E-commerce is the fastest-growing sector and plays a leading role in the digital transformation of businesses, especially small and medium-sized enterprises (SMEs). This was shared by Mr. Nguyen Huu Tuan – Director of the Center for E-commerce and Digital Technology Development (Ministry of Industry and Trade) at the forum “Digital Economy Development: Opportunities and Challenges in the New Era” held in Hanoi on the morning of November 21st.
Global e-commerce: A key driver of digital transformation.
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Mr. Nguyen Huu Tuan – Director of the Center for E-commerce and Digital Technology Development - eComDX (Ministry of Industry and Trade)
E-commerce has transcended its role as a supplementary sales channel, becoming a core and strategic business model. Therefore, at the Forum, Mr. Tuan provided an in-depth analysis of e-commerce's pioneering role in the digital economy, considering it one of the crucial pillars driving growth and innovation in business models.
Mr. Tuan stated that global e-commerce is asserting its position as the main driving force in the digital transformation of the retail industry. By 2025, total e-commerce retail revenue is expected to reach US$6.86 trillion, maintaining a stable growth rate of 8.3%. In the regional landscape, Asia continues to lead, with China accounting for 44% of the global market share. However, to highlight the potential of emerging economies, Mr. Tuan pointed out that Southeast Asia is the fastest-growing region in the world, with Indonesia, Vietnam, and Thailand being major bright spots.
Simultaneously, representatives from the Department of E-commerce and Digital Economy (Ministry of Industry and Trade) also analyzed prominent trends in the global market during the 2024-2025 period, such as the dominance of M-commerce (accounting for 72.9% of transactions), the explosion of live shopping – social commerce, and the application of AI in search generation and optimizing shopping experiences. Furthermore, the Omnichannel model, Unified Commerce, Smart Logistics, and the trend of green and sustainable e-commerce are reshaping the entire market in the coming years.
Vietnam: A bright spot in terms of growth rate.
Sharing his views on the domestic market, Mr. Tuan affirmed that Vietnam's e-commerce sector is experiencing a strong boom. In 2024, the market size is projected to reach US$25 billion with a growth rate of 25%, the highest in Southeast Asia and placing Vietnam among the top 10 fastest-growing countries globally. Although its market size has not yet surpassed Indonesia (US$65 billion) and Thailand (US$26 billion), he emphasized Vietnam's enormous potential for growth. It is projected that by 2025, Vietnam's e-commerce market could exceed US$30 billion and account for approximately 10% of total retail sales of goods and consumer services.
This becomes even more convincing when looking at the indicators: average per capita spending of $400/year; 55% of the population shopping online; strong growth in sectors such as FMCG (62%), household goods and technology (41%), and fashion (39%). In particular, Vietnam has the advantage of a young population (70% under 35 years old), an 85% smartphone usage rate, low data costs, and the ability to adapt quickly to new technologies.
E-commerce – A pillar driving digital transformation for small and medium-sized enterprises.
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Connecting the broader picture to practical impact, Mr. Tuan stated that the digital economy – understood as activities using digital technology and digital data as inputs – is growing strongly. The size of Vietnam's digital economy is projected to reach US$36 billion in 2024 and is expected to reach US$38-40 billion in 2025. Notably, e-commerce is forecast to account for 60-70% of the total GMV of Vietnam's digital economy.
This opens up great opportunities for small and medium-sized enterprises (SMEs). He believes that the boom in e-commerce makes it easier for SMEs to participate in the digital value chain, overcome geographical limitations, and access a wider market. In particular, SMEs also benefit from the government's and the Ministry of Industry and Trade's policies supporting digital transformation.
Besides the potentially lucrative domestic market (especially in rural areas), SMEs can leverage social commerce, live commerce – with video commerce accounting for up to 25% of the region's total e-commerce GMV – and cross-border e-commerce opportunities thanks to the FTAs that Vietnam is a party to.
Legal challenges and solutions
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However, to keep the analysis focused beyond opportunities, Mr. Tuan also frankly pointed out the limitations of e-commerce in Vietnam. The proportion of e-commerce in total retail sales is still low (10%), cash payments are still prevalent, and the problem of counterfeit and substandard goods remains a serious concern. Furthermore, competition among major platforms like Shopee, TikTok, and Lazada is becoming increasingly fierce.
Therefore, to address these difficulties, Mr. Tuan believes that the draft Law on E-commerce currently under development is an important step towards establishing a more robust legal framework. The law will clearly regulate new business models such as livestreaming sales, multi-service integrated platforms, affiliate marketing, and automated contract signing. In particular, the draft increases the responsibilities of entities and requires mandatory identification and authentication. E-commerce platforms must verify sellers, moderate content, monitor counterfeit/prohibited goods, and provide data to regulatory agencies. Simultaneously, foreign platforms will have to establish a legal entity or authorize a representative in Vietnam and deposit a security fund.
The draft law also aims to develop green and sustainable e-commerce, supporting women-owned businesses, startups, and businesses in disadvantaged areas. According to Mr. Tuan, this is an important step in strengthening consumer confidence, creating a healthy competitive environment, and making e-commerce a powerful tool for all businesses, especially SMEs, in the digital economy era.
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Besides the presentation by Mr. Nguyen Huu Tuan, representative of the Department of E-commerce and Digital Economy, other speakers at the Forum also contributed many important perspectives, helping to paint a more complete picture of Vietnam's digital transformation. Mr. Nguyen Phu Tien – Deputy Director of the Department of Digital Economy and Digital Society (Ministry of Science and Technology) – emphasized the key role of science, technology, innovation, and digital platforms in improving productivity, optimizing operations, and expanding the development space for businesses. Meanwhile, Dr. Nguyen Duc Kien – an economic expert and former Head of the Prime Minister's Economic Advisory Group – focused on analyzing the role of urban governments, open data infrastructure, and a system of policies encouraging digital businesses, considering these as fundamental elements to realize the goal of the digital economy accounting for 30% of GRDP by 2030.
Representatives from businesses and associations also offered many practical perspectives. Opinions from technology companies, manufacturing and trading businesses, e-commerce, digital agriculture, smart logistics, and innovative startups showed that digital transformation is widespread but requires the support of institutions, technology, and human resources. From a practical market perspective, they clearly reflected the opportunities arising from AI, big data, and cloud computing, as well as the difficulties related to costs, infrastructure, and digital skills, especially faced by small and medium-sized enterprises.
The high level of consensus among managers, experts, and the business community at the Forum “Digital Economic Development: Opportunities and Challenges in the New Era” demonstrates a shared determination to create a modern, transparent, and sustainable digital environment. This also serves as a foundation for Vietnam to confidently move towards its goal of becoming a leading dynamic digital economy in the region, where digital technology is not just a supporting tool but becomes a pillar in shaping a future of rapid, inclusive, and sustainable development.
