Premia TNC Vietnam Team
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Evolving Landscape of Vietnam’s E-Commerce Market
Vietnam’s e-commerce market has emerged as one of the most notable in Southeast Asia in recent years. The Vietnamese e-commerce market is expected to reach approximately US$20 billion in 2023 and is projected to exceed US$40 billion by 2027. This represents a compound annual growth rate (CAGR) of over 20%, making it the second-highest-growing market in Southeast Asia, following Indonesia.
Vietnam’s rapid e-commerce growth is being driven by a variety of factors, including economic growth, digitalization, mobile-centric consumption trends, and government policies to promote the digital economy. Furthermore, a young and digitally savvy consumer base, rapidly increasing internet and smartphone usage, and intensifying competition among global and regional e-commerce platforms are also key factors accelerating market growth.
Essential Statistics on Vietnam’s E-Commerce Market
Key Sections | Data | Sources |
E-Commerce Market Size | Approximately US$20 billion | Statista |
Compound Annual Growth Rate (CAGR) | 20% or higher | Google, Temasek, Bain & Company |
Primary Age Group | 18-34 years old (Approximately 65%) | Vietnam Ministry of Industry and Trade (MOIT) |
Percentage of Mobile Shoppers | Approximately 70% | iPrice |
SNS-Based Shopping Ratio | 75% or higher | Hootsuite |
This growth is driven by factors such as a young consumer base (70% under 40), mobile-centric consumption trends, the proliferation of electronic payment systems, and the rise of social media-based shopping. However, with the Vietnamese government strengthening e-commerce regulations, thorough preparation for essential procedures such as incorporation, e-commerce registration, and the establishment of payment and logistics systems is crucial.
To successfully enter the Vietnamese e-commerce market, you need to have a thorough understanding of legal requirements and local consumer trends.
Vietnam’s E-Commerce Market Trends
The Explosive Rise of Social Commerce Driven by Social Media
In Vietnam, shopping through Facebook, TikTok Shop, and Zalo is rapidly overtaking traditional platforms like Shopee, Lazada, and Tiki. Since its 2022 launch, TikTok Shop has grown explosively, becoming a leading platform with over 50 million users and an average daily transaction value of USD 15 million in 2023. Facebook, with more than 70 million monthly active users, also remains a key player in driving Vietnam’s social commerce boom.
To operate a social media-based shopping business in Vietnam, companies must register a business and obtain an e-commerce license. For TikTok Shop, official sellers are required to have a registered business, and experts advise completing the e-commerce licensing process after incorporation to ensure full legal compliance.
The Utilization of Digital Payments and Fintech Innovation
Vietnam has traditionally been a market with a high COD (cash on delivery) ratio but has recently seen a rapid increase in the adoption of e-wallets and QR payment systems such as MoMo, ZaloPay, and VNPay.
Method of Payment | Rate of Usage | Primary Features |
MoMo (E-Wallet) | 45% | Vietnam’s largest e-payment platform |
VNPay (QR Payment) | 30% | 150,000 franchise stores nationwide |
ZaloPay | 20% | Integrated with Zalo messenger |
COD (Cash on Delivery) | 40% | Centered on local consumers |
Sources:
- Fintechnews Vietnam (2022~2023)
- Statista: Vietnam – E-commerce & Payment Methods
- VNExpress, VietnamNet – Report on Payment Platform Market Share
- MoMo, VNPay, and ZaloPay official announcement materials and websites
While e-wallet usage is rising, many Vietnamese consumers still prefer cash on delivery (COD). To succeed in Vietnam’s e-commerce market, businesses should offer both payment options and integrate with local payment systems to ensure smooth and reliable transactions.
Growth of the Cross-Border E-Commerce Market
Vietnamese consumers prefer Korean, Chinese, and American brands, and the overseas direct purchase market continues to grow. While it’s possible to sell overseas without a local legal entity using platforms like Shopee, Lazada, and TikTok Shop, establishing a legal entity is becoming increasingly essential as the Vietnamese government tightens regulations on overseas direct purchases.
Data on Vietnam's Overseas Direct Purchase Market:
- Overseas Direct Purchase: Surpassing $1 billion annually.
- Most Imported Products: Cosmetics, Fashion, and Household Goods.
- Major Overseas Purchase Platforms: Shopee Global, TikTok Shop, Lazada.
Establishing a local corporation in Vietnam is becoming essential for overseas sellers, especially as the government strengthens regulations on direct purchasing in 2024. Forming a Vietnamese entity allows you to register as an official seller on Shopee, Lazada, and TikTok Shop, and applying for an e-commerce license during incorporation can further enhance your business expansion.
Key Steps to Successfully Enter the Vietnamese E-Commerce Market
Establishing a Vietnamese Corporation (FDI): The First Step to Entering the Market
To officially operate an e-commerce business in Vietnam, establishing a Foreign Direct Investment (FDI) company is essential. Major platforms like Shopee, Lazada, and TikTok Shop require a Vietnamese Business Registration Number (MST) to register as an official seller. When forming your corporation, key considerations include registering your business purpose (e.g., “online sales,” “advertising/marketing agency,” or “IT solutions”), securing a local business address, appointing a legal representative, and meeting the minimum capital requirements (varies by sector).
Expert Tip:
When establishing a corporation for e-commerce, ensure that your business includes an e-commerce-related industry code and a structure that allows for platform entry and tax invoice issuance from the start. If your business engages in retail activities, business license to perform the retail distribution right is a must (applied to foreign-invested companies).
E-Commerce Business Registration: A Key Step for Online Operations
After incorporation, businesses must register for e-commerce with Vietnam’s Ministry of Industry and Trade (MOIT). Companies running their own online stores must notify their e-commerce websites, while marketplace operators require formal registration approval. Even consistent sales through social media platforms like Facebook, Zalo, or TikTok Shop fall under e-commerce regulations, requiring proper business registration and tax reporting.
Expert Tip:
The registration process is conducted in Vietnamese and requires detailed submissions such as website policies, terms, and conditions. Premia TNC assists with preparing these documents and completing the registration process efficiently.
Marketing and Localization: The Key to Successful Sales
Success in Vietnam’s e-commerce market depends on strong marketing and localization strategies. Businesses should focus on local SNS advertising (Facebook, TikTok, and Zalo), KOL/KOC collaborations, and Vietnamese-language content that resonates with local consumers. Promotional campaigns like “Freeship,” “Flash Sale,” and “Combo Deals” are also effective in attracting buyers.
Expert Tip:
Marketing strategies that work in other countries may not yield the same results in Vietnam. Partnering with an experienced local marketing team helps tailor campaigns to Vietnamese consumer behavior and ensures better engagement from the start.
How Premia TNC Turns Challenges into Opportunities
Entering Vietnam’s e-commerce market is simple and seamless with Premia TNC. Our local experts provide reliable incorporation and consulting services, offering direct consultation and customized strategies tailored to your business goals. From company registration to e-commerce licensing, payment integration, and logistics setup, we deliver comprehensive one-stop support to help you establish and grow your business with confidence in Vietnam.
Premia TNC Vietnam Team
Author
Premia TNC Vietnam is a dynamic team of experts dedicated to supporting businesses and entrepreneurs as they establish, manage, and grow their presence in Vietnam and across the region. Premia TNC Vietnam specializes in providing tailored corporate services, from company incorporation and compliance to tax planning and accounting. With our extensive experience and deep understanding of the local regulatory environment, we are here to make business operations smoother and more efficient.
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