Amazon’s plan to turn Vietnam into its e-commerce export hub for Southeast Asia by 2026 marks an important step in the country’s transition from a manufacturing powerhouse to a digitally integrated trading economy.
This development reinforces Hanoi’s long-term goals of upgrading export sophistication, expanding small business participation in global trade and embedding the economy more deeply in cross-border digital commerce.
Since joining the WTO in 2007, Vietnam has transformed into one of Asia’s most export-dependent economies. In the first ten months of 2025, total exports reached US$391 billion, up 16% year-on-year. The foreign-invested sector accounted for 76% of that total, showing deep integration into global production chains, particularly in electronics, machinery and textiles.
While the scale is impressive, most exports remain in low-margin manufacturing or assembly, where value is captured offshore. The challenge for Vietnam has been to move beyond contract production toward a model that rewards innovation, branding and digital market access.
The country’s e-commerce growth offers a pathway in that direction. Vietnam’s domestic online retail market is expanding rapidly, valued at $25–32 billion in 2025 and growing at nearly 20% annually.
Cross-border e-commerce exports are also accelerating, rising from $3.5 billion in 2023 and projected to reach $5.8 billion by 2028. Over the past five years, the number of Vietnamese products listed on Amazon has increased by more than 300%, with 18 million items now sold globally.
Amazon’s decision fits squarely within this trajectory. By selecting Vietnam as its regional export hub, the company is integrating local production into its global logistics and retail network – a system that now functions as both a physical logistics backbone and a digital supply chain platform.
As a logistics network, Amazon provides warehousing, packaging and last-mile delivery through its Fulfillment by Amazon and Global Logistics programs. Goods produced in Vietnam can now move directly into Amazon’s overseas distribution centers, particularly in the United States and Europe, cutting delivery times and transaction costs. For smaller exporters, these efficiencies can determine whether global sales are commercially viable.
As a supply-chain integrator, Amazon connects producers with consumers through its platform infrastructure: payment processing, marketing, data analytics and compliance management.
Vietnamese sellers will gain not only access to foreign markets but also to systems that help them manage branding, pricing and after-sales service – functions that are normally out of reach for small and medium-sized enterprises (SME). In effect, Amazon lowers the cost of entry into international e-commerce while expanding the skills base needed for firms to compete globally.
The benefits for Vietnam are structural. First, participation in this network could help shift the country’s export profile from low-value assembly to higher-value digital trade. Second, it will likely accelerate investment in warehousing, transport and customs modernization, as both government and private firms adjust to meet Amazon’s logistical standards.
Third, it provides a learning channel: Vietnamese producers gain exposure to global consumer expectations and data-driven business practices, feeding into domestic innovation and quality improvement.
Yet these gains are not guaranteed. Vietnam’s logistics costs remain among the highest in Asia – about 17% of GDP – and its digital-trade governance is still uneven. While Amazon can provide market access, it cannot substitute for coherent policy and infrastructure reform.
Without improvements in customs procedures, supply-chain connectivity and digital payments – and once Amazon’s Fulfillment by Amazon (FBA) fees are factored in – there is a clear risk of a two-speed digital economy: one for established or foreign-invested players that can absorb these friction costs and another for local SMEs that remain priced out of global logistics chains.
The regional landscape also adds pressure. Cross-border ecommerce sales in Southeast Asia reached $17 billion in 2024. With Indonesia leading in terms of market volume, Thailand, Malaysia and the Philippines have registered strong growth while Singapore continues to lead on payments and logistics.
For Vietnam, maintaining its emerging advantage will depend on whether it can deepen institutional capability, ensure fair access for domestic firms and integrate this digital infrastructure into its broader trade strategy.
Ultimately, Amazon’s move reflects a structural reconfiguration of trade rather than a sudden breakthrough. If executed well, this partnership could help Vietnam move beyond volume to value – not just by increasing sales, but by capturing the distributor margins previously lost to offshore intermediaries.
Success would mark a subtle but significant shift: one where “Made in Vietnam” increasingly also means “Marketed from Vietnam”, a sign that the country has begun to claim a larger share of the value it creates.
