Vietnam Cross-Border E-commerce Model and Trend Outlook for the Next Five Years

According to a report released by YouNet ECI, a Vietnamese e-commerce market data analytics company, Vietnam’s e-commerce market reached $13.8 billion in 2024, representing a 40% increase compared to 2023.

Digital transformation drives efficiency in logistics, payment, and supply chain management. Leading providers like JUSDA support Vietnam’s cross-border e-commerce by integrating advanced technology and smart logistics. Payment solutions, cross-border trade, and e-commerce platforms create new opportunities for businesses and consumers. Payment security, cross-border transactions, and payment innovation continue to shape the future of Vietnam’s cross-border e-commerce.

Key Takeaways

• Vietnam’s cross-border e-commerce market is growing rapidly, expected to reach USD 45 billion by 2025, driven by strong digital transformation and government support.

• Major platforms like Shopee and Lazada lead the market, offering easy store setup, multiple shipping options, and strong customer protection to boost exports.

• Businesses should focus on building a strong digital presence, comply with international standards, and use technology like AI and blockchain to improve efficiency and trust.

• Logistics providers such as JUSDA play a key role by integrating advanced technology and smart supply chain solutions to support fast, secure cross-border payments and deliveries.

• Future trends include AI-driven innovation, green logistics for sustainability, and the rise of Vietnamese brands expanding globally with better marketing and customer service.

Vietnam Cross-Border E-commerce Overview

Market Size and Growth

Vietnam stands out as a leader in Southeast Asia’s cross-border e-commerce landscape. The country’s market has experienced rapid expansion, driven by digital transformation and strong government support. In 2023, Vietnam’s cross-border e-commerce sector reached a value of USD 20.5 billion. The market saw a 28.5% increase compared to the previous year. Forecasts suggest that the market could reach USD 45 billion by 2025, reflecting a robust growth rate.

Vietnam’s cross-border e-commerce segment maintains an approximate annual growth rate of 20%. This places the country among the top five globally for trade growth. The general e-commerce market in Vietnam shows annual growth rates between 18% and 25%. Some platforms expect even higher year-on-year sales increases, ranging from 22% to 37%.

Vietnam’s strategic location supports its ambition to become an international e-commerce hub. The country benefits from extensive logistics infrastructure, which enables efficient cross-border trade development. Government initiatives, such as the National Digital Transformation Program, have improved connectivity, customs procedures, and payment systems. These efforts help drive e-commerce revenue and support export activities.

Vietnamese businesses have increased their focus on cross-border commerce. Industry experts note double-digit growth in international market penetration for ‘Made in Vietnam’ products. This trend highlights the strong growth potential for cross-border e-commerce and export expansion.

• Vietnam ranks among the top 10 countries globally for e-commerce growth.

• The country leads Southeast Asia in cross-border trade development.

• Major e-commerce platforms in Vietnam expect revenue and sales volume to increase by 35% in 2024 compared to 2023.

Logistics providers play a crucial role in this ecosystem. Companies like JUSDA support Vietnam’s cross-border e-commerce by offering integrated logistics solutions. JUSDA’s advanced technology and digital supply chain management help businesses optimize operations and manage export processes efficiently.

Key Players and Platforms

Vietnam’s e-commerce market features several major e-commerce platforms that drive cross-border activity. These platforms connect local sellers with international buyers and support the country’s export ambitions. The table below highlights the leading platforms and their market positions:

Shopee leads the market with the largest user base and the highest number of monthly app downloads. Lazada, supported by Alibaba Group, stands as a major competitor and is trusted by many customers. Sendo targets smaller cities and rural areas but does not support cross-border shipping. Tiki remains a prominent player, although less data is available about its cross-border activities.

Major e-commerce platforms in Vietnam continue to innovate and expand their services. They offer multiple shipping options, strong customer protection, and easy store setup for sellers. These features help boost e-commerce revenue and support the country’s export growth.

Vietnam’s position as a regional leader in cross-border e-commerce depends on the strength of its platforms and the efficiency of its logistics providers. Companies like JUSDA enhance the market by integrating advanced technologies such as AI and blockchain. Their solutions improve supply chain transparency and security, supporting Vietnam’s goal to become a leading international e-commerce hub.

E-commerce Models in Vietnam

B2C and B2B Approaches

Vietnam’s cross-border e-commerce market features both B2C and B2B models. Each approach serves different needs and faces unique challenges.

• B2C e-commerce in Vietnam centers on platforms like Lazada, Tiki, Sendo, Shopee, and Adayroi. These platforms focus on consumer transactions and offer a wide range of products to customers.

• High logistic expenses often affect B2C transactions. Many customers prefer Cash on Delivery, which increases operational complexity.

• Overlapping legal regulations can create confusion for advertising and product display.

• Cross-border B2C e-commerce faces barriers with customs procedures and foreign exchange management. These issues complicate import and export processes.

• The government is working to simplify these barriers. New decrees aim to ease customs requirements and foreign exchange controls.

• Logistic costs sometimes exceed the price of goods. To attract more consumer demand, platforms often provide free or discounted shipping.

• The legal framework continues to evolve. Amendments to Decree No. 52 and new regulations are expected to support cross-border e-commerce growth and increase b2c e-commerce export value.

B2B e-commerce in Vietnam uses platforms like TradeWheel Vietnam and Alibaba Vietnam. These platforms connect domestic and international businesses. The government supports digital transformation and cross-border trade, creating a favorable environment. Digital payments are growing, with more customers using digital wallets. B2B platforms serve industries such as manufacturing, agriculture, and electronics. The focus on infrastructure and rural-urban connectivity helps SMEs join the global market.

Platform-Based Models

Platform-based models dominate Vietnam’s cross-border e-commerce sector. The most common models include:

• B2C: Retailers sell directly to customers through online e-commerce platforms.

• B2B2C: Businesses partner with platforms to reach new markets and customers.

• Dropshipping: Merchants outsource storage, packing, and delivery to third parties.

Major platforms like Shopee and Lazada offer localized services and strong logistics. These platforms help Vietnamese sellers expand internationally. Advanced technologies such as blockchain and AI streamline trade financing, reduce transaction costs, and improve transparency. Platforms connect businesses, banks, customs, and logistics, making cross-border operations faster and more secure. SMEs benefit from easier onboarding, partner matching, and real-time financial monitoring. Cooperation with international platforms removes barriers and accelerates export growth.

Growth Drivers

Digital Transformation

Vietnam’s cross-border e-commerce sector benefits from rapid digital transformation. Businesses and consumers now enjoy faster and more reliable online experiences. Several technological advancements drive this change:

• High-speed internet infrastructure supports seamless global trade.

• Data centers in major cities like Ho Chi Minh City and Hanoi provide secure data storage.

• A strong telecommunications network ensures reliable connectivity for international transactions.

• E-Government initiatives simplify regulatory compliance and help businesses scale.

• Mobile penetration exceeds 164% of the population, making digital services widely accessible.

• Social media platforms such as Facebook, Zalo, and TikTok expand market reach and customer engagement.

• Major mobile networks invest in 5G, Wi-Fi 6E, and Wi-Fi 7, improving speed and reliability.

• Digital payment solutions, including e-wallets like MoMo and ZaloPay, are growing quickly.

• Demand for cybersecurity solutions rises as businesses seek to protect data and ensure compliance.

• AI-driven analytics support smarter business decisions and environmental monitoring.

E-commerce adoption continues to rise. Over the past year, the sector grew by 26%. About 90% of digital consumers plan to use e-commerce platforms more in the next year. Businesses increasingly use cloud computing and AI to improve efficiency. Telecommunications companies now focus on digital services, including digital payments and cloud solutions. The National Digital Transformation Program encourages private sector innovation and supports the growth of e-commerce.

International Partnerships

International partnerships and trade agreements open new opportunities for Vietnamese businesses. Agreements like CPTPP and RCEP help liberalize cross-border data flows, which are vital for digital trade and e-commerce. These agreements reduce barriers and make it easier for businesses to operate internationally. However, they also require Vietnam to balance free data flows with privacy and consumer protection.

Trade agreements treat strict data localization as a trade barrier. Vietnam must ensure that any restrictions on data flows are necessary and fair. While these agreements help expand cross-border e-commerce, they also challenge Vietnam to update its domestic regulations. The country must find a balance between supporting business growth and protecting consumer data. International partnerships continue to drive market expansion and encourage innovation in e-commerce.

Logistics and Supply Chain Solutions

JUSDA in Vietnam Market

JUSDA plays a vital role in Vietnam’s logistics sector. The company supports the cross-border payment market by offering end-to-end supply chain solutions. JUSDA leverages the "China + 1" strategy, establishing Vendor Managed Inventory and Contract Manufacturing Inventory collaborative warehouses in Vietnam. This approach helps businesses manage over 20,000 SKUs and streamline cross-border payment services. JUSDA integrates air and sea transportation, which increases efficiency and supports market expansion.

JUSDA uses advanced digital payment services and dynamic inventory management to optimize operations. The JusLink Smart Supply Chain Management Platform provides real-time tracking and end-to-end visibility. Automation in warehousing reduces manual errors and boosts productivity. JUSDA’s holistic approach covers VMI, cross-border logistics, warehousing, and distribution. The company’s global network includes more than 155 service locations and 45 logistics centers. This network supports efficient cross-border payment growth and transfers.

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JUSDA’s localization strategy and customer-centric services help Vietnam become a key logistics hub in Southeast Asia. The company also commits to green logistics and sustainability initiatives, which improve efficiency and reduce costs. These efforts support the market’s demand for reliable cross-border payment services and seamless supply chain operations.

JUSDA’s innovative solutions enable Vietnamese businesses to compete globally and meet rising consumer expectations for fast, secure payments.

Technology Integration

Logistics companies in Vietnam invest in technology to support the cross-border payment market. Artificial intelligence, robotics, and automation improve operational efficiency and reduce lead times. Real-time package tracking apps increase transparency and customer engagement. State-of-the-art sorting facilities process millions of packages daily, supporting payment speed and reliability.

Companies use AI for order prediction, delivery route optimization, and logistics coordination. These technologies enable faster deliveries and cost optimization. Digital logistics is now a strategic pillar of the modern market ecosystem. Investments in Warehouse Management Systems and smart warehouses support international standards and payment accuracy.

E-commerce platforms develop logistics subsidiaries and position modern warehouses in major cities. This strategy helps businesses reach international customers and meet the growing demand for cross-border payment services. The logistics sector also focuses on talent development and collaboration, sharing infrastructure to avoid redundant investments.

Technology integration allows Vietnamese enterprises to navigate the digital marketplace and sustain cross-border payment growth.

Challenges in Cross-Border E-commerce

Legal and Regulatory Issues

Vietnamese cross-border e-commerce businesses face a complex legal environment. Regulations change often, and companies must adapt quickly. The lack of a detailed legal framework for electronic contracts leads to inconsistencies and enforcement challenges. Businesses struggle to identify parties in electronic contracts because of remote interactions and verification issues. Meeting formal requirements, such as authentication and digital signatures, remains difficult. Uncertainty about the validity of electronic contracts adds to the risk.

Vietnamese authorities take a cautious approach with foreign e-commerce operators. Strict licensing and registration requirements make market entry complex. The case of the Chinese platform Temu shows how slow acceptance and media scrutiny can impact foreign businesses. Despite these hurdles, the government continues to promote cross-border e-commerce growth.

Logistics and Infrastructure

Logistics and infrastructure bottlenecks slow down cross-border e-commerce in Vietnam. The logistics sector is fragmented, with many small operators. Poor route planning and underused delivery capacity lead to longer delivery times and unpredictable service. Freight rates are volatile, making cost management hard for small and medium enterprises. Infrastructure gaps, such as limited inland warehousing and poor integration of road, sea, rail, and air transport, increase costs.

Customs procedures remain a major barrier. Complex paperwork and strict documentation requirements cause shipment delays and penalties. Traffic congestion near ports and outdated railway systems add to the problem. Warehousing and logistics centers are often small and fragmented, lacking large-scale logistics zones. These issues raise logistics costs, which account for 16-18% of Vietnam’s GDP, much higher than the world average.

Payments and Security

Payment and security concerns play a key role in the cross-border payment market. The State Bank of Vietnam encourages digital payments and system interoperability to build consumer trust. Investments in AI-driven fraud detection and blockchain-based transaction ledgers help modernize payment operations. Advanced cybersecurity measures and real-time payment processing systems increase consumer confidence and support cross-border payment growth.

Despite these improvements, data privacy concerns and limited financial literacy still affect adoption. Some consumers hesitate to use cashless payments or digital payment methods for cross-border transactions. The growth of e-commerce and foreign investment in digital payment infrastructure shows the market’s maturity. Reliable cross-border payment services and strong security measures remain essential for building trust and supporting the cross-border payment market.

Trends for the Next Five Years

AI and Digital Innovation

Vietnam’s e-commerce sector is entering a new era shaped by artificial intelligence and digital transformation. Companies across the country are investing in advanced technologies to improve efficiency, security, and customer experience. Many leading firms have established AI labs and research centers. For example:

• Rikkeisoft operates Rikkei.AI, which develops AI products for fintech and e-commerce, including eKYC, chatbots, OCR, and speech-to-text tools.

• TMA Solutions provides AI consulting, custom machine learning models, and computer vision applications that support automation in logistics and e-commerce.

• KMS Technology builds predictive analytics, anomaly detection, and automation frameworks to enhance marketing and quality assurance.

• VNG Corporation offers AI cloud services and integrates AI chatbots and speech recognition through its Zalo AI platform.

• VinAI Research and VinBrain focus on computer vision and natural language processing, with applications in smart factories and healthcare.

These innovations help e-commerce companies in Vietnam deploy recommendation engines, automate operations, detect fraud, and improve customer interactions. The government supports this trend through initiatives like Resolution No. 57 and the National Strategy on AI Development. These policies encourage digital transformation in logistics, payments, and supply chain management.

Vietnam’s AI startup ecosystem is expanding rapidly. The number of AI startups more than doubled from 2020 to 2023. Investors show strong confidence, with over $1.4 billion raised in 2022. Accelerator programs and foreign venture capital firms provide funding and mentorship, helping startups grow. As a result, e-commerce trends in Vietnam now include AI-driven payment solutions, warehouse automation, and advanced cybersecurity. These developments position the country as a regional leader in digital innovation.

AI and digital technology will continue to drive growth, making e-commerce more efficient and secure for both businesses and consumers.

Rise of Vietnamese Brands

Vietnamese brands are gaining recognition in the global e-commerce market. Several factors contribute to this rise:

• The country has a young, tech-savvy population with widespread smartphone use. Mobile and social networks are part of daily life.

• Digital payment solutions like MoMo, ZaloPay, and ViettelPay make online transactions simple and secure, increasing consumer trust.

• Social commerce platforms such as TikTok Shop and Shopee allow direct engagement with consumers through live streams, influencer endorsements, and social media promotions.

• The middle class is expanding rapidly, with higher disposable income driving demand for cross-border shopping.

• Vietnamese businesses have easier access to global marketplaces like Amazon and Alibaba, motivating them to expand internationally.

• Strategic partnerships with digital payment providers, logistics companies, and social media platforms improve customer experience and operational efficiency.

• Brands overcome challenges in logistics and competition by focusing on product quality and customer support.

Vietnam’s e-commerce growth is closely linked to these trends. As brands build trust and deliver quality, they attract more consumers and customers worldwide. The integration of technology, logistics, and digital payments supports their international expansion.

The next five years will see more Vietnamese brands reaching global markets, supported by innovation, strong logistics, and a focus on customer experience.

Strategic Insights

For Businesses

Vietnamese companies seeking to expand cross-border e-commerce should focus on several key strategies.

1. Select strong local products with proven popularity, such as coffee, spices, and handicrafts. These items already have brand recognition and appeal to international buyers.

2. Build a professional digital presence. Companies should create bilingual websites that are easy to use and list products on global platforms. Clear return, shipping, and payment policies help build trust.

3. Standardize legal compliance. Businesses must follow international standards for labeling, trademarks, and certifications. For example, products exported to the US need FDA registration and English labels.

4. Invest in global marketing. Advertising on platforms like Google and Meta, using multilingual content, and optimizing for foreign search engines can attract new customers.

5. Embrace digital technology. Omnichannel management systems, blockchain for product traceability, and AI for personalized marketing improve efficiency. Connecting with logistics providers like JUSDA through APIs enables automated shipping and tracking.

6. Partner with experienced technology and legal service providers. These experts help companies navigate digital platform consulting, cybersecurity, and international marketing.

Vietnam’s cross-border e-commerce sector offers strong opportunities for growth, especially in exports and SME participation. The table below highlights key aspects:

Logistics and technology, led by providers like JUSDA, help businesses overcome these barriers. Stakeholders should embrace innovation and collaboration to unlock the full potential of e-commerce in the coming years.

FAQ

What are the main benefits of cross-border e-commerce for Vietnamese businesses?

Vietnamese businesses can reach global customers, increase sales, and build brand recognition. They can use digital platforms to expand quickly. Logistics providers like JUSDA help companies manage shipping and payments, making international trade easier and more efficient.

How does JUSDA support cross-border e-commerce in Vietnam?

JUSDA offers integrated logistics solutions, including air and sea transport. The company uses advanced technology like AI and blockchain. These tools improve supply chain transparency, security, and efficiency. JUSDA helps businesses handle inventory, customs, and delivery for global markets.

What challenges do companies face in Vietnam’s cross-border e-commerce?

Companies often face complex regulations, high logistics costs, and payment security concerns. Infrastructure gaps and customs procedures can delay shipments. Businesses must also adapt to changing laws and ensure compliance with international standards.

How can Vietnamese brands succeed in global e-commerce markets?

Brands should focus on product quality, digital marketing, and customer service. They need to use technology for efficient operations. Partnerships with logistics and payment providers help brands reach more customers and build trust in international markets.

See Also

Exploring Creative Approaches To Supplier Partnerships In International E-commerce

How Transparent Supply Chains Drive Success In Worldwide E-commerce

Top Five Emerging Trends Shaping Supply Chain Efficiency Tomorrow

Achieving Cross-Border Trade Growth Through JUSDA Solutions Today

Artificial Intelligence Transforming The Future Of Supply Chain Logistics