Digital Transformation and Its Impact on Retail Sector in Vietnam

This study examines the impact of digital transformation on Vietnam’s retail sector, a rapidly growing digital economy in Southeast Asia. Using a mixed-method approach combining statistical analysis and case studies of platforms such as Shopee and TikTok Shop, the research identifies key drivers, structural changes, and policy implications. The findings show that rising internet penetration, widespread mobile device usage, and the expansion of digital payment systems are the main drivers of transformation, supported by government initiatives. Digitalization has significantly contributed to GDP growth, reshaped industry structure, and enhanced market access for small and medium-sized enterprises. However, challenges remain, including digital inequality, limited workforce skills, and environmental concerns linked to e-commerce logistics. The study concludes that while digital transformation is a key driver of economic growth, sustained policy support and investment are essential to ensure inclusive and sustainable development in Vietnam’s retail sector.