Vietnam and Thailand are emerging as Southeast Asia’s fastest-growing e-commerce markets

Vietnam and Thailand have become the two fastest-growing e-commerce markets in Southeast Asia, according to a report recently released by OpenGov Asia, a content platform dedicated to sharing ICT-related knowledge and information to better serve citizens and customers.

Bangkok (WAN) – Vietnam and Thailand have become the two fastest-growing e-commerce markets in Southeast Asia, according to a report recently released by OpenGov Asia, a content platform dedicated to sharing ICT-related knowledge and information to better serve citizens and customers.

The report highlights that Vietnam has overtaken the Philippines to become the third largest e-commerce market in the region.

Last year, the total gross merchandise value (GMV) of the eight largest e-commerce platforms in Southeast Asia reached US$114.6 billion, up 15% year-on-year. Despite macroeconomic challenges, the e-commerce sector in Southeast Asia has shown continued growth, with this year’s GMV expected to be double that of 2020.

Vietnam and Thailand led the growth trajectory, with their GMV increasing by 52.9% and 34.1% respectively compared to the same period last year. Vietnam’s e-commerce market has seen steady growth, achieving an average annual growth rate of 16-30% over the past four years, the highest in the world.

In ASEAN, Shopee dominates with $55.1 billion in GMV last year, capturing 48% of the market share. TikTok Shop has grown rapidly to become the second-largest e-commerce platform in the region after acquiring Tokopedia.

In Vietnam, TikTok Shop has a significant market share of 24 percent, making it the second largest e-commerce platform in the country.

The report found that influencers, known as key opinion leaders (KOLs), play a key role in navigating e-commerce markets in Vietnam, Thailand and Indonesia.

As reported by OpenGov Asia, Vietnam is stepping up efforts to develop cross-border e-commerce as a key driver of economic growth, supported by various policies, guidelines and innovative solutions. The sector is growing at a rate of 2.3 times faster than regular e-commerce between 2022 and 2025, and is forecast to grow by 20% annually through 2026.

Over the past five years, Vietnamese businesses have significantly expanded their international reach. The number of products exported via international e-commerce platforms has increased by 300%, and many small and medium-sized enterprises have achieved annual revenues exceeding $1 million.

The Vietnamese government, together with ministries, sectors, localities and the business community, is actively promoting digital transformation and sustainable development in e-commerce. The Ministry of Industry and Trade (MoIT) emphasizes expanding markets through online platforms and digital ecosystems, supported by solid logistics.

The report also highlighted Vietnam’s initiatives to strengthen e-commerce, with the Agency for E-Commerce and Digital Economy improving the legal framework, providing financial support, encouraging investment, and ensuring data protection and cybersecurity. Prime Minister Pham Minh Chinh also issued an official statement on strengthening state governance in the e-commerce and digital business sectors.

According to the report, these initiatives underscore Vietnam’s commitment to digital transformation and economic modernization, which aim to ensure the sustainable growth of the digital economy and better access for Vietnamese enterprises to global markets./.