Hanoi (VNA) - The e-commerce market in Vietnam recorded an impressive growth rate of 40% last year, reaching 13.82 billion USD in transaction value, according to a recent report by YouNet ECI, a leading firm in e-commerce market data analysis.
This figure far exceeds the 9% growth in overall retail sales and services reported by the General Statistics Office (GSO) earlier this year.
The report is based on continuously collected data from major e-commerce platforms, providing detailed insights into the total annual revenue of various business sectors across the leading platforms of Shopee, TikTok Shop, Lazada, and Tiki.
Shopee and TikTok Shop report double-digit growth in revenue
Accordingly, Shopee and TikTok Shop continued to dominate Vietnam's e-commerce market, with total transaction values reaching 9.3 billion USD and 3.8 billion USD, accounting for 66.7% and 26.9% of the market share, respectively.
Shopee posted a 41% increase in its revenue compared to 2023, while TikTok Shop recorded an impressive growth rate of 99% over the same period.
The strong growth of the two platforms contributed to the market’s 40% growth in 2024, demonstrating the strong shift of Vietnamese consumers from traditional shopping channels to online platforms this year.
The final quarter of 2024, traditionally the peak shopping season, recorded transactions totaling 97.96 trillion VND (3.9 billion USD). Shopee and TikTok Shop continued to lead the market, capturing 62.2% and 32.5% of the market share, respectively.
Their key contributions came from four major categories of fashion and accessories (26.5%), fast-moving consumer goods (FMCG) (16.6%), home appliances and technology (15.8%), and beauty products (13.1%).
Fast-moving consumer goods drive growth
YouNet ECI’s report noted that essential goods, particularly FMCG and health-related items were pivotal in driving the e-commerce sector’s growth in the year, with the value of transactions in this category expanding 54% compared to 2023.
FMCG products enjoyed the strongest growth at 62%, becoming the second-most important category in consumers' online shopping carts.
More impressively, the FMCG sector’s revenue growth was driven more by an increase in sales volume rather than price hikes. This underscores the growing and stable demand for online shopping of FMCG products in particular and essential goods in general.
The rise in transactions from official brand stores on e-commerce platforms was another notable trend in 2024.
Well-established brands from the traditional retail market gained strong consumer support thanks to trust in product quality.
The report highlights that FMCG brands in the mass segment have an advantage in driving e-commerce growth. Data in the fourth quarter of 2024 indicated that consumers will prioritise more budget-friendly products in the coming year.
Nguyen Phuong Lam, Director of Market Analysis at YouNet ECI, said data consistently showed that consumers are prioritising e-commerce, even for essential products.
Convenience, attractive promotions, and access to a diverse range of products have transformed shopping habits, presenting a huge opportunity for FMCG brands to optimise their e-commerce strategies and unlock the market's potential, Lam added./.
