August 30, 2019 by Sanjay Narayanan

What is the eCommerce market size of Vietnam?

The Vietnamese eCommerce market is worth an estimated $173 billion, of which B2C eCommerce businesses selling physical goods, account for about 3.4% or $6 billion.

The industry is growing at a CAGR of 16.5%, much lower when compared to neighbors like Indonesia (20.6%), India (24.8%) and the Philippines (21%). However, in terms of GMV, it is currently the second-largest eCommerce market among ASEAN countries, after Indonesia ($12.2 billion).

In this blog post, we have estimated the Total Addressable Market (TAM) of B2C eCommerce companies selling physical goods in Vietnam and then profiled the TAM distribution by product categories, online Sales and shopping carts.

How is Vietnam’s eCommerce market distributed by product category?

Based on secondary research, validation, and analysis of proprietary data, we estimated that across brands, retailers, and marketplaces, there are about 15,000-20,000 eCommerce companies in Vietnam.

Fashion is the most dominant product category, accounting for about 34%, followed by Electronics (27%) and Hobbies (23%).

Retail activity in Vietnam predominantly occurs via traditional channels such as street-side shops, vendors, carts, stalls, mom-and-pop stores, which are especially important in rural areas, where they account for 90% of the eCommerce market. Even in urban areas where modern retail channels – like convenience stores, supermarkets, minimarts, etc. –  are present, the traditional channels account for a significant 50% of the market.

According to one estimate by local authorities, in Hanoi and Ho Chi Minh City alone, there are at least 27,000 Facebook accounts that use the social media network as a retail platform. Our guesstimate is that the entire country could have about 40,000 eCommerce companies that use Facebook as a retail platform.

Online sales distribution in Vietnam

We profiled a sample of Vietnam’s universe of eCommerce companies (not including the Facebook retail accounts) to analyze its distribution by online Sales. The result mirrors the Global eCommerce market, with the long-tail companies (or companies making <$1M in online sales) forming the bulk of the universe. Shopping cart distribution in Vietnam

We profiled a sample of Vietnam’s universe of eCommerce companies (not including the Facebook retail accounts) to analyze its distribution by Shopping carts.WooCommerce emerges as the most popular shopping cart platform, followed by OpenCart and Magento. Shopify comes at a distant fifth, only marginally outpaced by local player Haravan.

Top eCommerce companies in Vietnam

Below is a list of top eCommerce companies – both local and international – in Vietnam together with their web traffic and Facebook/Instagram follower data.

Top eCommerce companies in Vietnam (International Players)

Top eCommerce companies in Vietnam (Local Players)

By web traffic, Lazada, Shopee, Tiki, and Sendo are the most popular online retail platforms. The first two are international players while Tiki and Sendo are Vietnamese.

Tiki is a B2C eCommerce website that is the fastest growing site in Vietnam. The online marketplace sells over 300,000 SKUs across 12 product categories and has an annual GMV of about $240 million. Sendo is a C2C platform, that sells over 10 million products from 300,000 vendors, individuals, and SMBs. The company has an annual GMV of $330 million.


According to iPrice’s data (shown above) on the Vietnamese market, e-marketplaces such as Tiki, Thegioididong, and made several encouraging improvements in 2018 in terms of attracting both user traffic and investment. It seems that by focusing exclusively on one market and leveraging their knowledge on local shopping behavior, single-market merchants like Tiki and have a certain advantage over the multinational competitors Lazada and Shopee. On the payments front, according to data from Google and Temasek, only 25% of Vietnamese shoppers choose to use digital modes of payment, while the rest still prefer CoD (Cash-on-delivery) for their transactions – despite ever-increasing internet and smartphone penetration rates and a growing digitally-savvy middle-class population. Vietnam has also become an investment hotspot for some of the largest investors including tech giants, venture capital firms and investment companies such as Alibaba, Tencent, Temasek Holdings, Dragon Capital and IDG Ventures Vietnam.

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Sanjay Narayanan

Customer Success Strategist @ PipeCandy

An autodidactic ambivert;)