller performance nevertheless improved across all four platforms. Average quarterly GMV per active seller rose year-on-year, led by Shopee at VND526.4 million ($20,246), up 25 per cent. TikTok Shop recorded the fastest growth, with average GMV per active seller increasing 52 per cent to VND315.8 million ($12,146).

The figures suggest that a smaller seller base is generating higher average sales, though the report does not establish whether this reflects consolidation, improved productivity, or the exit of less-competitive businesses.

For smaller sellers, rising marketplace costs are adding to the pressure to remain profitable. According to a 2026 cost analysis by Hunter Agency, selling expenses extend beyond platform commissions and payment processing fees to include promotional packages, affiliate commissions, advertising, and costs associated with returned or canceled orders. 

Some businesses are responding by diversifying their sales channels, combining marketplace stores with their own websites, physical outlets, and social media pages. Direct sales can give sellers greater control over pricing and customer relationships, while cross-border e-commerce offers another potential route to growth.

Consumer behavior is another important factor shaping the market. YouNet ECI’s research points to growing caution among online shoppers amid inflation and rising living costs, despite strong economic growth.

Its E-commerce Consumer Confidence Index showed greater volatility in the third quarter of 2026, particularly among Gen Z consumers. Millennials and Gen Z remained cautious about current household finances, while expectations for future household income offered a more positive signal.

The survey also found that consumers were increasingly attentive to product quality. In the third quarter, 74 per cent identified product quality as a trigger for online shopping, up 22 percentage points from the second quarter. The proportion citing product price declined from 68 per cent to 67 per cent, while the share identifying discounts and promotions fell from 53 per cent to 46 per cent. Logistics also became a less-frequently-cited shopping trigger, falling from 32 per cent to 22 per cent.

These findings indicate that consumers are not simply seeking the lowest prices. Product quality, perceived value, and the overall shopping experience remain important considerations, even as household budgets come under pressure.

Push for sustainable growth

Despite pressure on consumer spending, fast-moving consumer goods (FMCG) remained a resilient category in Vietnam’s online market. YouNet ECI reported that FMCG GMV reached approximately $3 billion in the first nine months of 2026, up around 26 per cent year-on-year. The category ranked among the Top 2 revenue-generating categories on all four major platforms, leading on Shopee and Lazada and placing second on TikTok Shop and Tiki.

Performance varied within the category. Home care and dairy products continued to show strong momentum, while baby care, personal care, and food experienced slower demand.

Across the broader e-commerce market, fashion and accessories remained the largest category by GMV in the third quarter, at approximately VND39.3 trillion ($1.5 billion), up 29 per cent year-on-year. FMCG followed at VND29.4 trillion ($1.1 billion), up 36 per cent. Beauty generated VND18.9 trillion ($726.9 million), while home appliances and consumer electronics recorded VND18.8 trillion ($723.1 million).

These figures highlight how purchasing priorities differ across categories. While consumers may delay discretionary purchases or become more selective about nonessential products, demand for everyday necessities can remain comparatively resilient.

However, strong category performance does not guarantee stronger results for every seller. Vietnam’s e-commerce market continues to offer significant opportunities, but growth is increasingly shaped by concentrated platform competition, changing seller dynamics, and consumers who are more deliberate about how they spend.

For brands and retailers, the challenge is to translate online demand into sustainable sales by balancing price competitiveness with product quality, efficient operations, and customer loyalty. Diversifying sales channels and exploring international markets may help some businesses reduce their dependence on domestic platforms, but these strategies also require investment in technology, logistics, and brand development.

As Vietnam’s digital economy expands, the next phase of e-commerce growth will depend not only on attracting more consumers online but also on how effectively platforms and businesses respond to their changing expectations.