The Digital Dragon: Vietnam's E-commerce Ascent

A: So, let's talk global e-commerce. It's still a massive beast, right? Like, we're looking at retail e-commerce sales hitting an estimated $6.419 trillion in 2025.

B: That's a huge number, for sure. But here's the kicker: the growth is actually slowing down a bit. We're seeing it at about 6.8% year-over-year, which is the slowest pace we've seen since 2022.

A: Interesting. So, still growing, just not at the breakneck speed we've become accustomed to. And where's all that money really concentrated? I'm guessing the usual suspects?

B: Pretty much. China, the U.S., and Western Europe are still the big players. They account for a whopping 80.5% of total sales. It's heavily weighted in those regions.

A: Wow, that's a dominant share. So, with that global picture in mind, how does Vietnam fit into all of this? Are they just a tiny blip on that massive radar?

B: Not at all! Vietnam is actually making some serious waves. It's the third-largest e-commerce market in Southeast Asia. So, definitely a significant player in its region, even if the global scale is dominated by those giants.

A: That's great to hear! It sounds like they're punching above their weight regionally. So, after setting that global scene, and seeing Vietnam's position in Southeast Asia, let's dive into Vietnam's engine room itself. The market size here is pretty incredible: estimated at US$22 billion this year, projected to absolutely skyrocket to $63 billion by 2030. That's a massive leap!

B: Wow, that's explosive growth. What's really driving that kind of acceleration? Those figures are genuinely ambitious.

A: It's a few key things. First, a huge and young population: 101 million people, over half under 34. That's a massive, digitally-native consumer base. Plus, Vietnam's been the fastest-growing digital economy in Southeast Asia for three consecutive years – 2022 to 2024.

B: So, youth and digital momentum. But even with that incredible tailwind, there must be friction points, right? A largely rural population suggests logistical challenges, for starters.

A: You got it. Logistical challenges are significant because the majority still lives in rural areas. Getting products efficiently isn't straightforward. And payments are another big one.

B: How so? Is online adoption low?

A: Very. Less than one in 25 adults has a credit card. Cash on Delivery is still king at 67% of transactions.

B: So, incredible demographic potential and digital growth, but the infrastructure for physical delivery and digital payments definitely needs to catch up. A clear roadmap for improvement there.

A: It certainly sounds like there's a lot of potential to unlock by addressing those gaps. Given that picture of both rapid growth and infrastructure needs, who's really running the show in Vietnam's e-commerce landscape right now? It feels like we keep hearing about the big global players.

B: You're not wrong. TikTok Shop and Shopee are absolutely dominant, collectively owning 97% of the merchandise value market share. It's a huge slice of the pie.

A: Wow, 97%? That's almost complete market capture. But I'm guessing local players aren't completely out of the game, especially in specific niches?

B: Exactly. While international platforms dominate the marketplace, strong local mobile wallet players like Momo and ZaloPay are really making their mark. They're crucial for the payment ecosystem there.

A: That makes sense, especially with the high cash-on-delivery rates we talked about earlier. And I heard the IFC is playing a role here too, especially in the 'upstream' segment?

B: They are, focusing on production, sourcing, and supply chain financing. It's about strengthening local supply chains. For instance, IFC invested with South Korean LG Innotek in Vietnam in September 2025, and partnered with HDBank in May 2022 to help SMEs access financing.

A: That's fantastic for boosting local businesses! But what's the biggest hurdle for those SMEs trying to tap into these opportunities and sustainable practices?

B: The digital divide and an awareness gap. Many simply lack the robust digital capacity to integrate, and they often have limited understanding of sustainability standards or don't yet recognize their importance.