Investment appeal of Vietnam’s E-commerce market

Vietnam’s E-commerce sector is experiencing a strong breakout phase, emerging as one of the key pillars of the national digital economy. With growth rates among the highest in the world, Vietnam now ranks within the top five countries for e-commerce development globally, creating an attractive and high-potential market for both domestic and foreign investors.

One of the drivers behind this rapid growth is the widespread adoption of mobile devices and high-speed Internet. Speaking at the “AI Commerce - Creating the Next Growth Generation” conference held in November 2025, Nguyen Huu Tuan, Director of the E-commerce and Digital Technology Development Center under the Department of E-commerce and Digital Economy, Ministry of Industry and Trade, emphasized that in Vietnam, mobile phones have become inseparable from daily life. People use them to record, photograph, shop, or make payments, demonstrating the dominance of a mobile-first trend.

According to Nguyen Huu Tuan, Vietnamese businesses approach E-commerce along two main paths. Lazada entered the Vietnam market in 2012 following a web-based approach (via website access), whereas Shopee, launched in 2015, adopted a mobile-first model, focusing entirely on mobile applications. Currently, many platforms, such as TikTok Shop, only allow purchases through apps rather than websites.

“Particularly, Gen Z is shaping a new trend: user-generated content, where users create their own content to encourage others to make purchases. This is characteristic of mobile-based E-commerce, where content and user experience are inseparable,” Nguyen Huu Tuan analyzed.

With a young, dynamic, and tech-savvy population, Vietnam is regarded as one of the most promising online retail markets in the region, capable of maintaining double-digit growth over the next five years. This represents a “gold mine” for investors seeking opportunities in technology, logistics, payment solutions, and e-commerce support services.

Investment trends in mobile-first era

If the 2015 - 2020 period marked an explosive growth phase in Vietnam’s E-commerce, the market is now entering a strategic transformation stage, where businesses focus not only on expanding transaction volume but also on investing in technology, data and user experience.

One of the most noticeable changes is the trend of “physical-to-digital migration,” meaning the shift from direct in-store sales to fully digital operations.

“After the COVID-19 pandemic, numerous small merchants and enterprises realized that the cost of maintaining a physical store was too high relative to the returns. Consumers shifted to online ordering, while sellers quickly opened digital stores to reach a broader customer base, reducing expenses for rent and labor,” Nguyen Huu Tuan explained.

According to the Director of the E-commerce and Digital Technology Development Center, Gen Z - born in the Internet era, is the driving force behind this wave. They shop, pay, review products, and share experiences entirely online. Meanwhile, the mobile-first trend dominates the market. New e-commerce platforms such as TikTok Shop were launched exclusively as mobile apps, bypassing websites entirely. Older platforms like Lazada are now undergoing significant transformations to optimize user experience on mobile devices.

The rise of the “content commerce” model, where consumers are inspired to shop through videos, livestreams, and authentic reviews has created a new generation of users. Instead of conventional advertising, businesses are investing in user-generated content, allowing consumers to tell their own stories, thereby promoting products in a more natural and persuasive manner.

To support this development, the legal framework for Vietnam’s E-commerce market is gradually being refined. Decree No.17/2023/ND-CP requires E-commerce platforms to declare and remit taxes on behalf of sellers, enhancing transparency in online business operations. The draft E-commerce Law is also being finalized with updated provisions on taxation, consumer data protection, cross-border goods management and online advertising control. This will serve as a critical foundation for stable and sustainable market growth.

Vietnam’s E-commerce market is entering a phase of high-quality development, where investment capital is increasingly directed not just toward expanding transaction volumes but also toward building strategic support systems, particularly customer data, technology platforms and user experience. In the mobile-first, data-driven era, businesses that can integrate technology, content, and consumer behavior insights will emerge as market leaders.