Vietnam’s e-commerce boom faces growing pains

Most rely heavily on platforms like Shopee and TikTok Shop.

Vietnam’s e-commerce seller economy is expanding rapidly, fuelled by a young, tech-savvy generation, but the support system is struggling to keep pace, according to a new study by Milieu Insight.

Nearly one in three sellers now process over 100 orders per month, well above the regional average of 22%, yet they face rising operating costs, stiff global competition, regulatory uncertainty, and unreliable logistics.

Juda Kanaprach, co-founder of Milieu Insight, said, “Young sellers are scaling fast, but speed alone won’t sustain growth. Sellers need transparent fees, reliable logistics, and meaningful platform support.”

The study found that 74% of sellers have been online for less than two years, and 33% are aged 18-24, compared with a regional average of 27%.

This youth-driven momentum is accelerating digital commerce adoption, with 80% of sellers citing digital tools as essential and 78% valuing platform support such as training and mentorship.

Platform adoption is nearly universal, with Shopee used by 78% of sellers, TikTok Shop by 66%, Tiki by 20%, and Sendo by 10%, while only 6% operate their own websites.

Despite widespread use, confidence in platform tools remains uneven: 55% use platform-linked logistics and 40% use AI features, but only 20% find analytics meaningful, and 38% report improvements from logistics tools. Nearly 80% of sellers now call for deeper collaboration with platforms.

Sellers increasingly view platform fees as strategic investments, but only when returns are transparent. 51% accept fees tied to proven performance, 41% when fees clearly drive sales, while 44% lose trust when benefits are unclear.

Overall, 74% agree that long-term ecosystem growth requires joint investment from sellers, platforms, and policymakers. Buyer protection features such as product authenticity checks, secure payments, and reliable delivery are highly valued, driving higher purchase frequency, increased orders, better store ratings, and larger basket sizes.

Logistics remains a key challenge, with 48% of sellers reporting late or damaged deliveries and 42% citing unpredictable shipping costs.

A vast majority, 85%, believe platforms should enforce standards for third-party logistics providers, with sellers requesting improvements in parcel handling, delivery speed, and overall reliability.

Vietnamese sellers also face intense competition from foreign brands, with 80% reporting high pressure, citing price compression and reduced visibility as top concerns. Sellers are seeking stronger promotions, local incentives, tax relief, and enforcement against unfair foreign practices.

The study identified five priorities for Vietnam’s next phase of e-commerce growth, including improving digital readiness with tools, training, and analytics; linking platform fees to measurable outcomes; strengthening logistics reliability and accountability; pairing buyer trust features with meaningful promotions; and supporting local sellers with visibility, fair taxes, and protection from predatory practices.

With a young, tech-savvy seller base and expanding digital infrastructure, Vietnam’s e-commerce sector is poised for fast and sustainable growth, provided platforms, policymakers, and sellers work together to build a resilient ecosystem.