Why Digital Wallets Lead Vietnam’s E-Commerce Payments at 45% Share

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The Vietnamese e-commerce industry is entering a transformative era, fueled by digital adoption, young consumer behavior, and improvements in logistics and payment systems. The market was valued at USD 16.5 billion in 2024 and is projected to grow at 10.2% CAGR during 2025–2032, ultimately reaching USD 35.5 billion by 2032.

Market Overview: What’s Driving Vietnam’s E-Commerce Boom?

Vietnam’s e-commerce expansion is supported by several digital and demographic factors:

High Internet & Smartphone Usage

A strong digital infrastructure and increasing smartphone penetration are enabling seamless access to online platforms.

  • Over 70% of consumers use smartphones for online shopping.
  • 71% of consumers willingly share data for personalized offers.
  • Around 80% prefer brands offering smooth digital shopping experiences.

Young, Tech-Savvy Consumers

Gen Z and urban shoppers are actively using mobile and social commerce, strengthening platforms such as Shopee, Lazada, Tiki, and TikTok Shop.
TikTok alone holds 23% of Vietnam’s social commerce market.

Rapid Urbanization & Rising Middle Class

Urbanization has led to higher demand for convenient online shopping:

  • 39% of the population lives in cities, according to the World Bank—driving heavy traffic toward e-commerce apps.

Push Toward Cashless Transactions

The Government of Vietnam targets 50% cashless payments for online shopping by 2025, further accelerating digital transactions.

 

Vietnam E-Commerce Market: Emerging Trends

Rise of Cross-Border E-Commerce

Global platforms such as Amazon, Temu, and AliExpress are gaining strong traction due to:

  • Wider product variety
  • Competitive prices
  • Access to international brands

To ensure fair competition, the government now requires foreign marketplaces to register locally and comply with tax rules. In response, these platforms integrate Vietnamese payment methods such as MoMo, ZaloPay, and bank transfers.

Mobile Commerce & Technology Integration

Rapid adoption of mobile shopping is a major driver. Features such as AI, AR, and chatbots enable:

  • Virtual try-ons
  • Personalized recommendations
  • Fast customer support

This tech-forward environment encourages higher spending and boosts platform engagement.

Market Segmentation Analysis

Product Segment

Largest Category (2024): Electronics – 35% Share

Strong demand for laptops, smartphones, and appliances is driven by:

  • Urbanization
  • Higher digital literacy
  • Rising incomes
  • Affordable product options online

Fastest-Growing Category: Grocery & Essentials

Growth is fueled by:

  • Same-day/next-day delivery needs
  • Supply chain improvements in tier 2 and tier 3 cities
  • Rising preference for hygienic, organic, and AI-curated recommendations

Product categories covered:

Electronics, Apparel & Footwear, Home Appliances & Furniture, Grocery & Essentials, Health & Beauty, Books & Stationery, Toys & Baby Products, Automotive Parts, Others.

Platform Segment

Largest Category: Business-to-Consumer (B2C) – 70% Share

Growth is supported by:

  • Variety and affordability of FMCG, beauty, and fashion products
  • The dominance of Shopee, Lazada, and TikHub, contributing around 90% of national e-commerce activity

Fastest-Growing Category: Business-to-Business (B2B)

Driven by trade agreements such as EVFTA and RCEP, lowered customs taxes, and the expansion of Alibaba.

Payment Method Segment

Largest Category: Digital Wallets – 45% Share

Digital wallet growth is linked to:

  • Mobile tech adoption
  • Integration with platforms such as MoMo, ShopeePay, and ZaloPay
  • 36% of consumers using wallets for e-commerce payments

Fastest-Growing Category: Buy Now, Pay Later (BNPL) – 11.2% CAGR

BNPL rises due to flexible payment plans and low credit card penetration.

 

Business Model Segment

Largest Category: Marketplace – 70% Share

Platforms such as Shopee and Tiki benefit from:

  • Large user traffic
  • Low operating costs
  • Growth of social commerce, especially through TikTok

Around 58% of consumers shop online, supporting marketplace dominance.

Fastest-Growing Category: Hybrid – 10.9% CAGR

Hybrid models support:

  • Faster delivery
  • Better product quality
  • Enhanced customer experience through advanced logistics

 

Delivery Time Segment

Largest Category: Standard Delivery – 60% Share

  • 69% of companies rely on standard delivery due to cost efficiency and scalability.

Fastest-Growing: Same-Day/Next-Day Delivery

Driven by:

  • Demand for faster services
  • AI-powered logistics
  • Local warehouse networks (e.g., Tiki)

Competitive Landscape

Vietnam’s e-commerce market is semi-consolidated. Leaders like Shopee and TikTok Shop hold significant market shares, while platforms such as Lazada, Tiki, and Sendo Farms serve niche consumer preferences.

Additional notable companies include:
Tiki, VinMart, Fado.vn, Sendo, The Gioi Di Dong, FPT Shop, Vua Nệm, Dien May Xanh, Chotot, Beyeu, VnExpress, SieuThiMoi.

Recent Market Development

  • June 2024: Sendo launched Sendo Farms, enhancing online grocery logistics and enabling customers to collect orders at pickup points.

Conclusion

Vietnam’s e-commerce market is on a robust upward trajectory, driven by young digital consumers, mobile-first shopping, advanced delivery networks, and expanding cross-border activity. With a projected value of USD 35.5 billion by 2032, businesses entering or scaling in Vietnam must adapt to its technology-driven, fast-moving digital landscape.

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