In Q1, total transaction volume rose about 20% year-on-year to 1.14 billion items, underscoring sustained growth in online consumption.

On average, Vietnamese consumers spent nearly VND1.7 trillion ($63.33 million) per day on e-commerce, purchasing roughly 13 million products daily.

A woman waits for a shipper to sort out her parcel. Photo courtesy of Znews.

Growth was led by everyday consumer segments. Beauty products topped the chart with more than VND24.4 trillion ($925.79 million) in sales, followed by women’s fashion, and home and living goods. Notably, men’s fashion recorded the fastest expansion, with revenue surging over 150% year-on-year.

In contrast, health-related products saw declines in both revenue and volume. Analysts attribute this to tighter regulations on product quality, advertising and traceability, reflecting a broader transition toward stricter compliance standards in the market.

In terms of pricing, the VND100,000-200,000 ($3.79-$7.59) segment accounted for the largest share, nearly 25% of total transactions. However, mid-range and near-premium segments are gradually expanding, while products priced above VND1 million ($37.94) are losing share.

This suggests consumers are prioritizing value-for-money purchases, upgrading selectively while remaining cautious in overall spending, Metric noted.

Despite strong Q1 performance, Metric forecasts a slight slowdown in the second quarter. Gross merchandise value is expected to decline by about 4.3% from Q1 to VND142.2 trillion ($5.4 billion), even as sales volume continues to edge higher.

The divergence points to intensifying price competition and evolving consumer behavior, with a “higher volume, lower value” trend emerging, the report said.

Policy changes are also reshaping the sector. Requirements around seller identification, tax declaration and platform fees are becoming stricter, raising entry barriers.

The number of active sellers generating orders reached nearly 491,000 in Q1, but growth was modest at just 3.9%, far below the pace of GMV expansion. This indicates that the market is becoming more competitive and less accessible for new entrants.

Meanwhile, tax revenue from e-commerce and the broader digital economy hit VND85.6 trillion ($3.25 billion) in January-March, up 12% year-on-year.

E-commerce continues to outpace traditional retail, with total retail sales of goods rising about 11% in Q1 to VND1.45 quadrillion, significantly slower than online growth.

However, the era of easy expansion appears to be ending, Metric remarked. The sector is entering a more mature phase where growth is accompanied by consolidation, forcing businesses to improve product quality, diversify sales channels and ensure regulatory compliance to maintain competitiveness.