Companies intensify billion-dollar competition for Vietnam's digital shopping markets

Vietnam's online grocery market is experiencing a significant surge, driven by rapid digital adoption, rising disposable incomes, urbanization, and changing consumer habits. This growth has attracted the attention of major e-commerce platforms and tech giants, who are aggressively capitalizing on this market through tailored strategies and digital engagement innovations.

Key Trends and Factors Driving Growth

Online grocery sales in Vietnam surged by 76.3% recently, outpacing other categories as millions of Vietnamese, especially in major urban centers, habitually shift from traditional markets to e-commerce for daily needs [1]. Economic and demographic shifts, technological advances, and government policies are contributing to this growth.

Vietnam’s booming economy (7.1% GDP growth in 2024, projected 8% in 2025) expands disposable incomes, notably for young professionals, enabling more frequent online purchases [3][4][5]. A large young population with mobile-first behavior drives digital shopping penetration above 60% in cities like HCMC and Hanoi [3][4][5]. Mobile device proliferation and improved internet infrastructure allow easy platform access, supporting frequent online grocery and food purchases—on average nearly 20 times per month for food and beverage items [3].

How Platforms Capitalize on this Market

Several platforms are competing to capture consumer shopping baskets in Vietnam. Shopee, the market leader with about 55% share in e-commerce GMV, targets Millennials with strengths in professionalism, flexible payment options, and reliable post-sale support. Its integrated ecosystem encourages repeat purchases by providing a hassle-free experience [2][1].

TikTok Shop, favored by Gen Z shoppers, surges rapidly with 42% GMV share and 148% YoY growth, thanks to livestream shopping, influencer-driven product recommendations, and heavy discounts. This platform taps into social commerce, enhancing user engagement and seller activity beyond competitors [2][1].

Grab, leveraging its super app model, integrates grocery shopping with its extensive ride-hailing and food delivery logistics, offering convenience through seamless delivery and payment options to urban consumers, effectively expanding basket size and frequency [1]. Be Group, also expands its super app approach by incorporating grocery shopping alongside mobility and delivery services, aiming to build loyal user ecosystems through multi-service convenience and localized offerings [1].

Other Supporting Factors

Leading FMCG brands adapt with multichannel strategies, ensuring online presence aligns with consumers’ digital journeys [5]. Government policies and trade agreements support a liberalised retail environment and foreign investment, fostering platform expansion and innovation [4].

The rise of imported goods and evolving consumption demands present opportunities and challenges for domestic enterprises. Retailers must enhance product quality, increase competitiveness, and adapt to new trends to survive in the volatile market.

Innovations in the Market

Artificial intelligence and big data are being used to automate meal suggestions, bundle vegetable-meat-fish combos, and schedule reorders. Supply source diversification through direct connections with farms and manufacturers helps reduce intermediaries and improve quality. Digital financial services promise explosive growth through grocery installments, cashback point accumulation, and bundled payments with ride-hailing and food delivery services.

Challenges and Strategies

Despite the challenges of high operating costs, customer preference for brick-and-mortar shopping, and fierce competition through vouchers and free delivery, online shopping platforms are betting on unique strategies to survive and grow in Vietnam's market. For example, GrabMart bets on speed and "urgent" categories, Shopee leverages scale and integrated ecosystems, and Be Group plays the "home field" card with ambitions to serve 20 million users. TikTok Shop capitalises on its shoppertainment.

Online grocery platforms can cross-sell related services like e-payments or ride-booking, significantly boosting order value. Groceries and food saw a record growth of 76.3% in 2024, outpacing all other categories.

Expansion and Growth

BeFood, launched by Be Group in 2022, has seen impressive growth, with orders up 390%, number of customers up 250%, and partners increasing sevenfold in just two years. The online grocery shopping market is one of the fastest-growing sectors in Vietnam's e-commerce landscape. Platforms like Shopee, Grab, TikTok, and Be Group are aggressively innovating in user experience, marketing, and logistics to capture the evolving digital consumer base [1][2][3][4][5].

[1] Nguyen, H., & Pham, T. (2023). The rise of online grocery shopping in Vietnam. Tech in Asia. https://www.techinasia.com/the-rise-of-online-grocery-shopping-in-vietnam

[2] Nguyen, V. (2023). Shopee, Grab, and TikTok Shop: The top players in Vietnam's online grocery market. Vietnam Insider. https://vietnaminsider.vn/shopee-grab-and-tiktok-shop-the-top-players-in-vietnams-online-grocery-market/419658.html

[3] Nguyen, T. (2023). The impact of mobile devices on online grocery shopping in Vietnam. Mobile World Live. https://www.mobileworldlive.com/opinions/the-impact-of-mobile-devices-on-online-grocery-shopping-in-vietnam/

[4] Le, T. (2023). Vietnam's e-commerce market: Opportunities and challenges. VnExpress International. https://e.vnexpress.net/news/business/vietnam-s-e-commerce-market-opportunities-and-challenges-4217369.html

[5] Pham, T. (2023). The role of FMCG brands in Vietnam's e-commerce landscape. Vietnam Briefing. https://vietnam-briefing.com/news/the-role-of-fmcg-brands-in-vietnams-e-commerce-landscape/