Vietnam’s E-Commerce Market Transitions to a More Structured Phase
HANOI: After a decade characterized by swift expansion, buoyed by substantial subsidies and aggressive discounts, Vietnam’s e-commerce sector is entering a more regulated chapter as platforms implement higher fees and regulators enhance their scrutiny.
In the wake of significant user growth, product variety, and transaction volumes, leading platforms are gradually abandoning the cash-intensive tactics previously adopted to vie for market dominance.
Experts note a decisive pivot towards profitability, operational efficiency, and sustainable growth.
This evolution became more pronounced in 2025, marked by platforms tightening operational guidelines for sellers and overhauling incentive structures for buyers.
Previously rampant free-shipping programs and discount vouchers aimed at boosting short-term sales are now increasingly aligned with fixed or paid models, shifting the financial burden onto merchants.
“The primary alteration lies not in technology or consumer behavior, but in fees,” stated Tran Lam, a noted e-commerce specialist and founder of local brands Julyhouse and Macaland.
“Fee increases are implemented gradually rather than drastically. Each increment may appear minor, yet cumulatively, they impose considerable strain on sellers.”
Vendors are also encountering new costs, including infrastructure fees and return-related expenses, with accelerated timelines affording them scant opportunity for adaptation. Consequently, smaller retailers with narrow margins are finding it increasingly challenging to remain competitive, Lam observes.
Simultaneously, tighter tax enforcement and more rigorous product quality standards on e-commerce platforms are amplifying pressure. Non-compliant entities are increasingly being purged from the market, reshaping it into a more competitive and overtly transparent environment.
Recent statistics from the Department of Taxation revealed that tax revenues from e-commerce activities surged 80 percent year-on-year to VND208.8 trillion (approximately US$8.02 billion) in 2025, with the agency vowing to bolster tax collection from online business ventures.
Regulatory bodies have also ramped up efforts to purify the online marketplace by intensifying actions against substandard goods and illicit sellers.
The Vietnam E-Commerce and Digital Economy Agency, under the Ministry of Industry and Trade (MIT), reported that over 13,700 violating shops were purged from e-commerce platforms in 2025 for distributing counterfeit, prohibited, or unverified products.
A recent analysis by market data research platform Metric.vn indicated that there were 601,800 active shops on the four principal platforms—Shopee, TikTok Shop, Lazada, and Tiki—by the conclusion of 2025, reflecting a 7.4 percent decrease compared to the previous year, a loss of nearly 48,000 stores.
Despite the decline in store counts, the quartet of leading e-commerce platforms achieved total sales revenues of VND429 trillion (around US$16.5 billion) in 2025, marking an increase of approximately 34.8 percent from 2024. This trend signifies the elimination of weaker sellers, according to Metric’s findings.
Selective Growth
Analysts from Metric express that Vietnam’s e-commerce sector is transitioning into a more mature phase, characterized by a shift in focus from merely expanding the user base to prioritizing quality.
The rate of new user growth has markedly decelerated compared to the 2018–2021 period; however, this does not imply a downturn.
On the contrary, it heralds the inception of a value-centric phase, evidenced by increases in fundamental metrics such as average unit price per item sold monthly, conversion rates, and revenue derived from official stores.
Vietnamese consumers are evolving, moving beyond mere price comparisons to emphasize product quality, origin, and the overall shopping experience.
According to analysts, the percentage of revenue from official stores increased from 25 percent in Q1 2024 to nearly 32 percent in Q1 2025, even though mall shops constituted a mere 2.8 percent of total stores on major e-commerce platforms.
Shopee and TikTok Shop observed mall revenue contributions of 33.95 percent and 31.52 percent, respectively, while LazMall represented a significant 59.7 percent of Lazada’s revenue.
This shift reflects an enhanced consumer consciousness in Vietnam, with a growing inclination to invest in products characterized by provenance and quality, as highlighted by Metric’s analysis.
Anticipated changes with the forthcoming Law on E-Commerce, effective from July 1, 2026, promise to further transform Vietnam’s e-commerce landscape, steering it towards greater transparency and robust development.
As articulated by Le Thi Ha of the Vietnam E-Commerce and Digital Economy Agency, the law represents a crucial step in fortifying the legal framework surrounding online commerce to combat fraud and ameliorate consumer protections.
A key provision mandates the identification of sellers on e-commerce platforms, deemed essential for cultivating a transparent, secure, and sustainable ecommerce environment in Vietnam.
Nguyen Dang Sinh, president of the Vietnam Association for Anti-Counterfeiting and Trademark Protection, noted that requiring both sellers and livestreamers to authenticate their identities will be instrumental in combating counterfeit goods and intellectual property violations.
This regulation aims not to stifle online commerce but to fortify digital trust, safeguard consumer rights, and undergird sustainable e-commerce growth.
A Challenging Landscape
Lam projects that the e-commerce environment will remain challenging in the near future. “The e-commerce market is poised to confront substantial and unpredictable transformations in the next one to two years,” he asserted, noting that weaker sellers are likely to face increasing hardships.
Nonetheless, these shifts are pivotal for establishing a healthier, more transparent market, with competitive sellers better equipped to diversify their strategies beyond traditional platforms into websites, social media, and even physical storefronts.
“While challenges are tangible, this represents an opportunity to consolidate foundations and foster more sustainable growth,” he concluded.
According to the overview report on Vietnam’s domestic market for 2025 by the MIT, the e-commerce sector sustained robust double-digit growth, marking a 20 percent increase, with the online retail market projected to reach US$32 billion.
This figure accounts for roughly 12 percent of total retail sales and consumer service revenue, positioning Vietnam as one of Southeast Asia’s top three e-commerce markets.
By 2030, e-commerce is anticipated to expand at an annual rate of approximately 20 percent, with retail e-commerce revenue potentially soaring to around $70 billion, securing the third position in Southeast Asia after Thailand and Indonesia.
Source link: Thestar.com.my.
