How To Start Dropshipping In Vietnam In 2025
Why start dropshipping
In the ever-evolving world of ecommerce, dropshipping stands out as a beacon of opportunity.
This model allows you to launch your online store with minimal investment and no inventory headaches.
You’re at the right place to explore a business model that adapts to your lifestyle.
Imagine curating products that resonate with your audience while enjoying the flexibility to work from anywhere.
Dropshipping empowers you to connect with customers globally and build a brand that reflects your passions.
Keep reading to learn more!
How dropshipping works
Why start dropshipping in Vietnam
Vietnam has rapidly emerged as a dynamic and promising market for entrepreneurs, particularly those looking to venture into dropshipping. The country’s robust economic growth, expanding middle class, and increasing internet penetration make it an attractive destination for launching a dropshipping business. According to recent data, Vietnam’s ecommerce market is projected to grow at a compound annual growth rate of 20% over the next five years. This rapid expansion is driven by a growing number of internet users and increasing consumer confidence in online shopping.
One of the key advantages of starting a dropshipping business in Vietnam is the country’s competitive labor costs. Vietnam offers a skilled workforce at a fraction of the cost compared to developed countries, which can significantly reduce operational expenses. This cost advantage is particularly beneficial for startups that need to manage their budgets carefully. Additionally, Vietnam’s strategic location in Southeast Asia provides access to a vast regional market, making it easier to scale the business beyond national borders.
Vietnam’s business environment is also highly supportive. The government has implemented various initiatives to promote entrepreneurship and innovation, including tax incentives and streamlined business registration processes. For instance, the Vietnam Ecommerce Association (VECOM) provides resources and support for ecommerce businesses, helping new entrants navigate the market.
Another significant advantage is the strong logistics network in Vietnam. The country has invested heavily in modernizing its transportation infrastructure, including ports, airports, and highways, which facilitate the efficient movement of goods. This is crucial for dropshipping, where timely delivery is essential for customer satisfaction.
All in all, the country’s rapid economic growth, competitive labor costs, and supportive business environment make it an attractive destination for entrepreneurs looking to enter the ecommerce market. By carefully navigating the challenges, businesses can capitalize on the opportunities and achieve sustainable growth.
Advantages and disadvantages of dropshipping in Vietnam
Advantages of dropshipping in Vietnam
1. Rapidly growing ecommerce market
Vietnam’s ecommerce market is projected to grow at a compound annual growth rate of 20% over the next five years, driven by a growing number of internet users and increasing consumer confidence in online shopping. This rapid expansion presents numerous opportunities for dropshipping businesses to tap into a growing market.
2. Competitive labor costs
Vietnam offers a skilled workforce at a fraction of the cost compared to developed countries. This cost advantage can significantly reduce operational expenses, making it more feasible for startups to launch and grow their dropshipping businesses.
3. Strategic location
Vietnam’s strategic location in Southeast Asia provides access to a vast regional market, making it easier to scale the business beyond national borders. The country’s modern transportation infrastructure, including ports, airports, and highways, facilitates the efficient movement of goods, which is crucial for maintaining customer satisfaction.
4. Supportive business environment
The Vietnamese government has implemented various initiatives to promote entrepreneurship and innovation, including tax incentives and streamlined business registration processes. The Vietnam E-Commerce Association (VECOM) provides resources and support for ecommerce businesses, helping new entrants navigate the market.
5. Robust IT infrastructure and digital literacy
Vietnam’s robust IT infrastructure and high digital literacy support the development and maintenance of online platforms, ensuring a smooth and secure shopping experience for customers. This is particularly beneficial for dropshipping, where a reliable and user-friendly online presence is essential.
Disadvantages of dropshipping in Vietnam
1. Complex regulatory environment
While the regulatory environment in Vietnam is generally supportive, it can be complex, especially for foreign entrepreneurs. Navigating the legal and administrative requirements can be time-consuming and may require the assistance of local experts, increasing operational costs.
2. Competition from established players
The ecommerce market in Vietnam is becoming increasingly competitive, with established players already dominating certain sectors. New entrants may find it difficult to gain a foothold and attract customers, especially in saturated markets.
3. Language barriers
For non-Vietnamese speakers, language can be a significant barrier. While many Vietnamese people speak English, especially in urban areas, effective communication with suppliers, customers, and local authorities may require proficiency in Vietnamese, which can be a challenge for international entrepreneurs.
4. Logistics challenges
While Vietnam’s logistics network is robust, there can be challenges in ensuring timely and efficient delivery, particularly in more remote areas. This can impact customer satisfaction and business growth.
While some may argue that dropshipping has its challenges, the ability to start a business with minimal upfront investment and the flexibility to operate from anywhere makes it a compelling choice for aspiring entrepreneurs ready to embrace the digital marketplace.
What to dropship?
How much can you make with dropshipping?
How far you can go with dropshipping: real-life experience
FAQ
Is dropshipping legal in Vietnam?
Yes! When you are dropshipping, you are not ‘fooling’ anyone, and you are not breaking any laws. You are simply helping other people receive the items they want - and enjoy the perfect customer service you provide.
However, pay attention to your choice of products. It is illegal to sell branded, copyrighted items, or things like weapons (even their sports or hunting models), knives, smoking mixtures, etc.
How much money do I need to start?
At least $150 is necessary - let’s do the maths.
If you have some technical skills and can assemble and set up a website yourself, you will need around $150.
First of all, you will need to buy a domain name (a good one costs about $10-15, and you will need to pay this fee every year to prolong your registration).
After that, you need a hosting: a server that makes your store info visible to the Internet user. You can use the basic hosting service from AliDropship (‘Silver Plan’) and only pay $69 per year.
Then, you will need to install WordPress, which is absolutely free, and buy AliDropship plugin, which costs $89. It should be enough: WordPress + AliDropship make a proper basis to create a fully functional dropshipping store.
If you don’t have these technical skills, you can order a ready-made store based on the AliDropship plugin. It will be made for you personally by an expert team: the specialists will even add the first products to your store. So, technically, it will be ready to sell items from day 1. The basic ready-made dropshipping store costs $299; together with the annual domain fee, you will have to pay $310-315 to launch your business.
How to choose the store niche?
First, it should be something that you really like - or, at least, know deeply. You will be picking products, making advertisements, and advising customers, so you absolutely need to be a pro in this.
Also, this niche should be popular with buyers and easy to promote online. Here is a complete niche selection guide that will help you!
What country to target?
Living in Vietnam, you are not limited to your local market. You can serve customers all over the globe, even in the countries of Europe and North America. Remember your store niche and think who might be interested in these products. Where do these people live, most likely? That’s your target region!
Where to find the products?
AliDropship plugin lets you easily import products on your dropshipping website. Basically, it transfers the products’ titles, descriptions and images in a single click. So, all you need to do is browse and find good quality products from reputable sellers.
Alternatively, you can use a database of over 50,000 selected products which are guaranteed to be in high demand. This database is available within AliDropship plugin: you can see it when you go to the Import section of your AliDropship-based store. The best part is that all the products’ titles and descriptions are already edited there, so you won’t spend your own time doing this yourself.
If I sell products, how can I compete with AliExpress itself?
AliExpress is a large shopping platform where sellers offer everything at once. At the same time, your niche dropshipping store is focused on a specific range of products. Surely, you are more client-oriented than a large-scale store, and this is why buyers will choose you over.
Will my buyers know they are actually buying items?
It’s not likely. Even if they see Chinese names/addresses/characters on the wrapping paper, it won’t tell them anything. Lots of warehouses and manufacturing facilities of the largest global companies are situated in China, so there is nothing strange if a buyer receives a package of the Chinese origin.
Also, you can write your suppliers directly and ask them not to put any promotional materials into the package. Sellers are always glad to partner with dropshipping store owners because this partnership is profitable, so they will be happy to help you.
Will my buyers agree to a long delivery?
Long delivery itself isn’t a problem. Your customers are not buying life critical items from you, so they don’t mind waiting - especially, if you offer them an appealing price and a low-cost shipping.
Besides, you can choose the ePacket delivery method which cuts up the delivery time significantly. With ePacket, it will take the packages 7-15 days to arrive.
What if a buyer asks me for a refund?
Refunds are the responsibility of the original suppliers. Usually, they refund low-cost purchases really quickly, so there is nothing for you to worry about.
How to promote the store?
To make profit from your store, you first of all need to attract traffic to it. There are lots of ways to promote your store online for free, so pick the ones you personally like. Also, read the free marketing tips for dropshipping business: an experienced team brings them to you every week!
Will WordPress or AliDropship limit my activity and charge business fees?
No. The only recurring fee is the domain fee - you will have to pay for it every year, otherwise, your site won’t be visible on the Internet.
WordPress is completely free, and all the AliDropship solutions only require a one-time payment. Whatever AliDropship tool or service you get, you remain a full owner of your business. There are no limits on the amount of orders you can accept, or the volume of profit you make, or the quantity and the content of the products you import, etc. You are your own boss!
Free Dropshipping Guide
