Vietnam's e-commerce market surpasses $25 billion in 2024

Photo: Le Toan

According to the report released by the MoIT on December 23, the figure is higher than the forecast of $22 billion made by Google, Temasek, and Bain & Company in the ‘e-Conomy SEA 2024’ report. Vietnam's e-commerce market ranks third in the region, trailing behind Indonesia ($65 billion) and Thailand ($26 billion).

Notably, e-commerce has gradually become a key distribution channel, contributing to the development of the supply chain at home and aboard. E-commerce facilitates the consumption of goods and agricultural products made by farmers and businesses, especially during the harvest seasons.

Several enterprises have recorded breakthrough growth by utilising e-commerce platforms. Meanwhile, cross-border retail sales have soared, attracting the participation of small-and medium-sized enterprises.

Accounting for over 60 per cent of Vietnam’s digital economy in 2024, e-commerce has been one of the country’s two key growth drivers, alongside online tourism.

Other industries include ride hailing, food delivery, and online advertising.

Vietnam's e-commerce growth ranks in the top 10 worldwide, creating a driving force for economic development and spurring businesses' digital transformation.

The market has recently witnessed the arrival of cross-border platforms like Temu and Shein, sparking fierce competition with existing players like Shopee, TikTok Shop, Lazada, Tiki, and Sendo.

Despite ample potential, e-commerce models have become increasingly complex and diverse, which has posed regulatory challenges. Livestream sales are regulated under general e-commerce provisions as an advertising activity accompanying sales. However, Vietnam has yet to issue specific rules for live streamers, account identification, and information control during live sessions.

Another challenge is the rise of counterfeit and substandard goods, as violations are becoming increasingly sophisticated in the digital space.

Regarding cross-border e-commerce activities, there are difficulties in management due to a lack of strong provisions. As a result, e-commerce platforms like Temu and Shein have ventured into Vietnam without completing formal legal procedures. Local products have been impacted by the entry of foreign goods into the Vietnamese market due to a lack of control.

In this context, the MoIT is studying and proposing the Law on E-commerce to form a regulatory framework. The ministry has also bolstered control and inspection of violations, especially regarding cross-border digital platforms.

In Vietnam, nearly 725,000 organisations and individuals are conducting business on e-commerce platforms, with a total transaction value exceeding $2.94 billion, according to the tax authority. Tax revenue from e-commerce activities in 2024 climbed by 20 per cent on-year, reaching $4.6 billion.

Shake-up for online business regulations The Ministry of Planning and Investment is studying regulations on the management of specific business registration for e-commerce activities, livestream sales, and business on digital platforms of individuals, which are currently in an uncontrolled state.

Proposals must aid e-commerce tax management The latest proposal to require e-commerce platforms to handle tax declarations for sellers has faced criticism for placing undue strain and conflicting with global practices.

E-commerce race heats up with new player entering arena A new commercial platform, nongsan.buudien.vn, has made its official debut.