Vietnam’s e-commerce sector is undergoing a dramatic transformation in 2025, with content-driven platforms like TikTok Shop outpacing traditional giants such as Shopee, Lazada, and Tiki. A mid-year report from Metric reveals a staggering year-on-year growth of 42 percent in gross merchandise value (GMV), reaching VNĐ202.3 trillion (approximately US$8 billion) in the first half of the year. Yet, beneath the headline figures, a complex story of market shifts, regulatory tightening, and seller challenges is reshaping the digital marketplace in one of Southeast Asia’s fastest-growing economies.
A Changing Competitive Landscape
The first six months of 2025 have highlighted a seismic shift in Vietnam’s e-commerce hierarchy. TikTok Shop, leveraging its integration of content and commerce, recorded an extraordinary sales increase of 68.6 percent, boosting its market share to 39 percent. This growth stands in stark contrast to Shopee, the long-standing market leader, which saw a more modest sales rise of 16.1 percent while its market share slipped to 58 percent. Meanwhile, competitors Lazada and Tiki faced significant setbacks, with sales plummeting by 48 percent and 63 percent, respectively, compared to the same period in 2024.
The numbers reflect a broader trend: Vietnamese consumers are increasingly drawn to platforms that blend entertainment with shopping. TikTok Shop’s success, driven by engaging livestreams and influencer-driven campaigns, underscores the power of user engagement in today’s digital economy. Shopee, while still dominant, appears to be losing ground to this new model, as its traditional focus on discounts and promotions struggles to match the appeal of content-driven experiences. For Lazada and Tiki, the sharp declines suggest deeper structural challenges, potentially tied to weaker user retention and less effective marketing strategies during a period of intense competition. 
This shift was most evident during the summer and mid-year sales events, which fueled significant spikes in consumer spending. Metric’s data shows sales growth of 44.5 percent in May and 46.5 percent in June, compared to a steadier 32 percent in April. These promotional campaigns, often featuring steep discounts and limited-time offers, have become critical battlegrounds for platforms vying for consumer attention in Vietnam’s crowded online marketplace.
Regulatory Oversight Tightens
As the e-commerce sector flourishes, Vietnamese authorities are stepping up efforts to regulate the digital economy. New policies introduced in 2025 focus on enforcing tax declaration and payment obligations for online sellers, a move aimed at curbing revenue losses and ensuring fair competition. Platforms are now required to enhance transparency in transactions and take on greater responsibility for tax collection, aligning with broader government goals to formalize the digital economy.
These measures, while intended to protect consumer interests and level the playing field, have introduced significant challenges for smaller players. The push to eliminate counterfeit and substandard goods has led to a notable decline in active sellers, with Metric reporting a drop of approximately 80,000 shops generating orders compared to the first half of 2024, and 55,000 fewer than in the second half of that year. Many small-scale sellers, already grappling with thin profit margins, have been forced to suspend or cease operations under the weight of stricter compliance requirements.
Rising platform fees have compounded these pressures. For individual sellers and small to medium-sized enterprises (SMEs), the combination of increased costs and regulatory burdens has made it difficult to remain competitive. Metric’s report notes that many lack the financial planning or resources to adapt, resulting in a wave of market exits. This contraction has, in turn, created opportunities for larger, more established players. Official brand stores, such as those under Shopee’s Shop Mall and TikTok Shop, have seen remarkable growth, with sales increases of 63.3 percent and 107.3 percent, respectively, signaling a consolidation of market power among bigger businesses.
Consumer Trends and Seller Challenges
The evolving dynamics of Vietnam’s e-commerce sector are not just a story of platform competition and regulation; they also reflect changing consumer behaviors. Shoppers are increasingly prioritizing practicality and quality, with spending concentrated on essential goods like fast-moving consumer products, food, household items, and health-related merchandise. This trend, Metric suggests, is likely to persist into the third quarter of 2025, driven by seasonal promotions such as mega sales events and back-to-school discounts.
For sellers, the current environment presents both risks and opportunities. The sharp decline in active shops indicates a market that is becoming less accessible to smaller players, yet it also underscores the importance of trust and reliability in winning consumer loyalty. Metric recommends that sellers focus on offering products with verified origins and consistent quality, a strategy that aligns with growing consumer demand for transparency. Additionally, diversifying sales channels—particularly by integrating e-commerce platforms with social media—could help sellers expand their reach and mitigate the risks of platform dependency.
Sustainability is emerging as another key differentiator. Products aligned with environmental standards are expected to attract growing interest, reflecting a global shift toward conscious consumerism. In Vietnam, where environmental concerns are gaining traction among younger demographics, sellers who can position themselves as eco-friendly may gain a competitive edge in an increasingly discerning market.
Looking Ahead: Growth and Innovation
Metric’s forecast for the third quarter of 2025 paints an optimistic picture for Vietnam’s e-commerce sector. Platform sales are projected to reach VNĐ122.8 trillion (approximately US$4.8 billion), with an estimated 1.23 billion units sold. This represents a quarter-on-quarter growth of 21 percent in value and 27 percent in volume, driven by sustained consumer interest in online shopping and the impact of seasonal promotions.
To capitalize on this growth, e-commerce platforms are doubling down on innovation. Investments in logistics infrastructure are expected to improve delivery times and reduce costs, addressing one of the key pain points for online shoppers in Vietnam’s urban and rural areas. Platforms are also expanding livestream selling formats, a strategy that has proven particularly effective for TikTok Shop, and offering enhanced shipping incentives to boost order conversion rates during peak shopping seasons.
Yet, the road ahead is not without challenges. The regulatory landscape is likely to evolve further as the government seeks to balance economic growth with consumer protection and fiscal accountability. For platforms, adapting to these changes will require not only operational adjustments but also a willingness to collaborate with authorities on issues like tax collection and product authenticity. For sellers, particularly SMEs, the need for financial resilience and strategic diversification has never been more urgent.
A Sector at a Crossroads
Vietnam’s e-commerce boom is a testament to the country’s rapid digital transformation and the growing appetite for online shopping among its population of nearly 100 million. TikTok Shop’s meteoric rise signals a fundamental shift in how consumers engage with digital marketplaces, prioritizing platforms that offer both convenience and entertainment. At the same time, the struggles of traditional players like Shopee, Lazada, and Tiki highlight the fierce competition and high stakes of this evolving sector.
As regulatory oversight tightens, the exit of smaller sellers raises questions about the inclusivity of Vietnam’s digital economy. While larger businesses and official brand stores are well-positioned to thrive, the challenges faced by SMEs underscore the need for targeted support—whether through government programs, platform subsidies, or capacity-building initiatives—to ensure that the benefits of e-commerce growth are widely shared.
Looking forward, the interplay between innovation, regulation, and consumer demand will shape the future of Vietnam’s online marketplace. Platforms that can navigate this complex landscape, balancing compliance with creativity, are likely to emerge as long-term winners. For now, as the third quarter approaches with its promise of mega sales and heightened activity, one thing is clear: Vietnam’s e-commerce sector remains a dynamic and fiercely contested space, with much still to play for.
