Ho Chi Minh City (VNS/VNA) - Vietnam’s fashion industry is poised for a new phase of growth as e-commerce adoption accelerates, though businesses must overcome challenges in branding, sustainability and digital transformation to fully capture the opportunity, speakers said at a recent conference.

The conference, titled Promoting E-commerce Development in the Fashion Industry, was jointly organised by Ho Chi Minh City’s Department of Industry and Trade, the Ministry of Industry and Trade’s E-commerce and Digital Economy Agency, and TikTok Vietnam. It brought together industry associations, fashion businesses and content creators to discuss opportunities and challenges in the sector’s digital transformation.

Nguyen Nguyen Phuong, Deputy Director of the Ho Chi Minh City Department of Industry and Trade, said e-commerce is becoming a key driver of trade growth, market expansion and business competitiveness amid rapid digital transformation worldwide.

“Fashion is among the sectors best positioned to thrive in the digital environment by leveraging e-commerce, digital communications and content creation to reach consumers,” he said.

However, he noted that fashion businesses face mounting challenges, including intensifying competition, the need to innovate business models, strengthen digital management capabilities, build brands and pursue sustainable growth.

The department has launched various programmes promoting e-commerce adoption and digital transformation, helping businesses improve operational efficiency and expand access to domestic and international markets, he said.

Le Hoang Oanh, Director of the E-commerce and Digital Economy Agency, said Vietnam’s e-commerce market recorded annual growth of more than 20% between 2021 and 2025, creating favourable conditions for the fashion industry to expand and enhance its competitiveness.

While the industry has achieved encouraging results and contributed significantly to e-commerce growth, businesses still face challenges in brand building, ensuring transparency in raw material sourcing, adopting sustainable production practices and increasing product value, she said.

Oanh called on associations, businesses, designers, fashion experts, KOLs, KOCs and content creators to share experiences and promote effective models that can improve shopping experiences, strengthen connections between brands and consumers, and support the industry's sustainable development online.

According to Nguyen Lam Thanh, representative of TikTok Vietnam, fashion is one of the largest and fastest-growing categories on e-commerce platforms. More than 50 million Vietnamese users engage with fashion content on TikTok, while over 100,000 fashion merchants generated sales through TikTok Shop last year.

Despite rapid growth, fashion-related online sales account for only about 20% of the industry's total revenue in Vietnam, compared with around 40% in several neighbouring countries.

"We expect e-commerce to contribute 50% of Vietnam’s fashion industry revenue within the next three to five years, bringing it closer to more developed regional markets," Thanh said.

Nguyen Tan Phong, Vice Chairman of the Vietnam E-commerce Association, said many businesses still lack the skills and resources needed to operate effectively in the digital economy.

Many businesses remain focused on selling products but have yet to invest sufficiently in building their brands online, he said, adding that images, content, customer reviews and shopping experiences are all critical factors for success in e-commerce.

Experts at the event highlighted data as an increasingly valuable business asset, enabling companies to better understand customers, anticipate market trends and optimise operations.

Luu Nga, creative director of local fashion brand Elise, said short-form videos and livestreaming are reshaping the industry.

"In the past, a store's location determined customer traffic. Today, content has become the new retail space," she said. "Businesses that master content creation, livestreaming and customer data will gain a significant competitive advantage."

At the event, the organisers launched the Fashion Up Vietnam initiative, which aims to help fashion businesses strengthen digital capabilities, adopt e-commerce more effectively and promote Vietnamese fashion brands to a wider consumer base./.