How E-Commerce is Replacing Traditional Supermarkets in Vietnam
- Vietnamese e-commerce has emerged as a primary distribution channel, progressively replacing traditional supermarkets as consumer habits undergo a structural shift.
- The shift toward digital marketplaces extends beyond domestic retail, serving as a promising pathway for Vietnamese businesses to access foreign markets directly.
- Despite the rapid growth, the digital shift presents distinct operational challenges for businesses and regulatory authorities.
Vietnamese e-commerce has emerged as a primary distribution channel, progressively replacing traditional supermarkets as consumer habits undergo a structural shift. Local products manufactured by small and medium-sized enterprises and Vietnamese cooperatives now occupy highly visible positions on online shopping platforms. This strong digital presence stems from continuous digital transformation and targeted trade promotion policies rather than coincidence, with producers increasingly investing in packaging design, brand image, and quality standards.
Cross-Border E-Commerce Expansion and Export Growth
The shift toward digital marketplaces extends beyond domestic retail, serving as a promising pathway for Vietnamese businesses to access foreign markets directly. According to Tran Thanh Hai, deputy general manager of the Import-Export Department at the Ministry of Industry and Commerce, cross-border e-commerce allows enterprises to evolve from contract manufacturing to direct-to-consumer sales, capturing higher profit margins by eliminating intermediaries. Global cross-border e-commerce volume currently reaches nearly 800 billion dollars and is projected to continue to grow by about 30% per year. In Vietnam, retail cross-border e-commerce revenue is expected to surpass 11 billion dollars by 2026. Vietnam ranks among the top 15 global trade powers and holds the second position within ASEAN. Despite this standing, only 20% of enterprises currently participate in online exporting, leaving significant room for expansion. Trinh Khac Toan, Northern regional director for Amazon Global Selling Vietnam, noted that cross-border exporting via e-commerce has become a new normal, citing an increase of 35% in Vietnamese products sold on Amazon in 2025 compared to the previous year, alongside a rise of nearly 30% in registered local brands.
Operational Challenges and Digital Skills Gaps
Despite the rapid growth, the digital shift presents distinct operational challenges for businesses and regulatory authorities. Maintaining stable growth outside of mass promotional holiday campaigns requires rigorous quality control and post-sale services. Huynh Thi Thu Trang, a representative of An Phat Green Agricultural Products, explained that large promotional events draw tens of thousands of new customers quickly, but inadequate packaging or slow complaint handling can lead to negative reviews that permanently damage a shop’s reputation. Furthermore, studies from the Vietnam E-commerce Association show that many small and medium-sized enterprises lack the necessary digital skills. While opening an online storefront is straightforward, achieving profitability demands sophisticated data management and consumer behavior analysis. Doan Quoc Tam, head of cooperation at the Vietnam E-commerce Association, noted that primary obstacles for small firms include a shortage of human resources trained in international e-commerce, limited knowledge of foreign import regulations, and heavy platform, marketing, and logistics expenses.
