Vietnam’s e-commerce booms, challenges remain: study

The Singapore-based market research firm notes that Vietnam stands out regionally in e-commerce for the youthfulness and momentum of its online seller community.

Strong entrepreneurial momentum from young sellers

The study found that 74 percent of the e-commerce merchants surveyed have been operating for less than two years, while 33 percent are aged 18 to 24, well above the regional average of 27 percent.

Nearly one-third of sellers now process more than 100 orders per month, compared with a regional average of 22 percent, highlighting the speed at which Vietnamese merchants are scaling up.

Juda Kanaprach, co-founder and chief commercial officer at Milieu Insight, highlighted young sellers’ rapid expansion as a sign of entrepreneurial momentum, noting that sustained success requires clear fees, reliable logistics, and platform support.

Platform reliance fuels growth but exposes gaps

Milieu Insight noted that Vietnam’s e-commerce ecosystem remains heavily platform-centric.

Shopee is used by 78 percent of sellers, followed by TikTok Shop at 66 percent, Tiki at 20 percent, and Sendo at 10 percent, while only around six percent operate their own websites.

This reliance on major platforms has accelerated digital adoption for growth, with 80 percent of sellers saying digital management tools are essential and 78 percent valuing platform support such as training and guidance.

Confidence in platform services, however, remains uneven.

While more than half of sellers use platform-linked logistics and around 40 percent have adopted AI-powered tools, only 20 percent find analytics tools meaningful, and just 38 percent report clear improvements from platform-provided logistics solutions.

Nearly 80 percent of sellers called for deeper collaboration and more effective platform support.

Platform fees accepted only when returns are clear

Vietnamese sellers increasingly view platform fees as a necessary investment rather than a simple operating cost, but only when benefits are clear and measurable.

The study found that 51 percent of respondents accept fees tied to proven performance, while 41 percent are willing to pay when platform charges clearly translate into higher sales.

At the same time, 44 percent said they lose confidence in platforms if the benefits of fees are unclear, highlighting the importance of fee transparency for user confidence.

Logistics remains persistent bottleneck

Logistics continues to rank among the most pressing challenges for online sellers.

Forty-eight percent of respondents reported late deliveries or damaged goods, while 42 percent cited unpredictable shipping costs.

Many sellers said inconsistent logistics undermines customer satisfaction, store ratings, and repeat purchases.

An overwhelming 85 percent believe platforms should impose stricter standards on third-party logistics providers, calling for improvements in parcel handling, delivery speed, and overall reliability.

Buyer protection features such as product verification, secure payment systems, and reliable delivery are highly valued, helping increase purchase frequency, order volumes, store ratings, and average basket values.

Local sellers face fierce competition from foreign players

Beyond operational constraints, competition from international sellers has emerged as a major concern among domestic traders.

Eighty percent of the Vietnamese merchants surveyed said they face intense pressure from overseas brands, resulting in lowered prices, reduced visibility on platforms, and squeezed profit margins.

Many have had to offer steep discounts to stay competitive, eroding margins and threatening long-term viability.

As a result, sellers are calling for stronger promotional support for domestic businesses, local incentives, tax relief, and measures to prevent unfair competition.

Seventy-four percent of respondents said sustainable growth in Vietnam’s e-commerce sector depends on coordinated efforts from sellers, platforms, and regulators.

The Milieu Insight study also noted that success hinges on addressing key challenges in logistics, fee transparency, and competition from foreign players.