E-commerce revenue in 2024 accounted for approximately 12% of total retail goods sales and consumer service revenue, an increase from the 10% recorded in 2023. Notably, online retail sales as a proportion of total retail goods sales reached 11%, surpassing the 8.8% ratio of the previous year.
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Despite impressive growth rates, the proportion of the e-commerce market in relation to total retail and consumer service revenue remains modest compared to global averages.
There are several reasons for the high growth rate of our country’s e-commerce sector, including a low starting base, strong GDP growth, and a young population. Another factor is that many investors, particularly foreign investors, prioritized market share over profits during this period, thereby encouraging online shopping demand.
Additionally, the state’s tax management policies for e-commerce businesses were relatively relaxed during this time, resulting in many online traders being exempt from paying taxes. The positive aspect of this situation created a form of “tax incentive”. However, these two factors will undergo fundamental changes from 2025 onwards.
Based on the overall economic picture, the scale of the e-commerce market in 2024, along with a series of policies and legal documents that will come into force or be issued in 2025, VECOM assesses that this year is a preparatory year for a new phase of development – the fourth phase of Vietnam’s e-commerce. This phase will commence in 2026 and is expected to be a period of rapid and sustainable growth.
Profound and comprehensive changes in policy-making and legal implementation will be decisive for the rapid and sustainable development of our country’s e-commerce sector, particularly the Master Plan for National E-commerce Development for the period 2026 – 2030, the Law on E-commerce, and legislation related to taxes, online exports, and e-commerce statistics.
5 NOTES ON THE E-COMMERCE MARKET IN 2025
Through its surveys, VECOM has identified several notable results/points regarding the Vietnamese e-commerce market this year.
First, specialized e-commerce analytics tools and the application of AI to support business activities have not yet received sufficient attention and investment from enterprises.
Second, advertising through social media platforms (Facebook, Instagram, Zalo, etc.) is the most preferred form of promotion among businesses. According to reports, the majority of enterprises spend less than 10 million VND on advertising their websites and mobile applications in a year.
Third, social media remains the most effective channel for enterprises in promoting and selling products in the online environment. Specifically, 47% of businesses rated the effectiveness of product sales on social media as very high. However, 58% of businesses reported that revenue from e-commerce channels accounted for less than 15% of their total revenue.
Fourth, the proportion of enterprises using websites or e-commerce applications for export purposes in 2024 increased slightly compared to 2023. However, overall, most enterprises have not shown significant interest or investment in online export strategies.
Among these enterprises, the majority (77%) still follow the export model through websites or applications built by the enterprise itself, while 36% choose to export through e-commerce trading floors (many enterprises choose to implement both methods simultaneously).
China is currently the largest e-commerce export market chosen by businesses (39%), followed by South Korea (24%) and Japan (22%). However, 51% of surveyed enterprises reported that the value of exports through e-commerce channels accounted for less than 10% of their total export value.
In terms of payment methods, internet banking transfers (91% of enterprises use this method) and cash on delivery (88% of enterprises accept this method) are the most preferred options for e-commerce businesses.
Fifth, regarding the usage of online public services by sellers, 42% of enterprises stated that they frequently refer to information on the websites of state agencies to support their daily operations and business activities.
Among these online public services, electronic tax declaration is the most utilized (91% of enterprises regularly use this service), followed by services related to business registration.
Notably, the two most pressing needs that enterprises require support with from state agencies are training in e-commerce skills and organizing trade promotion and business connection activities.
Four Stages of Development in Vietnam’s E-commerce Sector (according to VECOM)
The period from 1998 to 2005 marked the formation of Vietnam’s e-commerce sector, with a focus on building information technology and telecommunications infrastructure and a legal framework that included the Law on Electronic Transactions, the Law on Information Technology, the Civil Code, and the Law on Commerce.
From 2006 to 2015, e-commerce entered a phase of popularization: tens of millions of consumers shopped online, numerous digital business platforms emerged, and enterprises focused on developing websites. The Master Plan for E-commerce Development for 2006–2010 and Decree 57/2006/NĐ-CP provided the legal framework for this process.
Starting in 2016, e-commerce experienced rapid growth, with high rates of online shopping, and many enterprises adopting e-commerce. However, this phase also brought about challenges such as environmental impacts, low online exports, and regional imbalances.
By 2025, e-commerce is expected to account for a significant proportion of trade and the digital economy. New policies on taxes, customs, and import-export regulations coming into force in 2025, along with the Master Plan for 2026–2030 and the new Law on E-commerce, will usher in a phase of rapid and sustainable development.
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