In the first quarter of the year, Shopee continued to dominate the online retail market share with more than half of total transactions. However, TikTok Shop secured the runner-up position with a 23.2% market share, an increase of 6.3 percentage points compared to the previous quarter. Vietnamese consumers spent 18,360 billion VND on TikTok Shop in the first quarter, three times more than Lazada’s GMV.
The online retail market in Vietnam exceeded expectations in the first quarter, reaching 71,200 billion VND in total revenue, a 78.69% increase compared to the previous year. The growth can be attributed to domestic consumption stimulation programs, increased consumer spending, and the rising popularity of online shopping as a daily habit. Market research forecasts continued growth in Vietnam’s e-commerce industry, with GMV expected to peak at 16.8 billion USD in 2025.
To keep up with this growth, businesses should focus on controlling costs, increasing revenue and investing in technology and digitalization. The trend of “shoppertainment,” where shopping is combined with entertainment is expected to play a significant role in the industry’s future. Platforms like TikTok Shop and Shopee are incorporating entertainment features to enhance consumers’ shopping experiences and stimulate demand.
In summary, while Shopee remains dominant in the online retail market share, TikTok Shop has shown remarkable growth by securing the runner-up position with a significant increase compared to the previous quarter. Vietnamese consumers have spent significantly more on TikTok Shop than Lazada’s GMV due to its entertainment features that have attracted medium and small enterprises as well as increased views and sales.
Market research suggests that Vietnam’s e-commerce industry will continue growing at an impressive rate and reach its peak at $16.8 billion by 2025. To stay ahead of this growth, businesses need to focus on cost control measures while also increasing revenue streams through digitalization efforts.
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