Imagine the bustling streets of Vietnam, teeming with life, while tens of millions of Vietnamese consumers effortlessly browse and purchase goods from around the world through their smartphones. This is not science fiction but a rapidly unfolding reality—Vietnam's e-commerce market is surging at an astonishing pace, projected to reach $40 billion by 2025. This fertile ground of opportunity has attracted fierce competition among e-commerce platforms, all vying to win the hearts of Vietnamese consumers.
Shopee: The Unshakable Market Leader
In Vietnam's e-commerce landscape, Shopee stands as the undisputed leader. According to data from Metric, an e-commerce analytics platform, by November 2022, 55.7 million of Vietnam's 74.5 million internet users had engaged in online shopping—a number that continues to grow. Shopee, leveraging its robust operational capabilities and deep understanding of the local market, has firmly secured its position as the top player.
In 2022, Vietnam's four major e-commerce platforms—Shopee, Lazada, Tiki, and Sendo—collectively generated 135 trillion Vietnamese dong in revenue, delivering 1.3 billion products with the participation of 566,000 sellers. Shopee dominated with a staggering 73% share of total revenue, equivalent to 91 trillion dong. Together with Lazada, which ranked second, the two platforms accounted for 94% of the market, with combined revenues exceeding 117 trillion dong. Meanwhile, Tiki held a 5% market share (5.7 trillion dong), and Sendo trailed with just 1% (nearly 1 trillion dong).
These figures underscore Shopee's formidable presence in Vietnam's e-commerce sector. However, in a market as dynamic as this, even industry giants must remain vigilant to stay ahead of the competition.
TikTok Shop: The Rising Disruptor
Despite Shopee's current dominance, emerging players are making waves—none more notable than TikTok Shop, the e-commerce arm of the popular short-video platform TikTok.
Though relatively new to Vietnam, TikTok Shop has quickly gained traction with its innovative social commerce model. Metric's report highlights 2022 as TikTok Shop's breakout year: in November alone, it achieved 1.7 trillion dong in sales, moving 13 million products with 32,000 sellers receiving orders. This performance surpassed Tiki's 396 billion dong and placed TikTok Shop just behind Lazada and Shopee. Reputa's rankings further validated this growth, showing TikTok Shop had overtaken Sendo and Tiki to become the third most popular e-commerce platform on social media.
TikTok Shop's success stems from its vast user base and creative marketing strategies. Through short videos and live streams, it showcases products in an engaging, visually compelling manner, driving impulse purchases. Collaborations with influencers and key opinion leaders (KOLs) further amplify its reach. As Vietnam's e-commerce market evolves, TikTok Shop is poised to play an increasingly pivotal role.
Lazada: The Steady Contender
Beyond Shopee and TikTok Shop, Lazada remains a key competitor. Backed by Alibaba Group, the platform benefits from substantial financial and technological resources, enabling sustained investments in Vietnam.
At the recent Tech Awards 2022, Lazada was recognized as the "Excellent E-Commerce Platform" for its advancements in technology and user experience—the second consecutive year it has won this accolade. Sales data also reflects steady growth, with Q4 product categories outperforming Q3, a trend expected to continue through January. With Alibaba's continued injections of capital, Lazada's ecosystem is likely to expand further, potentially achieving its goal of serving over 300 million users by 2030.
Lazada's strengths lie in its integrated e-commerce ecosystem and robust supply chain. Partnerships with local logistics providers ensure efficient delivery, while cross-border initiatives facilitate global brands' entry into Vietnam. The platform has also prioritized user experience, refining interfaces and streamlining checkout processes.
Vietnam's E-Commerce Future: Opportunities and Challenges
The rapid growth of Vietnam's e-commerce market presents immense opportunities for both domestic and international players. Yet challenges persist. Intense competition drives platforms to constantly innovate with promotions and marketing tactics. Infrastructure gaps, such as underdeveloped logistics networks and low consumer trust in digital payments, also hinder progress.
For e-commerce businesses eyeing Vietnam, success hinges on understanding local preferences and tailoring strategies accordingly. Collaborating with regional partners to address logistical and payment hurdles will be equally critical.
In summary, Vietnam's e-commerce market is ripe with potential but fraught with competition. As Shopee, TikTok Shop, and Lazada jostle for dominance, adaptability and localization will separate the winners from the rest.