Vietnam's e-commerce sector grows 40% in 2024, surpassing expectations
Vietnam's e-commerce sector grows 40% in 2024, surpassing expectations
The e-commerce market in Vietnam recorded an impressive 40-percent growth rate last year, reaching US$13.82 billion in transaction value, according to a recent report by YouNet ECI, a company in e-commerce market data analysis serving brands in the country.
Livestream shopping on e-commerce platforms is gaining significant traction. Photo: Q.D. |
This growth far exceeds the nine-percent increase in overall retail sales and services reported by the General Statistics Office earlier this year.
The report highlighted that Shopee and TikTok Shop dominated the market, capturing 66.7 percent and 26.9 percent of the market share, with transaction values of $9.3 billion and $3.8 billion, respectively.
Shopee posted a 41-percent increase in revenue compared to 2023, while TikTok Shop experienced staggering 99-percent growth over the same period.
The final quarter of 2024, traditionally the peak shopping season, recorded transactions totaling VND97.96 trillion ($3.9 billion).
Shopee and TikTok Shop continued to lead the market, with key contributions coming from four major categories: fashion and accessories, fast-moving consumer goods (FMCG), home appliances and technology, and beauty products.
Experts from YouNet ECI noted that essential goods, particularly FMCG and health-related items, were pivotal in driving the sector’s growth, with the value of transactions in this category expanding 54 percent compared to 2023.
FMCG products enjoyed the strongest growth at 62 percent, becoming the second-most important category in consumers' online shopping carts.
The rise in transactions from official brand stores on e-commerce platforms was another notable trend in 2024.
Established brands from the traditional retail market gained strong consumer support, reflecting a growing emphasis on product quality and trust.
Meanwhile, consumers continued to prioritize affordable pricing, especially within mainstream product segments.
Nguyen Phuong Lam, head of market insights at YouNet ECI, said: “The data shows that consumers are embracing e-commerce even for essential products."
Convenience, attractive promotions, and access to a diverse range of products have transformed shopping habits, presenting a huge opportunity for FMCG brands to optimize their e-commerce strategies and unlock the market's potential, Lam added.
