The report, recently released by OpenGov Asia, a content platform that shares ICT-related knowledge and information to better serve citizens and customers, highlighted that Vietnam has overtaken the Philippines to become the third-largest e-commerce market in the region.
Last year, the total gross merchandise volume (GMV) of the top eight e-commerce platforms in Southeast Asia reached US$114.6 billion, recording a 15% increase year-on-year. Despite macroeconomic challenges, Southeast Asia's e-commerce sector has shown continued growth, with GMV this year predicted to double compared to 2020.
The growth trajectory was led by Vietnam and Thailand, with GMV increasing 52.9% and 34.1% respectively year-on-year. Vietnam's e-commerce market has been growing steadily, with an average annual growth rate of 16-30% over the past four years, the highest in the world.
In ASEAN, Shopee led the way with a 48% market share and total GMV revenue of $55.1 billion last year, while TikTok Shop has rapidly grown to become the second-largest e-commerce platform in the region after acquiring Tokopedia.
In Vietnam, TikTok Shop holds a significant market share of 24%, making it the second largest e-commerce platform in the country.
The report said influencers, known as key opinion leaders (KOLs), play a vital role in guiding the e-commerce markets in Vietnam, Thailand and Indonesia.
Supported by various policies, guidance and innovative solutions, Vietnam is stepping up efforts to develop cross-border e-commerce as a major economic growth driver, with the sector expected to expand 2.3 times faster than regular e-commerce between 2022 and 2025, and grow 20 percent annually through 2026, as reported by OpenGov Asia.
Over the past five years, Vietnamese businesses have significantly expanded their international expansion, with the number of products exported via international e-commerce platforms growing by 300 percent and many small and medium-sized enterprises achieving annual revenues of over $1 million.
