Shopee dominates revenue while TikTok Shop gains market share

In the first quarter of the year, Shopee continued to dominate the online retail market share, accounting for more than half of total transactions. Consumers spent 53,740 billion VND shopping on Shopee, giving the platform a 67.9% market share. Following Shopee, Lazada and Tiki held the third and fourth positions with 7.6% and 1.3% market share, respectively.

A notable development in the market is the rise of TikTok Shop, which secured the runner-up position with a 23.2% market share, an increase of 6.3 percentage points compared to the previous quarter. Vietnamese consumers spent 18,360 billion VND on TikTok Shop in the first quarter, three times more than Lazada’s GMV. The platform attracted 2.8 million medium, small, and micro enterprises and saw significant growth in sellers, views, and GMV.

Overall, the online retail market in Vietnam exceeded expectations in the first quarter, reaching 71,200 billion VND in total revenue, a 78.69% increase compared to the previous year. The growth can be attributed to domestic consumption stimulation programs, increased consumer spending, and the rising popularity of online shopping as a daily habit. Market research forecasts continued growth in Vietnam’s e-commerce industry, with GMV expected to peak at 16.8 billion USD in 2025.

To keep up with this growth, businesses should focus on controlling costs, increasing revenue, and investing in technology and digitalization. The trend of “shoppertainment,” where shopping is combined with entertainment, is expected to play a significant role in the industry’s future. Platforms like TikTok Shop and Shopee are incorporating entertainment features to enhance consumers’ shopping experiences and stimulate demand.