The digital economy in Vietnam is growing rapidly, with a near 50% increase in ecommerce sales in Q1 2026 compared to Q1 2025.
While many segments in the industry are on the rise, reports forecast a slight slowdown for Q2 2026, as several potential entry barriers may make it harder for new sellers to join the market.
Q1 2026 Saw Major Growth for Ecommerce in Vietnam
The Vietnamese ecommerce market saw plenty of growth in Q1 2026. Among the four major platforms operating in the region, which are Shopee, TikTok Shop, Lazada, and Tiki, gross merchandise value (GMV) reached approximately VND148.6 trillion ($5.64 billion), which is a 47% increase year-over-year.
In addition to Vietnam, the ecommerce market in Southeast Asia, in general, is also skyrocketing.
On top of a much higher GMV, total transaction volume in Vietnam grew by about 20% year-over-year, up to around 1.14 billion items. This shows that not only are customers spending more online, but also purchasing items more frequently.
An average day sees Vietnamese customers spend VND1.7 trillion ($63.33 million) on ecommerce, and buy around 13 million items in total.
Ecommerce growth in the country also grew much faster than traditional retail, which only expanded by 11% in Q1 2026.
Sales by Segment
This explosive ecommerce growth in Q1 was largely driven by common and everyday purchases. Beauty products made up the most sales this quarter, reaching over VND24.4 trillion ($925.79 million). Following beauty, women’s fashion and home and living goods were the next largest segments.
However, the segment with the fastest growth was men’s fashion, with revenue being up over 150% year-over-year.
As you can see, the fashion and apparel sectors make up some of the largest segments in the industry. Also, many of the purchases in these segments are driven by emerging shopping methods like livestream shopping and social commerce, which are among the most dominant methods in the Southeast Asian region.
But while many product segments grew, others saw declines. For example, health-related products saw drops in both sales volume and revenue. However, this drop makes sense as there are increasingly tighter regulations on advertising, product quality, and traceability for these products.
As standards like this rise, many of the companies that sold products that would’ve complied in the past may now need to adjust their marketing, change up formulas, and make their products higher-quality in order to sell them legitimately.
In terms of the pricing segments, items priced between VND100,000 and VND200,000 ($3.79 to $7.59) were the most popular, as they made up nearly 25% of total transactions. Mid-range and near-premium segments are also expanding, but in a more gradual manner.
However, expensive items over VND1 million ($37.94) are becoming less common. This shows that Vietnamese shoppers are prioritizing value when shopping online and being more cautious about how they spend.
This Growth May Slow Going Forward
While the growth was dramatic in Q1 for Vietnam, it’s expected to slow down in the second quarter. Despite sales volume continuing to grow, GMV is expected to dip by a little over 4%, going down to VND142.2 trillion ($5.4 billion).
This shows that price competition, along with shoppers prioritizing value, may lead to companies taking a volume over value approach, as some companies may reduce prices (thus reducing GMV) in order to better compete and meet customer expectations in terms of cost.
But in addition to stiffer competition, policy changes are also changing the sector and making it hard for new participants to enter. Seller identification requirements (Law on E-commerce), platform fees, and tax declarations (Decree 117) are becoming stricter, which may serve as barriers holding new sellers back.
As a result, if you’re looking to start selling in Vietnam or the Southeast Asian market in general, it’s important to find ways to hurdle the many regulatory barriers that may stand in your way.
The market is also becoming much more competitive than in the past, which also makes it tough for new sellers to take market share. In fact, the number of sellers generating orders in Q1 was nearly 491,000, but the rate of seller growth was only 3.9%, which is much lower than GMV growth.
Succeeding in the Region as a New Seller
For new sellers to stand out in Vietnam, they need to find ways to separate themselves from the crowd. This may be achieved through better pricing, improved product quality, or building trust by providing helpful customer support, rapid deliveries, and great after-purchase assistance.
Sellers should also master livestream selling. It’s a primary driver of discovery and purchasing in Southeast Asia, and producing quality video content that’s engaging and informative for viewers may help you succeed.
Make sure to localize your efforts, as well. You should use Vietnamese in your marketing, offer support in the language, and ensure you operate in a way that local customers prefer and are familiar with.
For example, Cash-on-Delivery is the preferred way to pay for 35% of those in Vietnam, so consider offering it as an option. However, other methods are growing in the region, such as Buy Now, Pay Later (BNPL), so make sure to let customers choose from a variety of payment methods to keep everyone happy.
