Vietnam’s e-commerce market closed 2024 with many positive indicators, laying a solid foundation and providing strong momentum to enter 2025 with great expectations.

According to the Vietnam e-Commerce and Digital Economy Agency at the Ministry of Industry and Trade, the country’s e-commerce market continued to maintain impressive annual growth last year, of 18-25 per cent. The market size surpassed $25 billion, up 20 per cent compared to 2023, accounting for approximately 9 per cent of the country’s total retail sales of goods and consumer service revenue.

Strong foundation

The e-commerce market accounted for two-thirds of Vietnam’s digital economy in 2024. With a steady growth rate, the country’s e-commerce and digital economy continue to rank among the top 10 fastest-growing e-commerce markets in the world. This not only drives the development of the digital economy but also plays a key role in leading the digital transformation of businesses.

As the overall e-commerce market continued to grow, several major e-commerce platforms operating in Vietnam also posted remarkable progress. Based on a report released by Metric, the total sales of the five major e-commerce platforms in Vietnam - Shopee, Lazada, TikTok Shop, Tiki, and Sendo - stood at VND318.9 trillion ($12.54 billion), up 37.4 per cent compared to 2023.

Building on last year’s strong momentum, Vietnam’s e-commerce market is expected to maintain a positive trajectory in 2025, driven by sustained consumer demand and digital transformation efforts across industries. Notably, Metric’s report forecast that total sales on these five major e-commerce platforms will reach VND387.5 trillion ($15.23 billion), with 4.2 million products sold, reflecting year-on-year increases of 22 per cent and 23 per cent, respectively.

This steady growth highlights the market’s resilience and potential, reinforcing Vietnam’s position as one of the fastest-growing e-commerce markets globally. Moreover, businesses have been increasingly strengthening their presence on e-commerce platforms at the beginning of the new year, further contributing to market growth.

Mr. Pham Cong Hoang, CEO of Novaon Commerce, believes that one positive trend this year will be the growing emphasis of Vietnamese businesses on cross-border commerce. “Through e-commerce platforms, many ‘Made in Vietnam’ products have successfully entered international markets, including some of the world’s most developed economies, recording impressive double-digit growth,” he said. “This underscores the vast potential and global competitiveness of Vietnamese enterprises.”

Catching up with various models

Many e-commerce platforms in Vietnam are also increasingly expanding into new business models to boost their sales revenue. Mr. Hoang said e-commerce trends and brand building on many e-commerce platforms will undergo significant shifts this year, with greater convergence between differing activities.

For instance, TikTok, which previously focused primarily on viral content and branding, has now evolved into TikTok Shop, enabling direct sales. Similarly, Shopee, which initially concentrated solely on sales, has begun expanding into content, creativity, and entertainment-related areas. “With this convergence, e-commerce platforms will not only serve as marketplaces but also as integrated spaces where users can search, explore, evaluate, and make purchases,” he explained.

To accelerate the development of the e-commerce market, businesses must enhance the efficiency of their operations through e-commerce platforms. Brand building is expected to go beyond just selling products in 2025; it will require a seamless integration of brand messaging and delivering real value to customers. For this reason, Mr. Hoang suggested that businesses adopt fast and direct implementation strategies while ensuring they provide the best possible value to customers and build a sustainable brand identity through e-commerce channels.

Additionally, across all activities on e-commerce platforms, from product research and marketing execution to sales, promotional campaigns, and product selection, Mr. Hoang emphasized that businesses should rely on data-driven decision-making to ensure accuracy and efficiency. Learning from data not only helps businesses gain deeper insights into the market and customer behavior but also provides a foundation for integrating technology into the e-commerce sales journey.

By effectively leveraging data and technology, businesses can gain a significant competitive advantage, particularly in two key areas: reducing operational costs and optimizing profit margins. Mr. Hoang sees these as crucial factors that enable businesses to sustain their growth and thrive in the highly-competitive e-commerce landscape. “At the same time, businesses must thoroughly understand the operational mechanisms of each sales channel on e-commerce platforms,” he added. “This knowledge will allow them to optimize their business processes, delivering the best possible value to both their customers and themselves.”

For a sustainable market

Along with the strong growth the e-commerce market has recorded in recent times, the development of sustainable e-commerce is also considered key. Sustainable e-commerce not only focuses on revenue growth but also aims at long-term sustainability throughout the entire supply chain, from production and transportation to consumption and waste management.

Therefore, to boost sustainable e-commerce in 2025 and beyond, Ms. Le Hoang Oanh, Director General of the Vietnam e-Commerce and Digital Economy Agency, said it will continue researching, formulating, and finalizing a specialized legal framework for the e-commerce market during 2025. This is one of the top priorities to create a stable, transparent, and favorable legal environment for businesses, thereby fostering strong and sustainable growth in the sector.

In addition to policy improvements, Vietnam is also committed to developing e-commerce in a green and sustainable manner, minimizing environmental impact. This not only enhances corporate social responsibility but also aligns with the growing consumer preference for environmentally-friendly products and services. “To achieve this goal, Vietnam will continue to strengthen collaboration among stakeholders, including industry associations, businesses, and regulatory agencies,” Ms. Oanh noted.

At the same time, increased coordination between ministries, sectors, and localities will be prioritized to promote regional connectivity in e-commerce, particularly in supporting the digital transformation of traditional markets. This effort aims to help small and household businesses access and effectively utilize digital platforms.

Beyond traditional e-commerce models, the shift towards green logistics is emerging as a crucial factor in the industry’s development. This is not only an inexorable trend but also a pathway for businesses to enhance their competitiveness in the globalized market. “To successfully transition to green logistics, businesses need to adopt long-term strategies that focus on sustainable benefits while ensuring their competitiveness in international markets and meeting the increasingly stringent demands of consumers,” Ms. Oanh emphasized.

Moreover, the adoption of modern technologies, particularly AI, will play an essential role in the advancement of e-commerce. AI enhances operational efficiency, improves the customer experience, and helps businesses analyze data, predict consumer trends, and personalize services. “Vietnam will proactively promote AI applications in the management and operation of e-commerce platforms, creating a smarter, more efficient, and highly-competitive digital ecosystem,” she added.