2026.06.04 Vietnam E-Commerce Enters Duopoly Era, TikTok Shop Share Soars to 44%

Vietnam E-Commerce Enters Duopoly Era, TikTok Shop Share Soars to 44%

A recent Q&Me report reveals that the total GMV of Vietnam's top four e-commerce platforms reached $13.6 billion over the past year, a 37% year-on-year increase. Shopee maintained its lead with a 53% share, but this represents an 8-percentage-point decline, with GMV growth slowing to 21% at $7.29 billion. In stark contrast, TikTok Shop experienced explosive growth, with GMV surging 83% to $5.96 billion and its market share climbing from 33% to 44%. Together, these two platforms now command nearly 97% of the market, severely squeezing the survival space for Lazada and Tiki. Vietnam's e-commerce market has officially entered a duopoly-driven phase of fierce competition, where cross-border sellers must adapt strategies to navigate the dominance of Shopee and TikTok Shop.

Vietnam's Trade Deficit Hits Record High in May

Vietnam's trade deficit soared to a historic high in May, driven by rising global raw material costs pushing up import spending and exporters' concerns over new U.S. tariffs hampering overseas sales. Data released Wednesday by the General Statistics Office in Hanoi showed the trade deficit widening to $5.21 billion, sharply exceeding the market consensus of $3.98 billion and the revised $3.99 billion deficit in April. Exports grew 18% year-on-year in May, falling short of economists' 19.7% forecast, while imports surged 33.8%, beating expectations. For cross-border sellers, this signals potential currency volatility and changing import costs, making it crucial to monitor supply chain expenses and adjust pricing strategies accordingly.

Indonesia Permanently Extends 0.5% Income Tax Rate for Micro, Small Businesses

The Indonesian government has officially issued Government Regulation No. 20/2026, making permanent the 0.5% income tax rate for individual micro, small, and medium enterprises (MSMEs) that was set to expire in 2025. The policy applies to individual business operators, sole proprietorships, and cooperatives with annual turnover not exceeding 4.8 billion Indonesian rupiah. The new regulation also closes a loophole on splitting turnover to avoid taxes, requiring consolidated reporting for multiple sole proprietorships under the same entity or businesses managed by a married couple. This move ensures tax incentives target genuine small businesses while stabilizing market expectations and reducing compliance costs, offering long-term policy certainty for Indonesian SMEs—a key consideration for cross-border sellers operating in the region.