Backed by robust consumer demand, rising digital literacy, and supportive government initiatives, Vietnam’s retail and e-commerce landscape is set for exponential growth. Yet this promising future also brings new complexities that businesses must prepare to address.

An Evolving & Thriving Landscape

Vietnam’s National Statistics Office reported that gross retail sales of consumer goods and services in April 2025 reached VND 582.1 trillion—an 11.1% year-on-year increase. In the first four months of the year, retail sales totalled VND 2,285.5 trillion, up nearly 10% compared to the same period in 2024.

E-commerce is playing a major role in this growth. Vietnam E-commerce Association noted that in 2024, the sector surged to US$32 billion with a 27% year-on-year growth. Vietnam E-Commerce and Digital Economy Agency projects that the e-commerce industry will reach US$63 billion by 2030, accounting for 20% of the country’s total retail turnover.

The government’s national e-commerce development plan sets ambitious targets. By 2030, 60% of small and medium-sized enterprises are expected to operate on e-commerce platforms, and 70% of adults are projected to shop online. This reflects a clear commitment to building a digitally enabled consumer economy.

Factors Shaping the Industry

Digital Integration and Mobile Commerce

Vietnam’s rapid internet and smartphone adoption have changed how consumers engage with retail. According to ASEAN Briefing, mobile phones are now the dominant tool for online shopping, with nearly 57% of purchases made via mobile devices. Retailers are investing heavily in mobile-friendly platforms and apps to capture this mobile-first market.

Shifting Consumer Behaviour

As inflation drives up the cost of living, Vietnamese consumers are becoming more selective in their spending. In a PwC report, 63% are focused on managing rising prices for necessities. Kadence’s research indicated a growing interest in sustainability, with nearly half of consumers favouring environmentally responsible and local products. Brand loyalty is weakening, prompting companies to adapt through constant innovation and more personalised experiences.

Government Support and Policy Incentives

The Vietnamese government has introduced various policies to support retail and consumption. A key initiative has been the VAT reduction from 10% to 8%, which has been extended until mid-2025. This measure reduces business costs and boosts consumer spending, especially for essential goods.

Social Commerce and Omnichannel Experiences

Vietnamese consumers are increasingly turning to social media for shopping. In PwC’s Voice of the Consumer Survey, 71% are using platforms such as TikTok and Facebook for product discovery and purchases. In-store shopping still plays a key role, making up 63% of transactions. As noted by Vietnam Briefing, around 80% of retail businesses have adopted omnichannel models to better connect digital and physical shopping experiences.

Challenges to Watch

Operational Strain from Rapid Growth

With rising demand comes pressure on supply chains, inventory systems, and workforce capabilities. Taiwan News highlights the growing need for digital tools and skilled workers as local and global competition accelerates.

AI Adoption Gap

Lazada’s Bridging the AI Gap survey revealed that, while 68% of Southeast Asian online sellers say they’re familiar with AI, only 37% have integrated it into their operations. In the SEA region, Vietnam and Indonesia are the leading countries in AI adoption at 42%. Many overestimate their readiness and face barriers such as high implementation costs, complexity, and internal resistance—especially from staff accustomed to manual systems.

Retail Security Risks

Physical stores are under increasing pressure to address theft and safety concerns. OpenGov Asia reported that 72% of retail associates in Asia-Pacific lack tools to detect threats. Retailers are turning to technology to boost store security and protect both staff and customers.

Regulatory Shifts

Vietnam is rolling out its first comprehensive e-commerce law which will increase compliance requirements for platforms and sellers to improve consumer protection. While necessary, these changes may pose challenges for businesses navigating new legal obligations.

Opportunities for Growth

Digital Payments and Fintech Collaboration

Cashless transactions are rising sharply. According to ASEAN Briefing, QR code usage alone surged by nearly 900% in 2024. Fintech companies have a major opportunity to partner with e-commerce platforms and offer innovative payment experiences that are fast, secure, and tailored to Vietnam’s mobile-savvy population.

Rise of Social Commerce

The integration of shopping features on social platforms is giving rise to a vibrant social commerce ecosystem. With a projected market value of US$4.5 billion by the end of 2024 (ASEAN Briefing), this channel offers brands a direct line to consumers—especially younger, mobile-first users.

B2B E-Commerce Expansion

Vietnam’s manufacturing strength—particularly in electronics, apparel, and consumer goods—positions it well for business-to-business (B2B) e-commerce growth. The country benefits from a “China plus one” strategy, where companies diversify sourcing beyond China. Combined with free trade agreements like the EVFTA and RCEP, Vietnam is an ideal hub for B2B digital trade.

Cross-Border E-Commerce Growth

Vietnam’s location and infrastructure make it a natural hub for cross-border trade with countries like China, Thailand, and Cambodia. Government investments under the National Digital Transformation Program are streamlining customs procedures, enhancing digital connectivity, and promoting e-commerce-friendly policies. Vietnam E-Commerce and Digital Economy Agency has noted that cross-border transactions are growing at 20% annually.

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