Vietnam also surpassed the Philippines to become the third largest e-commerce market in the region.

The total merchandise value (GMV) of the top eight e-commerce platforms in Southeast Asia reached 114.6 billion USD in 2023, a year-on-year increase of 15%.

The report showed although the macro economy still has many difficulties, the Southeast Asian e-commerce has grown continuously and this year's GMV is predicted to be double that of 2020.

Vietnam and Thailand are the two fastest growing e-commerce markets, with GMV increasing by 52.9% and 34.1% respectively over the same period last year.

Vietnamese e-commerce has grown continuously with an average growth rate of 16-30% per year in the past four years, the highest growth rate in the world.

Meanwhile, Indonesia is still the largest e-commerce market in ASEAN, contributing 46.9% to the region's GMV.

In the Southeast Asian market, Shopee will achieve total GMV revenue of 55.1 billion USD last year, accounting for 48% of the market share.

TikTok Shop has become the second largest e-commerce platform in Southeast Asia, after acquiring Tokopedia.

The commerce platform's GMV nearly quadrupled over 2022 to reach 16.3 billion USD in the past year.

In Vietnam alone, TikTok Shop is currently the second largest e-commerce platform with 24% market share.

The report also identified some main drivers in the e-commerce industry in the region.

Firstly, KOLs (influencers) selling online are able to navigate the e-commerce market in three markets of Vietnam, Thailand and Indonesia. Even just one livestream session with a KOL can generate millions of dollars in revenue.

Secondly, platforms in the region have begun to adopt innovative AI applications, especially in user experience and operational efficiency.

Thirdly, sellers are also facing pressure from parcel delivery service sourcing platforms./.VNA