Vietnamese businesses pivot strongly on the e-commerce 'race'

In this context, Vietnamese businesses need to consider online sales as a strategic spearhead to maintain and expand market share, instead of just a supporting channel. The pivot and change of direction of businesses also contributes to promoting market diversity, bringing a better shopping experience to consumers.

Photo caption — Livestream - an effective marketing and business channel for businesses.

Businesses pivot to adapt

Joining the domestic "race" from 2023, when the domestic rice market is in the hands of many big players, APG Eco Joint Stock Company identified stable prices and quality as its strategic competitive factors. However, it is difficult for businesses to reduce costs because they have to invest in expanding points of sale, dealer stores... To pivot, the unit decided to put rice on the e-commerce platform, thereby helping to increase revenue quickly, expand brand recognition both online and offline, and control marketing costs to increase after-sales service for customers.

“We are one of the first businesses to put rice on e-commerce platforms, so revenue growth is very strong, increasing by 600% in 2024, while in the first 9 months of 2025 it increased by 50% compared to the previous year. E-commerce has helped us minimize advertising costs, increasing business efficiency compared to the previous traditional sales method,” said Ms. Dang Thuy Linh, Chairwoman of the Board of Directors of APG Eco Joint Stock Company.

Similarly, Viet Thang Jean Co., Ltd. also promotes online sales development in addition to expanding physical store chains, helping sales increase by over 20% each year. The online channel alone always records high growth, with an expanded and diversified customer base. For fast-moving consumer goods, the online sales channel also helps businesses expand their young customer base, a group of people willing to spend on branded products, associated with convenient experiences.

Access to a large customer base is the most obvious advantage of e-commerce channels. According to Mr. Tran Lam, founder of the Julyhouse & Macaland brand, online sales revenue accounts for 90%, not only helping products quickly reach customer feedback, businesses also take advantage of evaluating market potential to develop suitable products.

At a recent forum, Mr. Nguyen Minh Duc, Deputy Secretary General of the Vietnam E-commerce Association (VECOM), said that about 70% of consumers are now familiar with online shopping. In the first 6 months of 2025, e-commerce sales exceeded 202,000 billion VND, an increase of nearly 42% over the same period.

Consumer behavior has also changed significantly, creating a strong shift in the product structure on the floors. If previously, fashion , electronics and beauty dominated, then in just the past year, essential goods and fast-moving consumer goods have grown dramatically, accounting for 54% of total sales in the first half of 2025. This trend shows that consumers no longer consider e-commerce just a place to meet immediate needs, but see it as an important distribution channel for daily life.

According to Ms. Tran Thao Vy (Binh Thanh Ward, Ho Chi Minh City), shopping online helps her save time, compare prices quickly, and easily choose products from many different brands. "I often order food and household items through supermarket apps, transparent prices, fast delivery, and more promotions than buying directly. However, when buying cosmetics or clothes, I still consider carefully and often choose genuine stores to avoid the risk of counterfeit goods," said Ms. Vy.

Fierce competition for market share

According to e-commerce experts, the online business market is witnessing fierce competition between sellers. If in the past, there was one seller, ten thousand buyers, now the situation has reversed, one buyer, hundreds of sellers. This forces sellers to find ways to retain customers, in which price is a strategic solution.

“In the midst of a forest of similar products, but the price difference of only a few thousand dong has a huge impact on purchasing power, because consumers are still in the trend of tightening their belts. The problem of operating effectively for sellers is no longer easy, when logistics costs and operating costs on the platform have increased significantly. Advertising costs are accounting for 5 - 20% of product prices, a burden for sellers at this time, increasing the fierceness in the market”, said Mr. Vo Thanh My, CEO of Navee Joint Stock Company, Head of the Southern Digital Media Association.

From the seller's perspective, Mr. Tran Lam, founder of the Julyhouse & Macaland brand, said that the company's online sales showed signs of slowing down as sales costs increased. In addition, customer loyalty is not high, they easily switch from one brand to another on the e-commerce platform, if the price requirements are met.

“The policies of e-commerce platforms have changed continuously recently, the cost of renting booths has increased, along with advertising costs... making sellers confused, not knowing how the situation will continue, greatly affecting business strategies. In that context, many of us sellers are forced to consider the problem of operating costs and prices to continue to exist and develop, by proactively implementing communication campaigns, making our own videos , promoting livestreams to increase sales, and increase the number of people accessing them,” Mr. Lam shared.

These challenges lead to many consequences, distorting the inherent advantages of e-commerce, such as unhealthy competition between sellers, the proliferation of counterfeit goods, abuse of promotions, and prioritizing short-term profits that affect product quality and consumer rights. At that time, e-commerce will become a chaotic sales channel, reducing the competitiveness of businesses.

To improve this situation, experts point out that businesses need to proactively build a variety of sales channels and trading floors, and should not be too dependent on one platform to avoid risks when the market fluctuates. In addition, instead of chasing short-term profits, sellers need to invest heavily in product quality, product brands, increase shopping experience and customer satisfaction, which are competitive factors that help products to be sustainable.

“Vietnamese sellers need to change their mindset, not only selling on the platform, but also building websites with transparent information, as a basis for consumers to trust and choose. In addition, businesses must optimize costs by connecting the ecosystem, helping customers access products quickly, at reasonable prices and with the best shopping experience. In particular, it is necessary to focus on multi-platform marketing strategies, taking advantage of AI to analyze customer files... Those are advantages to increase competitiveness in the current context", Mr. Vo Thanh My shared.

The size of Vietnam's e-commerce market could reach 35 billion USD as projected by the Ministry of Industry and Trade, showing great potential along with significant challenges. To make the most of it, businesses and sellers must consider this an essential part of their business strategy, not just putting products on the floor, but also investing in customer data management, improving shopping experience and after-sales service.

With the Government’s policy of promoting the digital economy and the speed of consumer digitalization, e-commerce is still considered a new race for Vietnamese businesses. If they know how to exploit customer data, optimize experiences and invest in logistics, businesses will not only sell domestically but also expand to export markets through online channels.

Source: https://baotintuc.vn/kinh-te/doanh-nghiep-viet-xoay-truc-manh-tren-duong-dua-thuong-mai-dien-tu-20250925164839285.htm