An official from the Ministry of Industry and Trade's e-commerce and digital economy agency (iDEA) told VnExpress that the agency has received a report on the merger plan.

"The merger would allow the two platforms to gain more market share and compete better against bigger players. We still need to see what their business plans are after the merger, but this could make the e-commerce race more vibrant," the source said, declining to be named.

Leaders of both companies, however, refused to confirm the information.

"We do not usually comment on rumors and speculations," said Tran Ngoc Thai Son, founder and CEO of Tiki.

Sendo CEO Tran Hai Linh declined to comment.

DealStreetAsia last month reported the two companies are said to have agreed to merge their businesses, citing sources. The news site had also reported earlier in February that the two companies were negotiating the merger.

Among major competitors that the two home-grown platforms will face are Singapore-based Shopee and Lazada. In the first quarter this year, Shopee ranked top in terms of monthly web traffic, followed by Tiki, Lazada and Sendo, according to data from research company iPrice Group.

Tiki’s major stakeholders are China’s e-commerce giant JD.com and Vietnam’s gaming firm VNG, while tech giant FPT is Sendo’s biggest stakeholder.

Vietnam’s Internet economy was estimated at $12 billion last year. With  an annual growth rate of 38 percent since 2015, its value was expected to surge to $43 billion by 2025, according to the "e-Conomy Southeast Asia report 2019" by Google, Singapore-based investment firm Temasek and U.S.-based global management consultancy Bain.