Vietnam poised to lead Southeast Asia's e-commerce revolution

IMARC reported that the global e-commerce market in 2024 is valued at $26.8 trillion and is projected to reach $214.5 trillion by 2033. With favourable legal conditions, expanding foreign investments, and improved internet accessibility, Vietnam's e-commerce ecosystem is ready for sustainable development, positioning the country as a regional digital economy powerhouse.

"Vietnam will lead the Southeast Asian e-commerce revolution, recognised as having one of the most favourable legal environments for e-commerce within ASEAN," the report said.

Photo: vir.com.vn

E-commerce accounts for over 60 per cent of Vietnam's digital economy, with a significant portion of the remaining 40 per cent comprising ride-hailing and online media services. Additionally, Vietnam's digital economy is estimated to reach $220 billion by 2030, creating numerous opportunities for global investors. Forecasts indicate that Ho Chi Minh City and Hanoi will develop into important centres.

According to IMARC estimates, Vietnam's e-commerce sector is expected to achieve a compound annual growth rate of 28 per cent from 2025-2033. The country's developing e-commerce landscape is characterised by successful domestic platforms including Tiki, Sendo, and Thegioididong, supported by investments from Japan, the United States, Germany, China, South Korea, and Singapore.

Singapore, a regional economic hub, is closely connected to Vietnam's e-commerce market through companies like Shopee and Carousell. Singapore-based investors, including Temasek, GIC, and other companies, have funded Vietnamese e-commerce startups.

South Korea, with its strong technological capabilities and increasing interest in Southeast Asia, is increasingly focusing on Vietnam's e-commerce sector. South Korea's e-commerce platform Coupang, which is dubbed the "Amazon of South Korea", is exploring potential market entry, leveraging its expertise in logistics and technology solutions. Moreover, South Korean corporations like Samsung and LG are investing in e-commerce infrastructure to promote their electronic products in Vietnam.

Furthermore, Vietnam is assessed to have seven factors attracting global attention, including high growth potential; favourable investment environment; numerous government reforms creating a business-friendly climate; strategic location; economic stability and middle-class expansion; government support for digital transformation; participation in progressive free trade agreements; and a young, skilled workforce proficient in technology and adaptable to e-commerce industry requirements.

According to the International Monetary Fund, Vietnam is projected to rank third in ASEAN for GDP in 2025, reaching $571.12 billion, trailing Indonesia at $1.63 trillion and Thailand at $632.45 billion. Additionally, Vietnam's economy is predicted to surpass Thailand's after 2028. This trend is expected to significantly boost the growth of Vietnam's e-commerce sector by increasing consumer purchasing power, attracting larger foreign investments, and consolidating the country's position as a leading digital economy in the region.

Vietnam ranks first in Southeast Asia in search volume growth rate for foreign travel Vietnam ranked first in Southeast Asia in terms of the growth rate in demand for foreign travel, at 170 per cent in the second quarter of 2023 compared to the same period in 2019, Google announced on August 30.

Vietnam to remain among fastest-growing countries in Southeast Asia Vietnam is forecast to post breakout growth as the fastest-growing economy in Southeast Asia in the next decade.

Vietnam's digital economy estimated to reach $36 billion in 2024 Vietnam's digital economy is continuing to show solid double-digit growth, and is forecast to reach $36 billion in gross merchandise value (GMV) in 2024, propelled by e-commerce and travel.