The ASEAN‑6 retail e‑commerce market – comprising Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam – is estimated to have a gross merchandise value (GMV) of US$136 billion in 2024, having risen from just US$35 billion in 2019, which translates to a compound annual growth rate (CAGR) of 31% over this period. The market is forecast to grow further to US$261 billion by 2029, or at a CAGR of 14% between 2024 and 2029.
The region’s diverse economic and consumer environment also poses its own set of challenges, ranging from regulatory hurdles to fierce competition, however. This article frames ASEAN retail e‑commerce through several factors: its growth outlook, demographic composition, the payment landscape, and cross‑border regulations.
Four ASEAN countries are among the top 10 fastest growing online retail markets globally
According to estimates by Euromonitor, four ASEAN countries (Vietnam, Thailand, the Philippines and Indonesia) are among the top 10 fastest growing retail e‑commerce markets globally, with respective CAGRs ranging from 28% (Indonesia) to 34% (Vietnam).
This trend of sustained and rapid growth is likely to continue in the coming years, with retail e‑commerce markets in the ASEAN‑6 countries expected to grow at a rate of double digits annually from 2024 to 2029, with the only exception of Malaysia, whose anticipated rate is 9%.
Favourable demographics for consumer markets
Demographics vary widely in terms of population size, GDP per capita, culture, language and religion within the ASEAN‑6 countries.
Singapore has the highest GDP per capita within the grouping (US$90,700). It also has one of the highest levels of internet penetration, but the smallest population. Outside of Singapore, the major population centres of over 100 million people – namely Indonesia, the Philippines and Vietnam – all have GDP per capita of about US$4,000 ‑ US$5,000 and internet penetration rates of around 70%.
However, it is in these more populous – and less affluent economies – where e‑commerce markets are forecast to grow fastest, underpinned by factors such as a young and growing consumer class, rising urbanisation, and greater access to e‑commerce via smartphones.
Digital wallets are key but cash still plays a role
Digital wallets remain the predominant method of paying for e‑commerce purchases in the ASEAN‑6, facilitated by factors such as greater smartphone use, higher digital connectivity, and the rising popularity of local or regional payment applications.
Notably, credit card usage features less prominently in payments for e‑commerce transactions outside of Singapore. Buy now, pay later schemes, as another form of credit‑like payment, represent the smallest share of payment methods. In contrast, payments via bank transfers and bank cards remain popular, together accounting for between 20% (in Singapore) and 50% (in Thailand) of e‑commerce payments.
Cash on delivery also remains an important payment method, accounting for between 5% and 18% of payment methods in the ASEAN‑6.
Regulations tighten on low-value imports
Low‑value imports are increasingly being subject to taxes within ASEAN‑6 economies, potentially making it costlier for consumers to buy products from overseas via cross‑border e‑commerce.
For instance, Indonesia lowered the value at which taxies are levied on imports (the “de minimis” value), from US$100 to US$3 over the 2017‑2020 period. Singapore and Malaysia also began levying sales taxes on low‑value goods in 2023 and 2024 respectively. Vietnam repealed VAT exemptions on the import of low‑value goods in early 2025, while Thailand extended a temporary repeal of its VAT exemption on imported goods to the end of 2025.
Outside of taxes and duties, ASEAN‑6 economies are also moving towards greater scrutiny of the e‑commerce market, with stated aims such as consumer protection or protecting local businesses.
For instance, in Vietnam, foreign companies can be subject to regulations such as having to appoint a local authorised representative to handle local queries, including queries from the authorities.7 For foreign e‑commerce trading platforms, a contact point needs to be designated to address consumer complaints and provide information to authorities within 24 hours of being asked.
In the Philippines, local and foreign online retailers are required to register with local authorities and have in place an accessible and efficient redress mechanism for handling complaints from their clients.
The law also states that online retailers are subject to penalties if they are found guilty of any deceptive, unfair or unconscionable sales acts.
Meanwhile, Thailand’s government established a taskforce to monitor low‑value imports in October 2024, and aims to set up measures to control the quality of imported goods and to negotiate with online platforms to ensure compliance.