As Vietnam steps into an era of rapid economic expansion, its e-commerce market emerges as a cornerstone of growth. The Vietnam E-commerce Intelligence 2025 report forecasts staggering growth, predicting the market will reach $49.9 billion by 2028, driven by the rising purchasing power of two key demographics: Gen Z and Millennials. This transformation isn’t just about numbers—it’s a fundamental shift in consumer behavior, preferences, and expectations. For marketing, PR, and communication professionals, understanding these dynamics is crucial to unlocking Vietnam’s full e-commerce potential.

The Forces Behind Vietnam’s E-Commerce Boom

Vietnam’s e-commerce market is expected to grow at a 35% compound annual growth rate (CAGR) over the next five years. This growth stems from two key forces:

1. Shoppertainment—a blend of shopping and entertainment that dominates platforms like TikTok Shop and livestream e-commerce.
2. High-value baskets—as consumers’ incomes rise, so does their willingness to spend on higher-priced goods, particularly among Millennials.

Simultaneously, Vietnam’s young population is a critical driver. With 65% of online shoppers split almost equally between Gen Z and Millennials, brands must tailor their strategies to capture both demographics’ distinct behaviors and desires.

Gen Z: The Digital-Native Innovators

Gen Z, born between the late 1990s and early 2010s, grew up in a digital world shaped by social media, mobile devices, and seamless e-commerce experiences. Their buying habits reflect an appetite for entertainment, self-expression, and instant gratification. Gen Z shop frequently—2-3 times a month—but spend modestly, often influenced by viral trends, micro-influencers, and shoppertainment. Categories like fashion, beauty, and personal care dominate their carts.

Millennials: The Balanced, High-Value Shoppers

Unlike Gen Z, Millennials—Vietnam’s working-age powerhouse—shop online with purpose and spend significantly more per transaction. Shopping 1-3 times weekly, Millennials prioritize convenience, clear information, and a seamless pre- and post-purchase experience. Their carts often include high-value items like home appliances, consumer electronics, and products for family use.

Strategic Takeaways for Brands
Vietnam’s e-commerce growth is an opportunity, not a given. Brands must align their strategies with consumer behaviors while maintaining agility in a fast-changing market.

1. 1. Understand Your Audience Deeply: Data-driven insights into what Gen Z and Millennials value—entertainment, community, or convenience—are essential.
   2. Leverage Shoppertainment: Platforms like TikTok Shop demonstrate that entertainment-led shopping drives sales. Invest in engaging livestreams and influencer collaborations to connect authentically with younger audiences.
   3. Prioritize Post-Purchase Experiences: For Millennials, excellent customer care—such as follow-up communications and personalized guidance—can transform a transaction into brand loyalty.
   4. Stay Agile with Trends: Viral trends move fast, especially for Gen Z. PR and marketing campaigns must be nimble, leveraging influencers and creating playful, current messaging.
   5. Build Communities: Whether through fitness clubs, tech forums, or niche interest groups, brands can foster loyalty by offering spaces for connection.

The Road Ahead

Vietnam’s e-commerce market is primed for explosive growth, but only brands that listen to consumers, innovate with purpose, and deliver authentic value will thrive. Marketing and communication professionals must recognize the nuanced differences between Gen Z’s trend-driven spontaneity and Millennials’ demand for convenience and trust.

*This blog post was originally published on EloQ Asia’s website.