In the first half of 2024, the revenue of the five largest e-commerce platforms in Vietnam was approximately VND 156 trillion, an increase of 78% compared to the same period in 2023, with Shopee leading at VND 53.74 trillion. E-commerce revenue continues to grow strongly and could reach VND 650 trillion by the end of 2024.
Revenue in the first six months on e-commerce platforms
According to statistics from the e-commerce data platform Metric, in the second quarter of 2024, the estimated revenue on the five largest online retail e-commerce platforms in Vietnam, including Shopee, TikTok Shop, Lazada, Tiki, and Sendo, reached approximately VND 85 trillion with over 900 million products sold.
Earlier in Q1, retail revenue on these five e-commerce platforms reached VND 71.2 trillion (excluding revenue from livestream sessions).
In total, for the first six months of 2024, revenue on the five platforms is estimated at approximately VND 156 trillion, a 78% increase compared to the same period in 2023.
Similar to Q1 2024, Shopee remains firmly in the leading position, with revenue of VND 53.74 trillion, capturing 67.9% of the market share. TikTok Shop is in second place with VND 18.36 trillion, holding 23.2% of the market share. Lazada achieved VND 6.03 trillion with a 7.6% market share; Tiki only reached about VND 998 billion, with a 1.3% market share.
As the second in sales and market share, TikTok Shop is showing strong growth and is ready to compete directly with major players like Shopee and Lazada, despite being a newer entrant. In 2022, TikTok Shop joined the Vietnamese e-commerce market, but just one year later, by 2023, this platform had surpassed Lazada, securing the second position behind Shopee.
TikTok Enhances Support for Product Promotion for Businesses
TikTok, with a range of support measures for sellers such as regularly developing attention-grabbing content, marketing, collaborating with KOLs for product reviews, and livestream selling, has a strong influence within the business and customer community.
By the end of 2023, the platform had nearly 3 million businesses and business households participating in commercial activities. The primary shopping demographic is Gen Z and Gen Y, aged 12 to 40, who are the most frequent online shoppers and often purchase according to trending trends on TikTok.
At the TikTok SMB Summit 2024 - Accelerating Business Growth, held at the end of June in Ho Chi Minh City, Mr. Nguyen Lam Thanh, a representative of TikTok Vietnam, announced a $1 million advertising credit support package for promoting Vietnamese products, goods, and brand services on this e-commerce platform. The program will be implemented during the end-of-year business season in 2024, supporting approximately 10,000 businesses.
E-commerce Revenue Forecast for 2024
Metric forecasts that in 2024, revenue and sales volume on e-commerce platforms will continue to grow significantly, potentially reaching VND 650 trillion. Of this, the top five platforms could account for over VND 310 trillion, marking a 35% increase compared to 2023.
The Vietnam E-commerce Report 2023, published by the E-commerce and Digital Economy Agency under the Ministry of Industry and Trade, indicates that e-commerce in Vietnam has experienced strong growth in recent years. Statistics show that while B2C e-commerce revenue in Vietnam was approximately USD 8 billion in 2018, it increased to USD 16.4 billion by 2022 and reached USD 20.5 billion in 2023. This figure accounts for about 8% of the total retail goods and consumer service revenue nationwide. Notably, e-commerce now represents nearly 70% of the digital economy's weight.
Meanwhile, a report on Vietnamese consumer shopping behavior recently released by NielsenIQ Vietnam shows that on average, each Vietnamese person shops online nearly 4 times a month and spends over 8 hours each week shopping online. This figure is nearly double the frequency of monthly trips to supermarkets by Vietnamese consumers.
Metric's report shows that in Q1, consumers are gradually shifting to online shopping for all types of goods, including home and lifestyle products, electronics, and even food and agricultural products. Consumers are no longer hesitant about inexpensive, non-essential items and are now spending significantly on high-value products such as projectors, vacuum robots, smartphones, and beauty products. Among these, beauty products continue to hold the leading position with the highest purchasing power, reaching VND 11.25 trillion.
