Weihan Chen, head of Insights Momentum Works

In Southeast Asia, Vietnam is the third-largest e-commerce market, trailing behind Indonesia and Thailand. The bulk of this growth has been driven by major platform players, with TikTok emerging as a key contributor – supported by Vietnam’s mature multichannel network and live commerce ecosystem, which enables sellers and content creators to scale quickly and engage deeply with consumers.

The rise of Shopee and TikTok Shop has further reshaped Vietnam’s e-commerce landscape, raising the bar on content, convenience, and engagement. Shopee continues to lead with scale and infrastructure, while TikTok Shop has tapped into Vietnam’s strong multichannel and creator ecosystem to drive rapid adoption of livestream and video commerce.

In contrast, local platforms like Tiki have struggled to keep pace, facing pressure from shifting consumer behaviour and the growing dominance of regional players. Without clear differentiation, single-country platforms risk being squeezed out in an increasingly competitive and fast-moving market.

Tiki, in particular, has suffered significant declines in traffic and revenue as a result of not only TikTok-Shopee dominance but also internal issues. The “Amazon for Vietnam” business model did not take off. As a result, single-country players continue to see their market share slump despite striving to defend their positions against the top three regional giants as well as cross-border players. In Vietnam’s competitive landscape, these players have drifted into irrelevance, with the decline expected to continue in 2025.

While single-country platforms continue to falter, a number of cross-border e-commerce platforms seek to enter Vietnam. Shein is building a supply chain in Vietnam as of the first half of 2025 to boost fulfilment and logistics. Meanwhile, Temu has been banned in the country since December 2024, only a month after its launch. The expansion of cross-border e-commerce highlights both the opportunity and regulatory risk foreign players face.

At the same time, alternative channels also carve out their own ecommerce space. Mobile World Investment Corporation, Vietnam’s largest retailer by revenue and profit, is building an integrated ecosystem to strengthen its omnichannel play. The company is doubling down on its physical stores as fulfilment hubs, backed by in-house logistics and unified inventory across online and offline channels. This is coupled with a cross-channel loyalty app and on-site technical support to enhance customer experience and drive repeat sales.

Beyond domestic e-commerce, Vietnamese businesses are also looking outward. One of the key predictions in our latest ‘E-commerce in Southeast Asia 3.0’ report is that more Vietnamese companies will expand internationally, starting with cross-border e-commerce as the main channel. While they entered the regional game later than peers in Thailand, Malaysia, or Singapore, Vietnam is catching up quickly, driven by strong progress in manufacturing and consumer sectors, local grit, and spillovers from China in areas like supply chain, capital, and know-how.

Cross-border platforms like Shopee’s International Platform have lowered the barriers for Vietnamese sellers to reach overseas consumers, without the need for a physical presence. This is especially valuable for smaller brands that may not yet have the resources to expand independently. Meanwhile, platforms like Douyin are also helping Southeast Asian brands tap into the China market, opening up new demand channels. As digital capabilities continue to grow, we expect this trend to gain even more momentum.

Vietnam’s e-commerce market grew the fastest in Southeast Asia in 2023, according to Momentum Works’ estimates, and is now entering a more mature stage. The government’s recent moves to tighten regulation, taxation, and enforcement are timely – aiming to address emerging challenges early and make future growth healthier.

In the short term, these changes may impact topline growth as some sellers and products exit the market. However, in the long run, clearer rules allow businesses and sellers to compete more on product quality and customer experience, setting a healthier trajectory for overall ecosystem development.