Vietnam's Four Major E-Commerce Platforms Grow 34.4% Year on Year in 2025 to USD 11.6 Billion — TikTok Shop's Rapid Rise Threatens Lazada, With Expansion Set to Continue Into 2026

Vietnam's e-commerce market is expanding rapidly. Combined sales across the four major platforms — Shopee, TikTok Shop, Lazada, and Tiki — reached USD 11.62 billion (about 1.74 trillion yen) in the first nine months of 2025 (Q1-Q3), up 34.4% year on year. This growth rate stands out even among Southeast Asia's major economies, propelling Vietnam past the Philippines into third place in the region's e-commerce market. Full-year 2025 sales are expected to reach USD 26-28 billion, making it increasingly urgent for Japanese companies to consider entering Vietnam's e-commerce market.

The Competitive Map Among the Four Major Platforms Is Being Redrawn

The competitive landscape of Vietnam's e-commerce market shifted significantly in 2025. The biggest development is TikTok Shop's rapid growth closing in on Lazada.

TikTok Shop's rise plainly shows that Vietnamese consumer behavior is shifting from "search and buy" toward live-commerce-style "watch, enjoy, and buy on the spot." Sales growth via TikTok Shop is especially notable in the beauty, cosmetics, food, and fashion categories, and live-stream selling using influencers (KOLs/KOCs) is becoming the mainstream channel in Vietnam's e-commerce market.

Note that TikTok Shop raised its seller fees starting April 1, 2026, showing that as its sales scale grows, the platform is shifting into a full-fledged monetization phase.

Structural Background to Vietnam's E-Commerce Boom

Advantageous Population and Demographics

Vietnam's population is about 100 million, with a median age of about 30, making it one of the younger countries in ASEAN. Smartphone penetration is high, and mobile-first e-commerce use is well established. Young people in urban areas (Ho Chi Minh City and Hanoi) in particular have fully integrated social media into their purchasing behavior, making them an excellent fit for social commerce like TikTok Shop.

A Growing Middle-Income Class and Rising Disposable Income

Vietnam's GDP growth rate has held in the 6-7% range from 2024 to 2025, and its middle-income class is expanding rapidly. As disposable income rises, consumption is shifting beyond low-priced goods toward quality- and brand-conscious purchases, widening the opportunity for Japanese, South Korean, and Western brands to enter through cross-border e-commerce.

Accelerating Logistics Infrastructure Development

Logistics infrastructure supporting e-commerce growth is also being built out at a rapid pace. GHN raised about USD 100 million in a round led by Temasek to expand its nationwide delivery network. Areas covered by next-day and same-day delivery are expanding, and improved user convenience is driving further e-commerce adoption.

Maturing Fintech and Payment Infrastructure

VNLIFE has raised a cumulative USD 550 million, driving the spread of e-commerce payments, digital wallets, and QR code payments. Even in Vietnam's market, where cash payments still make up a high share, options such as convenience store payment, QR payment, and buy-now-pay-later (BNPL) are increasing, and the shift to a cashless economy is steadily progressing. This diversification of payment methods directly reduces checkout abandonment rates in e-commerce, underpinning growth across the market as a whole.

What Rising to Third Place in Southeast Asia Means

Vietnam overtaking the Philippines to become Southeast Asia's third-largest e-commerce market, after Indonesia and Thailand, is not simply a story about market size. It is a signal that investors, brands, and logistics operators are re-evaluating Vietnam as "the next important market to secure."

While Indonesia holds onto the top spot with an overwhelming population of 270 million, Thailand and Vietnam have higher purchasing power and a more urban-concentrated consumption structure. Vietnam has a high concentration of economic activity in its two major metropolitan areas, Ho Chi Minh City and Hanoi, making it a relatively easy environment for targeted market entry.

In addition, As symbolized by China's Meituan entering Vietnam, global tech giants are positioning Vietnam as a key base for their Asia expansion, and the competitive environment is intensifying rapidly. If Japanese companies want to enter this market, this is a moment that calls for early strategic decision-making.

Consumption Trends by Category: What's Selling

Looking at the categories showing particularly strong growth in Vietnam's e-commerce market reveals the following trends.

• Beauty, Cosmetics, and Skincare: Strong interest in K-Beauty and J-Beauty. Live commerce via TikTok Shop is accelerating awareness of South Korean and Japanese brands.
• Fashion and apparel: Polarization between low-priced Chinese-made goods and global brands. Interest in sustainable fashion is also beginning to emerge, especially among Gen Z.
• Food and beverage: Rising health consciousness is driving interest in organic and functional foods. Demand for Japanese matcha, wagashi, and dashi-based foods is growing in urban areas.
• Appliances and Smart Home: As living standards rise for the middle-income class, demand is growing for robot vacuum cleaners, air purifiers, smart watches, and similar products.
• Maternity and Baby Products: Trust in Japanese brands is high, with strong demand for baby food, diapers, and skincare.

Key Points for Japanese Companies Entering Vietnam's E-Commerce Market

Figures like a USD 11.6 billion market growing 34.4% are attractive, but entry requires a strategy grounded in an accurate understanding of the market's characteristics.

Start From TikTok Shop's Live Commerce

In Vietnam, TikTok Shop livestreams have become one of the most cost-effective sales channels. Partnering with local KOLs (Key Opinion Leaders) and KOCs (Key Opinion Consumers) is the key factor separating success from failure, and setting aside a certain budget for influencer marketing has become essentially mandatory.

Partnering With Local Partners

Vietnamese consumers respond well to "brand stories rooted in the local community." Working with local distributors and e-commerce agencies is needed to provide Vietnamese-language product descriptions and customer support, and to design promotions around local holidays and seasonality.

Weighing Cross-Border E-Commerce Against Establishing a Local Entity

A realistic step-up path is to test the market through cross-border e-commerce in the initial phase, then consider establishing a local entity and warehouse once sales volume becomes clear. That said, regulations such as foreign investment restrictions, tariffs, and food hygiene rules need to be checked in detail beforehand, and consulting a specialist is strongly recommended.

Vietnam's E-Commerce Beyond 2026: Variables to Watch

The following variables stand out as ones that will shape Vietnam's e-commerce market from 2026 onward.

• TikTok Shop's Fee Policy: Whether it can sustain growth after the April 2026 fee hike, and whether sellers return to Shopee, are points to watch.
• Lazada's Restructuring: The risk that its parent company Alibaba's e-commerce business reorganization spills over into Vietnam.
• Tighter Regulation of Cross-Border E-Commerce: The Vietnamese government is considering stronger taxation on small overseas parcel purchases, so regulatory developments need close monitoring.
• AI Personalization: The AI recommendation features that Shopee and TikTok Shop are strengthening could substantially change sales of long-tail products.

Conclusion

Vietnam's e-commerce market's 34.4% year-on-year growth to USD 11.6 billion in Q1-Q3 2025 is a milestone showing the country has fully established itself as a major e-commerce market in Southeast Asia. With three tailwinds converging — TikTok Shop's rapid growth, the buildout of logistics and fintech infrastructure, and the expanding middle-income class — high growth is expected to continue into 2026 and beyond.

For Japanese companies, as symbolized by the popularity of matcha and umeshu among Vietnam's Gen Z, an entry strategy that leverages the strong affinity for Japanese food, beverages, and cosmetics is especially effective. The time has come to concretely plan an entry strategy now, so as not to fall behind the market's pace of growth.

Sources

• Startup News FYI – Vietnam E-Commerce Platforms 2025
• Vietnam Briefing – Vietnam’s E-Commerce Sector Outlook in 2026