The Rise of Cross-border E-commerce in Vietnam: Trends and Market Insights

Vietnam’s e-commerce market is experiencing rapid expansion, attracting significant interest from both domestic consumers and international businesses. According to the "Vietnam Online Retail Market Landscape 2024 & Forecast 2025" report by Metric, the total gross merchandise value (GMV) across the top five e-commerce platforms – Shopee, Lazada, TikTok Shop, Tiki, and Sendo – reached VND 318.9 trillion ($12.6 billion) in 2024, marking a 37.36% increase from 2023. Alongside revenue growth, the number of products sold also surged to 3.4 billion units, a 50.76% rise, highlighting the shift in shopping behavior and the increasing dominance of online retail.

Consumer Trends and the Surge of Cross-border E-commerce

One of the most notable trends in 2024 has been the rise of cross-border e-commerce, with 324.1 million imported products entering Vietnam and generating over VND 14.2 trillion ($568 million) in revenue, reflecting 38% growth in volume and 43% growth in value compared to the previous year. Vietnamese consumers are increasingly opting for imported products, particularly in beauty, home & living, and fashion, while grocery and food products saw an outstanding 76.3% growth, indicating a shift from traditional markets and supermarkets to online shopping for essential goods.

Several factors contribute to the rising preference for imported goods. Lower production costs allow foreign brands to offer competitive prices, while enhanced logistics infrastructure ensures faster delivery times and lower risks of lost shipments. Additionally, e-commerce platforms now provide better return policies and consumer protection, further increasing trust in cross-border transactions. This trend, while challenging for domestic retailers, also underscores opportunities for local businesses to adapt and enhance their competitiveness.

Cross-border E-commerce: A Win for Both Sellers and Buyers‍

The growth of cross-border e-commerce benefits not only consumers but also sellers looking to expand their market reach. For Vietnamese businesses, this presents a golden opportunity to scale operations and tap into global markets via platforms like Shopee Global, TikTok Shop, and Amazon. Conversely, international brands see Vietnam as a lucrative entry point into Southeast Asia, given its strong online shopping demand and high spending potential.

However, this expansion comes with intensifying competition. While industry-wide revenue continues to grow, the number of active sellers declined by 20.25%, indicating that many small or inefficient sellers have exited the market. This shift reflects a growing preference for established brands with clear business strategies, well-curated product portfolios, and flexible operations.

Now is the Time to Enter the Market

With continuous growth and vast opportunities, Vietnam’s e-commerce market is an irresistible investment destination for both buyers and sellers. Businesses must quickly adapt to the cross-border e-commerce trend, optimize pricing strategies, and enhance product offerings to stay competitive. Meanwhile, consumers can benefit from improved logistics and better customer protection policies, gaining access to high-quality products at competitive prices.

Despite the challenges, Vietnam’s e-commerce sector remains a dynamic and promising landscape for all stakeholders. With the right strategy, now is the golden moment for domestic and international businesses to leverage this thriving market.

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