Vietnam's e-commerce grows quickly but unsustainably

Despite its very high growth rate, Vietnam’s e-commerce was actually growing unsustainably, said Nguyen Van Thanh, Director of the E-Commerce Development Centre under the Ministry of Industry and Trade’s Vietnam E-commerce and Digital Economy Agency.
Vietnam's e-commerce grows quickly but unsustainably ảnh 1Illustrative image (Photo: tapchicongthuong.vn)
Hanoi (VNS/VNA) - Despite its very high growth rate,Vietnam’s e-commerce was actually growing unsustainably, said Nguyen Van Thanh,Director of the E-Commerce Development Centre under the Ministry of Industryand Trade’s Vietnam E-commerce and Digital Economy Agency.

This is firstly because the competition on the e-commerceplatforms Shopee, Lazada, and TikTok Shop is currently very fierce.

"There are many suppliers operating on the same platform tosell the same goods, so the competition on the exchanges is huge,"commented Thanh.

According to Ho Chi Minh City’s Department of Industry and Trade,with the strong and rapid development of e-commerce activities, statemanagement of e-commerce is still limited, especially in promotion anddevelopment policies and tax management policies, origin management, and goodsflow.

The growth and development of e-commerce has created opportunitiesbut also challenges in state management, especially in building a healthybusiness environment, contributing to promoting the city's economy.

Besides, uneven development among localities is also said tocreate a threat to e-commerce in the future.

Currently, nearly 70% of the population lives in rural areas, butbig cities like Hanoi and HCM City account for 70% of online retail salesnationwide.

In fact, revenue on e-commerce platforms mainly comes from thesetwo cities, over 42 trillion VND (1.75 billion USD) in Hanoi and 57 trillion VNDin HCM City.

Not only that, issues such as environmental pollution due toproduct packaging; limited policies and regulations; high cost of creating andmaintaining a booth; and logistics issues are also reasons why it is difficultfor Vietnamese e-commerce to develop sustainably.

In order to improve the efficiency of e-commerce activities, theMinistry of Industry and Trade will focus on reviewing legal regulations,especially the Law on Electronic Transactions and the Law on ConsumerProtection; decentralisation to localities to comprehensively managetransactions between buyers and sellers online.

In the future, the industry and trade sector will strengthenmanagement and supervision activities in the online environment, proactivelyrequest social networks and e-commerce platforms to remove product informationand goods that violate the law.

The authorities will also enhance the sharing of connectiondatabases to exploit information to serve state management in this issue.

The Ministry of Industry and Trade (MoIT) said that e-commercecontinued to be one of the bright spots in Vietnam's digital economicdevelopment, with an estimated revenue of 20.5 billion USD this year.

In 2018, the country's retail e-commerce revenue only reachedabout 8 billion USD but by 2019, it had surpassed the 10 billion USD mark,reaching 10.8 billion USD and increased to 11.8 billion USD in 2020.

The number rose by 20% last year compared to the previous year,reaching 16.4 billion USD, accounting for 7.5% of retail revenue of consumergoods and services nationwide.

The number of consumers participating in online shopping is over54.6 million, with the online shopping value per person reaching nearly 270 USDper year.

From there, it can be affirmed that Vietnamese e-commerce hasgrown strongly for many years and is one of the pioneering fields of thedigital economy, creating motivation for economic development and leadingdigital transformation in business.

In fact, e-commerce sites have constantly been born and developedwith four applications Shopee, Lazada, Tiki and TikTok Shop being the mostpopular and constantly competing with each other to rise to a higher positionin the field of e-commerce.

In addition, there are many other new e-commerce sites that stillhave the potential to compete with major e-commerce sites, such as Sendo, andMobile World.

Anti-counterfeiting and consumer protection on e-commerce

E-commerce had been posing many new challenges for enforcementagencies in the fight against counterfeit goods and consumer protection, saidTran Huu Linh, Director of the Vietnam Directorate of Market Surveillance(DMS).

The DMS coordinated with the National Economics University toorganise a forum on anti-counterfeiting technology and consumer protection ine-commerce in Vietnam in Hanoi this week.

To prevent violations in the online environment, it was necessaryto have human resources, especially appropriate tools and methods, said Linh.

Without appropriate sanctions, the online environment would becomea place to store, distribute and trade counterfeit goods, thereby reducingconsumer confidence and hindering the development of the economy, he said.

Le Duc Anh, Director of the Centre for Information and DigitalTechnology (CID) under the Vietnam E-commerce and Digital Economy Agency(iDEA), Ministry of Industry and Trade (MoIT), pointed out that it wasnecessary to apply advanced technology solutions in identifying sellers andbuyers, and tracing the origin of goods in e-commerce to prevent counterfeitgoods.

Functional units of the MoIT had been making efforts to improvethe infrastructure, legal framework and policies to develop e-commerce anddigital economy, said Anh.

Most recently, this year, the iDEA built a digital ecosystem tostrengthen the protection of consumer rights including a system for managingand resolving complaints and online disputes in e-commerce between people andbusinesses.

Also at the forum, referring to anti-counterfeit solutions andconsumer protection on e-commerce, Dinh Le Hai Ha from the National EconomicsUniversity said that in e-commerce, it was not just about preventingcounterfeit goods, but it was necessary to ensure the full rights of customers.

He proposed that it was necessary to manage merchants providinggoods and services along with merchants organising e-commerce floors ande-commerce ecosystems.

It was also necessary to legally regulate the information use ofshop owner and customer at e-commerce platforms and application providers, headded.

Ha also recommended enhanced delivery invoice management;identifying joint responsibilities in anti-counterfeiting and consumer rightsprotection and technical solutions to provide warning levels and preventcommercial fraud in the online environment./.
VNA

See more

Prime Minister Le Minh Hung speaks at the working session. (Photo: VNA)

Monetary policy must ensure macro stability, support growth: PM

The SBV was required to keep policy interest rates steady and add liquidity so lenders can access cheaper funding. It must manage the exchange rate in line with market developments, coordinate monetary tools, and intervene to stabilise the foreign exchange market, while maintaining close oversight of gold. Lenders must continue cutting costs, stabilising lending rates, and delivering substantive reductions.

People buy petrol at a station in Hanoi (Photo: VNA)

Petrol prices cut from 15:00 on August 13

The price of E5 RON92 petrol is capped at 21,235 VND (0.81 USD) per litre, down 493 VND, while E10 RON95-III is priced at no more than 22,119 VND per litre, down 205 VND.

Domestic and foreign businesses engage in trade networking at the event series held at Ho Chi Minh's Saigon Exhibition and Convention Centre (SECC) on August 13, 2026. (Photo: VNA)

Int'l sports exhibitions, export trade fair open in Ho Chi Minh City

A series of events opened at the Saigon Exhibition and Convention Centre (SECC) in Ho Chi Minh City on August 13, including the Vietnam Sport Show 2026, Vietnam Cycle Expo 2026 and the 14th Zhejiang Export (Vietnam) Fair 2026. They feature 520 booths operated by 400 businesses from 15 countries and territories.

Production at Bumjim Electronics Vina Co., Ltd invested by the Republic of Korea in Quang Ninh province (Photo: VNA)

Resolution No. 19-NQ/TW sets new growth drivers for Vietnam

Science and technology, innovation, digital transformation and AI must be translated into higher productivity rather than pursued as ends in themselves. At the same time, people should be placed at the centre of development, not merely viewed as a resource but as the ultimate objective of development policies.

The conference on the implementation of socio-economic tasks for August and key measures for the rest of the year held in Ho Chi Minh Ciy, on August 12, 2026. (Photo: VNA)

Ho Chi Minh City mobilises resources to achieve double-digit growth target

The southern economic hub has identified accelerating public investment disbursement, strongly mobilising private-sector resources, promoting exports and consumption, and removing bottlenecks as key priorities to generate additional growth drivers in the remaining months of the year. These priorities were highlighted by its leadership at a conference on the implementation of socio-economic tasks for August and key measures for the rest of the year, held on August 12.

The opening ceremony of the East-West Economic Corridor International Trade, Tourism and Investment Fair 2026 (EWEC-Da Nang 2026) on August 12 (Photo: VNA)

EWEC-Da Nang 2026 trade, tourism, investment fair opens

The EWEC-Da Nang fair is not merely a product exhibition and promotion event, but also a platform for economic connectivity, enabling businesses to seek partners, expand markets, explore investment opportunities, cooperate in production and business, and engage more deeply in regional supply chains.

General Secretary of the Communist Party of Vietnam Central Committee and President To Lam speaks at the New Zealand–Vietnam Business Roundtable in Auckland on August 13. (Photo: VNA)

Top leader calls for joint Vietnam–New Zealand efforts to create new growth drivers

Party General Secretary and President To Lam called for joint efforts to create new growth drivers based on science, technology, innovation and green transformation, encouraging New Zealand businesses to view Vietnam not only as a market but also as a partner for research, product development, manufacturing and innovation in Southeast Asia.

The Vietnam International Sourcing Expo 2026 is scheduled to take place at the Saigon Exhibition and Convention Centre in Ho Chi Minh City from September 3 to 5. (llustrative photo: VIS)

Expo to open door for Vietnamese suppliers to enter US market

US retail giant Target is seeking Vietnamese suppliers of household goods, home textiles, children’s products, personal care and beauty products, with a focus on companies capable of manufacturing and developing products that meet requirements on quality, design and supply chain management.

A working team from Coast Guard Region 2 Command inspects fishing licences and vessel monitoring system and guides fishermen on compliance with IUU fishing regulations. (Photo: VNA)

Da Nang city tightens controls to prevent IUU fishing violations

The city’s authorities are tightening inspections and controls to prevent fishing vessels from violating IUU regulations, particularly in foreign waters, as part of efforts to help Vietnam have the European Commission’s “yellow card” warning lifted.

Vietcombank has launched a 50 trillion VND (1.9 billion USD) credit package to provide preferential financing to businesses, particularly small and medium-sized enterprises (SMEs), priority sectors and new growth drivers of the economy (Photo published by Bnews/VNA)

More preferential credit available to businesses

Under SBV requirements, commercial banks are to provide Vietnamese-dong loans to SMEs and growth-driving sectors at rates at least 1 percentage point per year lower than their average rates for loans of the same maturity. They are also required to consider waiving or reducing service fees for eligible customers in line with regulations and their financial capacity.

Delegates at the Vietnam-UK High-Level Conference 2026. (Photo: moit.gov.vn)

Vietnam, UK seek new growth drivers in technology, logistics

British Ambassador to Vietnam Iain Frew highlighted the importance of strengthening bilateral cooperation as Vietnam - UK relations have been upgraded to a Comprehensive Strategic Partnership. He said technology, finance, innovation and digital transformation are opening up new opportunities for cooperation, enabling businesses from both countries to connect, share experience and explore investment and business opportunities.

The Ngoc Hoi interchange project in Tay Nha Trang ward, Khanh Hoa province, with some items yet to be completed (Illustrative photo: VNA)

Over 60% of long-stalled projects have obstacles resolved

Of the 8,002 long-stalled projects, 4,938 completed the settlement of obstacles in line with conclusions of the Party Central Committee and resolutions of the National Assembly and Government, as well as relevant Government decrees and guiding documents as of July 20, up 564 projects from the previous month.

The Vietnam National Railway Group will operate as a multi-sector economic group, with its business portfolio expanded to 110 sectors. (Photo: VNA)

Vietnam Railways Corporation becomes Vietnam National Railway Group

The group inherits all rights, obligations and responsibilities of the Vietnam Railways Corporation in accordance with the laws on railways, enterprises, and management and investment of state capital in enterprises, and other relevant legal provisions, as well as existing agreements, documents and contracts signed with related parties in accordance with the law.