E-commerce sector grows 18% year-on-year

The national English-language newspaper Vietnam News has quoted the e-Conomy SEA 2024 report by Google, Temasek and Bain & Company as reporting that Vietnam’s e-commerce market is estimated at $22 billion this year, ranking third in Southeast Asia behind Indonesia ($65 billion) and Thailand ($26 billion).

The market has grown by 18% from last year, the third fastest rate in the region, behind the Philippines (23%) and Thailand (19%).

Vietnam’s e-commerce market is forecast to maintain this growth rate, averaging over 19% annually and reaching $63 billion by 2030. At that point, it is projected to surpass Thailand, ranking second in the region, just behind Indonesia.

E-commerce accounts for over 60% of Vietnam’s digital economy this year, establishing it as one of the two main growth drivers alongside online tourism.

Retail e-commerce platforms, including Shopee, TikTok Shop, Lazada, Tiki, and Sendo, have recently been joined by cross-border giants like Shein, further expanding market choices.

This shift has propelled live streaming and affordable goods to the forefront of e-commerce trends.

According to the report, the number of consumer brands in Vietnam with video channels has increased by 5% over the past two years.

TikTok Shop has seen high growth in gross merchandise value (GMV), driven by the effective combination of shopping and entertainment.

On October 10, the top 100 TikTok Shop accounts drew more than 11.7 million views and nearly 500,000 engagements, according to statistics from VeenaMedia and Stickler technology platform.

Artificial Intelligence (AI) is also playing an increasingly dominant role in shaping consumer shopping habits and behaviors.

Google's AI Interest Index, calculated based on search volumes related to AI, is particularly high in Ho Chi Minh City and Hanoi. A Lazada survey reveals that 88% of respondents in Southeast Asia reported making purchase decisions based on AI-generated content and product suggestions.