Vietnam e-commerce under pressure as discount-led growth loses momentum

Fragmented systems also continue to disrupt customer experience.

Vietnam’s e-commerce sector is facing rising pressure as retailers find discount-led growth increasingly unsustainable, shifting instead toward loyalty programs, data integration, and AI-driven personalisation.

Hoang Thi Thuy Hang, director of e-commerce at K&G Vietnam and Aristino, said fragmented customer data across online and offline channels continues to disrupt operations and customer experience. “We need to know how to [privatise] our data,” she told the Retail Asia Summit Vietnam 2026. “That’s very important.”

She added that profitability remains concentrated in a narrow product base, with only a small number of items driving most returns.

Ruby Hoang, chief operating officer at Chợ Tốt, said the limits of price-led growth are becoming clear, particularly in high-value categories such as property and cars.

“They want to buy it with confidence,” she said, noting that transactions often conclude offline after online research.

She said livestreaming and video formats now shape purchasing decisions across categories, including high-value goods. “Livestream does not lie. You need to show them the neighbourhood nearby.”

Hang also noted that livestreaming supports customer acquisition but raises operating costs. “The cost for the operations is very important,” she said, adding that brands must recalibrate strategies across platforms such as TikTok and Shopee.

She said retailers are moving away from heavy discounting towards loyalty-driven strategies. “We don’t need to discount, but we give [it] for [the] customer[s] the loyalty which one they can have,” she said.

Hoang said discounting and free shipping cannot sustain long-term growth. “Deep price and discount and free shipping would not be sustainable,” she said.

Both executives said personalisation will shape competition in Vietnam’s digital market.

“Personalisation is most important,” Hang said, noting that retailers need to match customer data across online and offline channels.

Hoang said AI is enabling real-time interaction with consumers and improving recommendations. She added that Chợ Tốt is testing AI agents to support engagement. “We built a kind of plug-in AI agent so you can have real-time conversation with the consumer,” she said.

Hang said her company uses a customer data platform and in-store systems to connect customer data across channels.

Hoang said high-value purchases often begin online before moving offline. “We don’t expect a successful transaction online,” she said.

The panel said online grocery is likely to grow as faster delivery and digital adoption reshape purchasing habits.

They added that future competition will depend on data integration, operational efficiency and AI adoption as discount-led strategies lose effectiveness.