The booming e-commerce  -  in Vietnam is creating a promising new arena, but the rules of this game are increasingly dictated by foreign platforms.

To consolidate their dominance, these international players are developing closed-loop ecosystems, integrating and tightly controlling key support services such as logistics and payments. According to Google, Temasek, and Bain & Company, Vietnam’s e-commerce  -  reached a gross merchandise value (GMV) of $22 billion in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 28% from 2025 to 2033, according to IMARC.

 -  power is increasingly concentrated in the hands of two giants: Shopee (holding 65% of the GMV share) and TikTok Shop (28%), based on data from Momentum Works. The combined GMV of Shopee, Lazada, TikTok Shop, and Tiki in Vietnam in 2024 is estimated at $16 billion.

These platforms introduced new technologies and reshaped consumer behavior. However, their business models now dominate the entire value chain, gradually transforming local logistics firms from equal partners into dependent players, undermining  -  competition.

Closed-loop algorithms tighten control

Initially, e-commerce platforms and logistics companies collaborated in symbiotic partnerships, with couriers playing an essential role in order fulfillment and  -  expansion.

Now, foreign platforms are shifting to closed ecosystems where logistics and payment services are fully integrated and controlled. While this streamlines user experience, it also restricts competition for businesses outside the ecosystem.

One clear tactic is limiting sellers’ and buyers’ ability to choose logistics providers. This streamlines end-to-end operations and quality control but reduces independent logistics firms to subordinate roles, dependent on the platform’s internal routing algorithms.

These algorithms automatically allocate deliveries to in-house or strategic partners, leveraging their parent platform's order volume. Meanwhile, local logistics firms lose direct access to customers.

Additionally, price-driven competition strategies such as subsidies and free shipping are used aggressively. Experts have warned these practices, if unchecked, risk driving smaller Vietnamese logistics firms out of business and fostering monopolistic conditions.

The flow of money and data moves one way

The implications of this model extend beyond logistics competition. It results in the outflow of critical economic resources.

When foreign ecosystems dominate, profits from every step - platform commissions, payment processing, and delivery fees - are exported rather than reinvested in Vietnam's domestic economy.

Even more significant than financial capital is data. By controlling the entire transaction journey, from order to delivery, foreign platforms gain access to valuable insights on consumer behavior, supply chains, and  -  trends.

If this data is monopolized by foreign entities, Vietnamese businesses will find themselves at a long-term disadvantage, unable to understand or respond to their own  -  dynamics.

This issue is not unique to Vietnam. Around the world, regulators are stepping in.

In Indonesia, the Competition Commission launched an investigation in May 2024 into Shopee and Shopee Express for alleged monopolization of courier services.

In Italy, the Competition Authority fined Amazon €1.2 billion in 2021 for abusing its  -  dominance by unfairly favoring sellers using its logistics arm (FBA).

In China, the State Administration for  -  Regulation fined Alibaba 18.288 billion yuan for restricting sellers from opening stores on rival platforms.

These cases highlight a global trend: regulatory intervention to preserve fair competition as digital platforms grow in power.

The state as referee and legal shield

Experts argue that in such an uneven playing field, the government must act as a fair referee to ensure a level business environment. Vietnam’s draft e-commerce law is seen as a vital legal shield to ensure healthy  -  development.

The draft law proposes that large digital platforms must not “force sellers or buyers to use a particular payment or logistics provider without valid reasons.”

This clause restores choice to users, but platforms might circumvent it by offering only two limited provider options rather than full freedom of choice.

As a result, a prominent logistics expert recommends rephrasing the clause to “must not restrict or obstruct users from choosing logistics or payment providers.” This broader language aligns with Article 6.6 of the EU’s Digital  - s Act.

Another provision in the draft law requires logistics firms supporting e-commerce to “have mechanisms to check accompanying documents and refuse to transport counterfeit, illegal, or untraceable goods.”

However, experts say expecting logistics providers to verify the legality of all goods and documentation is unrealistic, given the complexity of legal requirements across product categories.

Instead, a domestic courier executive proposes a more practical wording: “Logistics providers must have mechanisms to inspect goods before shipping and must refuse prohibited, counterfeit, or untraceable items if detected during service provision.”

To address aggressive pricing by dominant platforms, the draft law should also prohibit the sale of goods or services “below total cost when it may result in eliminating competitors.” This targets “burn rate” strategies used to capture  -  share at the expense of small businesses.

Ultimately, the goal of this legal framework is not to shield local companies from competition or block foreign investment, but to create a fair environment where all players, domestic or international, must compete based on core capabilities. This will provide a foundation for sustainable growth in Vietnam’s logistics sector in the digital era.

Thai Khang