Vietnam and Thailand named as fastest-growing e-commerce markets in Southeast Asia

The report highlights Vietnam’s ascent past the Philippines to become the third-largest e-commerce market in the region.

In 2023, the total gross merchandise value (GMV) of the top eight e-commerce platforms in Southeast Asia reached 114.6 billion USD, marking a year-on-year increase of 15%. Despite macroeconomic challenges, the Southeast Asian e-commerce sector has demonstrated continuous growth, with this year’s GMV predicted to be double that of 2020.

Vietnam and Thailand led the growth trajectory, with their respective GMVs increasing by 52.9% and 34.1% over the same period last year.

Vietnam’s e-commerce market, in particular, has seen consistent growth, boasting an average annual growth rate of 16-30% over the past four years, the highest in the world.

Shopee dominates in ASEAN, with total GMV revenue of 55.1 billion USD last year, capturing 48% of the market share.

Following its acquisition of Tokopedia, TikTok Shop has surged to become the second-largest e-commerce platform in Southeast Asia. The platform’s GMV nearly quadrupled in 2022, reaching 16.3 billion USD in the past year.

In Vietnam, TikTok Shop holds a significant 24% market share, making it the second-largest e-commerce platform in the country.

The report identifies key drivers propelling the e-commerce industry in the region. Influencers, known as KOLs, play a crucial role in navigating the e-commerce markets in Vietnam, Thailand, and Indonesia.

As OpenGov Asia reported, Vietnam is intensifying efforts to develop cross-border e-commerce as a key economic growth driver, supported by various policies, guidance, and innovative solutions. The sector is expanding at a rate 2.3 times faster than regular e-commerce between 2022 and 2025, with projections indicating a 20% annual growth rate until 2026.

Over the past five years, Vietnamese businesses have significantly broadened their international reach, with the number of products exported via international e-commerce platforms increasing by 300%, while many SMEs have achieved annual revenue surpassing 1 million USD.

The Vietnamese government, along with ministries, sectors, localities, and the business community, is actively promoting digital transformation and sustainable development in e-commerce.

The Vietnamese government, along with ministries, sectors, localities, and the business community, is actively promoting digital transformation and sustainable development in e-commerce.

The Ministry of Industry and Trade (MoIT) emphasises expanding markets through online platforms and digital ecosystems, supported by robust logistics.

The E-Commerce and Digital Economy Agency is enhancing the legal framework, providing financial support, encouraging investment, and ensuring data protection and cybersecurity. Efforts also include free training courses for SMEs to improve their product sale opportunities through e-commerce platforms.

Prime Minister Pham Minh Chinh has issued Official Dispatch No.56/CD-TTg to enhance state management in e-commerce and digital business sectors. This directive involves refining legal frameworks, simplifying customs procedures, integrating national databases to combat fraud and tax evasion, and developing technological solutions to monitor digital transactions.

These initiatives underscore Vietnam’s commitment to digital transformation and economic modernisation, with the aim for sustainable growth in the digital economy and improved global market access for Vietnamese businesses.