Hanoi (VNA) - Vietnam's e-commerce market is on a strong growth trajectory, with the potential to reach a transaction value of 49.9 billion USD annually by 2028, as the country leverages emerging growth opportunities, according to a report released by YouNet ECI and YouNet Media on November 14.
E-commerce in Vietnam has gained rapid momentum, driven by an increasingly tech-savvy consumer base and a growing preference for online shopping. With a young population that is enthusiastic about technology and high internet penetration, Vietnam has become one of the most attractive e-commerce markets in Southeast Asia, it said.
Changing consumer spending habits
According to the report, the landscape of e-commerce spending is undergoing a transformation. The emergence of platforms like TikTok Shop and the rise of "shoppertainment" – the fusion of shopping and entertainment – are reshaping consumer habits and spending patterns. These trends are expected to push e-commerce growth in Vietnam to an impressive 35% compound annual expansion rate (CAGR) between 2024 and 2028, surpassing earlier projections from other industry stakeholders.
Nguyen Phuong Lam, head of Market Insight at YouNet ECI, pointed to three key growth drivers behind this optimistic outlook - increasing income levels in Vietnam, the shoppertainment trend, and a noticeable shift of high-value goods from offline channels to online platforms.
The report also highlights how the country's digital consumers – particularly Gen Z (born in 1997-2012) and Millennials (born in 1981-1996) – are driving e-commerce growth.
According to YouNet Media's survey, 62.8% of digital consumers in Vietnam make purchases on e-commerce platforms at least once a week. The frequency of online shopping is closely linked to income levels, with higher-income earners showing a greater willingness to buy without relying on promotional discounts.
Next-generation shoppers influenced by social media trends
Among Gen Z consumers, 51% are influenced by social media trends when making purchasing decisions. Fashion, beauty, and personal care products dominate their e-commerce baskets, and their average cart value for these products is projected to grow by 2.3 times by 2028 compared to 2023, reaching 28.80 USD per transaction. This demographic’s total e-commerce spending is expected to rise dramatically from 4 billion USD in 2023 to 20.3 billion USD by 2028.
Millennials also play a pivotal role in the e-commerce boom, making purchases online 1 to 3 times more frequently than Gen Z. Their average order value is significantly higher, reaching 125 USD. In addition to fashion and beauty, they tend to spend more on consumer electronics and home appliances.
The report further notes that Millennials have higher expectations regarding the quality of services and reliability when shopping online. The top three factors influencing their purchasing decisions are clear return and warranty policies, convenient payment methods, and flexible delivery options. Price and discounts rank lower on their list of priorities.
Moreover, 82% of Millennials value a balanced lifestyle, leading to a demand for online communities and events that align with their interests, especially in sectors such as sports and premium entertainment technology.
According to YouNet ECI and YouNet Media, with targeted approaches to meet the diverse needs of Vietnam's digital consumers, the e-commerce sector is well-placed to expand, with total spending potentially growing from 6.9 billion USD in 2023 to 29.7 billion USD by 2028.
Lam said that data is not just a tool, going further by calling it the foundation for strategic decision-making./.
