E-commerce in Vietnam in 2024 has witnessed a powerful boom with outstanding growth rates, reaching a scale of 25 billion USD, a 25% increase compared to 2023. With the dominance of major platforms such as Shopee and TikTok Shop, along with new technological trends, e-commerce not only brings business opportunities but also alters traditional shopping methods. By 2025, Vietnam is projected to reach 39 billion USD, leading Southeast Asia in terms of growth rate.
1. What is E-commerce?
E-commerce is the buying and selling of goods and services through online platforms. It is not just a modern transaction method but also a key factor driving the digital economy.
1.1. Key features of e-commerce
24/7 accessibility: Customers can shop anytime.
Product variety: Offering millions of products from around the world.
Time-saving: Minimizing travel and direct shopping time.
Technology application: Integrating artificial intelligence (AI), big data to enhance customer experience.
1.2. Main e-commerce models
B2B (Business-to-Business): Transactions between businesses, often used in large supply chains. Example: Alibaba.
2. Overview of the E-commerce Market in Vietnam in 2024
2.1. Scale and growth rate
2024 marks a significant leap in the development of e-commerce in Vietnam. According to the report from the Vietnam E-commerce Association (VECOM), the total value of domestic e-commerce transactions reached 25 billion USD, growing over 25% compared to 2023. (Source: VECOM)
Prominent figures
Q3/2024: Total revenue reached 227.7 trillion VND (equivalent to 9.5 billion USD), a 37.66% increase compared to the same period last year.
Online consumers: Vietnam has over 60 million Internet users, with 70% regularly shopping online.
Economic contribution: E-commerce contributes over 8% to GDP in 2024.
2.2. Leading E-commerce Platforms
Shopee: Maintains the top position with a 67.9% market share, thanks to large promotional campaigns and free shipping support.
TikTok Shop: Growing strongly with a 23.2% market share, focusing on the livestream commerce trend.
Lazada: Although holding onto the third position, its market share is shrinking under competitive pressure.
Tiki: Shifting focus towards specialty products and logistics to retain users.
Market share of e-commerce platforms in Q2/2024.
3. Prominent Development Trends in 2024:
3.1. Personalization of customer experience
Big data and artificial intelligence are being used by e-commerce platforms to analyze user behavior, optimizing product recommendations tailored to individual preferences.
Benefits:
Increased conversion rates: Personalization helps platforms increase revenue by up to 35%.
Marketing campaign optimization: Shopee and Lazada implement targeted advertising, reducing ad costs.
3.2. The explosion of Social Commerce
Social Commerce is the fusion of social media and e-commerce, where users can shop directly on platforms like Facebook, Instagram, and TikTok.
Notable examples:
TikTok Shop: Achieved $1.2 billion in revenue in Vietnam in 2024, growing over 50% from 2023.
Livestream Commerce: Accounts for 40% of total e-commerce revenue, particularly popular in fashion and cosmetics sectors.
Livestream shopping is a new sales trend on social media platforms.
3.3. Cutting-edge technology leads the trends
Blockchain: Applied in supply chain management and ensuring transaction transparency.
AR/VR (Augmented Reality/Virtual Reality): Enhances interactivity, allowing customers to try products before purchasing.
IoT (Internet of Things): Creating smart connected devices to support the e-commerce experience.
From AR/VR to Blockchain, e-commerce continues to innovate to captivate users.
4. Major Challenges of E-commerce in 2024:
4.1. Fraud and data security
76% of consumers are concerned about sharing personal information on online platforms.
Solution: Platforms need to invest heavily in security systems and build trust with users.
4.2.High logistics costs
30-35% of order costs are for shipping and warehousing, burdening small businesses.
Optimizing the supply chain and using real-time data can reduce costs.
5. Future Forecast until 2025:
5.1. Market scale
According to a report by Google, Temasek, and Bain & Company, the Vietnamese e-commerce market is expected to reach $39 billion by 2025, with a compound annual growth rate (CAGR) of 28% from 2020-2025. (Source: Google)
5.2. Transform to green delivery
Electric vehicles and environmentally friendly packaging will become the standard for major businesses.
Commitment to reduce carbon emissions by 50% from major e-commerce platforms by 2025.
5.3. Continued boom of Social Commerce
Livestream commerce is projected to account for 50% of total industry revenue, with strong participation from short video platforms like TikTok.
6. Conclusion:
E-commerce in Vietnam in 2024 presents significant opportunities but also poses numerous challenges for businesses. Leveraging new technologies, optimizing customer experience, and investing in logistics will be key to maintaining a competitive edge in this period of explosive growth.
