Online remains a key distribution channel, especially for agricultural products during harvest season, and businesses have achieved a breakthrough by leveraging e-commerce, according to a report by the Ministry of Industry and Trade.

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It valuation of the e-commerce market places Vietnam in the third place in Southeast Asia behind Indonesia ($65 billion) and Thailand ($26 billion), and also exceeded an earlier estimate of $22 billion by Google and its partners.

E-commerce accounted for 60% of Vietnam’s digital economy this year, and is a key growth pillar along with online tourism.

Other sectors that contributed to the digital economy were ride-hailing and food delivery and online media.

The top e-commerce platforms are Shopee, TikTok Shop, Lazada, Tiki, and Sendo, with new ones such as Temu and Shein trying to move in on the market this year.

The ministry said e-commerce models are becoming increasingly complex and diverse, and admitted a legal framework to regulate them is lacking.

For instance, it pointed out, live-stream sales are currently governed by general e-commerce regulations, which treats them as a combination of advertising and sales activities.

But there are no specific rules for live-stream sellers, account identification or the supervision of information during live sessions, it said.

The proliferation of counterfeit and substandard goods remains a big challenge, particularly as online violations grow more sophisticated, it said.

Managing cross-border activities poses difficulties due to inadequate regulations, enabling platforms like Temu and Shein to enter Vietnam without completing legal procedures, it said.

This lack of oversight allows goods from other countries to enter Vietnam, affecting domestic producers, it said.

It called for the passage of an E-Commerce Law to enhance government oversight, especially of cross-border platforms.

Vietnam has nearly 725,000 vendors on e-commerce platforms, with these vendors’ total transactions exceeding VND75 trillion (US$2.95 billion), according to data from 439 platforms submitted to tax authorities.

Taxes on e-commerce activities increased by 20% in 2024 to VND116 trillion.

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Vietnam e-commerce market 3rd largest in Southeast Asia

Vietnam’s e-commerce market is estimated at US$22 billion, the third largest in Southeast Asia behind only Indonesia ($65 billion) and Thailand ($26 billion).