Vietnam’s e-commerce sector gains $3.9bn in Q1

The value jumped a hefty 42.29 percent year on year while volume surged 24 percent to 950.7 million products, data analytics platform Metric.vn said in a report.

Data from four major platforms – Shopee, Lazada, Tiki, and TikTok Shop – highlights a growing divide between large-scale, high-performing retailers and smaller vendors.

“The market is clearly shifting from small-scale sellers to those with professional operations, streamlined systems, and focused brand strategies,” a Metric representative said.

The report also pointed to a significant shift in consumer behavior, with products priced VND100,000-200,000 ($3.8-7.6) accounting for the largest share of both sales and volume.

Conversely, the share of products priced at VND1 million ($38.5) or higher declined from 19.4 percent to 17.2 percent this year, indicating more cautious consumer spending.

“This trend highlights the growth potential of affordable and mid-range products in categories such as beauty, fashion, and mother-and-baby goods, alongside the rise of value-conscious consumption,” the report noted.

Consumer search behavior in the January-March period was also heavily influenced by social media, according to Metric.

The keyword ‘iPhone case’ topped the charts with over 11 million searches, while ‘Baby thee,’ a trendy plush toy that rose to fame during the late-2024 ‘blind bag’ craze, ranked third with more than 9.1 million searches.

Seasonal searches also surged, with ‘ao dai’ (Vietnam's traditional gown) reaching 7.6 million searches around Tet (Lunar New Year break) and ‘ao khoac’ (jacket) recording 7.8 million searches during the colder months.

Bright prospects in Q2

Looking ahead, Metric projects that Vietnam’s e-commerce market will maintain its upward trajectory in the second quarter, with sales forecast to reach VND116.6 trillion ($4.5 billion), up 15 percent from the previous quarter.

The number of products sold is also expected to rise to 1.112 billion, a 17-percent increase.

Key growth drivers include mid-year promotional campaigns such as summer sales, increasingly stable online shopping habits, and rising demand for essential and health-related products.

E-commerce platforms are also boosting investments in logistics infrastructure, seller-support technologies, and livestream selling – key elements in enhancing user experience and improving order conversion rates.

Metric advises sellers to regularly analyze market data to stay ahead of shifts in consumer demand and priorities, particularly during peak shopping seasons.