Bangkok (VNA) – Vietnam and Thailand have emerged as the two fastest-growing e-commerce markets in Southeast Asia, according to a report recently released by OpenGov Asia, a content platform dedicated to sharing ICT-related knowledge and information to better serve citizens and customers.

The report highlights Vietnam’s ascent past the Philippines to become the third-largest e-commerce market in the region.

Last year, the total gross merchandise value (GMV) of the top eight e-commerce platforms in Southeast Asia reached 114.6 billion USD, marking a 15% year-on-year increase. Despite macroeconomic challenges, the Southeast Asian e-commerce sector has demonstrated continuous growth, with this year’s GMV predicted to be double that of 2020.

Vietnam and Thailand led the growth trajectory, with their GMVs increasing by 52.9% and 34.1%, respectively, over the same period last year. Vietnam’s e-commerce market has seen consistent growth, boasting an average annual growth rate of 16-30% over the past four years, the highest in the world.

In ASEAN, Shopee dominates with a total GMV revenue of 55.1 billion USD last year, capturing 48% of the market share. TikTok Shop has surged to become the second-largest e-commerce platform in the region, following its acquisition of Tokopedia.

In Vietnam, TikTok Shop holds a significant 24% market share, making it the second largest e-commerce platform in the nation.

The report stated that influencers, known as key opinion leaders (KOLs), play a crucial role in navigating the e-commerce markets in Vietnam, Thailand, and Indonesia.

As OpenGov Asia reported, Vietnam is intensifying efforts to develop cross-border e-commerce as a key economic growth driver, supported by various policies, guidance, and innovative solutions. The sector is expanding at a rate 2.3 times faster than regular e-commerce between 2022 and 2025, with projections indicating a 20% annual growth until 2026.

Over the past five years, Vietnamese businesses have significantly broadened their international reach, with the number of products exported via international e-commerce platforms increasing by 300%, and many SMEs achieving annual revenues surpassing 1 million USD.

The Vietnamese government, along with ministries, sectors, localities, and the business community, is actively promoting digital transformation and sustainable development in e-commerce. The Ministry of Industry and Trade (MoIT) emphasises expanding markets through online platforms and digital ecosystems, supported by robust logistics.

The report also mentioned Vietnam’s initiatives to bolster e-commerce, with the E-Commerce and Digital Economy Agency enhancing the legal framework, providing financial support, encouraging investment and ensuring data protection and cybersecurity, and Prime Minister Pham Minh Chinh’s freshly issuing an official dispatch on enhancing State management in e-commerce and digital business sectors.

The initiatives underscore Vietnam’s commitment to digital transformation and economic modernisation, aiming for sustainable growth in the digital economy, and improved global market access for Vietnamese businesses, according to the report./.