Vietnam's e‑commerce boom squeezes small sellers while craft villages seek digital growth

Vietnam's e‑commerce market is expanding rapidly, reaching an estimated $31‑32 billion in 2025 with annual growth around 25 %. The growth is concentrated in large platforms and well‑funded brands, leaving many individual online sellers struggling.

Small entrepreneurs such as Nguyen Thu Trang, who once earned up to 20 million VND per month livestreaming cosmetics, now see net profits reduced to a few million VND after advertising, platform fees and logistics costs. Similarly, IT engineer Le Minh Duc closed his phone‑accessory shop, citing competition from large sellers with direct factory supply and professional content teams.

Conversely, traditional craft villages are turning to e‑commerce to reach new customers. Hoang Thi Phuong of the Van Phuc silk village stresses that online sales help tell cultural stories and protect heritage, while Dang Dinh Tuc of Bat Tràng pottery notes that 60 % of local producers now use social media and 20 % sell on major platforms such as Shopee, Tiki and even Amazon. These villages still face hurdles, including cheap industrial competition, limited digital skills, and fragmented online infrastructure.

Overall, the sector’s rapid digitalisation is reshaping Vietnam’s retail landscape, rewarding large players and digitally‑savvy artisans while pressuring small, low‑margin sellers.