Southeast Asia e-commerce GMV to grow 15% YoY in 2023; Vietnam fastest growing market

The combined gross merchandise value (GMV) of Southeast Asia’s eight leading e-commerce platforms rose 15 percent year-on-year (YoY) to $114.6 billion last year, with Vietnam being the fastest-growing e-commerce market in the region with a total GMV of $13.8 billion — up 52.9 percent YOY, according to the “E-commerce in Southeast Asia 2024” report by Singapore-based consulting firm Momentum Works.

Vietnam last year overtook the Philippines to become the third-largest e-commerce market in the region.

Indonesia was the largest e-commerce market last year, contributing 46.9% to the region’s GMV. But its growth rate of 3.7% was the most modest in the region.

The total GMV of Southeast Asia’s top eight e-commerce platforms rose 15 percent year-over-year to $114.6 billion in 2023, and Vietnam was the fastest-growing e-commerce market in the region with total GMV of $13.8 billion — a 52.9 percent increase year-over-year, the consulting firm said. TikTok Shop nearly quadrupled its annual GMV to $16.3 billion in 2023 from 2022.

In 2022, e-commerce GMV in the region reached $99.5 billion, half of which was accounted for by Shopee. In 2023, Shopee achieved GMV of $55.1 billion and maintained its market share at a steady 48%. Lazada and Indonesian Tokopedia recorded GMV of $18.8 billion and $16.3 billion, respectively, last year.

However, TikTok Shop was forced to suspend operations in Indonesia after the government banned online shopping transactions on social media.

TikTok Shop nearly quadrupled its annual GMV to $16.3 billion last year from $4.4 billion in 2022. After acquiring Tokopedia from tech group GoTo, TikTok Shop became the second-largest e-commerce platform in the region.

One of the four key trends identified in the region’s e-commerce industry was live commerce, which is leading the way in live sales. Key thought leaders in Vietnam, Thailand and Indonesia achieved multi-million dollar sales in single live sessions, the report said.

TikTok has evolved its e-commerce functionality with its live streaming feature, where influencers and sellers showcase a variety of products to help users make purchasing decisions in real time.

TikTok and Tokopedia have a 39 percent market share in Indonesia, closely followed by Shopee with 40 percent. In Vietnam, TikTok Shop has become the second-largest player with a 24 percent market share.

Fibre2Fashion Press Office (DS)