Why Vietnam, Singapore and Malaysia Are Key Markets for ASEAN E-Commerce
South-East Asia is one of the world's fastest-growing regions for e-commerce. Vietnam, Singapore and Malaysia in particular stand out as key markets within the ASEAN area, driven by the expansion of digital consumption, a rising middle class and high penetration of mobile internet.
Vietnam is now the third-largest e-commerce market in South-East Asia, after Indonesia and Thailand, with sales exceeding USD 25 billion in 2024. The sector continues to grow at double-digit rates, with estimated growth of 25% in 2025.
Singapore, despite its small population, represents the most mature market in the region: in 2023, e-commerce value stood at around USD 8 billion, with a penetration rate approaching 60%. Malaysia occupies an intermediate but dynamic position, with online sales of USD 13 billion in 2023 (+12% year-on-year) and prospects for further growth to approximately USD 16 billion by 2025.
A feature common to all three markets is the predominant use of smartphones as a purchasing channel. In Vietnam, for example, 92% of online shoppers use their phone to make purchases, while Singapore records mobile penetration exceeding 100%, with more active SIM cards than inhabitants.
Despite these similarities, significant structural differences exist. Vietnam remains an emerging market, characterised by lower average income but among the highest e-commerce growth rates in the region, which in recent years have exceeded 50% on an annual basis. Singapore and Malaysia are more mature markets: in Singapore, consumers prioritise quality, reliability and brand over price, while in Malaysia a strong price sensitivity coexists with growing demand for international products, supported in part by government initiatives aimed at digitalising SMEs.
For Italian SMEs, Vietnam, Singapore and Malaysia therefore represent particularly attractive entry markets within the ASEAN area. Appreciation for imported products is high (more than half of Singapore's e-commerce consists of cross-border purchases), and initial barriers are relatively low, thanks to the widespread use of English (particularly in Singapore and Malaysia) and the presence of established digital platforms that allow selling from Italy without the need for a local physical presence.
Profile of the Local Digital Consumer
The digital consumer in South-East Asia is typically young, active online and mobile-first. Purchase frequency is high: a significant share of users in Vietnam and Singapore shop online at least once a week, driven by ongoing promotions (such as the "flash sale" events tied to dates like "11.11" and "12.12") and a rapidly expanding online offer.
Many consumers discover new products through marketplaces or social media — approximately 57% via e-commerce platforms and 50% via social channels, according to regional studies — while up to 80% of users report being influenced by influencer recommendations in their purchasing decisions. In this context, live selling and content on TikTok and Instagram are widely used; in Vietnam, it is also common for customers to contact sellers via chat (such as Facebook Messenger or Zalo) before finalising a purchase.
Regarding the price-quality relationship, in emerging markets like Vietnam price and promotions remain decisive factors for the majority of consumers. Accordingly, cash on delivery is still one of the preferred payment methods, as it reduces the perceived risk for more price-sensitive buyers.
However, as disposable income and digital maturity increase, attention towards quality, brand and product origin is also growing. Foreign goods are often perceived as more reliable — an element that represents a competitive advantage for "Made in Italy" products. In Singapore, for example, online consumers prioritise authenticity, recognised brands and a high level of service over simple discounts.
In Malaysia, a young user base attuned to global trends is observed, seeking value alongside novelty from international brands, particularly in the fashion and technology segments.
The most promising product categories for Italian exports reflect both the strengths of Made in Italy and the preferences of local digital consumers:
Fashion and accessories consistently rank among the leading e-commerce categories across ASEAN. In Malaysia, for example, the fashion sector generated approximately USD 2 billion in online sales in 2023. This is an area where Italian brands can compete effectively by leveraging design, quality and premium positioning.
Beauty and personal care products also record high demand in regional e-commerce: nearly half of Vietnamese consumers purchase cosmetics online, creating opportunities for natural and mid-to-premium range cosmetics.
Other categories of interest include:
- Home furnishings and design, a segment growing particularly strongly on Malaysian e-commerce platforms; and
- Gourmet food, especially successful in markets such as Singapore, where demand for imported food specialities — including wine, olive oil and artisan pasta — is significant (while taking into account specific local regulations, including halal certification requirements for certain products, as is the case in Malaysia, for example).
E-Commerce Models for Selling from Italy
To sell in Vietnam, Singapore and Malaysia directly from Italy, without a local physical presence, SMEs can adopt several cross-border e-commerce models. Each option entails a different balance of costs, margins, brand control and operational complexity.
Direct cross-border via own website involves selling through a company e-shop, potentially localised for language and currency, with shipment from Italy to the end consumer. This model allows maximum control over brand, pricing and customer experience, as well as direct contact with the customer. On the other hand, it requires significant investment in international digital marketing to generate traffic, customer support in local languages and efficient logistics management.
International and regional marketplaces represent the most immediate channel for reaching South-East Asian consumers. Platforms such as Shopee, Lazada, Amazon (in Singapore), Zalora or TikTok Shop allow foreign sellers to operate in cross-border mode, offering integrated infrastructure for payments, logistics and, in some cases, dedicated fulfilment centres. The main advantage is immediate access to a large, already-engaged user base with a high level of trust in the platform. However, commissions and service costs reduce margins, while intense internal competition limits visibility and brand positioning control. To stand out, it is often necessary to invest in sponsored promotions and comply with rigorous operational standards imposed by the platform. This model is particularly suited to testing a market and generating initial volumes, but less effective for building a direct and lasting relationship with the end customer.
The distributor or local partner model involves indirect selling through an importer or reseller already present in the market, who manages customs clearance, logistics, sales and customer service through their own online and offline channels. This approach significantly reduces operational complexity for the SME and allows the company to benefit from local market knowledge and commercial networks. In return, however, it entails lower margins and a loss of control over pricing and brand positioning, as well as the risk of dependence on the partner's performance. It is a solution suited to companies with limited resources or those seeking a particularly gradual market entry, provided that reliable partners are selected and contractual agreements are clearly defined.
The Most Relevant Marketplaces and Digital Channels
Vietnam: the Vietnamese e-commerce market is dominated by regional marketplaces. The four main players (Shopee, Lazada, TikTok Shop and Tiki) together generate the vast majority of the country's GMV. Shopee is the most widely used platform (over half of transactions), while TikTok Shop is growing strongly, thanks to its integration of video and shopping that attracts younger users. Lazada remains an important player with a loyal user base, and Tiki is a general-purpose local marketplace. Given the prevalence of cash-on-delivery payments, the marketplaces have built their own extensive logistics networks to cover less urban areas as well. Beyond marketplaces, social commerce thrives in Vietnam: many small businesses sell via Facebook (groups, pages) and close sales via chat on Messenger or Zalo, combining elements of personal trust with digital convenience.
Singapore: this is an advanced, omnichannel ecosystem. The leading marketplaces are Shopee and Lazada, which together account for the majority of online sales (Shopee around 52% and Lazada approximately 35% of GMV in 2023). Amazon.sg also operates in Singapore, used for international products and fast delivery, although it faces competition from regional players. A distinctive feature of Singapore is the strong presence of direct brand stores: given the high level of trust and average income, many consumers shop on the official websites (or apps) of local and international brands, expecting premium services (1-2 day delivery, free returns, loyalty programmes). Online and offline are highly integrated: click-and-collect options or the possibility of returning in-store for online purchases are well regarded. Singapore also often serves as a regional hub: many companies choose to establish a warehouse and a regional English-language website here, from which they also serve customers in Malaysia and other neighbouring countries.
Malaysia: the Malaysian landscape is similar to Vietnam's in terms of marketplaces. Shopee is dominant (over 40% of e-commerce traffic), followed by Lazada, while TikTok Shop is growing rapidly (already surpassing a 13% regional share and doubling its sales year-on-year in Malaysia). Vertical local marketplaces exist, such as Zalora for fashion, but they represent niche segments. A notable feature is the strong integration between social media and shopping: Malaysian consumers are very active on Facebook, Instagram and TikTok, and often discover products through these channels before purchasing them on marketplaces. Brands collaborate with local influencers and use live streaming on social platforms to promote offers, aware that social recommendation is a key driver of online sales in Malaysia.
Key Regulatory and Customs Considerations
In cross-border e-commerce towards ASEAN, duties and import taxes directly affect the final price and customer experience. While low-value B2C purchases often benefit from simplified procedures, the regulatory framework is evolving.
Singapore, for example, has eliminated the GST exemption threshold and now applies a GST of 8% on all imported goods, regardless of value. Malaysia introduced, from 1 January 2024, a 10% sales tax on online purchases from abroad valued at less than MYR 500 (approximately €104).
In this context, it is essential to communicate any customs costs clearly in order to avoid "surprises" at delivery, which remain one of the main reasons for cart abandonment. Many companies therefore choose to incorporate duties and taxes into the final price upfront (Delivered Duty Paid shipments) in order to improve transparency and conversion rates. For higher-value shipments, it is also essential to prepare accurate documentation (proforma invoice, correct descriptions, HS codes) to avoid delays or customs hold-ups.
In terms of product compliance, the direct cross-border model offers greater flexibility than traditional importing: it is generally not required to adapt labelling to local languages (Vietnamese or Malay), and labels in Italian or English may be maintained. This does not, however, exempt sellers from compliance with safety standards and sector-specific regulations in the destination country. Electronic products, cosmetics, food, toys and supplements often fall under regulated categories and may require specific certifications or notifications (such as the Safety Mark in Singapore or SIRIM in Malaysia). Non-compliance can result in customs seizures or subsequent penalties. When operating through a local distributor, these aspects are normally handled by the partner, including local-language labelling for domestic sale.
Finally, SMEs must take into account a number of recurring operational risks, including customs errors, payment fraud and intellectual property protection. Relying on freight forwarders specialising in e-commerce to Asia, using secure payment systems or selling through marketplaces significantly reduces exposure to risk. On the IP front, preventive trademark registration in key countries (particularly Vietnam and Malaysia) is a relatively low-cost but strategic measure to prevent improper use or opportunistic registrations. In general, an informed and gradual approach, supported by export consultants or institutions such as ICE, enables compliant and sustainable operations in ASEAN markets.
Compliance and Risks in Cross-Border E-Commerce to ASEAN
| Area | What to Consider | Operational Impact |
|---|
| Duties and taxes | 8% GST on all imports in Singapore; 10% sales tax in Malaysia on goods under MYR 500 (approx. €104) | Increase in final price; need for transparent communication |
| Customs strategy | DDP shipments, accurate documentation, correct HS codes | Better customer experience, fewer delays |
| Labelling | More flexible in B2C cross-border | Reduced entry costs and lead times |
| Product compliance | Certifications for electronics, cosmetics, food, etc. | Risk of customs hold-ups if non-compliant |
| Intellectual property | Local trademark registration | Brand protection over the medium-to-long term |
| Payments and fraud | Marketplaces or secure payment systems (3D Secure, PayPal) | Reduced risk of fraud and chargebacks |
When to Move from Cross-Border to a Local Presence?
A key strategic question, once sales in ASEAN have begun through cross-border e-commerce, is whether and when to establish a local presence. The decision depends on several key signals: high volumes of repeat orders from a single market; growing costs and logistical complexity of international shipments; or increasingly frequent requests from customers for fast delivery, simplified returns or local points of contact. Interest from partners in the territory (such as distributors or platforms proposing promotional collaborations) also indicates that the brand is reaching a critical mass that would justify scaling up.
A local presence, if supported by adequate volumes, allows for a drastic reduction in delivery times, lower unit logistics costs and an improved post-sale experience, particularly in managing returns and customer service. The path is often gradual: many SMEs begin by testing the market through cross-border marketplaces, then move to regional warehouses in Asia, and only subsequently evaluate the opening of a local entity or more structured partnerships.
This progressive approach allows financial and operational risks to be kept to a minimum, transforming cross-border e-commerce into an effective springboard towards a stable and sustainable presence in South-East Asian markets.
Conclusion
In conclusion, Vietnam, Singapore and Malaysia today represent three key markets for Italian SMEs seeking to expand their online sales in South-East Asia. The combination of digital consumption growth, the spread of mobile commerce and openness towards international products creates a favourable environment, provided that market entry is approached in a structured and informed manner.
Cross-border e-commerce allows demand to be tested with limited initial investment, while careful planning of channels, compliance and logistics helps reduce operational risks.
With a gradual strategy adapted to local specificities, ASEAN has the potential to become an important medium-to-long-term growth driver for Made in Italy.