Vietnam is experiencing a rapid rise in e-commerce, fueled by the growth of platforms like TikTok. With significant increases in users, sales, and delivery volumes, Vietnam is projected to become a major player in Southeast Asia’s e-commerce landscape, with forecasts suggesting substantial growth in the coming years.
28 April 2024 – Vietnam is rapidly emerging as a dynamic hub for shoppertainment, poised to become a major player in the Southeast Asian e-commerce arena. Recent reports indicate a significant surge in online retail activities, with platforms like TikTok leading the charge.
TikTok Vietnam has witnessed an impressive growth in both merchants and sales, with figures tripling in the past year. According to Nikkei Asia, the platform, operated by China’s ByteDance, has surpassed Lazada to become Vietnam’s second-largest online marketplace, trailing only behind Shopee. Vendors on TikTok have collectively earned approximately $1.3 billion USD in the past six months, as reported by analytics firm Metric.
The popularity of TikTok in Vietnam has soared, with the platform boasting 67 million users earlier this year, up from 50 million a year earlier. This growth is remarkable, considering Vietnam’s total population of 100 million. TikTok’s user base in Vietnam rivals that of Facebook and YouTube, highlighting the platform’s influence and reach.
This surge in online activity aligns with the overall growth of Vietnam’s e-commerce sector. The E-Commerce and Digital Economy Agency under the Ministry of Industry and Trade reported a substantial increase in revenue from online B2C retail models, reaching $20.5 billion USD last year, up from $10.8 billion USD in 2018. Forecasts suggest that this figure will skyrocket to $26.31 billion USD by 2024.
Moreover, a report by e-commerce data platform Metric revealed that Vietnam witnessed a 52.3% surge in the delivery of goods through major e-commerce platforms in 2023. Shopee, Lazada, Tiki, Sendo, and TikTok Shop collectively delivered 2.2 billion items, underscoring the rapid expansion of online retail activities in the country.
Vietnam’s e-commerce growth trajectory has caught the attention of global experts. The e-Conomy SEA 2022 report by Google, Temasek, and Bain & Company identified Vietnam as one of the fastest-growing e-commerce markets. B2C revenue and sales volume are expected to continue rising, with the top five e-commerce platforms projected to generate $13.4 billion USD in 2024, marking a 35% year-on-year growth.
As Vietnam embraces digital transformation and e-commerce becomes increasingly ingrained in daily life, the country is poised to solidify its position as a regional powerhouse in the world of online retail.
