Vietnam, Thailand emerge as Southeast Asia’s fastest growing e-commerce markets

The report, recently released by OpenGov Asia, a content platform dedicated to sharing ICT-related knowledge and information to better serve citizens and customers, highlights Vietnam’s ascent past the Philippines to become the third-largest e-commerce market in the region.

Last year, the total gross merchandise value (GMV) of the top eight e-commerce platforms in Southeast Asia reached US$114.6 billion, marking a 15% year-on-year increase. Despite macroeconomic challenges, the Southeast Asian e-commerce sector has demonstrated continuous growth, with this year’s GMV predicted to be double that of 2020.

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

In ASEAN, Shopee dominates with a total GMV revenue of $55.1 billion last year, capturing 48% of the market share. TikTok Shop has surged to become the second-largest e-commerce platform in the region, following its acquisition of Tokopedia.

In Vietnam, TikTok Shop holds a significant 24% market share, making it the second largest e-commerce platform in the nation.

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

As OpenGov Asia reported, Vietnam is intensifying efforts to develop cross-border e-commerce as a key economic growth driver, supported by various policies, guidance, and innovative solutions. The sector is expanding at a rate 2.3 times faster than regular e-commerce between 2022 and 2025, with projections indicating a 20% annual growth until 2026.

Over the past five years, Vietnamese businesses have significantly broadened their international reach, with the number of products exported via international e-commerce platforms increasing by 300%, and many SMEs achieving annual revenues surpassing $1 million.