AI and Personalization: Revolutionizing E-Commerce for Gen Z in Vietnam

Established in 2023, BDP+Partners is a forward-thinking consulting firm dedicated to delivering innovative strategies, operational excellence, event management, and sustainable revenue growth for clients across F&B, hospitality, e-commerce, and luxury industries. With a track record of successful market entries and expansions—such as introducing EVEBOT Coffee Printer to Vietnam, generating over 5 billion VND in revenue since 2023—we empower businesses to thrive in dynamic markets through bold, daring, and purposeful solutions. As Vietnam's e-commerce sector surges forward, BDP+Partners innovates with AI-driven personalization to transform platforms and engage Gen Z consumers. This extensive post explores how AI is revolutionizing e-commerce in Vietnam for 2025, focusing on personalization trends, Gen Z shopping behaviors, market insights, challenges, opportunities, case studies, and projections. Drawing from recent industry reports and data, we offer actionable strategies for businesses to leverage this digital shift and accelerate revenue in a market projected to reach US$49.9 billion by 2028.

Market Overview: Vietnam's E-Commerce Explosion in 2025

Vietnam's e-commerce market is experiencing unprecedented growth in 2025, driven by digital adoption, mobile penetration, and innovative technologies like AI. Revenue is projected to reach US$13.81 billion in 2025, with an annual growth rate of 7.99% (CAGR 2025-2030), resulting in a market volume of US$20.5 billion by 2030. The business-to-consumer (B2C) segment is particularly robust, with forecasts indicating a value of US$49.9 billion by 2028, growing at a 35% CAGR from 2025 onward, making Vietnam the second-largest e-commerce market in Southeast Asia behind Indonesia.

This expansion is fueled by a youthful population—over 60% under 35—and high smartphone usage, with 92% of online shoppers relying on mobile devices for purchases. In the first half of 2025, online retail sales surged 42% year-over-year, reaching US$7.8 billion, highlighting the sector's dynamism amid economic recovery. Platforms like Shopee, Lazada, Tiki, and TikTok Shop dominate, with Shopee holding 65% market share through features like AI-powered recommendations and live commerce.

AI integration is a game-changer, with 66% of businesses using it for customer communication and 63% for acquiring new customers. Personalization, powered by big data and machine learning, enhances user experiences by offering tailored product suggestions, boosting conversion rates by up to 20%. The market's value is further amplified by cross-border trade, with imported goods generating VND 7.5 trillion (US$285 million) in H1 2025. As Vietnam's digital economy matures, e-commerce penetration is expected to hit 29.7% in 2025, rising to 32.2% by 2030, with average revenue per user (ARPU) at US$568.46.

Regulatory frameworks, such as the Draft E-Commerce Law 2025, emphasize consumer protection and AI ethics, fostering a secure environment for growth. This overview sets the stage for understanding how AI personalization is not just a tool but a necessity for engaging Vietnam's tech-savvy consumers.

Key Trends in AI and Personalization for E-Commerce

In 2025, AI is reshaping Vietnam's e-commerce through advanced personalization, automation, and data-driven insights. Trends include AI-powered chatbots, predictive analytics, and customized recommendations, which minimize irrelevant ads and build consumer trust. For instance, platforms leverage AI for dynamic pricing and inventory management, enhancing efficiency and customer satisfaction.

Shoppertainment—blending entertainment with shopping via live streams and AR—is amplified by AI, with TikTok's sales up 113.8% in Q1 2025. Data precision and vision technologies, as discussed by experts at events like AI Day, enable hyper-personalized experiences, such as virtual try-ons for fashion. In digital marketing, AI tools like generative content and sentiment analysis are revolutionizing campaigns, with 78% of online users engaging with AI features.

Sustainability integrates with personalization, where AI recommends eco-friendly products based on user preferences. Cross-border e-commerce benefits from AI-driven logistics, projecting a 28% CAGR through 2033. These trends position Vietnam as a leader in AI-enhanced retail, with businesses adopting tools for faster execution and innovation.

Gen Z Shopping Behaviors: Driving the Digital Shift

Gen Z, born 1997-2012, comprises a significant portion of Vietnam's 57 million online shoppers and is reshaping e-commerce with their digital-native habits. In 2025, they shop frequently—2-3 times monthly—but prioritize value, authenticity, and entertainment, spending less overall (down 13% from January to April) due to economic caution.

Social commerce is their preferred channel, with 70% discovering products via casual platform use like TikTok and Instagram, influenced by KOLs and live streams. They favor multi-purpose platforms blending shopping with social interaction, reflecting a shift towards shoppertainment. AI personalization resonates, with 58% using AI for recommendations, enhancing trust and engagement.

Local pride is evident, with 8 out of 10 supporting Vietnamese brands for authenticity. Sustainability and self-expression drive choices, with Gen Z seeking eco-friendly, personalized items in categories like fashion (63%) and beauty (48%). Their behaviors emphasize instant gratification, with preferences for quick deliveries and seamless payments.

Challenges in AI-Driven E-Commerce

While promising, challenges include data privacy concerns under new regulations, with consumers wary of over-personalization. High implementation costs for AI tools hinder SMEs, and skill gaps in workforce adoption persist. Algorithm biases and counterfeit risks on platforms erode trust, while rural-urban digital divides limit reach.

Economic volatility affects Gen Z spending, requiring balanced strategies. Solutions involve ethical AI frameworks and upskilling programs.

Opportunities for Businesses

Opportunities lie in AI for customized experiences, with predictive analytics boosting sales by 15-20%. Gen Z's affinity for social commerce opens doors for influencer partnerships and live events. Cross-border expansions and sustainable personalization can capture the US$49.9 billion market by 2028.

BDP+Partners recommends integrating AI with storytelling for engaging Gen Z, fostering innovation.

Case Studies: Real-World Successes

TikTok Shop's AI-driven recommendations have propelled 113.8% growth in Q1 2025, tailoring content for Gen Z. Shopee's personalization features, using browsing data, dominate with 65% share.

Tictag's AI solutions enhance precision, redefining e-commerce with trust and speed. These cases show AI's impact on engagement and revenue.

Future Projections and Strategic Recommendations

By 2028, Vietnam's e-commerce could reach US$49.9 billion, with AI personalization driving 35% CAGR. Projections include increased AR/VR integration and ethical AI adoption. Gen Z will continue leading, with shoppertainment surging.

Recommendations: Invest in AI tools, prioritize data ethics, and engage via social platforms. BDP+Partners offers tailored solutions for this revolution.

In conclusion, AI and personalization are revolutionizing e-commerce for Gen Z in Vietnam, unlocking bold growth. Transform your platform with our expertise, reach out today.