The Southeast Asia E-commerce Expansion is moving faster than ever. In just one year, from 2022 to 2023, the region's online shopping market grew from $99.5 billion to $114.6 billion in gross merchandise value (GMV). That’s a 15% increase. Compared to 2020, it’s more than doubled. This strong growth shows how Southeast Asia is becoming a major player in the global digital economy.
Read Also: E-commerce Explosion: Key Trends in Southeast Asia’s Digital Market
Vietnam and Thailand Lead the Southeast Asia E-commerce Expansion
While all countries are growing, Vietnam and Thailand are leading the pack. In 2023, Vietnam’s e-commerce GMV shot up by 52.9%. Thailand followed with a 34.1% increase. These jumps show how smaller markets are starting to grow faster than expected.
On the other hand, Indonesia remains the region’s largest e-commerce market. It contributed 46.9% of Southeast Asia’s total GMV in 2023. However, its growth slowed to just 3.7%, a sign that mature markets may expand more steadily moving forward.
TikTok Shop and Live Commerce Are Changing the Game
New platforms and shopping methods are driving big changes. One example is TikTok Shop, which grew its GMV to $16.3 billion in 2023. That’s four times more than the year before. It’s now the second-largest e-commerce platform in Southeast Asia, just behind Shopee.
Live commerce is also becoming more popular. In countries like Vietnam, Thailand, and Indonesia, online influencers—often called Key Opinion Leaders (KOLs)—are selling millions of dollars in products during a single live session. This mix of entertainment and shopping is reshaping how people buy online.
What to Expect in Southeast Asia E-commerce Expansion: Future Forecasts Through 2030
The outlook for Southeast Asia’s internet economy is strong. It is expected to grow from $194 billion in 2023 to over $330 billion by 2025. E-commerce is one of the main forces behind this growth.
By 2030, countries like Vietnam, Thailand, and the Philippines are expected to more than double their current e-commerce market values. This will bring even more competition, innovation, and investment to the region.
Read Also: Unlocking Southeast Asia Business Insights for Investors
Trends in Consumer Behavior and Payment Methods
Consumer habits are changing too. Products like consumer electronics, fashion, and toys/hobbies are expected to lead revenue growth through 2027 in the broader Asia-Pacific region. For example, Lazada and Shopee report that electronics sales in Indonesia and Vietnam grew by over 40% YoY in 2023, while fashion e-commerce in the Philippines surged by 35%.
Payment preferences are also evolving. Cash is no longer king. Now, credit cards and local digital wallets are the top payment choices for online shoppers in Southeast Asia. In Singapore and Malaysia, digital wallets like GrabPay and ShopeePay now account for over 50% of online transactions, while BNPL platforms such as Atome and Kredivo are gaining traction in Indonesia and the Philippines. These digital payment options are expected to keep growing fast through 2026.
Southeast Asia E-commerce Expansion: The Digital Future
The Southeast Asia E-commerce Expansion shows no signs of slowing down. Rapid growth in countries like Vietnam, the rise of live commerce, and major shifts in how people pay all point to a digital future. With GMV set to climb and the internet economy expected to hit $330 billion by 2025, Southeast Asia is proving that its e-commerce boom is just getting started.
