Vietnam was the strategic force behind the inception of AOSD, proposing the initiative while holding the ASEAN Chairmanship in 2020. Launched by the Ministry of Industry and Trade's (MoIT) Department of E-commerce and Digital Economy (IDEA), the event was a direct response to the global shift towards online shopping spurred by the COVID-19 pandemic. The goal was to transform a crisis into a catalyst for institutionalizing digital trade across the region.
Vietnam’s vision for AOSD went beyond a simple sales event; it aimed to create a high-quality, secure online marketplace under government supervision to build lasting trust for both consumers and businesses, particularly Small and Medium Enterprises (SMEs). This leadership role has positioned Vietnam as a key architect in shaping ASEAN's digital trade agenda.
Consistent Growth and Deepening Involvement
Since its launch with 150-200 businesses in 2020, AOSD has seen significant growth, attracting over 300 enterprises annually in 2021 and 2022. Vietnam’s central role was highlighted in 2022 when it co-chaired the event with Cambodia and Singapore. That year, a remarkable 185 of the more than 300 participating businesses were registered in Vietnam, showcasing the nation's robust engagement.
Vietnam’s participation is backed by a strong national strategy, including the forthcoming "National E-commerce Development Master Plan for 2026-2030". The country is a key signatory to the ASEAN Agreement on E-commerce and is actively negotiating the ASEAN Digital Economy Framework Agreement (DEFA). The government has set ambitious goals for 2025, aiming for the digital economy to contribute approximately 20% of the national GDP, with per capita GDP reaching between $4,700 and $5,000.
Market Dynamics: Platforms and SMEs
Major e-commerce platforms have been pivotal in realizing Vietnam's digital ambitions. Shopee Vietnam, for instance, has launched initiatives to train tens of thousands of SMEs in digital business skills, with a goal to train 100,000 SMEs in 2025. These programs have yielded significant results, with some supported traditional villages reporting revenue increases of up to 20 times.
However, early 2025 saw a significant consolidation in Vietnam's e-commerce market. Stricter government regulations on counterfeit goods, product quality, and tax transparency, combined with rising platform fees, led to a sharp decrease of around 80,000 active sellers compared to the first half of 2024. While this has created a more controlled, quality-focused market, it poses a challenge for the SMEs that form the backbone of the Vietnamese economy, accounting for over 97% of all enterprises. This market shift has favored official brand stores, which saw substantial sales growth on platforms like Shopee (63.3%) and TikTok Shop (107.3%).
Products, Challenges, and Opportunities
Vietnam is strategically positioned to succeed in AOSD due to the strong alignment between its key export categories and the most popular online shopping products in ASEAN. Vietnam's major exports include electronics, computers and components, textiles, and machinery, which match the top online consumer demands for electronics (purchased by 87% of online shoppers), fashion (68%), and personal care (66%).
Despite this advantage, Vietnam faces significant hurdles:
· Human Resources: A critical skills gap exists, with only about 30% of the e-commerce workforce meeting job requirements.
· Infrastructure: Deficiencies in payment and logistics infrastructure, along with data security concerns, remain major barriers.
· Policy Gaps: A lack of suitable regulatory frameworks for B2B and C2C cross-border e-commerce needs to be addressed.
Nevertheless, the opportunities are immense. The ASEAN e-commerce market is projected to potentially triple to $300 billion by 2025, and Vietnam is ranked among the world's fastest-growing retail e-commerce markets. Strong government commitment to infrastructure development and digital transformation, coupled with significant foreign direct investment, provides a powerful tailwind for growth.
As AOSD 2025 unfolds, Vietnam continues to lead the charge, leveraging the event to advance its national goals and solidify its position as a digital powerhouse in a rapidly integrating ASEAN economic community.