Việt Nam and Thailand are the two fastest-growing e-commerce markets in Southeast Asia, according to the latest report ‘2024 E-commerce in Southeast Asia’ by Momentum Works. Việt Nam has even overtaken the Philippines to become the third largest e-commerce market in the region.
The total merchandise value (GMV) of the top eight e-commerce platforms in Southeast Asia reached US$114.6 billion in 2023, a year-on-year increase of 15%. Despite macroeconomic challenges, the report highlighted that Southeast Asian e-commerce has shown continuous growth, with this year’s GMV predicted to double that of 2020.
A Region of Growth
Việt Nam and Thailand have seen remarkable growth in GMV, increasing by 52.9% and 34.1% respectively over the same period last year.
Vietnamese e-commerce, in particular, has maintained an average growth rate of 16-30% per year over the past four years, marking the highest growth rate globally.
Meanwhile, Indonesia continues to be the largest e-commerce market in ASEAN, contributing 46.9% to the region’s GMV.
In the Southeast Asian market, Shopee achieved total GMV revenue of US$55.1 billion last year, accounting for 48% of the market share. TikTok Shop has emerged as the second-largest e-commerce platform in Southeast Asia, following its acquisition of Tokopedia. The platform’s GMV nearly quadrupled over 2022 to reach $16.3 billion in the past year.
In Việt Nam alone, TikTok Shop holds a 24% market share, making it the second-largest e-commerce platform in the country.
The report also identified several key drivers in the e-commerce industry in the region.
Firstly, KOLs (influencers) selling online have been able to effectively navigate the e-commerce markets in Việt Nam, Thailand, and Indonesia, with even a single livestream session generating millions of dollars in revenue.
Secondly, platforms in the region are adopting innovative AI applications, particularly in user experience and operational efficiency.
Lastly, sellers are facing pressure from parcel delivery service sourcing platforms.
What are Vietnamese buying online?
During the pandemic, many e-commerce categories of consumer goods saw significant growth, with food and personal care products experiencing the highest increase in consumer expenditure. The reason is that people increasingly pay more attention to personal care and healthier lifestyles.
In 2022, consumer goods surpassed travel, mobility, and accommodation to become the largest e-commerce category in Vietnam, with a total consumer spending of almost 13 billion U.S. dollars. The preference for safety and convenience has led to an increase in online shopping among Vietnamese consumers.
As a result, online grocery shopping witnessed a surge in usage at the expense of traditional retail outlets. This new and quickly adopted habit appears here to stay even after the pandemic, indicating the continuing expansion of the e-commerce sector in the country.