Vietnam's e-commerce competition ramps up

Vietnam’s $30 billion e-commerce market is entering a more competitive phase as stricter requirements on operations, supply chains, and market responsiveness come into force from July.

- By Tra My

Establishing standards for service quality and transparent payment processes is vital for a competitive e-commerce environment

(Photo: Le Toan)

Although maintaining an average growth rate of around 25 per cent per year, the market share structure on e-commerce platforms has changed significantly, reflecting shifts in consumer behaviour and platform strategies.

According to a Beauty & Personal Care report published last week by platform Metric.vn, TikTok Shop has risen to the top in sales within this segment, increasing its market share from 40 per cent in Q4 of 2024 to approximately 50 per cent in Q4 of 2025. Shopee closely follows with 49 per cent, while Lazada only holds a modest share of about 1-2 per cent.

The beauty industry continues to play a pivotal role in e-commerce, accounting for approximately 14 per cent of the total market size in the second half of 2025, according to the report. During the same period, TikTok Shop recorded revenue exceeding $300 million, up nearly 30 per cent from the previous quarter, while Shopee achieved nearly $300 million with an increase of over 20 per cent.

The trend of differentiation at the industry level also leads to broader differentiation at the overall market share level. According to YouNet ECI, the total gross merchandise value across the four major exchanges is expected to reach approximately $18.3 billion in 2025, a 26 per cent increase on-year.