Vietnam’s cross-border e-commerce: A market of promise and challenge

Vietnam is rapidly becoming one of Southeast Asia’s most dynamic e-commerce markets. In 2024, the sector was valued at over USD 25 billion, recording 20% year-on-year growth. Beyond domestic expansion, cross-border e-commerce (CBEC) is emerging as a strategic growth driver.

The potential is substantial. According to the Vietnam E-Commerce Association (VECOM)’s EBI 2025 report, CBEC exports reached USD 3.4 billion in 2023. It could grow to USD 12 billion or more by 2027 with proper policy and infrastructure support. For global platforms, investors, and digital trade enablers, Vietnam represents both an attractive market and a strategic gateway to the wider region.

Market potential

Vietnam’s CBEC market holds significant growth potential for global platforms and investors. It is driven by rapid digital adoption, a young and mobile-first consumer base, and rising disposable incomes. Vietnamese consumers, particularly young people, are increasingly seeking international brands and higher-quality imports in categories such as fashion, beauty, electronics, and food.

Beyond consumer appetite, Vietnam’s role as a manufacturing and export hub adds another layer of opportunity. Strong capabilities in textiles, electronics, footwear, and agriculture make Vietnam both a consumption market and a supplier for cross-border B2B exports.

From a policy perspective, Vietnam has signaled long-term commitment to CBEC. The Government’s 2026-2030 Master Plan for E-Commerce Development identifies CBEC as a strategic pillar for Vietnam’s digital economy. It recognizes its role in boosting exports, diversifying markets, and integrating local producers into global value chains. Beyond building domestic platforms, the plan calls for expanding international cooperation, upgrading logistics and payment systems to meet global standards, and helping small and medium-sized enterprises (SMEs) access global marketplaces. By embedding green packaging, e-invoicing, and cashless payments, Vietnam aligns with EU and US standards. The strategy shows the government’s aim to digitize retail and make e-commerce a driver of trade and global competitiveness.

Meanwhile, a Draft Law on E-commerce, expected later this year, aims to create a safer, more transparent, and globally aligned cross-border market. By requiring seller verification, stronger consumer protections, and clearer standards for goods, the law is expected to help curb counterfeits, low-quality imports, and fraudulent activities – issues that have long undermined trust in Vietnam’s online market. For foreign platforms, this means more consumer trust, higher cross-border purchases, and a fairer playing field for reputable businesses. Provisions on e-invoicing, tax rules, and local representation also provide clearer legal ground for foreign players.

Vietnam’s tighter CBEC rules mirror ASEAN peers. Indonesia banned cheap imports, Thailand requires VAT registration, and the Philippines imposed a 12% VAT with stricter customs. While Vietnam’s CBEC market is smaller than Indonesia’s or Thailand’s, stronger rules could boost trust, level the field for local sellers, and unlock major growth in ASEAN.

Key challenges

Despite its strong potential, Vietnam’s CBEC landscape presents notable challenges that global platforms and investors must navigate.

Regulatory complexity and uncertainty is one of the most pressing risks.  Vietnam has a patchwork of laws and regulations governing e-commerce, customs, taxation, consumer protection, and data security. Many of these rules are scattered across different legal documents (such as Decree 52 and Decree 85 on e-commerce, the Law on Cybersecurity, the Law on Protection of Consumers’ Rights, Decree 147 on internet management, Decree 13 on personal data protection as well as customs and tax regulations). For cross-border platforms, this creates overlaps, inconsistencies, and gaps. At the same time, the government has been reforming the tax system, introducing tighter requirements for foreign platforms to register, appoint local representatives, and comply with tax obligations. This evolving legal environment creates compliance costs and operational complexity that investors must factor into market entry and expansion plans.

Competition is another significant challenge. Established regional and domestic players such as Shopee, Lazada, and Tiki already dominate the market, competing aggressively on logistics, pricing, and localized offerings. New entrants must differentiate through trust, service quality, or niche positioning to avoid being drawn into costly price wars. Additionally, issues such as counterfeit goods, inconsistent product quality, and limited after-sales service undermine consumer trust. This makes reputation management and quality assurance critical for international brands.

A further challenge lies in the limited capacity and skills of Vietnamese SMEs. They form the backbone of the country’s economy but often lack the resources to engage effectively in CBEC. Many SMEs struggle with digital readiness, from basic e-commerce operations such as online store management and digital marketing to more complex functions like cross-border logistics coordination, customs compliance, and international payment systems. Their limited knowledge of foreign regulations, product standards, and consumer preferences restricts their ability to compete globally.

Finally, infrastructure gaps still hinder scalability. While logistics and payments are improving, last-mile delivery, cross-border warehousing, and reliable payment integration remain underdeveloped in some regions. Without localized payment options and strong fulfillment networks, global platforms risk high cart abandonment and dissatisfied customers.

Together, these challenges mean that a foreign platform’s success in Vietnam requires not just investment but also careful localization, strong compliance strategies, and trusted partnerships.

Major CBEC platforms in Vietnam have been actively addressing these challenges. For example, Shopee has partnered with authorities to support local sellers, removed tens of thousands of counterfeit goods, and introduced consolidated shipping to cut costs. Lazada enforces stricter seller verification through LazMall, while Tiki invests in logistics to lower fees and speed up delivery. Together, these steps aim to boost consumer trust and make Vietnam’s CBEC ecosystem more competitive.

Recommendations

To convert Vietnam’s CBEC potential into sustainable business results, foreign platforms and investors are recommended to consider:

• Developing a localization strategy: This means closely monitoring and complying with evolving regulations by registering local entities or forming partnerships. It also implies adapting offerings to local consumer preferences through mobile-friendly platforms, social commerce, and localized marketing. Building trust with consumers by ensuring product authenticity, transparent policies, and reliable after-sales service is equally critical to differentiation in a highly competitive market.
• Strengthening logistics and payment infrastructure: Investors should explore hybrid fulfillment models that combine bonded warehouses and local distribution hubs to speed up delivery and reduce customs friction. Integrating popular local e-wallets, offering local-currency checkout, and providing secure payment protection can boost conversion and consumer confidence, especially in a market where cash-on-delivery remains common.
• Empowering Vietnamese SMEs: Providing digital tools, training, and financial support can help local businesses overcome capacity gaps and become reliable partners in cross-border supply chains. This would help not only strengthen the ecosystem but also create alignment with government priorities around SME development, improving the long-term viability of investments.

In general, platforms should actively engage with policymakers and business associations as partners in ecosystem building. Platforms can share data and insights to help shape new e-commerce regulations. They can also partner with chambers of commerce to train SMEs on compliance and cross-border selling. In addition, they can work with customs and logistics associations on pilot solutions such as bonded warehouses or fast-track clearance. Platforms can also build trust by sharing counterfeit data with regulators. They should collaborate with consumer groups on transparent complaint handling. By acting as co-creators of a fair and efficient CBEC system, platforms can meet regulatory demands and secure long-term advantage.

Conclusion

Overall, Vietnam’s CBEC market presents a high-growth but high-complexity opportunity, requiring careful navigation of evolving regulations. With the 2026–2030 master plan accelerating digital adoption and the future E-commerce Law tightening compliance, the market is becoming larger, more regulated, and more trustworthy. This creates opportunities to tap into a fast-growing consumer base, partner with increasingly digital-savvy SMEs, and expand cross-border trade, but success will depend on aligning with Vietnam’s sustainability standards, consumer protection rules, and tax obligations. As Vietnam tightens its e-commerce framework, proactive engagement with regulators and industry associations will be key to shaping workable rules and ensuring compliance while enabling growth.

Sources:

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