Vietnam’s Young E-Commerce Sellers Are Scaling Fast — But Faster Than the Ecosystem Can Support

Vietnam is one of Southeast Asia’s most exciting e-commerce growth stories — and also one of its most exposed. A young, ambitious seller base is scaling at record speed, but the systems supporting them have not kept pace. The result is an ecosystem brimming with potential yet highly vulnerable to costs, competition, and operational inconsistency. Nearly one in three sellers now process over 100 orders a month, significantly above the regional average of 22%, while also facing volatility from operating costs (55%), intense global competition (45%), policy and regulatory uncertainty (40%), and logistics challenges (33%). Milieu Insight’s survey of 300 Vietnamese sellers highlights how this young, fast-growing ecosystem defines resilience today and where support is needed to sustain it.

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A Young Seller Base Racing to Scale

Vietnam stands out as the youngest e-commerce market in Southeast Asia, both in experience and demographics. Seventy-four percent of sellers have been online for less than two years, and 33% are between 18–24 years old (vs. 27% regional average). This youthfulness is not a weakness; it is the engine of Vietnam’s growth.

Vietnam’s steep digital adoption curve signals more than just rapid change — it reflects a generation of entrepreneurs redefining retail with ambition and agility. Far from being a weakness, this youth-driven momentum is Vietnam’s greatest asset when supported by a robust digital infrastructure. Many sellers view technology and platform enablement as their main competitive edge. According to the study, 80% rate digital readiness and access to online tools as “important” or “very important” for resilience, while 78% say consistent platform support — from training to marketing programs — is essential.

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Platforms as Accelerators — Sellers Demand Impact, Not Just Access

Platform adoption is nearly universal among Vietnamese sellers: Shopee (78%), TikTok Shop (66%), Tiki (20%), and Sendo (10%), with only 6% maintaining their own websites. For a predominantly young seller base operating with limited capital, this model is a strategic advantage: platforms remove the need to build costly e-commerce infrastructure while providing ready-made tools for scale, including in-app chat, livestreaming, and brand memberships that strengthen direct customer engagement.

Yet while sellers embrace these features, many remain unclear about their impact on business outcomes. Adoption is high — from platform-linked logistics (55%) to AI tools (40%) — but fewer than 20% find analytics or automation meaningfully useful, and only 38% say platform logistics tools materially improve operations. As a result, sellers are shifting from simply using platforms to seeking deeper, smarter collaboration. Nearly 80% now say consistent platform support — whether through mentorship, campaign education, or marketing resources — is critical to their growth. Vietnam’s next phase of e-commerce will be defined not by more features, but by clearer value, shared investment, and innovations that deliver measurable results for both platforms and sellers.

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Transparency Turns Spending into Strategy

Vietnam’s e-commerce sellers are pragmatic investors in their own growth. They see platform costs not as deductions, but as commitments of performance, provided those fees translate into clear business outcomes. While 55% cite operating costs and 39% point to logistics costs as key challenges, sellers increasingly recognize that smart spending — paired with measurable returns — fuels scalability. Costs are acceptable when coupled with transparency, performance, and shared accountability.

Sellers define “value” through results, not rhetoric. They want to see clear connections between what they invest and the results that follow — whether that’s better visibility, higher traffic, or stronger sales. When platforms are transparent about how their tools, training, or campaigns contribute to growth, seller confidence increases. But when those links are unclear, trust quickly declines.

More than half (51%) say they are comfortable with platform fees when tied to proven performance, and 41% when they demonstrably drive sales growth. Yet nearly as many  (44%) lose confidence when benefits are unclear. This signals that transparency isn’t just preferred – it’s the foundation of a long-term partnership. Encouragingly, 74% of sellers agree that sustainable e-commerce growth requires mutual investment from sellers, platforms, and policymakers alike, reflecting a pragmatic, partnership-oriented mindset. Their outlook reflects a maturing ecosystem: one that values fairness, accountability, and collaboration as much as innovation. For Vietnam’s fast-moving seller community, clarity of impact is fast becoming the new currency of trust.

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Buyer-First Policies as Commercial Engines

Vietnamese sellers understand that trust drives sales. They rank product authenticity checks (53%), secure payments (44%), and reliable delivery Service Level Agreements (SLAs, 46%) as the most valuable buyer-first policies. The benefits are tangible: subsidized shipping increases purchase frequency (55%), platform campaigns drive higher order volumes (52%), better store ratings are reported by 49%, and larger baskets are encouraged for 38% of sellers. While only 37% believe these policies directly improve long-term loyalty, sellers clearly see that a better buyer experience fuels both revenue and reputation, forming the foundation for stronger conversions, repeat purchases, and sustainable growth.

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Logistics: The Market’s Biggest Consistency Gap

Logistics remains the most persistent operational challenge for Vietnamese sellers, not because of the number of providers, but due to inconsistent service quality across them. Nearly half of sellers report late deliveries (48%) and lost or damaged parcels (48%), while 42% cite unpredictable shipping costs. These issues have significant consequences: 42% say they result in lower buyer ratings, and 41% report direct revenue loss. But for many sellers, these aren’t just operational frustrations; they reflect gaps in ecosystem reliability that weaken buyer trust.

In particular, given the wide variance in quality, most sellers don’t want to shoulder the burden of managing inconsistent delivery performance. In fact, an overwhelming majority (85%) of sellers said platforms should ensure third-party delivery providers meet high standards for speed, reliability, and cost, and hold them accountable when these expectations aren’t met. 

For many sellers, these aren’t just operational frustrations but a clear signal that there are deeper gaps in ecosystem reliability that ultimately weaken buyer trust. Sellers see the wide variance in logistics partner performance as a core challenge, calling for improvements in parcel handling (54%), speed (58%), and reliability (55%). To them, predictable service quality and cost transparency matter just as much as competitive pricing in sustaining their businesses.

Ultimately, resilience in Vietnam’s e-commerce ecosystem must be co-engineered — built through platforms that empower, policymakers that enable, and sellers who believe in the value of partnership. Backed by robust digital infrastructure and a tech-savvy young seller base, Vietnam’s e-commerce sector has the ingredients not just to grow fast, but to grow strong — turning today’s dynamism into long-term resilience.

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Global Competition as Vietnam’s Defining Pressure Point

As Vietnam’s e-commerce market matures, local sellers look outward with ambition, not fear. Yet they feel the pressure more acutely than regional peers. Eighty percent report high or very high pressure from foreign competitors, extending beyond price compression (51%) to lost visibility on platforms (49%) as global brands with deeper pockets dominate search, advertising, and promotional space. Sellers are calling for targeted support: stronger voucher and discount campaigns (58%), platform incentives for local sellers (51%), and pro-local visibility campaigns (47%). Policy measures also matter – half of sellers are looking for targeted tax relief, while 47% call for stronger consumer protection, and enforcement against unfair foreign practices (43%). With the right support, competitive pressure can be transformed into momentum, cementing Vietnam’s place as one of Southeast Asia’s most dynamic digital economies.

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What Platforms and Policymakers Must Prioritize Next

Vietnamese seller voices highlight five urgent priorities:

1. Invest in digital readiness — tools, training, and analytics are foundational to resilience.
2. Prove ROI on fees — sellers are willing to co-invest only when the link between fees and outcomes (visibility, orders, growth) is clear.
3. Raise logistics consistency — reliability, cost transparency, and accountability must be reinforced across all delivery partners.
4. Pair trust features with meaningful promotions — authenticity checks and secure payments matter, but promotions remain central to a price- and campaign-driven market.
5. Champion local sellers — platforms and policymakers should elevate Vietnamese sellers through visibility support, tax fairness, and enforcement against predatory practices.

Ultimately, resilience in Vietnam’s e-commerce ecosystem must be co-engineered — built through platforms that empower, policymakers that enable, and sellers who believe in the value of partnership. Backed by robust digital infrastructure and a tech-savvy young seller base, Vietnam’s e-commerce sector has the ingredients not just to grow fast, but to grow strong — turning today’s dynamism into long-term resilience.

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