Vietnam has recently emerged as the fastest-growing e-commerce market in Southeast Asia. Over the past four years, the market has seen a steady annual growth rate of 16-30%, making it one of the fastest-growing markets globally. As e-commerce continues to flourish, many Vietnamese companies are investing more in online sales channels to reach customers more efficiently and quickly, catering to the ever-changing consumer demands.

The Rapid Rise of Vietnam’s E-Commerce

According to data from the “Southeast Asia E-Commerce Report,” Vietnam has become the fastest-growing e-commerce market in Southeast Asia. Over the past four years, the market’s annual growth rate has reached 16-30%, the highest globally. A survey by the Vietnam E-commerce Association shows that more than half of the companies nationwide have launched online sales channels, with 44% of them having their websites, 58% selling through social media, and over 24% joining various e-commerce platforms.

Economist Dr. Vu Chi Thanh pointed out that the development of e-commerce holds great potential and opportunities. Digital transformation and the development of the digital economy are seen as golden opportunities for Vietnam, a late-developing country, to catch up with the times and synchronize with global trends. E-commerce, as a crucial part of the digital economy, serves as a key bridge connecting the “virtual” and “real” worlds. Through e-commerce, the connection between the virtual world and the real economy becomes more robust, and the role of the digital economy lies in promoting the development of the real economy.

Strong Momentum of Cross-Border E-Commerce

Driven by global trends, Vietnam’s cross-border e-commerce is also rapidly developing, particularly in major cities like Ho Chi Minh City. In 2023, Ho Chi Minh City’s e-commerce sales reached $6.2 billion, accounting for 29% of the national total. The city’s cross-border e-commerce sales also hit $4.7 billion, making up 23% of the country’s total, with a year-on-year growth of 37%. The product output reached 440 million items, a 45.2% increase compared to the previous year. As the headquarters of many major domestic and global enterprises and e-commerce support services, Ho Chi Minh City has become a central hub for the development of e-commerce in Vietnam.

Chen Fu Lu, Director of the Ho Chi Minh City Trade and Investment Promotion Center, stated that cross-border e-commerce offers companies many new development opportunities, enabling them to enter international markets more broadly, expand their marketing scope, and increase sales. Cross-border e-commerce also creates favorable conditions for companies to stand out in foreign markets, enhance customer experience, and provide better services. Through cross-border e-commerce, Vietnamese companies can leverage price, product uniqueness, and differentiation advantages to respond more quickly to market changes.

Government Promotion and Market Potential

To promote the development of e-commerce, the Ho Chi Minh City government issued an overall plan for e-commerce development for 2021-2025, aiming to strengthen digital transformation and e-commerce development. This plan includes supporting businesses and consumers in participating in e-commerce transactions, promoting cashless payments, and encouraging more companies to sell through e-commerce platforms.

According to statistical data, Vietnam’s retail e-commerce revenue grew by 25% in 2023 compared to 2022, reaching $20.5 billion, placing it among the top ten fastest-growing e-commerce markets globally. It is projected that by 2025, the global e-commerce market revenue will reach $7.4 trillion, providing unprecedented opportunities for Vietnamese businesses.

Amazon Global Selling statistics show that in the past five years, sales of Vietnamese companies on Amazon have increased by over 300%. Through Amazon’s platform, Vietnamese products have the opportunity to reach over 2 billion consumers in North America, Europe, Australia, Japan, Singapore, India, and many other countries.

Opportunities for Vietnamese Businesses

With the advent of the Fourth Industrial Revolution, Vietnam’s position in the global economy is gradually rising. The rapid development of e-commerce and cross-border e-commerce provides important channels for Vietnamese companies to expand their customer base, enhance product quality, and increase brand value. Particularly driven by new-generation free trade agreements, cross-border e-commerce has become a vital pathway for Vietnamese companies to enter international markets.

Xie Huang Ling, Director of the European and American Market Department of the Ministry of Industry and Trade of Vietnam, pointed out that as the global economy becomes increasingly digital and networked, cross-border e-commerce has become a crucial tool for national economic growth and globalization. In the context of Vietnam’s deep integration into the world economy, the popularization of e-commerce and the rapid growth of cross-border e-commerce have brought new opportunities for businesses to expand their international markets.

Key Points：

Vietnam’s E-commerce Market is Booming: With an annual growth rate of 16-30%, Vietnam has become one of the fastest-growing markets in the world.

Cross-border E-commerce as a New Export Channel for Businesses: Particularly in Ho Chi Minh City, both e-commerce sales and cross-border e-commerce sales are leading the nation.

Government Policies Strongly Promote E-commerce Development: Ho Chi Minh City has introduced a series of policies and measures to support businesses and consumers in participating in e-commerce transactions.

Businesses Need to Seize Vietnam’s E-commerce Opportunities: Utilizing cross-border e-commerce platforms, Vietnamese products will have more opportunities to enter international markets and enhance brand value and competitiveness.

Through these data and trends, Vietnam’s strong development momentum in the e-commerce sector is evident, and the future development space and potential are considerable. If you want to learn more about Vietnam’s e-commerce, feel free to contact Jaycy, and we will be happy to provide you with professional answers and support.