[Webinar archive] The Essential Guide to Digital Market Entry: Building Profitability in Vietnam’s E-Commerce Landscape

By 2025, Vietnam’s e-commerce market is expected to reach USD 57 billion, marking one of the highest growth rates in Asia.This guide outlines the platform landscape, consumer trends, and strategic frameworks that empower brands to achieve sustainable growth and profitability in Vietnam’s rapidly evolving digital economy.

🎥 Watch the full webinar and explore the visualized slides here: Vietnam E-commerce Webinar: The Essential Guide to Digital Market Entry and Building Profitability

I. Vietnam E-commerce Marketplace Overview

• Shopee Vietnam maintains a dominant position, accounting for approximately 55.5% of total GMV
• TikTok Shop Vietnam has become the fastest-growing player, rising to over 42**% in early 2025**.
• Although Lazada still keeps some strength in home & lifestyle and baby products, its overall presence in Vietnam’s e-commerce market is clearly shrinking (now only 2.6%).

Key takeaway: Vietnam’s e-commerce battlefield has evolved into a two-horse race — Shopee leads in reach and reliability, while TikTok Shop leads in engagement and growth speed.

To understand how brands can position themselves effectively within this landscape, let’s look deeper into how each platform operates and what strategy works best for them.

1. Shopee Vietnam

Shopee is particularly strong among younger female users, and attracts shoppers looking for low prices.A key pillar of Shopee’s success is Shopee Mall — its premium tier for official and verified stores. This segment contributes to over 50% of Shopee’s total GMV, acting as a major trust-building tool for brands and consumers alike. Most international and established local brands now aim for Mall status, as it offers better visibility, credibility, and conversion rates.

To qualify for Shopee Mall, sellers must meet strict operational standards such as:

• Consistent minimum revenue performance
• Low late-delivery and return rates
• High responsiveness in customer chat interactions

For cross-border sellers, Shopee provides a streamlined entry through the Shopee International Platform (SIP) — allowing global brands to sell in Vietnam without setting up a local entity. This makes SIP one of the most effective tools for market entry and testing local demand before committing to full-scale operations.

📘 Read more: Upgrading to Shopee Mall in Vietnam: Advantages and Disadvantages for Sellers

2. TikTok Shop Vietnam

While Shopee is where most purchases happen, TikTok Shop is where most attention goes. Vietnam now has the 5ᵗʰ largest TikTok user base in the world, making it one of the most promising markets for social-driven shopping.

TikTok Shop’s success lies in merging entertainment and e-commerce — turning product discovery into an interactive experience through live streaming and short-form videos.

Winning on TikTok requires a content-driven, storytelling-first approach:

• Post consistent short-form videos that are both educational and entertaining
• Collaborate with KOLs and KOCs to generate viral effects and authentic recommendations
• Leverage TikTok Ads to amplify reach and scale high-performing content

However, brands should note that TikTok commerce is highly impulsive.

For products priced above 200,000 VND, investing in brand awareness is essential. Vietnamese consumers hesitate to spend on unfamiliar brands unless they already trust the story behind them — making awareness-building the foundation for long-term profitability.

📘 Read more: Why TikTok is a Game-Changer for E-commerce in Vietnam

II. Three Approaches to E-Commerce Execution

With both marketplaces playing distinct roles, brands must decide how to operate within or beyond these ecosystems. Typically, three execution paths emerge — each with its own balance of control, cost, and scalability.

1. Marketplaces (Shopee, TikTok Shop)

• Pros: High traffic, built-in payment security, and trusted logistics networks.
• Cons: Intense price competition and counterfeit risks can erode margins.

2. Own e-commerce website (Shopify, Haravan)

• Pros: Full ownership of first-party customer data and creative flexibility — no 3,000-character limits like on Shopee. Be able to use this data to run CRM, membership, and email-marketing campaigns that build retention.
• Platforms: Shopify is growing rapidly in Vietnam with localized plug-ins, while Haravan (a local alternative) offers native integrations with MISA accounting and TikTok Shop.
• Cons: Requires higher initial investment in brand building and traffic generation.

3. Landing page and Messaging

• Highly effective for high-value or B2B products.
• Brands can run sponsored landing pages on VnExpress, Tuổi Trẻ, or similar news portals through ad networks.
• Vietnamese consumers are comfortable shopping via chat, and responsive message-based sales teams often achieve lower CPA than marketplace advertising.

Regardless of the chosen model, success depends on how well a brand can translate its business goals into a systematic, data-driven process.

III. Eight Steps to Build a Winning E-Commerce Marketing Operation

Building a profitable e-commerce business in Vietnam requires a clear, repeatable framework. Below is an 8-step structure to ensure measurable success.

1. Market Research:

It all begins with research, really understanding customers, competitors, and the marketplace. This foundation allows us to move forward with confidence.

2. Define KPIs:

The next step is setting clear KPIs that align with business objectives — for example, conversion rate, traffic, ROAS, and customer acquisition cost (CAC).

3. Media Planning:

Balance investment between performance channels (Shopee Ads, TikTok Ads, Meta Ads) and awareness-driven campaigns (YouTube, PR).

4. On-site Optimization:

Localize your e-commerce pages. Include Vietnamese keywords naturally in product titles and descriptions, and optimize for mobile load speed.

5. Creative Planning:

Tailor visuals and messaging to local culture. Vietnamese audiences respond strongly to short-form videos, humor, and authentic local stories.

6. Promotion Strategy:

Promotion planning plays a big role. In Vietnam, campaigns usually center around big shopping dates, like the double-digit days, mid-month sales, or payday on the 25th. — to maximize sales.

7. Content Calendar:

Maintain consistent visibility across channels — schedule livestreams, product launches, and KOL/KOC collaborations weekly.

8. Operations & PDCA:

Apply the Plan–Do–Check–Act cycle to continuously optimize ad performance, pricing, and logistics.

III. Three Common Mistakes to Avoid

Even with a solid plan, execution often falters due to recurring mistakes. Recognizing and avoiding these early can save significant time, cost and maintain competitive.

1. No KPIs Defined:

• Without measurable targets, it is impossible to judge whether campaigns are effective.
• At the beginning, the KPIs may be awareness-related, like clicks or time on site. Later, as brand shift toward revenue goals, KPIs should focus on performance, such as ROAS or CPA.

2. Neglecting Brand Awareness:

• In both Vietnam and other countries, without brand awareness, it’s almost impossible to run performance marketing with high ROAS.
• Many successful entrants dedicate their first year solely to brand visibility before scaling sales.

3. Over-Reliance on a Single Channel:

• The Vietnamese customer journey is multi-touchpoint.
• Shopee may close the sale, but discovery often begins via Meta Ads, KOLs, or Google Search.
• A cross-channel strategy ensures consistent reach across the funnel.

IV. Frequently Asked Questions (FAQ)

After understanding the strategic framework and common pitfalls, many brands still have practical questions about how to operate effectively in Vietnam’s e-commerce market. The following FAQs summarize the most frequent questions from international companies preparing for local market entry.

Q1. How Many People Do You Need to Run E-Commerce?

→ An e-commerce operation can start with just one in-house manager if other functions are outsourced. As the business grows, additional staff or specialized partners may be required. In some cases, working with distributors can be advantageous when both online and offline sales channels need to be managed simultaneously.

Q2. How Long Does It Take to Become Profitable?

→ For new entrants in Vietnam, the typical path to profitability takes between one and three years. The timeline depends heavily on brand awareness, investment level, and local presence. Setting clear milestones for six months, one year, and three years is crucial, while initiatives such as KOL collaborations and live streaming can accelerate performance.

Q3. What Tools Are Used for Market Research?

→ Metric is widely used to estimate market size and product search volume. Shoplus and Shopee Data are valuable for short-term insights within marketplaces. Similarweb provides competitor analysis, while Meta Ad Library highlights active advertising trends. Google Keyword Planner remains an essential tool for understanding search intent and volume in Vietnam.

Q4. What Makes Vietnamese E-Commerce Shoppers Different from Other Countries?

→ There are three key behavioral differences that every brand should understand:

1. Messaging Habits:
2. Vietnamese shoppers often prefer to chat with sellers before placing an order. Traditional payment methods such as Cash on Delivery (COD) and bank transfer remain popular, reflecting a cautious and trust-based approach to online shopping.
3. Cart Behavior:
4. Consumers in Vietnam frequently add items to their carts but do not complete purchases. The cart-to-purchase conversion rate averages only 5–15%, emphasizing the need for clear product education and brand familiarity. CPAS campaigns targeting users who added items to their cart are particularly effective in improving conversions.
5. Low Brand Loyalty:
6. Brand loyalty in Vietnam is relatively low, especially in competitive southern regions. Unlike markets such as Japan or Korea, Vietnamese shoppers tend to compare multiple options before making a decision. This means brands must continuously invest in awareness campaigns and localized content to remain in consumers’ consideration sets.

V. Conclusion: The Next Chapter of Vietnam E-commerce

Vietnam’s e-commerce growth story is far from over — it’s entering a maturity stage defined by creativity, data, and local insight.

While Shopee dominates scale, TikTok Shop is redefining engagement, and Lazada serves niche segments. The brands that will thrive are those that combine:

• Localization – adapting products and content to Vietnamese culture
• Agility – reacting quickly to platform and algorithm changes
• Authenticity – building trust through transparent storytelling

Those who capture the cultural pulse of Vietnam will not only survive but lead in one of Asia’s most promising digital economies.

🎥 Watch the full webinar: Vietnam E-commerce Webinar: The Essential Guide to Digital Market Entry and Building Profitability

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