After the boom, Vietnam’s e-commerce market becomes a tougher game

Vietnam’s e-commerce market has experienced a meteoric rise over the past decade, characterized by rapid growth in users, products, and transaction volumes. However, as of 2026, the landscape is shifting toward a more disciplined and competitive environment. Major platforms are moving away from cash-burning strategies and focusing on profitability, operational efficiency, and long-term sustainability.

The Shift in E-Commerce Strategy

For years, e-commerce platforms in Vietnam relied heavily on subsidies and deep discounts to attract users and gain market share. This approach, while effective in driving rapid growth, is now being reconsidered. Industry experts note that the transition became particularly evident in 2025 when platforms began tightening operating rules for sellers and redesigning incentives for buyers.

Free-shipping programs and vouchers, once aggressively used to stimulate short-term sales, are now being bundled into fixed or paid schemes. This shift transfers a larger share of costs to merchants, creating significant pressure on sellers. Trần Lâm, an e-commerce expert and founder of local brands Julyhouse and Macaland, emphasizes that the changes in fees are gradual but impactful, stating, “The fees are not raised in one move, but gradually and continuously.”

Challenges for Sellers

As e-commerce platforms impose new charges, including infrastructure fees and costs linked to returns, smaller sellers with thin margins are finding it increasingly difficult to remain competitive. The accelerated timeline for these changes has left many sellers struggling to adapt.

In addition to rising fees, tighter tax enforcement and stricter product quality controls are reshaping the market. The Vietnam E-Commerce and Digital Economy Agency reported that over 13,700 violating shops were removed from e-commerce platforms in 2025 for selling counterfeit, banned, or untraceable products. This regulatory tightening aims to create a more competitive and transparent marketplace.

Statistics and Market Trends

According to the Department of Taxation, tax collections from e-commerce surged 80% year-on-year to VNĐ208.8 trillion in 2025. This increase reflects the government’s efforts to strengthen tax collection from online business activities. Despite a decline in the number of active shops—down 7.4% year-on-year to 601,800 on major platforms like Shopee, TikTok Shop, Lazada, and Tiki—the total sales revenue generated by these platforms reached VNĐ429 trillion (approximately US$16.5 billion), marking a 34.8% increase from 2024.

Selective Growth and Consumer Behavior

The e-commerce market in Vietnam is entering a more mature phase, with growth shifting from user expansion to quality. While the pace of new user growth has slowed compared to the rapid expansion seen between 2018 and 2021, this does not indicate a downturn. Instead, it signifies a new focus on value, with key indicators such as average unit price per monthly sold item and conversion rates showing positive trends.

Vietnamese consumers are evolving; they are no longer solely searching for the cheapest products but are increasingly prioritizing quality, origin, and overall shopping experience. A report by Metric.vn highlights that the share of revenue from official stores rose from 25% in the first quarter of 2024 to nearly 32% in the first quarter of 2025. This change reflects a growing awareness among consumers and a willingness to pay for products that meet their quality standards.

Legal Framework and Future Outlook

The upcoming Law on E-Commerce, set to take effect on July 1, 2026, is expected to further reshape Vietnam’s e-commerce market. This law aims to enhance transparency and promote healthy development within the sector. One of its key provisions mandates the identification of sellers operating on e-commerce platforms, which is seen as essential for combating trade fraud and protecting consumer rights.

Nguyễn Đăng Sinh, president of the Vietnam Association for Anti-Counterfeiting and Trademark Protection, emphasizes that the requirement for sellers and livestreamers to verify their identities will serve as a powerful tool against counterfeit goods and intellectual property infringements. This regulation is designed not to hinder online trade but to foster digital trust and support sustainable growth in the e-commerce sector.

The Road Ahead

Experts predict that the e-commerce market will continue to face challenges in the near term. Trần Lâm suggests that significant and unpredictable changes are likely in the coming years, which will further test the resilience of sellers. However, these adjustments are crucial for establishing a healthier and more transparent market.

As the market evolves, competitive sellers may find opportunities to diversify beyond traditional platforms, expanding into websites, social media, and even offline channels. Lâm notes, “Difficulties are real. But this is also the time to slow down, build more solid foundations, and grow more sustainably.”

According to the overview report on Vietnam’s domestic market in 2025 by the Ministry of Industry and Trade (MIT), the e-commerce sector sustained double-digit growth of 20%, with the online retail market estimated at $32 billion. This accounted for roughly 12% of total retail sales of goods and consumer service revenue, positioning Vietnam among the top three largest e-commerce markets in Southeast Asia. By 2030, e-commerce is forecasted to expand by around 20% annually, with retail e-commerce revenue potentially reaching $70 billion.

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